Kaizen Implementation In Mexico Industries

Int J Adv Manuf Technol (2013) 68:537–545 DOI 10.1007/s00170-013-4750-2

ORIGINAL ARTICLE

Critical success factors for Kaizen implementation in manufacturing industries in Mexico Jorge L. García & Denisse G. Rivera & Alejandro Alvarado Iniesta

Received: 18 July 2012 / Accepted: 10 January 2013 / Published online: 13 March 2013 # Springer-Verlag London 2013

Abstract Kaizen is one of the most important methodologies used to manage continuous improvement in the maquiladora industry located in Ciudad Juarez, Chihuahua, Mexico; however, it is frequently implemented without obtaining the expected results. This article presents the results of a survey with 37 main tasks associated with Kaizen implementation and it was applied to personnel with responsibilities in continuous improvement programs in companies located in Ciudad Juarez, Mexico. The survey was validated using a rational validation, judge validation, and statistical validation using the Cronbach alpha index. A factor analysis by principal components and varimax rotation was applied for finding the critical success factors for Kaizen; results indicate that seven factors are the most important: education and training in operators, communication process, documentation and evaluation of projects results, human resources integration, management commitment, and customer focus. Keywords Kaizen . Critical success factors . Factor analysis . Maquiladora

1 Introduction Kaizen is not a new philosophy, the origins are in the midtwentieth century with Masaaki Imai and his book entitled Kaizen: The Key to Japanese Competitive Advantage [17], and Nemoto [27] refers that the term Kaizen had its possible origin in Toyota Motor Company. The documentation referred to Kaizen is abundant, and there are several research studies with different cases of study. J. L. García (*) : D. G. Rivera : A. A. Iniesta Department of Industrial Engineering and Manufacturing, Autonomous University of Ciudad Juarez, Av. Del Charro 450 Norte, Ciudad Juarez, Chihuahua, Mexico 32315 e-mail: [email protected]

Cheser [6] has conducted a research in Japanese manufacturing industries, concluding that the Kaizen generated an increase in motivation and positive change in attitude in employees. Also, Aoki [1] concludes that it is possible to expand the Kaizen philosophy to other countries with a different culture to the Japanese, but he remarks that these companies must implement the basic principles of Kaizen, which are: customer focus, continuous improvements, openly acknowledge for the problem, creation of teams works, developing self-discipline, giving constant feedback to employees, and promoting employee development. 1.1 Kaizen implementation problems in Mexico The Kaizen philosophy was applied for a large number of entrepreneurs, restless and highly competitive managers that were eager to employ methodologies that strengthen the highly competitive environment where they were involved. However, despite the popularity of this philosophy, Kaizen implementations in companies had little success [39]. For example, Rink [34] reports that in a survey of US manufacturers, 90 % of 3,000 industrial organizations had implemented continuous improvement projects; however, only 10 % felt they were achieving the desired results. Additionally, in a study conducted by Jaca et al. [18], on the sustainability of continuous improvement systems in two industrial communities of Spain and Mexico, it has revealed that 33 % of 360 firms adopted the Kaizen methodology. Nevertheless, the study concludes that there were few tracks of continuous improvements, due to a poor cooperation of operators and organization, and a lot of resistance to change by employees in systems improvement. Figure 1 shows the results for both regions, which disclose the percentage of companies that have abandoned their continuous improvement programs. Toluca-Lerma represents the industrial sector in Mexico and CAV-Navarra is referred to plants located in Spain.

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Int J Adv Manuf Technol (2013) 68:537–545

Fig. 1 Dropout rate for improving systems by type and region. Source: Jaca et al. [18]

Toluca Lerma 6% 6% 8% 10% 6% 16%

Techniques Brain storm Own techniques 5s Kaizen Lean 6 Sigma

CAV Navarra 9% 8% 13% 2% 3% 6%

18%

16%

16% 13%

Percentage

14% 12% 10% 8%

10% 9% 8% 6%

8% 6%

6%

6%

6%

CAV - Navarra

3%

4%

Toluca - Lerma

2%

2% 0% Brain storm

Own techniques

5s

Kaizen

Lean

6 Sigma

Techniques

Besides, Fig. 1 shows that the level of neglection is similar for all methods, except for the Kaizen methodology and six sigma projects. Those methodologies have a dropout rate of 10 and 16 % in Mexico, respectively. Meanwhile, Suárez et al. [38] have conducted an empirical study in 49 different Mexican industries and reported the main causes of abandonment of Kaizen philosophy: resistance to change from employees, 75 %; lack of proper implementation and monitoring of Kaizen projects, 75 %; among others (see Table 1). So here is important to ask the question: what companies are doing in other countries for successful implementation of their continuous improvement projects? What should Mexican companies do to avoid dropout rates in their continuous improvement projects? 1.2 Critical success factors for Kaizen Looking to respond the first question displayed above, it was found in a literature review that there are a lot elements that contribute to the successful implementation of Kaizen. Table 2 show 18 authors and 21 activities or factors sorted according to their numbers of references and it is easy to Table 1 Main causes of the abandonment of the Kaizen philosophy

notice that managerial commitment and motivation are the most reported. Table 2 has excluded some factors that were cited only once, which are associated with effective internal processes [2], workplace safety [14], focus on customers [35], application of methodologies to understand customer's voice [11], 5s implementation [2], resistance to change [26], consistent approach to improvement activities [42], development of structures to stop the bugs [42], make operating practices [22], establishment of long-term goals, and shaping a learning organization and focus on development of critical processes and quality management systems [21]. 1.3 The problem and objective According to the above description of critical success factors for Kaizen, it is clear that despite the popularity and growth that has taken the Kaizen philosophy, unfortunately most of its implementations in Mexican companies do not succeed, according to Jaca et al.[18] and Suárez et al.[38]. There have been several studies on the benefits of Kaizen; however, little is known about the reasons for continuous

Causes associated Organizational resistance to change from employees Lack of proper implementation and monitoring techniques for Kaizen Lack of commitment and support from senior management

Source: Suárez et al. [38]

Lack of motivation from employees to participate Lack of resources (time, money, space, …) Resistance from unions Lack of monetary profits for each improvement project Others Total

Percentage of companies (%) 75 75 50 50 50 44 44 0 N=49