Kaizen for the Retail and POS Industry
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This document discusses Kaizen, which means "change for the better" in Japanese. It describes the four parts of Kaizen as Need, Genba (actual place), Application, and Team. It outlines the 8 steps of the PDCA (Plan-Do-Check-Act) process for continuous improvement. These include clarifying the problem, breaking it down, analyzing the root cause, developing countermeasures, seeing countermeasures through, and standardizing successful processes. Examples are provided for how Kaizen can be applied to different areas like sales, cash flow, and HR. Reasons for Kaizen failure and key Kaizen principles are also discussed.
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Kaizen for the Retail and POS Industry
- 2. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
- 3. THE 4 PARTS Kaizen Need Application Team
- 5. 改善 KAIZEN Kaizen Part 1 “Change for the better”
- 10. Kaizen Part 1
- 12. SUCCESS = Kaizen Part 1 CAN THE TEAM SUSTAIN KAIZEN ON THEIR OWN?
- 14. Kaizen Part 1
- 15. Kaizen Part 1
- 16. KAIZEN IS A WAY TO STANDARDIZE PROACTIVE PROBLEM SOLVING Kaizen Part 1
- 18. Need Part 2
- 19. Need Part 2 70%…of Fortune 1000 companies ten years ago are no longer in business –unable to adapt to change.
- 20. Poorly Planned (Trial & Error) D C A Man-hour Up front Planning Less man-hour More man-hour P Amount of time wasted!! PDCA Benefits: • Save time in solving complicated problems • Minimize trial & error
- 22. Need Part 2
- 23. KAIZEN EMPOWERS YOUR TEAM TO HELP MINIMIZE THE PEAKS AND VALLEYS OF GROWTH Need Part 2
- 29. Part 3 Application KAIZEN IS APPLIED TO ALL SIDES OF THE BUSINESS
- 31. Part 3 Application >1,000,000…Can you guess the number of ideas Toyota gets ever year from Genba? Inward Empathy Part 4 Team
- 32. Admissions Admin Activities Others President Manager Directors Others Every Job Title / GradeEvery Function P D C A P D C A P D C A P D C A P D C A P D C A P D C A P D C A P D C A P D C A
- 33. Part 3 ApplicationInward Empathy Part 4 Team
- 34. GROWTH & PROFITABILITY HAPPENS WHEN ALL PIECES OF THE BUSINESS ARE EXPONENTIALLY IMPROVING TOGETHER AS A TEAM. Team Part 4
- 35. WHAT DOES YOUR CUSTOMER FOR LIFE CYCLE LOOK LIKE?
- 36. WHAT AREA DO YOU WANT TO DO KAIZEN?
- 37. Step 6. See Counter- measures Through Step 7. Monitor Both Results and Processes Step 8. Standardize Successful Processes Step 4. Root Cause Analysis Step 3. Target Setting Step 2. Break Down the Problem Step 1. Clarify the Problem ActCheckDoPlan Step 5. Develop Counter- measures and Process KPI KAIZEN PDCA 8 STEPS
- 38. HOW CAN KAIZEN BE APPLIED TO SALES? Step 6. 1 month trial of paper version Step 7. Lost sales reduced to 2% from 10% in 3 mths Step 8. SOP adapted & implemented 3 months later Step 5. FIFO method unless cash customer, no special privilege Step 4. No way of prioritizing insurance applications Step 3. 1% lost sales Step 2. Problem lain in the link between sales & insurance Step 1. Customers were cancelling orders up to $1mil/yr ActCheckDoPlan
- 39. HOW CAN KAIZEN BE APPLIED TO CASH FLOW? Step 6. 60 day temporary action plan to backlog + new SOP for handover Step 7. 80% of Past Dues procured within 30 days & only 1 past due for 60 days Step 8. SOP adapted & implemented 2 months later Step 5. Develop communicat ion strategy for post- fulfillment Step 4. 50% of invoices had mistakes Step 3. Procure $46K & 0 past dues Step 2. Problem lain in communicati on w/ customers Step 1. Tech fulfillment services past dues totaled $46K ActCheckDoPlan
- 40. HOW CAN KAIZEN BE APPLIED TO HR? Step 6. Discuss with individual staff and incorporate into hiring process Step 7. New staff retained over 6 mth period Step 8. Reevaluate quarterly to collect 3 year data, indefinitely Step 5. Revisit benefit options and performance review process Step 4. Poor communica tion of benefits to new employees Step 3. Average 2 years serving by millenials Step 2. Problem lain in the coaching process of managers Step 1. Low retention ratio ActCheckDoPlan
