Gemba Kaizen

"Gemba" is a Japanese word meaning "real place" i.e. where the real action takes place. In business, Gemba is where the value-adding activities to satisfy the customer are carried out.

In the manufacturing industry there are three major activities directly related to earning money; developing, producing, and selling products. Without these activities a company cannot exist. Therefore, in a broad sense, Gemba means the sites of these three major activities. In a narrower context, however, Gemba means the place where the products are made. Managers seem to write production off as only a secondary means to earn money, and usually place far more emphasis on such sectors as financial management, marketing and sales, and product development. When Gemba or production sites do become a focus of management attention, though, they can be turned into a utopia capable of making the company far more successful and profitable.

In the service sectors, Gemba is where the customers come into contact with the services offered. In the hotel business, for instance, Gemba is everywhere; the lobby, the dining room, guest rooms, the receptionist's desk, check-in counters, and the concierge station. At banks, tellers are working in Gemba, as are loan officers receiving applicants. The same applies to employee's working desks in offices and for telephone operators sitting in front of switchboards. Thus, Gemba spans a multitude of offices and administrative functions.