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Continuous Improvement: Overview and Steps

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Title: Continuous Improvement: Overview and Steps


1
Continuous Improvement Overview and Steps
  • Unit 4

2
Unit Objectives
  • Discuss the overview of continuous improvement.
  • Discuss quantum of improvement and improvement
    potential.
  • What are the continuous improvement Strategies?
  • Discuss the various continuous improvement
    method/approach.

3
The Objective of any Quality Management System
(QMS) is.
4
Improve
  • To raise to a better quality or condition.
  • To make better.
  • To make something more valuable.
  • Improve on means to do or make better than as by
    additions or changes.

5
Improvement connotes or denotes
  1. A betterment.
  2. An increase in excellence of quality or
    condition.
  3. Profitable use.
  4. Progression, upgrading
  5. An addition or change that improves something.
  6. Representing a higher degree of excellence.
  7. A change or addition to something to make it more
    valuable (an increase in value).

6
Continuous
  • A series of improvement - no end point, on going
    effort

7
Traditional notion of Improvement
  • has always been concern with removing defects,
    overcoming problems, putting faults right
    (negative orientation of western thinking).

8
New notion of improvement
  • is to look at something which seems perfect and
    then set about improving it (is not only limited
    to putting things right).

9
Continuous Improvement Thinking (CIT)
  • continually building quality
  • incorporate consistent adjustments to quality.
  • accepts the notion that all product and services
    can be continually improved.
  • This is the thinking that must be accepted in the
    organization.
  • This thinking should be developed and instilled
    so employees are always in a mode of trying to
    improve quality.
  • If we established this thinking of always
    striving to improve the quality of products or
    services, then we have adopted CIT to obtain the
    highest level of satisfaction for our customers
    on an ongoing basis.

10
Many opportunities for improvement exist
  • Organizations should also consider improving
    employee morale, satisfaction, and cooperation
  • Improving the design of products with features
    that better meet customers needs, and which
    achieve higher performance, higher reliability,
    and other market-driven dimensions of quality
    and
  • Improving the efficiency of manufacturing systems
    by reducing worker idle time, and unnecessary
    motions, and by eliminating unnecessary
    inventory, unnecessary transportation and
    material handling and scrap and rework.

11
Closing the Gaps through Continuous Improvement
(Exhibit 1)
12
Closing the Gaps through Continuous Improvement
  • Organizations involve a myriad of processes
    virtually all processes are linked to other
    processes.
  • For any process (process A), the inputs to that
    process are outputs of other processes in the
    organization.
  • So Process A is a supplier to the next customer
    and a customer to its suppliers.

13
Closing the Gaps through Continuous Improvement
  • The customer of process A has some requirement,
    needs or expectations for the output of process
    A.
  • On other hand, the output of process A has some
    characteristics that are relevant to these
    customer expectations.
  • These are technically called the quality
    characteristics of the output.

14
Closing the Gaps through Continuous Improvement
  • To the extent that there is a gap between these
    characteristics and the customers expectations,
    there is a quality problem.
  • This quality problem is the responsibility of the
    owner of process A.
  • Continuous improvement is a frame of mind that
    continually forces us to systematically search
    for those gaps and systematically close them as
    long as it is feasible to do so.

15
Quantum of Improvement -Exhibit 2
16
Quantum of Improvement and Improvement Potential-
Exhibit 3
17
(No Transcript)
18
Continuous Improvement and Breakthrough
Approaches to Customer Satisfaction
  • The Japanese practice of ongoing, small-scale
    continuous improvement (Exhibit 4a) has also been
    contrasted with the typically American search for
    large scale breakthroughs (Exhibit 4b).
  • These two approaches were thought for sometime to
    be rather mutually exclusive.
  • There are now consider to complementary and the
    better results of the combined approach which
    Deming has called continual improvement (Exhibit
    4c).

