The Role of Gemba in Overall Cost Reduction

In our previous two articles, we spoke about Cost Reduction in GEMBA. In this article we will see the role of Gemba in overall cost reduction.

If Gemba cannot make its procedures very short, flexible, efficient, reject-free, and free of machine downtime, there is neither hope of reducing the inventory levels of supplies and

parts nor of becoming flexible enough to meet today’s stringent customer demands for high quality, low cost, and prompt delivery. Gemba KAIZEN™ can be the starting point for improvements in all three categories.

Gemba that are insufficiently reliable and robust cannot sustain improvements made in other functional areas, such as product development and process designs, purchasing, marketing, and sales.

KAIZEN™ should start in gemba. To put it another way, by carrying out Gemba KAIZEN™ and identifying the problems manifested at the worksite, we can identify the shortcomings of other supporting departments, such as research and development, design, quality control, industrial engineering, purchasing, sales, and marketing. In other words, Gemba KAIZEN™ helps identify shortcomings in upstream management. Gemba becomes a mirror that reflects the quality of the company’s management systems and a window through which we see the real capabilities of management.

Acknowledgement: “Gemba Kaizen” book by Masaaki Imai

In case you missed it, my last post was Cost Reduction in Gemba (Part II of II)

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