Kaizen (continuous improvement)
- The philosophy in an organisation that processes, people and an organisation can always be improved.
- These are small and frequent improvements rather than one large change.
- Helps avoid resistance to change.
- Focus remains on improving quality and reducing waste, doing so often reduces costs.
Just-in-time (JIT)
- Inventory management that involves stocks being delivered right when it is needed.
- This reduces stock holding costs (storage).
- Involves having very minimal ‘buffer stock’ which can be risky.
Kanban
- A card based system which attaches tags to each aspect of the production process.
- This helps to identify different parts and shows where each component is at any given time.
- The system is based on actual orders rather than sales forecasts.
- You can visually see where things are to see where hold-ups are.
Andon
- A visual control system with audible sounds to alert a change in status or a problem.
- McDonald’s uses this as the orders go through the machines to the back where the food is prepared, and then onto the board when the order is ready.
