Tuesday, March 3, 2009

Kaizen, Akihabara and Ramen

This morning we heard from two different Japanese businessmen, one hailing from a career in banking and the other involved with Tokyo from the beginning of kaizen, and the process of eliminating waste toward continuous improvement. Even though it is originally a production method, I enjoy thinking about how the Toyota System can be applied to other industries, services and life skills including: studying and time-management.

As we were walking through the department stores in Ginza and the electronic stores in Akihabara, I was wondering what would happen if all retail were produced using "Just In Time," or nearly made-on-demand. Retail outlets have much less space in Japan, so reducing backstock is less of an issue, but I am thinking of back home where stores are crowded with stock items on the floor. Often what is out for consumer purchase does not even include backstock. Then, how is it that I can still go to the store and they will be out of the one item I want? Is it simply poor inventory management? I am not sure if that is the only problem. I know of one clothing retailer that attempted to limit backstock and offer customers incentive to order goods, but they went under and sold their brand to another clothing company. Certainly ordering more goods than can be sold is not a sustainable practice, but who is to blame? Is it marketing's fault for innacurate demand forecasting? Or maybe the customer's for inconsistent purchasing patterns? Personally, I believe sustainability and reducing waste are the responsibility of all.

On a lighter note, we went to a very delicious ramen shop, tucked away in a small alley near Akihabara station, where we pre-paid for our meal in a vending machine-type menu out front and gave our ticket to the cook when we walked in. Very dive-y, but amazing food nevertheless. The walk around the area was refreshing after sitting for so long, and I am looking forward to what lies ahead tomorrow.

2 comments:

Eric said...

Now you see the benefit of technologies like print-on-demand (the way Jumping Duck does books). Nothing is produced unless it has an end user lined up to begin with. This eliminates waste, saves on inventory carrying costs, and means the book printed "just for you" really was printed just for you.

On another note, make sure you get a chance to visit Roppungi while you're in town. You're in for an experience there! :-)

Sarah said...

Definitely, plans are already in the works for a joint Net Impact PSU/Net Impact Tokyo networking event Friday night.

Thanks for your insight, Eric, I enjoy reading your thoughts.