"Kaizen works like a magnet in change".
Kaizen, the Japanese mindset of "constant change for the better", also works in SMEs. A convincing example of this is the Emmental company werk14. The company lives the Kaizen philosophy with great success. It is considered a showcase example.
First introduced in Japan by the Toyota Group after the end of the Second World War, Kaizen has since fertilised corporate management worldwide and has become established in many industries. According to Roland Stäheli, training manager at the Swissmem Academy, Kaizen is also widespread in the Swiss mem industry: "More than 50 % manage according to this philosophy, often as the core of the broader Lean Management. Those who don't follow this direction today will have a hard time in the future."
Thomas Germann, CEO of werk14, confirms this assessment: "Without Kaizen, we wouldn't be where we are today." Germann initiated Kaizen 16 years ago, tailored it to the company and implemented it step by step with all employees. And he says: "It was a lesson with a long-term effect, so to speak. We benefit from it every day. On the one hand, performance was greatly improved, and on the other hand, this way of thinking also resulted in new milestones for business development." What does the seasoned Kaizen professional mean by this? Our interview in Grünen-Sumiswald provided some insight.
Mr Germann, you see Kaizen in werk14 as part of an "integral management concept". What does that mean in concrete terms?
Thomas GermannWe talk about integral concepts, because all aspects of the finished product are included in our considerations. Our range of services is very broad. It ranges from design to product and manufacturing optimization to production, assembly and logistics. The customer receives the optimum product at the optimum price. This is how we accompany and relieve customers. We do not sell individual services, but rather assemblies of finished products. We may punch, but we are not a pure punching shop. We turn, but we are not a pure CNC-turning shop. No, werk14 acts as a general contractor, which comprehensively covers the customer's needs, starting with the product idea. It is ideal when customers come to us before design, material, manufacturing tolerances, etc. are defined. Then we can bring our know-how to bear along the value chain. This succeeds with a partnership-based way of thinking and proceeding. And it creates added value for all those involved - werk14, customers, suppliers, partners and others. We continue to expand such development partnerships. If necessary, new technologies are also brought in-house.
Increasingly operating in "value-added partnerships
... Yes, I can give two examples to illustrate this. Example 1: About 18 months ago, we deepened the value-added partnership with a customer. A product is developed jointly - from design onwards. This benefits the product and saves costs. We want to strengthen this approach in cross-company teams (customers, suppliers, werk14) in general to validate ideas and develop solutions. Example 2: For another company, we have put together a team (customer, kaizen consultants and werk14) to scrutinize certain products to identify value-added and non-value-added elements and eliminate unnecessary cost elements. Non-value-added elements include logistics, transportation, tool set-up, and so on. They account for about two-thirds of the product. The trick: If you succeed in eliminating or accelerating the non-value-adding tasks, the savings effect is all the greater. What's more, the amount of capital required for improvement in this category is low. So: less paper, bundle IT, harmonize software, avoid mail ping-pong, aim for direct channels, etc. We are currently striving to initiate such value-added partnerships with our best customers in order to cooperatively realize optimizations in the sense of "win-win". Consequently, we check the entire process for reduction potential. We see great opportunities in the formation of cross-company teams.
By the way, what brought you to Kaizen?
Quite simple: 16 years ago, at a suppliers' day, the Griesser company presented its Kaizen concept. I was immediately taken by the thinking behind it.
What hurdles had to be overcome during the introduction?
We decided on Kaizen within a few weeks, but it took two to three years to introduce it. Since we lacked experience, the hurdles were higher than expected. And because Kaizen affects everyone, the boss has to lead the way. Order, quality and processes are key elements. We always ask: What makes sense, what doesn't? With common sense and the right attitude, the implementation of the appropriate decisions succeeds flawlessly. But it has to fit our culture. Here in the down-to-earth Emmental, we therefore do not use the Japanese Kaizen terms.
How are the employees doing with it?
We communicated to everyone at the beginning that we were looking for success with Kaizen, but in no way at the expense of the workforce. After the introductory phase, this promise was consolidated among the employees because it was recognized that everyone was going along with it. Today, Kaizen is fully accepted in werk14. We can no longer imagine working any other way because something can be moved here. This is often the decisive "kick" for job seekers who contact us. Thanks to Kaizen, we can hire better and more motivated employees.
How important is the SQS certification according to ISO 9001 and the management system within this framework?
Our company has been certified for many years. The SQS auditor deliberately ensures that we achieve our goal in a standard-compliant and lean manner. The ISO standards are in harmony with Kaizen. After all, Kaizen rethinks the whole company. And the management system supports the correct control of the processes. The concept makes sense.
How do the market and the environment react?
Our business policy is increasingly finding "followers". My job as CEO is to convince customers of this in direct discussions. In fact, it is fascinating to constantly improve with simple considerations and measures. Kaizen is the key. We are benefiting greatly from the direction we have taken. Kaizen acts like a magnet. Prospective and potential customers come to us, look at it, and possibly consider Kaizen in their operations as well. But executives from other industries also come. Recently, executives from a psychiatric clinic came to visit. In short: Kaizen enables win-win situations. The employees earn more, the customers benefit from the bundle of services (quality, price, adherence to delivery dates), and the suppliers are involved. The benefits are felt along the entire value chain.