A Collaborative Scheme with Vendor in Kaizen

Abstract

The paper investigates a novel collaborative Kaizen scheme that involves vendor as the volunteered countermeasure provider in exchange for a fair sharing in gain. The skeleton of the scheme is made up of Plan-Do-Check-Act (PDCA). In Plan, the required improvement is first assessed by the Kaizen team to gauge the need to bring in vendor. The proposal must be scrutinized and undergoes negotiations for acceptable terms to both parties, which ultimately helps to build a long-term partnership. The scheme is presented as a case study in an Original Equipment Manufacturer (OEM) where energy consumption and maintenance cost for workstation lighting system at the production were reduced through the implementation of countermeasure proposed by vendor. The implementation cost was fully borne by the vendor and in return, the vendor would be paid in amount equivalent to the saving on the energy bill for the next nine months.