- 41. Step 6. See Counter- measures Through Step 7. Monitor Both Results and Processes Step 8. Standardize Successful Processes Step 4. Root Cause Analysis Step 3. Target Setting Step 2. Break Down the Problem Step 1. Clarify the Problem ActCheckDoPlan Step 5. Develop Counter- measures and Process KPI KAIZEN PDCA 8 STEPS
- 42. 8 STEPS Step 2. Break Down the Problem Step 1. Clarify the Problem Step 3. Target Setting Step 4. Root Cause Analysis PROCESSES 1. Make the commitment 2. Set measurable, concrete, and challenging targets 1. Clarify the Ultimate Goal of your responsibilities & work 2. Clarify the Ideal Situation and Current Situation of your work 3. Visualize the gap between the Current Situation and the Ideal Situation 1. Break down the problem 2. Identify the Prioritized Problem 3. Specify the Point of Occurrence by checking the process through GENCHI GENBUTSU 1. Examine the Point of Occurrence and think of possible causes without any prejudice 2. Gather facts through GENCHI GENBUTSU and keep asking “Why?” 3. Specify the root cause 1. Develop as many potential countermeasures as possible 2. Select the highest value-added countermeasures 3. Build consensus with others 4. Create a clear and concrete action-plan Step 5. Develop Countermeasures PlanPlan, Step 1: Clarify the Problem
- 44. 8 STEPS Step 2. Break Down the Problem Step 1. Clarify the Problem Step 3. Target Setting Step 4. Root Cause Analysis PROCESSES 1. Make the commitment 2. Set measurable, concrete, and challenging targets 1. Clarify the Ultimate Goal of your responsibilities & work 2. Clarify the Ideal Situation and Current Situation of your work 3. Visualize the gap between the Current Situation and the Ideal Situation 1. Break down the problem 2. Identify the Prioritized Problem 3. Specify the Point of Occurrence by checking the process through GENCHI GENBUTSU 1. Examine the Point of Occurrence and think of possible causes without any prejudice 2. Gather facts through GENCHI GENBUTSU and keep asking “Why?” 3. Specify the root cause 1. Develop as many potential countermeasures as possible 2. Select the highest value-added countermeasures 3. Build consensus with others 4. Create a clear and concrete action-plan Step 5. Develop Countermeasures PlanPlan, Step 1: Clarify the Problem
- 46. KAIZEN PDCA 8 STEPS OVERVIEW Step 6. See Counter- measures Through Step 7. Monitor Both Results and Processes Step 8. Standardize Successful Processes Step 5. Develop Counter- measures and Process KPI Step 4. Root Cause Analysis Step 3. Target Setting Step 2. Break Down the Problem Step 1. Clarify the Problem ActCheckDoPlan
- 47. “No one has more trouble than the person who claims to have no trouble.” (Having no problems is the biggest problem of all.) Taiichi Ohno
- 48. WHY KAIZEN FAILS Organizatio n Structure Mindset Know-How
- 50. 改善 KAIZEN “CHANGE FOR THE BETTER”
- 52. 8 STEPS Step 2. Break Down the Problem Step 1. Clarify the Problem Step 3. Target Setting Step 4. Root Cause Analysis PROCESSES 1. Make the commitment 2. Set measurable, concrete, and challenging targets 1. Clarify the Ultimate Goal of your responsibilities & work 2. Clarify the Ideal Situation and Current Situation of your work 3. Visualize the gap between the Current Situation and the Ideal Situation 1. Break down the problem 2. Identify the Prioritized Problem 3. Specify the Point of Occurrence by checking the process through GENCHI GENBUTSU 1. Examine the Point of Occurrence and think of possible causes without any prejudice 2. Gather facts through GENCHI GENBUTSU and keep asking “Why?” 3. Specify the root cause 1. Develop as many potential countermeasures as possible 2. Select the highest value-added countermeasures 3. Build consensus with others 4. Create a clear and concrete action-plan Step 5. Develop Countermeasures PlanPlan, Step 1: Clarify the Problem
