Commentary by Jack Wolcott

Last month I discussed the Japanese concept of kaizen ("continuous improvement") and how it was especially relevant to locally owned, independent business. I also pointed out how an aspect of kaizen, "gemba" ("real place"), particularly related to the commitment local businesses have for their community. It is only in our community, our gemba, that efforts are likely to yield efficient improvement.

Now I'd like to expand my discussion by introducing a third concept, "muda." This means "waste" but carries a much deeper connotation. As it relates to kaizen, any non-value activity is muda. This can exist in many forms and usually offers unexpected opportunities for improvement. A few examples are:

• Items not immediately needed, such as overproduction and inventory;

• Defective products or errors in ordering;

• Poor staff scheduling or utilization; and

• Inadequate equipment maintenance.

All categories of muda result in direct loss of money or at least fail to increase efficiency and customer satisfaction. One of the easiest ways for a company to improve its operations and turn loss into profit is by reducing muda. The Corvallis Independent Business Alliance believes that local businesses are the ideal vehicle to implement these practices because they do not have to wait for approval from someone outside the community who has a broader agenda and priorities to achieve.

Looked at in a proper perspective, this can be an untapped source of revitalization. Inventory can be diversified by "just in time" ordering, slow periods in a retail store can offer time for the staff to increase their customer service skills, good maintenance procedures can reveal unseen weaknesses and prevent critical breakdowns and shortages of needed supplies.

Muda also ties in nicely with recycling, shopping locally and community-based economics (to be discussed in a future article). The more we keep our money in locally owned and independently operated businesses and services, the more it multiplies and benefits other businesses and community needs.

If you shop at the local farmers' market or purchase locally grown produce at a store, you not only support your neighbors but you also reduce long-distance hauling, excessive production and marketing, and waste.

Because local businesses are intimately connected with their community, they are more likely to carry products and services that their customers want and need. The owners are in the store and available to the customers. They are able to order new products, make decisions on donations and solve customer-service questions as they arise. If they are watching for muda, they can also adjust their product selection as needed to account for poor-selling items, errors in merchandising and inadequately trained staff.

This all adds up to a dynamic, responsive organization that minimizes waste, maximizes opportunity and is intimately responsive to the needs of the community.

A related aspect that is particularly relevant this time of year concerns elections. Non-activity in educating yourself about the candidates and subjects relevant to you is a real waste. It is especially important in the local elections, our gemba (real place), as evidenced in this year's discussions about the "big box" developments. We all have a part in the well-being of our community, and CIBA encourages you to participate.
lars, 8:55 AM [link]