Kaizen: Redesigning the Manufacturing Process
Mahinderjeet Singh BamrahUnit #1
MNGT 1710- INTRODUCTION TO BUSINESS
Instructor: Dr. Christian Tabi Amponsah06/10/2018
Table of Contents
Abstract: Page 2
Introduction: Page 3
Case question 1: Page 3-4
Case question 2: Page 4
Case question 3: Page 5
Case question 4: Page 5
Case question 5: Page 6
Conclusion: Page 7
References: Page 7
This paper illustrates an analysis of big companies how important innovation is an organization. Generally, the innovation means changing the processes or creating more effective processes, products and ideas. This case study is of Kaizen: redesigning the manufacturing process which means “Continuous Improvement”. The foundation of Kaizen method consists of five founding elements that are teamwork, personal discipline, improved morale, quality circles and suggestions of improvement. In an organization experts find the major causes of problems and then they implement the steps in order to overcome the problems and then restructure the whole plant operation. Innovation can take place in one function of the company but can have impact on the whole organization. Goals and objectives of the innovative culture must be communicated clearly and promptly.
After implementation of the methods used should be regularly checked and examined on daily basis for improving continuously because it believes that improvement of operation never stops. Manufacturing consultant of TBM Consulting Group surprises to see the ability of Toyota workers work fast as compare to American workers in their plants. And Japanese did this in very simple technology as that employed compressed year to lift the thousand pound dies as they were feathers. Furthermore, innovative environment is very important for the survival of the company or organization. In an Organization the best strategy for promoting innovation is to encourage the current employees and giving them regular feedback rather than layoff. In today’s world upgrading the employees in low level is very important as they are the base of the Organization.
How new ideas become effective
Business innovation is an organization’s process for introducing new ideas, workflows, methodologies, services or products. Once the learning investments result in an improved understanding of the technology and uncertainty has dropped to an acceptable level, innovating firms may invest in more substantial ways using other external governance modes such as equity alliances, join ventures, spin?ins or outright acquisitions (Van de Vrande et?al., 2006).
The purpose of this paper clearly describes the current state of business environment and also resulting in more competitive through the innovation. It identifies the various production process and illustrates for improving the productivity including mass customization, flexible manufacturing, lean manufacturing, flexible manufacturing, computer-aided design and manufacturing. Moreover, it tells us how operation Managers plans the facility location, facility layout, materials requirement, purchasing just in time inventory control, quality control and supply chain management.
Concept of Strategy Implementation
This process includes the various management activities that are necessary to put strategy in motion, institute strategic controls that monitor progress, and ultimately achieve organizational goals. The concepts implemented by TPS are based on Japanese update of Henry Ford vision of integrated production. TPS evolved during the transmission from mass production to mass customization. It build customer demand in the shortest possible and with minimum resources. Its westernized version is widely known as lean manufacturing.
The benefits of concepts implemented by TPS including it with no added worker production of one product line increased by 100 percent. The one plant has cut its annual production costs by 7 million dollars and reduced its inventory by 10 million dollars.
Impacts of Changing In Business
In the running business there are many upwards and downwards comes this we called as changes in an organization of many reasons. Employees can be affected in a couple of different ways. Traditionally, layoffs directly affect the employee. Grahame Stott’s summation of the Watson Wyatt Worldwide survey data from 2001 on reducing corporate expenditures urges managers to use additional foresight, “Companies seeking to improve performance should not shy away from this transformation, but instead consider the short-term uncertainty when competitors inevitably slow down as an opportunity to gain competitive advantage.”
With a little foresight and planning, there are many alternatives that companies can employ to help with immediate cost-cutting needs while striving to retain valuable employees. Focus on fixing the company through restructuring and fortification programs. Move employees to different departments and institute job-sharing to avoid losses. The top level should control things in advance in an organization to achieve the business goals, such benefits is directly going to the company in the market.
Kaizen Concept Used By Big Companies
The Ford Motor Company benefits from Kaizen concept, Ford uses Kaizen philosophy. In 2006, Alan Mulally took over as the CEO of Ford. Mulally was formerly the executive vice president at Boeing and is familiar with the concepts behind Kaizen. Under Mulally’s guidance, Ford focused on efficient processes and was able to recover from rough times during the Great Recession of the late 2000s to lead the company back to success; in 2014, Ford announced that they would be creating over 5,000 jobs in the United States.
Kaizen as a concept in Nestle makes sure that improvement is the responsibility of everyone involved. Nestlé Waters uses various techniques to see where the current factory could be made more efficient, techniques such as Value Stream Mapping (VSM) that illustrates the flow of materials and information required to bring the finished product to the consumer. A process like this helps plant new bottling plants to ensure that their processes are as efficient as possible.
Good Quality Product at Low Price
One way to do it well is to deliver the same product at a lower cost, and be very transparent about how you did it. Small-business owners need to be experts not only at what they sell, but also in how they sell it. An important component to how you sell your product is the price you set. For example, Panasonic RP-TCM125 headphones. These headphones can be found for $15 in many places and consistently rank at or near the top in surveys of consumer-grade headphones, often beating out headphones that cost hundreds of dollars.
Impact on International Trade
It will impact greatly on international trade as the cost reduces for manufacturing products and it will increase in supply. A continuous improvement will have a positive effect on international trade as more export will increase and it will also result in giving more opportunities in international market and will become a brand name like TPS.
To cut the story short we can see that Kaizen which means ‘Continuous Improvement’. The key aspect of KAIZEN is that it is an on-going, never-ending improvement process. It’s a soft and gradual method opposed to more usual western habits to scrap everything and start with new.
3 excellent companies and how they apply Kaizen in the real world.