- 53. 8 STEPS PROCESSES 1.With united efforts, implement countermeasures with speed and persistence 2.Share information with others by informing, reporting and consulting 3.Never give up. If you cannot achieve the expected results, try other measures 1.Evaluate the results and the processes and share it with members involved 2.Evaluate from three key perspectives: Customer’s, Toyota’s, and Your Own 3. Understand the reasons of success and failure 1. Set successful processes as new standards 2. Share the new standard (YOKOTEN) 3. Start the next round of KAIZEN Step 8. Standardize Successful Processes Step 6. See Countermeasures Through Step 7. Monitor Both Results and Processes Step 6 – 8 See Countermeasures Through
Notas del editor
- This is a full time job. There is no way around it. Just so you know, my book is not your typically business book. It’s been reviewed as “an Auto bio of a business” because the storytelling exposes lessons of kaizen that can be applied to your business”
- As we commence today, take note of the hashtag and my handle on all your fav social pages. Post pics, poignant quotes and more with these.
- Kaizen What tool does your business use for problem solving Need Why is there a need for it Application Where can it be applied Team Who can do it
- A problem solving concept born out of the manufacturing side of the business and is one of two pillars of the Toyota Way. Not just to reduce waste and cut costs
- A problem solving concept born out of the manufacturing side of the business and is one of two pillars of the Toyota Way. Not just to reduce waste and cut costs
- Over barely two decades, Toyota thought, why can’t we apply this to sales?
- Our office was based in Singapore and led kaizen projects throughout the South Pacific in pilot dealerships across 14 Asian countries. Every project lasted on avg 1.5 years. If they worked, we standardized them among the country, then to other countries, spanning a dealer network of several hundred
- Which is where my team came in. As SEO of Toyota Motor Asia Pacific, my role was to manage teams across three levels of organizations: headquarters, the distributor, and the dealership team to facilitate these pilot dealerships. The term we use in Japan is Pika Pika, for shining dealer/best practice. Our success was measured by, does the team continue the project once we are gone?
- Lean often is confused as “Cut waste”
- Not all dealerships were equal. Depending on the maturity level of your business, kaizen can be used for many things. Toyota dealerships were across the board, some doing very advanced like business model revenue generating kaizen, and some basic, like wait time for entry into the sales floor. In the Philippines, I ran a lost sales reduction and on time delivery project, In Malaysia, we improve the service efficiency ratio and reduction in parts depreciation
- In Malaysia, we improve the service efficiency ratio and reduction in parts depreciation
- And in India, helped improved sales efficiency and closing rates for the first small car for Toyota in India.
- Your business can use kaizen as….
- How many times, have you looked at your business and said, “I think…” I’m in the red, should fire someone, etc. Or people in tour company come to you constantly with assumption, invoicing is making mistakes or fulfillment is messing up the product on delievery. We all know uncertainty and change is inevitable
- Among such threats as: Automation / cloud computing Tech / AI And global competition
- How many times, have you looked at your business and said, “I think…” I’m in the red, should fire someone, etc. Or people in tour company come to you constantly with assumption, invoicing is making mistakes or fulfillment is messing up the product on delievery.
