We have all read about Sir Isaac
Newton and the apple falling on his head. It is how he found the Universal
Gravitational Constant G. Archimedes’ Principle of Buoyancy was discovered by
him while taking bath. Many people have been taking bath since ages or have
seen fruits falling from trees but only these people really found something important
out of it.
How are new startups being setup?
Where are the ideas flowing from? Why are some businesses doing better than
their competitors given the same market conditions and resources? How do you
think improvements and innovations happen?
With all things remaining fairly
similar, businesses create a competitive edge through regular improvements in
how they function. This is applicable for both manufacturing and service
sectors.
Improvements and innovations
happen when you see how things work, inquire about the processes, talk to
people about why they are doing what they are doing and the way they are doing
it. People who are operating at the lowest levels are the ones who often come
up with the most relevant and constructive suggestions.
Japanese management has two fundamentally defining concepts
– Genchi Genbutsu and Gemba. The literal translation of Genchi Genbutsu is “go and see for yourself” and Gemba is
the “actual workplace.”
What is a Gemba?
Gemba
is the actual place of work. It can be your whole factory, office or part of
it.
The above diagram shows an entire
process of automobile assembly. Here the entire steps can be Gemba or for
example only the area of seat to main body assembly can be the Gemba depending
on our focus of inquiry and investigation.
When you go to the Gemba, check
everything in that space – tools, jigs, machine layout, material flow and
handling etc.
For example: When you move around
your factory what is your objective? What do you usually see? How often do you
question the way things are happening in our factory? Are the gum sacks stored
close to the gum mixing machine? Do you think there will be any savings by
moving them elsewhere? Where are the tools kept? Can you organize them in a
better way? Can you reduce the number of spares in your factory? Is there any
form of visual control being implemented or can you implement something so that
even illiterate workers can get the right information? What is the format of
your job card? Does it have adequate details? Or there are some needless
information being filled which can be done away with? How can improve customer
service?
Remember that everything can be
improved from the current state and improved further thus cutting unnecessary waste and remove bottlenecks. The system
of 5S can be
implemented in the Gemba and refined continuously for better outcome.
Why
Gemba and Genchi Genbutsu?
In today’s scenario, it is actually
quality that differentiates products, brands and companies. The culture of
quality in everything (irrespective of whether it is demanded or not) will be
the defining factor for successful companies in the future. And continuously
improved quality is what certain companies provide irrespective of whether the
customer truly demands it or not. These outstanding companies create
the demand by providing the solution first.
Google and its entire range of products
are a case in point.
Our tendency is to accept
mediocrity, to cover up shortcomings and allow slackness. We do not bother to
wake up before it is too late. This is something we cannot afford to do anymore
if we want to sustain our business.
The
earlier concept was to stock huge amount of inventory. Production plans also
used to be created to make say 2500 cartons at one go. Now the trend is
changing. Customers want smaller lot sizes and multiple deliveries. How can you
brace up to this shift in customer wish-list? Can you reorganize few processes
and create efficiency gains? You will not get the answer sitting in your air
conditioned office. You have to move around in the shop-floor and investigate.
Look at the movements in the
above diagram. Isn’t there a scope for improvement through realignment of
functions? But quite often the above system will continue in companies for
ages.
We usually look at problems as obstacles,
hindrances, trouble. What we do not try to see is that if the problem is
addressed by going to the root cause, it can be resolved for good and a better
system be created.
Let us consider an example of a
carton that is made once a month for a client. The reels for the carton are
kept slightly away from the corrugation machine. Slowly this order gets
manufactured once every week as demand rises. Have you started storing the
reels close by to reduce wastage of motion or started clubbing the production
of two weeks and deliver at the desired intervals? Most probably not. That is why we need Genchi
Genbutsu at the Gemba – to go and see how things are actually happening at the exact place of work.
How to improve?
You go to the Gemba and see for
yourselves. Now what? How do you improve? How do you increase the efficiency
and do smart work? How do you remove the “that is how we have been doing”
mindset of people? Adopt Gemba Kaizen!
Gemba Kaizen is very similar to
quality circles. It is a saving. You start going to the Gemba and identify
multiple Kaizens (small incremental changes) and implement them. As the Gemba
Kaizen suggestions are implemented you can see small savings in terms of cost
and positive changes in the motivation level of staff and workers.
For example: Where should you
conduct the in-process check for quality of cartons?
Deming’s circular method of Plan
– Do – Check – Act is the usually suggested way of implementing Gemba Kaizen.
Another suggestion is that by the second round, instead of Check Standardize
the Kaizen.
Suppose you put the quality check
before the pasting process and test for few days and see marked improvement in
output (in terms of time consumed, errors rectified), create a Standard
Operating Procedure. Standardize the process and communicate it.
However, Gemba Kaizen should not
be a random initiative. There has to be a routine for people to meet regularly,
visit the Gemba and suggest Kaizen in a structured manner. Often due to lack of
follow-up people slide back to old methods and shortcuts. A system of regular
appraisal of the existing Gemba Kaizen will be rewarding. It encourages people
to come up with new Kaizen and continue to maintain the existing ones.
The Process
The
following is a generalized process that many of you can implement in your
business: 
Think
Remember that everything can be improved. Every problem is an
opportunity to do better rather than considering it as a hindrance. Taking a
walk at your workplace, factory or office on a regular basis is probably the
easiest and soundest way of remaining healthy. It has a cyclical effect. When
you walk around your place business, you look at the processes, you inquire
about the process effectiveness, you investigate reasons for weaknesses and improve
them; the business becomes from efficient and productive. You get inputs for
innovation. Your bottom-line starts improving further. All this positively affects your mental health
which in turn improves and sustains your physical well-being. If you think that
presently your business is operating well does not mean it will continue to do
so forever.
As a business person, make it a
habit to keep on consciously walking to the Gemba on a regular basis and enjoy
the benefits of good health both individually and that of your business.
Published in Industry Insight Jan 2014
Published in Industry Insight Jan 2014
