Analyse two possible benefits to WTZ of introducing Kaizen.

Mark scheme

Marking points from the official mark scheme (May/June 2022). The mark or mark type is shown in brackets.

1. Definition of Kaizen: continuous improvement based on worker group discussion. [reward even though clearly signposted in case]
2. Kaizen includes teamworking through kaizen groups (or quality circles) with each group given the power to take decisions.
3. Kaizen is based on making incremental (small) changes to improve quality or efficiency.
4. Benefits
5. Reduction in absenteeism.
6. Increased employee motivation.
7. Increase in productivity.
8. Reduction in proportion of output rejected.
9. Improvement in quality
10. Application
11. Amandi's focus is on minimising costs. Kaizen could help meet this objective.
12. Increasing absenteeism will increase costs.
13. 5% of output is rejected increasing costs.
14. Collection of recycled materials is inefficient.
15. High inventory levels increase costs.
16. Training will increase employee skills.
17. Analysis
18. Building chains of arguments linked to Knowledge and Application points raised above.
19. Knowledge of workforce can be linked to find solutions to the problems faced at the Hydrocamel factory. This could result in an increase in productivity which would reduce unit costs of production.
20. Employees may be motivated by the increased responsibility (Herzberg) associated with Kaizen resulting in a reduction in labour turnover and a reduction in recruitment costs. Therefore, profits would increase.
21. A reduction in faulty products would cut costs and ensure customers are satisfied leading to higher sales.
22. Increased responsibility at work will enhance employee satisfaction and may result in lower rates of absenteeism. Therefore, there will be an increase in output and less disruption to production and less pressure on other employees due to absences.
23. Kaizen empowers workers and results in the quick introduction of new ideas and motivates employees to come up with more ideas.