Kaikaku - Quantum Change (Part 1)

Kaikaku, what is it?

What can we do when we find ourselves trailing the our competition by a lot?  Kaizen could achieve the necessary change, but it would take take forever.  We need a tool that will take us from where we are, to where we need to be, in one step.  BAM!!!  KAIKAKU.  

The use of Kaikaku is often indicated when we need to change a whole system.  For instance, what if:

• it takes six weeks to simply enter a new customer order into our Sales system?  
• we have an Accounts Payable system that takes three to four weeks to perform the three-way match between PO, Receiver & Invoice?  
• our Purchasing system requires as many as 20 signatures on a purchase order before it can be executed?
• the cost to update the Engineering Change Order system, before the engineer can even set pen to paper (or mouse to CAD screen), costs over $600?
• your inventory backflush system doesn’t work and constantly creates mismatches between physical inventory, MRP and your Accounting systems?

If you think those examples are fanciful, I have worked with clients who had each of those problems.  In the case of the signatures needed to execute a PO, one client had over 100 signatures on  a PO.  Why?  Because their procedures required it.

Okay, those may not be your problems, but I can assure you, you have systemic problems.

Whatever the indication, there comes a time when we need to make some major changes to your business model.  The Lean tool used to make these changes is Kaikaku.  

In my next post, I’ll talk about how to conduct a Kaikaku event and what you can expect from it.  

Meanwhile, Get Lean, Stay Lean.