Continuous Improvement: Unleashing the Power of Kaizen

Ops Engine is founded on many operational principles that have made us who we are today. One of those principles and pillars is Kaizen or the mindset of continuous improvement. Let's take you behind the scenes of our world-class 3PL e-commerce fulfillment center, where we live and breathe operational tools and principles like this one. We want to shed light on what sets us apart and forms the backbone of our success - our unwavering commitment to continuous improvement.

The Origins of Continuous Improvement and Kaizen

Before we dive into our daily practices, let's take a step back and understand where this concept of continuous improvement, known as "Kaizen," originated. Kaizen, a Japanese term, translates to "change for better" or "continuous improvement." It emerged in the manufacturing industry after World War II when Japan was rebuilding its economy.

The visionary behind Kaizen was Dr. W. Edwards Deming, an American engineer, statistician, and management consultant. Dr. Deming played a pivotal role in Japan's post-war recovery by introducing statistical process control and quality improvement methodologies. His teachings laid the groundwork for the Toyota Production System (TPS), which later became the foundation for Lean manufacturing. If you have not read "The Toyota Way," it is a must-read for all operations professionals, regardless of industry. Operational skills and rigor are very much transferrable from one industry to another. The essential tools, including Arsen Janikyan's "3 T's" concept, we start with our training process at Ops Engine are:

• 3 Ps: People, Product, and Process
  Understanding the people and their responsibilities, strengths and weaknesses, supporters and influencers are vital to any role's success. Knowing the product is essential to understand the value and the impact you are making on the product. Last, but not least, get to know the current state before jumping in and changing processes. You need to know the existing processes well, whether right, wrong, or different, or your new processes will work well enough. You will also experience a high amount of resistance from team members and leadership because you jump to conclusions making them think that you think their processes are not good enough. Instead, show them the improvement opportunities, estimate improvement by showing numbers, and receive buy-in from stakeholders to change processes.
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• 3 Fs: Fit, Form, and Function
  How are departments connected? What is the purpose of existing tools, workflows, and existing processes? In what form are "things" in, whatever the "thing" may be? For example, inventory allocation communication format, document storage format, information exchange on process changes, how a particular feature functions in the ERP system, and more. This list is endless. If you embrace understanding how everything fits, in what format, and how it functions, you can understand the current state effectively and improve from a Kaizen and continuous improvement mindset.
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• 3 Ts: Tools, Training, and Time
  Frankly speaking, Rome was not built in a day. Neither are people in our organizations. We cannot expect them to boil the ocean in one day or learn everything we teach them in a specific timeframe. Everyone operates differently. However, we can expect consistency as leaders and from a continuous improvement perspective. People need tools to work with; physical, qualitative, and quantitative. Yes, all three! Please see the S.M.A.R.T. Goals article in our journal entries for more information on providing adequate information in a qualitative and quantitive manner. In the meantime, providing the essential tools, training them thoroughly, assigning a project to test their understanding of the given tool, following up to bridge any gaps, and giving them time to hone in on the new skills is a long-term commitment. In the short term, accountability, expecting consistent improvement, and how they add value is an entirely different conversation about performance management.
  
  

Continuous Improvement: Our DNA

At Ops Engine, continuous improvement is more than just a buzzword; it's ingrained in our DNA. It's not a standalone initiative but an ongoing journey that permeates every aspect of our operations. We embrace the spirit of Kaizen as it allows us to evolve, adapt, and excel in an ever-changing landscape.

"Operations management and leadership is a way of life for me," says Arsen Janikyan, Founder & CEO of Ops Engine.

We see him hands-on working in warehouse, training new hires, identifying opportunities for employee growth, creating new workflows, and improving existing processes. The man is obsessed! He puts so much love and care into training employees and nurturing customers to be operationally excellent; it's second to none. We don't say that because he's the founder but because we see him live it!
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Tools and Methodologies

To achieve continuous improvement, we utilize various tools and methodologies that empower our team members to be proactive problem solvers. Among these are:

1. PDCA Cycle
   The Plan-Do-Check-Act (PDCA) cycle is a structured approach to problem-solving and decision-making. It encourages iterative improvement by planning a change, implementing it, monitoring the results, and acting on the findings to make further improvements.
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2. 5 Whys Analysis
   When facing a problem, our team members don't settle for surface-level answers. Instead, they use the 5 Whys technique to dig deep and identify the root cause of an issue. By addressing the root cause, we prevent the problem from resurfacing in the future. To summarize, this technique asks "why" 5 times to get to the root cause of the problem. For example:
   
   Problem: Large wholesale boxes/cartons are coming loose and tearing open during shipping transit from the distribution center to the reseller.
   5 Why Analysis:
   
   - WHY is the box breaking during transit? Because it's not strong enough.
   - WHY is it not strong enough? Because we receive it from our supplier that way.
   - WHY do we receive it from our supplier that way? Because our Buyer, or Procurement Team, changed vendors, and the new vendor offers subprime quality.
   - WHY did our Procurement Team change vendors? Because they were asked to save 10% on material cost.
   
   In this example, we arrived to the "root cause" of the problem with 4 Whys: a cost-savings initiative was performed without testing the new material. As simple as this may sound, it also has a domino-effect of issues, including reseller dissatisfaction, product loss, unnecessary customer service communication, reshipment, delayed shipment, lost revenue opportunity at the reseller's location, and others.
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3. Kanban
   We use Kanban boards to visualize our workflow, making it easier to manage tasks, identify bottlenecks, and optimize our processes.
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Quality Built into Our Daily Routine

Quality isn't an occasional checkpoint; it's an ongoing pursuit in our daily routines. Our team members are committed to delivering operational excellence at every step of the fulfillment process. From receiving and warehousing to picking, packing, and shipping, we maintain a vigilant eye on quality assurance. Regular audits and process checks ensure that our standards stay consistent.
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Morning Meetings and GEMBA Walks

Our daily morning meetings are more than just a routine update. They are forums for sharing improvement opportunities. Team members are encouraged to voice their suggestions and ideas for enhancing efficiency, reducing waste, and optimizing workflows. These meetings foster a culture of collaboration and open communication to create trust and teamwork in a continuously improving environment. Continuous improvement does not apply only to our workflows and processes but to our staff as well. 

Additionally, our leaders regularly conduct GEMBA walks, where they go to the actual workspace to observe operations firsthand. This Gemba (Japanese for "the real place") approach allows us to identify improvement opportunities on the ground, connecting us directly with the processes and challenges faced by our team members.

Conclusion

At Ops Engine, continuous improvement is not an option; it's the heartbeat that propels us forward. The spirit of Kaizen drives us to innovate, refine, and exceed expectations. Our commitment to this philosophy differentiates us in the industry, ensuring that our partners and brands benefit from the best-in-class 3PL e-commerce fulfillment center service provider.

As we continue our improvement journey, we invite you to join us and witness the power of Kaizen in action. Together, we'll create a future of unrivaled excellence, one step at a time. Stay tuned for more insights and updates from the Ops Engine family.