Isn't it amazing that the US government is getting behind green initiatives? I thought that reuse, recyle and reduce were cost effective by themselves. Apparently not. However…Subaru of America's 20-year history challenges that. Drs. Alan Robinson and Dean Schroeder just published an article in the Wall Street Journal, Greener and Cheaper telling Subaru's head start on the auto industry. Their story is inspiring. But even more, it's a wake-up call. Why aren't all businesses doing this?

Subaru America employees are one of the most prolific improvers

You've probably seen the Subaru ads on TV. It shows a plant in the middle of an idyllic field with deer going by. I've been to that plant. To think that deer are feeding on the property is amazing. This is a typical industrial setting. Except it's not typical. Subaru is not dumping or land filling anything. How do they do it? In a word…kaizen.

Robinson and Schroeder explain the Subaru approach to support their claim that Greener Is Cheaper. Frankly, they could make an easier argument. Ask your workers to reduce waste and they will. The Subaru plant uses 100 fewer pounds of steel per car than they used to use. The don't put anything in a landfill. They have engaged the whole workforce in finding wastes and eliminating them. Sounds like a great environmental stance. But I think it's a more important strategy.

All they did was ask.

Subaru has an engaged workforce. The authors don't say it in this article, but Subaru employees in the US are one of the most prolific group of improvers. These people are improving the business at over 100 adopted improvements per person per year. They've been doing that for at least the last four years. That's 2 adopted improvements per person per week times 3000 employees.

Of course greener is cheaper. But more important is Subaru people are fully engaged in the mission of the company. That is the miracle of this story. And all they did was ask.

C an we cost-justify continuous improvement? Can you believe that people ask that question when deciding whether to adopt Quick and Easy Kaizen for their organization? Like not continuously improving is an option! Ralph Keller, President of the Association for Manufacturing Excellence (AME) set out to put the question to rest in his article for Industry Week, What's Continuous Improvement Worth?

QnEK is the antidote to the 8th waste.

Ralph writes about the false savings people identify to justify continuous improvement. For instance, reductions in inventory are misrepresented as dollar-for-dollar savings. Instead, Ralph quotes one of his former bosses, "Revenue growth will cover lots of sins," to indicate the payoff that is available from our continuous improvement efforts. He argues that driving out waste a little bit at a time and continuously will add up to a significantly enhanced competitive position. He cites a 2003 HBR article where mid-sized companies show 15% – 20% year-over-year revenue growth from their continuous improvement efforts.

Ralph failed to mention the big opportunity from kaizen initiatives. If you know anything about lean, then you know Ohno's 7 Wastes. But do you know the 8th waste? Without getting into an argument about the "real" 8th waste, the prevailing view is that under utilizing the creativity of the workforce is a waste.

QnEK — daily kaizen — is the antidote to the 8th waste. How? Encourage everyone to change a little every day. That's the kaizen way.

There is no reason to let the lack of measurements get in the way of starting improving activities. I was reading an eWeek essay by Peter Coffee, Counting the Ways, that got me thinking about the 6σ approach to improvement. That approach is basically data-driven. Without measurements there are no improvements. Coffee said,

"Most businesses have no idea what they spend on unproductive hours."

And we know unproductive hours — waste — exists everywhere. What can you do? Start with the Last Planner System®.

One of the first things I do with clients is to do a time-value analysis (TVA) of their value streams. Inevitably, about half of employee time is spent on non-value-added activities. In lean terms, this is both type-1 and type-2 waste. In addition, white-space — waiting for something to happen — makes up more than 50% of the cycle-time duration. These rough numbers are good enough to get you started with kaizen.

Removing white-space has an immediate effect on the business. It shortens the cycle-time and produces a one-time increase in cash flow. As attractive as that is, it isn't necessarily easy to accomplish. It requires reliability throughout, particularly in the project setting. The one way I know to do that is with the Last Planner System® and a practice of securing reliable promises. Get started on removing the waste associated with variation. Use the Last Planner.

Read one to three more pages each day.

My day is busy. Waaay too busy. Yet I make time to read. I didn't always read. In fact, before college I didn't read anything. Once I got out of college I remember saying, "Thank God I don't have to read anymore." It was 12 – 15 years later that I took up reading again. It was in spurts. We had started our family — three boys — they were and continue to be a handful. Sometimes I would read a novel. Other times I'd just read a few news magazines. Eventually, I got in the habit of reading at least one book each month. I'm glad I did. I now read much more than that.