19
Continuous Improvement Strategies- Exhibit 5
20
Continuous Improvement Strategies
  • Three combined strategies or approaches have
    emerged for CI
  • Incremental CI
  • Benchmarking
  • Reengineering (Breakthrough)

21
Incremental CI (ICI)
  • ICI is an approach used on an ongoing basis for
    incremental gains
  • ICI is also known by the Japanese term Kaizen
  • It is ladder step by step approach

22
Benchmarking
  • Search for and emulates the best available
    practices and processes.
  • Generally requires more resources than ICI and
    can usually be expected to provide larger gains.
  • Benchmarking advocates encourage periodically
    repeating benchmarking efforts to close gaps
    between what is and what could be.

23
Reengineering
  • Unlike ICI or benchmarking, reengineering is
    intended to totally change something.
  • It is the fundamental rethinking and radical
    redesign of business processes to achieve
    dramatic improvements in critical, contemporary
    measures of performance, such as cost, quality,
    service and speed.
  • Rather than incremental gains of two or even 20,
    reengineering is used to break through to new
    levels.
  • However, improvements of this magnitude are not
    easily obtained and requires both justification
    and determination.

24
Basic Idea of Continuous Improvement
  • Find weakness
  • Set a goal for improvement
  • Make a plan to achieve the goal
  • Implement the plan --- keep track
  • Check for progress
  • Start over

25
Continuous Improvement Method/Approach
  • The Kaizen
  • The PDCA Cycle
  • The Breakthrough (Juran's Improvement Program)
  • Motorola Six-step approach (Stretch Goals)
  • The Universal Seven-Step Method

26
KAIZEN
  • The Japanese incremental continuous improvement

27
What is Kaizen?
  • Kaizen means improvement
  • Kaizen means ongoing improvement involving
    everyone, including both managers and workers
  • Kaizen philosophy assumes that our way of life
    be it our working life, our social life, or our
    home life deserves to be constantly improved
  • The message is not a day should go by without
    some kind of improvement being made somewhere in
    the organization
  • Simply staying in business required unending
    progress, and Kaizen has become a way of life

28
WESTERN VS JAPANESE APPROACH
  • Western
  • Wests innovation-and results-oriented thinking
  • Innovation strategy is technology driven and
    thrives on fast growth and high profit margins
  • Practice of reviewing peoples performance
    strictly on the basis of results and not
    rewarding effort made
  • Japanese
  • Japanese kaizen and its process-oriented way of
    thinking
  • Its messages is one of improvement and trying to
    do better
  • It does not mean that innovation can or should be
    forgotten.
  • Both innovation Kaizen are needed

29
JAPANESE MANAGEMENT
  • Has two major components
  • 1. Maintenance activities directed toward
    maintaining current technological, managerial and
    operating standards
  • 2. Improvement those directed toward improving
    current operating standards
  • 3. Improvement can be broken down into KAIZEN and
    INNOVATION

30
JAPANESE MANAGEMENT
  • Kaizen signifies small improvements made in the
    status quo as a result of on going efforts
  • Innovation involves a drastic improvement in the
    status quo as a result of large investment in new
    technology and/or equipment

31
WESTERN MANAGEMENT
  • Western perception of management is given in
    Figure 3
  • There is little room for KAIZEN concept
  • The worst companies are those which do nothing
    but maintenance no internal drive for kaizen or
    innovation

32
Comparison of Innovation and Kaizen-based Strategy
  • Innovation
  • Creativity
  • Individualism
  • Specialist-oriented
  • Attention to great leaps
  • Technology-oriented
  • Information closed, proprietary
  • Functional (specialist) orientation
  • Seek new technology
  • Line staff
  • Limited feedback
  • Kaizen
  • Adaptability
  • Teamwork (systems approach)
  • Generalist-oriented
  • Attention to details
  • People-oriented
  • Information open, shared
  • Cross-functional orientation
  • Build on existing technology
  • Cross-functional organization
  • Comprehensive feedback

33
Important Elements of Kaizen
  • 1. A systematic and collaborative approach to
    cross-functional problem-solving
  • 2. A custom-driven strategy for improvement
    seek to satisfy the customer and serve customer
    needs
  • 3. A system approach and problem-solving tools
  • 4. A process-oriented way of thinking and
    peoples process-oriented efforts for improvement
  • 5. A gradual rather than abrupt change
  • 6. Everybodys business

