Quality Through Innovation

One of the most frequently discussed aspects of Kaizen, as it is practised in Japan, is the suggestion system. During the mid to the late 70's, many Western businesspersons visited Japan to see suggestion systems in progress and, upon returning home, immediately rejuvenated their company's individual suggestion system or started Quality Circles. However, many companies undertaking such programs have failed to successfully institutionalize the suggestion system.

There are three major types of company systems:

1. Individual suggestion systems and no Quality Circles;

2. QC circles and no individual suggestion systems; and

3. QC circles and individual suggestion systems.

Many people do not realize the differences, which result in confusion and conflict. The important thing to remember is that these systems must be compatible with each other, and with other systems in the company. A company's total system for Kaizen must always be held in perspective, and equal attention must be paid to the process and the results.

There are two ways to handle the results of suggestion systems. The first is to reward people monetarily for their financial contribution to the company, and the second is to recognize people for their efforts in making improvement. Western companies tend to reward for results quite frequently, but do not pay much attention to the efforts people put into their Kaizen process. The Japanese, on the other hand, think that it is important to promote small improvements that focus on improving one's own work area. Safety is first, then quality, productivity, etc. To do this, small rewards are generally given for every suggestion that has been implemented. This is done quickly so employees see the result of their effort right away. A majority of the suggestions do not have much economic impact on their own, but they do collectively.

The focus in individual suggestion systems is different from that in QC circles. A suggestion system generally tries to tap the individual's understanding of his/her own job. This can be enhanced by making employees much more aware of wastes or inefficiencies. People are taught in detail how to find these things by training in the simple checklists of Kaizen, the 5-Ss, the 3-Ms, reversing, eliminating, etc. QC Circles, on the other hand, usually involve problem-solving with various tools such as the Basic 7 or the New 7.

Recognition of QC circles is usually done by awarding gold, silver, or bronze medals to teams which meet the proper process-oriented criteria. The following list is an example of such criteria; each element is assigned a certain weightage

3. Number of intermediate reports or QC Stories

5. The extent to which company policy was used in selecting projects

8. Standardisation and prevention of a problem's recurrence

Other kinds of recognition are given by managers and executives sitting in and observing a QC Circle meeting. It is important, however, that managers and executives do not participate in the meeting; otherwise the team will be too controlled. After a project is complete, it is expected that a QC Circle will make at least one management presentation.

Suggestion systems are not easy to implement. Most companies have been struggling to refine their suggestion systems for the last 20 to 30 years. Even with this high level of attention, however, full participation is generally an unrealistic goal. In fact, most companies feel excellence is attained when participation includes a third of employees highly involved, a third slightly involved, and a third uninvolved !