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Tools and techniques of operations management




               7.6   Kaizen



                               Kaizen is a Japanese term for the philosophy of continuous
                               improvement via small, incremental steps.






                   Involves setting standards and               Employees often work in teams and
                    continually improving these.                 are empowered to make changes.


                                                   Characteristics


                  Focus is on elimination of waste,
                 improving processes and systems                 Involves all areas of the business.
                     and improving productivity.





                                                    Kaizen tools






             Plan-do-check-              The fishbone                                       The five why
            act (PDCA) cycle               diagram               The Pareto rule               process




               A cycle that             A line is drawn          The 80/20 rule           Examines issues
             encourages key           indicating a route         encouraging a              by constantly
                 stages to              of continuous           focus of effort on        asking ‘why’ until
                continuous            improvement and             the important           the real issue is
              improvement.             off this line ‘fish            20%.                    identified.
                                          bones’ will
                                      splinter indicating
                                           potential
                                          problems.














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