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Implementation methods of continuous improvement
- 1. Implementation Methods of ContinuousImprovement By Joe Buffa MBA 592
- 2. Introduction What iscontinuous improvement? A system to improve the organization in all aspects over time Culture that fosters improvement by eliminating waste Company wide process with a focus of continuous incremental innovation Three key concepts A system that is constantly in motion All levels of the organization contribute to the program Improve by concentrating on eradicating waste using employee innovation
- 4. Why Continuous Improvement Similar to the definition each company has their own reason Common motives External pressure Periods of uncertainty Cultural problems Guide, harvest, and implement employee innovation Value in small high occurring cycles of innovation Nissan Diesel obtains a total of 1.1 million ideas, 88 ideas per worker Kawasaki Heavy Engineering collects 6.9 million, 425 ideas per worker
- 5. Why Continuous Improvement Tangible benefits Profitability will increase through reducing internal costs Greater efficiency and better use of time Non-value added activates Eliminate waste in a process Intangible benefits Low cost Improved relationships Improved external partnerships Heighten communication and collaboration Increase employee morale and job satisfaction
- 6. Methodologies Lean manufacturing Traced back to Henry Ford Toyota production system Eliminate wasted time, effort, and material; reduce cost while improving quality, provide customers with make-to-order Just in time Identifying and prioritizing non-value added Cycle efficiency – value-added / total time
- 7. Methodologies Six sigma Traced back to Andrew Carnegie Places a great importance on training Relies on statistical and scientific methods to make reduction DMAIC: Define, Measure, Analyze, Improve, and Control Customer centricity – Knowledge of what the customer values most 6 sigma – 3.4 defects per million; 4 sigma – 6,210 defects per million Hybrid methodology Combines six sigma and lean manufacturing concepts Some use methodologies in parallel while other view the hybrid methodology as a single approach
- 8. Implementation Process Strategicallymanaged Involving management is an indispensable enabler Connects to all the other enablers Regular milestones Should include short and long term Measurement and display routines Employees want some form of feedback Social media Communication Meetings vs. Email
- 9. Implementation Process Needfor an underlying supportive culture All individuals have creative potential Attitude towards mistakes Pace of the program Pace should be reflective of the organization Resources The more mature the program the more resources needed Dedicated resources should be included in the budget
- 10. Case Studies –Small organizations Construction Company Poor working relationships Invested heavily in training Development of resources Expanded consultative committee Implemented a newsletter Established task forces Fortes Bakery Limited Changes in legislation regarding food safety Training to improve leadership skills and communication Training was more culture based than knowledge Forgiving of mistakes Implemented quality program 2 years later Voluntary quality improvement teams Was able to save 50 man hours in one project
- 11. Case Studies –Medium Organizations Engineering Firm Recently restructured with fierce competition in the market Structure highlights flexibility, lead time reduction, and inventory savings Program stresses communication Culture change: threat of closing Developed problem solving teams that receive two days of formal training 16 projects for a total savings of $0.5 million TM products Acquired by Thames Water which regrouped into four sectors Goal was to implement quality program along side a MRP system Quality program wanted to build partnership with suppliers MRP system is an integrated business process that helps company plan activities Business improvement teams which top management guide Use of regular meetings
- 12. Case Studies –Large Organization Food and drink sector Firm built a new plant and wanted to start fresh Strong training program Learning facility which are open year round Well skilled workforce; which provides resources Culture change Key indicators of improvement are posted in company newspaper Organic approach – no structure Profit sharing approach Estimated $2 million saved Lucas Diesel System After a long period of growth the industry started to decline Started with improvement teams and hired two full time engineers Relied on lean manufacturing to guide these teams to improvement projects Teams determined the need for a culture change Organizational hierarchy changed, cross training, new communication system More presentations and an in-house newspaper was developed Little improvements from everyone (L.I.F.E)
- 13. Implementation Challenges Nomatter how well planned a C.I. program is challenges are going to be unavoidable Understanding these challenges allow the organization a more effortless and complete implementation Organizations struggle to foster collaboration between multiple departments Challenging to get I.T. and continuous improvement to work together Difficulty identifying which process to prioritize first Training, resources, and metrics ILL-suited tools Too complex or not insufficient
- 14. Implementation Challenges Lackof employee engagement How do employees adopt C.I. on their own; how does management drive engagement Not having enough time, money, or resources Impact on staff turnover Lack of visible goals and metrics Affect of technology Reward systems Create a competitive culture between employees Disbelief in the ability of employee Not a silver bullet Copying other companies programs doesn’t guarantee success
- 15. Case Studies –Small Fortes Bakery Limited Biggest challenge was a result of directly copying another organizations program Maturity level of the copied program Program must fit the organization Lack of resources – suggestion scheme failure Voluntary process teams lead to the same individuals partaking in C.I.
- 16. Case Studies –Medium Engineering Firm Not enough resources, certain projects were put on hold (management) No devoted time for top management to participate in C.I. Talbot Employees struggled to grasp training Overwhelmed employees with MRP and C.I. at the same time (pace) Poor structure sense emphasis was put on MRP C.I was more reactive rather than improvement focused
- 17. Case Studies –Large Food and Drink organization Organic structure leaves the organization vulnerable Training may become diluted Free for all culture Lack of formal process makes it easy to overlook acknowledgment and feedback No exclusive resources
- 18. Analysis Is thereone dominant approach when implementing continuous improvement? Wide range of enablers are needed Connection between small, medium, and large implementation methods Depending on the situation different enablers were used Organic vs. structured; training for culture vs. training for education Order of implementation varies Do companies of all sizes face the same challenges? Some research shows that resistance to change is the most common challenge Different methods will result in different challenges Develop a clear structure that fits the company and culture Consider the pace
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