Unlimited - Getting better all the time

Kaizen is Japanese for continuous improvement, made famous as a corporate philosophy by Masaaki Imai in his 1986 book Kaizen: The Key to Japan’s Competitive Success. The book was translated into 14 languages and the concept grabbed the attention of companies worldwide, notably Toyota. It enthusiastically embraced the idea that to survive in a competitive world, companies must focus on continuous improvement, adopt a just-in-time approach and listen to workers on the shop floor. Imai set up the Kaizen Institute NZ around 20 years ago when he was brought in to help Fisher & Paykel set up manufacturing lines, but his New Zealand company lay dormant until Danie Vermeulen took over as CEO in 2006. Vermeulen was born and bred in South Africa and emigrated to New Zealand in 1996.

Don’t most companies want to focus on continuous improvement?
They do and they try to but unless you do it in the proper fashion it becomes a bit of a misnomer. A lot of the things we do are common sense and I often tell people we’re going back to basics. Y’know, unless you have a standard way of doing things, it’s very hard to improve on it.

So you have to continually measure to continually improve?
Absolutely. We believe that the way we do things today is the standard, but only once you challenge it can you say you have a better way, and it’s up to you to prove it. If you can prove it and it is measured, then it becomes the new standard.

What has been the reception among NZ companies?
I think a lot of people talk about lean and talk about continuous improvement, but we find we are probably lagging behind other countries, especially in Europe where it is very strong. We are working with at least one major retailer on the manufacturing side and we have been working with the Open Polytech for more than four years so they have been on this journey for a while.

Do you adjust the system for different sectors and companies?
It’s very transferable. You use different methods, but the philosophy is the same.
One of the big things we do is eliminating waste. Those wastes are universal, for instance the waste of carrying too much inventory, the waste of over-processing and doing too much work, the waste of double handling… the list goes on. When you look around you find them in any industry.

And in the bad times everyone wants to cut costs?
That’s right. And, once you cut costs, then you are exposed and suddenly things become so much more visible. It’s really only when times are tough that efficiency becomes a matter of survival. Now is a fantastic time for people to understand how they can eliminate wasteful practices and get rid of the inefficiencies. We always say to people, it’s like inventory: good times will hide some of the inefficiencies because you can get away with it.

You mentioned a large retailer and the Open Polytech, but what about SMEs? Typically corporates are more likely to implement Kaizen, aren’t they?
I think it’s applicable to everyone and everyone should continuously look for better ways to do things, not only at work but in a personal capacity. I think SMEs get away with doing it on the fly. It may be something to do with the Kiwi psyche, this idea that ‘we will just make it happen’. Then you get continuous change but you don’t get continuous improvement. People change for the sake of change because it sounds like a good idea. It’s the flavour of the month. Kaizen takes real commitment and I find sometimes an SME is relying on someone who is active in the business and so busy trying to run the business that they don’t get time to step back and look at the big questions.

An SME would often see this as an added cost, rather than added value?
Exactly. We are helping one smaller company at the moment – it’s almost a rescue package where we go in and say there are some things you can do today to eliminate some of the real waste. That is a short-term solution but not a silver bullet. They need to understand that to survive next month, they need to focus on how they lock this in.

Masaaki Imai, and especially Toyota, stressed the importance of listening to the views of all staff?
Yes, for this to work you have to invest in people. Unless you respect and invest in people, this will never work. The worker is challenged daily to find solutions and the manager becomes a support and will come and say, “How can I help?” They challenge and coach, and they are there to remove road blocks. I’ve had the privilege to visit Toyota and they have a technique called the Andon Cord. If there’s a problem, the worker will pull the cord and the supervisor comes running and does problem-solving. The Western way is to ask, “Why did you make a mistake?” We see problems as good things. If you identify a problem, it’s an opportunity to make something better. But unless you can measure it, how do you know it’s better?

How much time does it take a company to buy in?
I usually tell people when we start I have good news and bad news. The bad news is when you embark on this journey, you will be on it for ever. That’s why it is called continuous improvement. The good news is that we want to help you to do it yourself. We start with senior management and train them, then identify one or two champions; preferably we train them as trainers.

What attributes does a champion need?
A champion is someone who is open to innovation, doesn’t accept the status quo. Traditionally they are seen as the troublemakers: they break the process. They are good people; you just need to harness them. They need to bring their brains to work and harness them, and then often they get fulfilment

How hard is it to implement the Kaizen philosophy and system?
It’s not hard but it takes real dedication. It’s really common sense once you decide to go on the journey. Our founder, Mr Masaaki Imai, always says there are three key things you need to do to make the system successful. The first one is senior management support, the second one is senior management support, and the third is senior management support. So if you get stuck in, you really need to lift your leadership and they need to lead by example.

Getting better all the time

It’s really a matter of common sense, says CEO Danie Vermeulen, of the philosophy of continuous improvement championed by the Kaizen Institute NZ. The trick is in the doing