This factory got a $12 M bonanza with Kaizen

When companies talk about boosting the bottom line, the usual suspects show up: layoffs, budget cuts, or those trite “do more with less” mantras - which employees instantly decode as “work twice as hard for the same paycheck.”

- REY ELBO

But real, lasting savings don’t come from squeezing people until they squeak.

They come from sharpening minds, not axes — spotting hidden inefficiencies, trimming wastes, and creating systems so smooth they feel like power steering for the workplace.

That’s exactly what a major Japanese electronic components maker has proven when they invited me to shake things up. Despite decades of profitability buoyed by their quality circle milestones that could impress even Taiichi Ohno, they hired me for my fresh ideas.

The result? A tidy $12 million in annual potential savings. That's Kaizen with compound interest. The formula that we used? One that delivered results without anyone needing to panic over pink slips.

The Thinking People Strategy

We utilized my customized version of the Toyota Production System (TPS) tailored for nonautomotive manufacturers. I call it the Thinking People Strategy — because machines don’t solve problems, people do. My TPS version hinges on the eight-step problem-solving parameter.

I asked 24 participants, divided into four teams to identify their most recurring operational issues that they encounter every day. It was an easy task that clearly identified more than 169 problems. Each team has selected one pilot project and applied the eight-step guide as follows:

Step 1: Define the recurring waste. The $12 million jackpot wasn’t my number. It was vetted and approved by their accounting and procurement departments. No smoke, no mirrors, no Excel wizardry. Just real numbers computed by their management.