I am reading a book entitled The Toyota Way these days. This book is written by Jeffrey K. Liker, Ph.D. The book is about how to understand fourteen management principles which has been used by Toyota, the best automaker in the world, and how to implement them in our own business.
Actually, I have been aware of Gemba Kaizen management system which is a program offered by a management institution through a correspondence course.
Kaizen is a Japanese word for incremental or continuous improvement whereas Hansei means reflection. When I run my bookstore, I feel that I need to make many improvements in my business. I think that this retail industry is totally different from the manufacturing industry such as an automaker like Toyota.
We all know that Toyota produces the best selling cars in the world but thinking or applying their management system to our retail system might be a different approach.
In fact, after reading the book, I am surprised that Kaizen and Hansei can also be applied to any kind of business including service enterprise. There are always rooms for improvements. For instance, when I stand in the middle of my bookstore watching the display of the books, how the shelves are arranged and how the books are sold, I know that there are still many things that I need to do to improve my service to customers.
One of the most important things the Toyota Way teaches to its readers is the elimination of wastes in all segments of the producing or servicing processes. These wastes include unnecessary movement of workers, defects in products, overstock, unnecessary transport, that do not directly contribute to adding values to the products or services we are about to deliver to our customers or consumers.
How these wastes are eliminated. The answer is through the implementation of hansei and kaizen. Hansei means that we have to identify the wastes first. To be able to identify the wastes, we have to monitor the manufacturing process, or the servicing process at the place where it happens. After identifying the wastes, the next step is implementing Kaizen. Improvements after being implemented have to be maintained. This means that we will not create or let the wastes to happen again.
In retail business, we sometimes order things that are really not requested by our customers. To minimize the occurrence of excess inventory, we need to provide order forms or wish list where customers can place their orders. Retail manager must use this list to order merchandise from manufacturer. If we can apply this process into our retail process then we can minimize or prevent the occurrence of excess inventory and at the same time increase profit to a maximum value.
I have applied this method for more than year now and the result is amazing. I am able to triple the monthly profit of the bookstore by just providing order form of wish list near the cashier table. Customers cannot find the books that they are looking for, they can write the titles; authors, and if possible the publishers of the books. We then order the books from our partner discount bookstore. When they have arrived in our bookstore, we will call or send sms to our customers. We only need one to three days to sell all the books which have just arrived in our inventory. Improvements must be done at the place of the process (gemba).
I have seen that Hansei and Kaizen really work when I apply them in my bookstore. I recommend this book to all of you, business owners around the world to read the book and adopt the management principles of the Toyota Way and the Toyota Production System, of course with some adjustments, into our business. by
Charles Roring in Manokwari of West Papua of Indonesia