Looking back, I could've done a better job at adopting the "reading habit." Susan and Larry Terkel, writing in Small Change, advise you start by reading "one to three (more pages) than you are currently reading (each week)." That doesn't sound like a big deal. Grab a book…how about the Business Week book of the year, The Box, by Mark Levinson. It's the story of how the shipping container has changed world-wide trade. (Ok, it might not be for you. So pick another book.) The point is to read…to engage in the world…to challenge ourselves to think differently about who we are and what we are doing. And it can happen with just one to three more pages a day. That is the spirit of kaizen.

"Kaizen frees the hands of the innovator. And to think that sloppy processes can support rapid innovation is dangerous advice, Tom."

As Norman Bodek says, "Kaizen is a numbers game." The companies that embrace continuous improvement will eventually rise to the top.

Each year Industry Week (IW) profiles the best manufacturers. The recent years's lists have been dominated by firms employing lean approaches. Batesville Caskets is one of those firms, A Daily Routine of Continuous Improvement. In addition to their build just what is ordered and their commitment to continuous flow manufacturing, Batesville has become a benchmark company for many different manufacturers based on their commitment to kaizen.

At Batesville they call their continuous improvement efforts "Daily Improvement Target Countermeasures" or DITCA. While it's a mouthful, their most recent efforts have saved the firm over $1 million. Their approach is like the Quick 'n Easy Kaizen (QnEK) approach. As we've profiled before, QnEK is a numbers game. It's like shots on goal. Over the season, the team that shoots more eventually scores more. Whether you're working on a production line or on a project, making your job easier, safer, or doing something that adds just a little more value will eventually pay off in a big way. Batesville takes that approach. And they've recently been recognized by the National Safety Council for their outstanding safety record. Kaizen and safety go hand-in-glove.

1. See Fast Company How Many Lightbulbs Does It Take to Change the World? One. And You're Looking at It [back]
2. Will Wal-Mart Change the World Selling CFLs? Let’s Wonder… [back]

I'm not in the habit of writing chapter-by-chapter reviews of books. This series on the book Small Change, by Susan & Larry Terkel is an experiment for me. I've been trying out the small change approach in a few areas of my life. I wrote about making a habit of appreciating and acknowledging others. It's a habit that I want for myself.

There are many habits I want for myself. In Chapter 2 the authors propose a set of behaviors for better health and the small change approach for acquiring them as habits. We all know the benefits of exercise, sleep, good posture, and flossing. Do you have the habits you want? I don't. But the authors go on to describe some other small changes that might make a big difference in your health. Did you know you can do eye exercises to potentially improve your sight? How about blowing your nose to stay healthy? Their advice to slow down to enjoy eating food might help you lose 20 pounds.

None of the Terkel's advice is new. (Is anything really new?) They show us the practice of small change. It's the kaizen way.

Kaizen is Toyota's winning strategy for competing throughout the world. Small changes everyday by everyone keeps the automaker on its toes while stepping on those of their competitors. Susan and Larry Terkel claim, "Small changes are consistent with human nature and evolution." Their book Small Change offers a straight-forward approach to adopting small changes and the kaizen way in your life. In this first of six postings that follow the chapters of their book, I'll highlight the Terkel's approach.

1. Look closely at what you do everyday.
2. Make only one change at a time.
3. Make small change a constant in your life.
4. Trust the power of small change, and remember, it will add up.
5. Enjoy making small change.

A story in Fortune What It Takes to Be Great tells about the key to doing well. It's not talent. It's practice. Daily practice. Small change is the daily practice that can transform our lives.

In 1991 Norman Bodek published the book 40 Years, 20 Million Ideas: The Toyota Suggestion System, Productivity Press. During the 40 year period Toyota got more the 100 adopted ideas/person/year. (The book is no longer in print, although there are used copies available through Amazon.) 15 years later, Norman is touting a simple kaizen approach. He calls it Quick and Easy Kaizen (QnEK). In 2001, he co-authored a book with Bunji Tozawa, The Idea Generator: Quick and Easy Kaizen, PCS Press. Having spent 2 days with Norman visiting Toyota's Georgetown, KY plant, QnEK came up over and over. We've been using it with our clients. You should too.

The QnEK approach can be introduced using this simple form:

©2001, The Idea Generator: Quick and Easy Kaizen, PCS Press

Quick and Easy Kaizen
Before Improvement:	After Improvement:
"We had this kind of problem."	"We took this corrective action."
The Effect:
"We improved a little bit."
Date:	Name:

The secret of the QnEK approach is encouraging people to change what could make their work easier for them and is in their control. Writing down the change helps people think more clearly about what they are doing. It also provides a basis for sharing and continuing to improve the same situation.

Try the QnEK approach on your project. Encourage each person on the project to make 2 changes each month. Use the QnEK Report as the ticket to a twice-monthly meeting where results are shared.

Check back here for more on the approach. I'll have a Project version of QnEK for you.