The adoption and implementation of Kaizen in Sino-Japanese automotive joint ventures

Abstract

This research provided a further insight into the implementation of the Japanese Kaizen. It examined the interrelationships between the four building block shop floor management tools (5S, waste removal, visual management and standard operations) and the two Kaizen practices (Quality Control Circles or QCCs and Teians). It also explored the performance of these two Kaizen practices on long-term improvement outcomes. A questionnaire was adopted for data collection and AMOS (Analysis of Moment of Structures) was used to perform Structural Equation Modelling Path Analysis based on 398 responses to a survey conducted in 9 Sino-Japanese automotive joint ventures. This research was probably the first to study the relationships between the building block shop floor management tools, QCCs and Teians using Structural Equation Modelling. The research confirmed their positive relationships. In particular, the frequent use of those building block tools was found to have positive effects on the implementation of both QCCs and Teians. Thus, those set of tools was concluded as a powerful aid to provide the basic conditions and framework for Kaizen. Previous research has identified that both QCCs and Teians could be used to collect improvement ideas on how to solve immediate problems that were directly related to the individual proposer’s working area. This research further identified that the group-based QCCs had a statistically significant and positive impact on improvement outcomes, whereas the advantage of using Teians was less obvious. In particular, the individual suggestions through Teians had negative effects, which may be attributed to the variation from standard working practices. However, there was a strong correlation between QCCs and Teians, indicating that there was a significant benefit in implementing both practices together. In particular, Teians included a mechanism for ensuring that all workers participated, so over the long-term, the Teians fostered commitment to the company and Lean practices. Further, Teians made an important contribution in identifying and solving shop floor problems on an incremental basis. They provided a background for QCCs in supporting long-term improvements and prevented the results from backsliding to the pre-improvement level. Therefore, QCCs and Teians were mutually supportive. The combination of QCCs and Teians could go beyond producing one-off improvements or solving problems in the specific work area. They also contributed to future improvement activities through the development of employees’ knowledge and skills, and enhanced attitudes. Management, nevertheless, should carefully balance the need for improving participation with the adherence to best practice methods. The objective is to achieve continuous improvement without compromising the rigidity required for standard work.