- Save time in solving complicated problems! Minimize Trial & Error!
- Kaizen is the know, not “I think”. Kaizen is changing constantly to minimizes uncertainty thru empirical data, to support sustainability and long term growth.
- Toyota success comes from this focus on empowering team members to improve and support continuous improvement.
- Your business needs kaizen because… it empowers ownership in your team to helps minimalizes peaks and valleys from the waves of growth
- How does kaizen accomplish this thru a macro scale
- The front line staff. Kaizen is a bottom up approach to improving operations. Genba in Japanese refers to the people who deal directly with the customer. The belief is leadership of the company can’t know the best solutions while sitting in the office and that Genba knows because they represent the customer voice.
- CFL cycle, this is how Toyota sustains while the waves of business crash. They believe that if they can empower frontline staff to constantly improve every process in this life cycle, that they will always remain competitive and in business. What is your business’s life cycle? Do you even know? Take some notes and draw in 2 mins what you think your business cycle loosk like? Share with the person next to you and give input on what they may be missing.
- As the waves of growth happen, do you want to be on this ship?
- or this one?
- Kaizen is the one way to consistently look at every aspect of your business and minimize uncertainty empirically every time.
- Now….How many people here look at data once/wee? How many people still feel like they have peaks valleys? Now lets talk about the difference of that data versus what you want to be doing? Why is it that they are not improving?
- Here’s the secret: the whole business Toyota has a means of capturing customers ideas every year. Can you guess how many ideas they get from employees? Over 1,00o,ooo This helps everyone feel like they are a part of something bigger First thing to know is everyone is going to think they are losing their job
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- Here’s the secret: the whole business Toyota has a means of capturing customers ideas every year. Can you guess how many ideas they get from employees? Over 1,00o,ooo This helps everyone feel like they are a part of something bigger First thing to know is everyone is going to think they are losing their job
- The whole team does kaizen….
- Easy to implement/change and small payoff
- 37
- Reduced lost sales by 8 %
- “You may be wondering if I still work for Toyota bc I sometimes say we but really they just brainwashed us” I now help small to med sized businesses growing in sales help outline their processes and streamline back of the house operations to scale. My passion is with non profits. Procured over $30K in past due invoices and minimized past due accounts for only 6 customers/year.
- And increased retention ratio of those that full under millennial age bracket. In my time at Toyota, this PDCA process helped dealerships save a combined value of over $5 million, and let’s just be honest, they didn’t pay me that much. And I have done much more since for other companies. So where can kaizen be applied at genba? Other notes: Address millenials and how companies are changing perks and benefit programs to address changing employees. Hiring - It retains and empowers employees (back with research) Former: don’t have clear objective, what it’s expected of them, leave. Or, that furthers Kaizen and ops dev helps minimize the peaks and valleys of HR
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- Now how do we know it’s a problem. What is the ideal vs current? This is gap. Raise your hand if what you want to improve can be measured. You have to have a way to measure the process first before you can start to improve.
- 44
- The front line staff. Kaizen is a bottom up approach to improving operations. Genba in Japanese refers to the people who deal directly with the customer. The belief is leadership of the company can’t know the best solutions while sitting in the office and that Genba knows because they represent the customer voice.
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- Remember, how we measure success is if people sustaining the projects on their own. How to make them feel a part of the bigger business, the whole. We were a full time time.
- 1) You are reacting to urgent snowballed problems rather than having a preventative mindset. 2) You don’t have the time, PIC, or org structure to support it 3) You don’t have the tools/know-how to execute it
- In the 7 years, since my team began the project in Manila, the annual revenue went up 400%, that’s a difference of selling 500 cars/year from 120. This dealership claims 40% year over year
- But they stick with it after fighting me for over 18 months of barely getting results. Which is why the ultimate measure of success was can they do Kaizen on their own. And in leadership, we teach people how to fish. We all know changing mindset is hard, but who knew ops could affect culture?
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