Strategic Kaizen is not enough

Strategic Kaizen is important, but it is difficult to achieve continuous profitable transformation by aligns company goals (strategy) with middle management’s annual plans (tactics) and the annual work performed by employees (operations) in this way. In fact, Strategic Kaizen Transformation is needed.

So, in this book, I did not limit the Strategic Kaizen to mere strategic improvement approach. It goes beyond since its main purpose is to direct a complete and continuous strategic transformation to the ideal state of operations, to the state of Synchronous Profitable Operations (SPO) by meeting successive targets of Takt Profit, or “the target profit per minute in the bottleneck operation”, and implicitly by meeting the successive targets of takt time. Details…

In this context, the 5 Drivers in favor of consistent Strategic Kaizen Transformation, without investment, can be highlighted:

1. targeting and improving lowering costs strategically and continuously (often between 30-45% of the manufacturing cost are improved);
2. targeting and improving processing performance (often up to 50-60% of the cycle time is reduced; by innovating the method of work; in bottleneck operations);
3. targeting and improving process utilization (often up to 40–50% utilization is increased by reducing losses in bottleneck operations);
4. targeting and improving business performance through strategic approach (by continuously meeting the Takt Profit and implicit takt time targets holistically throughout the total lead time; reducing WIP by 50%);
5. maintaining momentum of all employees for strategic improvements (the continuous measurement of non-productivity in costs ensures the direction and ethos of everyone to do Strategic Kaizen Transformation continuously).

Source: Alin Posteuca on LinkedIn