I have visited some organizations that have implemented the Employee Suggestions System, but many of them have not obtained the benefits of this system directly reflected on P&L , and when I have reviewed the numbers of ideas summited v/s numbers of ideas accepted and implemented the rate is less than 3 %.
I have explained about their true concept of Ideas Suggestion System must be based on Kaizen Teian , that basically promotes the ideas implementations rather than just suggest ideas.
Kaizen Teian means 改善 (Kaizen): improvement and 提案 (Teian): proposal . Kaizen Teian is used for developing systems for Continuous Improvement Through Employee Suggestions or proposals but those must be implemented ASAP and must promotes small and easy improvements in order that the same operators are capable to implemented by their own. This Japanese-style proposal system for continuous improvement — is the most direct and effective method for channeling employees’ creative energies and hands-on insight.
Kaizen Teian cycle
The organizations competitive advantage is determined by the quality of their products, which is directly, correlated with the employee’s knowledge, attitude, and commitment at all the levels of the organization. As you know the creative ability is present in everyone, needing only to be developed through some system.
The company culture must be transform; to allow make grow and cultivate the creativity ability in all employees.
The Kaizen Teian system is created to promote participation from as many employees as possible. It has much higher participation than classic suggestion systems. In case of Kaizen Teian system most proposals are used, receive some kind of evaluation and will be rewarded with some kind of bonus. Even small proposal and ideas are welcomed and carefully collected, because even small proposal are considered to have educational values.
What needs to be done is to motivate people at all level to participate, write suggestions/proposals, implement, review/audit the same and award or give commendations. It this is done successful the Kaizen Teian will run smoothly and one idea will lead to another one and so on.
Benefits of implementing Kaizen Teian
1. Improves profit
2. Improves customer satisfaction
3. Discovers hidden talents
4. Promotes self-development
5. Improves the motivation and morale of employees at each level
6. Enhances communication between top bottom level
7. Helps to build and improve team work
8. Creates ownership and trust within each other
9. Engages and empowers employees at all levels
10. And improves the overall work environment
Here some examples of Kaizen Teian Implemented.
On the other side Western suggestions systems are designed to promote excellent, big result ideas, which are rewarded accordingly. These being stricter as compared to Kaizen Teian results in rejecting proposal as unsuitable after evaluation and employees often feel frustrated by the system and often do not bother to come up with suggestions at all. So the major drawback of Suggestion System is that such a system consumes time, and such a leisurely approach is no longer practical. What is required in this competitive era is promptness i.e. quick decision, judgment and implementation. And for this reason the focus has shifted to Kaizen Teian.
The following Table clearly presents the differences between Kaizen-Teian systems and Western type suggestions systems:
Image Source: http://www.michailolidis.gr
To conclude Kaizen Teian is a system or a formalized mechanism that encourages employees to contribute constructive ideas for improving the organization in which they work, and is beyond if the companies change the managers or administration.