34
The Kaizen Umbrella
  • Customer orientation
  • TQC (total quality control) or CWQC (Company-wide
    Quality Control)
  • Robotics
  • QC (Quality Control) Circles
  • Suggestion system
  • Automation
  • Discipline in the workplace
  • TPM (Total Productive Maintenance)
  • Kamban (signboards, cards or chits)
  • Quality improvement
  • Just-in-time (JIT)
  • Zero defects (ZD)
  • Small-group activities
  • Cooperative labor-management relations
  • Productivity improvement
  • New-product development

35
Problem-solving is the Starting Point of KAIZEN
  • The starting point of kaizen is to recognize the
    need
  • This comes from recognition of a problem
  • If no problem is recognized, there is no
    recognition of the need for improvement
  • Complacency is the arch enemy of KAIZEN
  • It emphasizes problem-awareness and provides
    clues for identifying problems
  • Once identified, problems must be solved
  • Thus Kaizen is a problem-solving process
  • Kaizen requires the use of various
    problem-solving tools
  • Improvement reaches new heights with every
    problem is solved the improvement must be
    standardized

36
PDCA SEVEN-STEP METHOD
DO
37
Continuous Improvement of Quality through PDCA
  • Through continued application of the cycle, the
    organization gets to higher and higher quality
    levels.

38
Continuous Improvement of Quality through PDCA
  • In other words, PDCA is a system for making
    continuous improvements to achieve the target or
    ever-higher performance levels.
  • The PDCA cycle is always shown as a circle to
    indicate the continuous nature of improvement.
  • All types of improvement and improvement
    maintenance require iteration.

39
Continuous Improvement of Quality through PDCA
  • The PDCA principle of iteration gives you a
    system for making improvements in a step-by-step
    way, doing the best job you can within relatively
    short improvement cycles.
  • In that way you can try an improvement and get
    real feedback regarding the direction and
    distance of targets or goals.
  • It is important to get improved products or
    services rapidly to markets or in the hands of
    the next process, in order to get this user
    feedback.

40
The Breakthrough (Juran's Improvement Program)
41
The Breakthrough (Juran's Improvement Program)
  • Joseph Juran emphasized the importance of
    developing a habit of making annual improvements
    in quality and annual reductions in
    quality-related costs.
  • Juran defined breakthrough as the accomplishment
    of any improvement that takes an organization to
    unprecedented levels of performance.
  • Breakthrough attacks chronic losses or, in
    Deming's terminology, common causes of variation.

42
The Breakthrough (Juran's Improvement Program)
  • All breakthroughs follow a common sense sequence
    of discovery, organization, diagnosis, corrective
    action, and control.
  • This "breakthrough sequence" is described and
    formalized in a 16-session videotape/workbook
    series entitled Juran on Quality Improvement,
    which is summarized below.

43
The Breakthrough (Juran's Improvement Program)
  • 1. Proof of the need
  • 2. Project identification
  • 3. Organization for breakthrough
  • 4. Diagnostic journey
  • 5. Remedial journey
  • 6. Holding the gains

44
1. Proof of the need
  • Managers, especially top managers, need to be
    convinced that quality improvements are simply
    good economics.
  • Through data collection efforts, information on
    poor quality, low productivity , or poor service
    can be translated into the language of money -
    the universal language of top management - to
    justify a request for resources to implement a
    quality improvement program.

45
2. Project identification
  • All breakthroughs are achieved project by
    project, and in no other way.
  • By taking a project approach, management provides
    a forum for converting an atmosphere of
    defensiveness or blame into one of constructive
    action.
  • Participation in a project increases the
    likelihood that the participant will act on the
    results.

46
3. Organization for breakthrough
  • Organization for improvement requires a clear
    responsibility for guiding the project.
  • The responsibility for the project may be as
    broad as an entire division with formal committee
    structures or as narrow as a small group of
    workers at one production operation.
  • These groups provide the definition and agreement
    as to the specific aims of the project, the
    authority to conduct experiments, and
    implementation strategies.
  • The path from problem to solution consists of two
    journeys
  • one from symptom to cause (the diagnostic
    journey) and
  • the other from cause to remedy (the remedial
    journey), which must be performed by different
    individuals with the appropriate skills.

47
4. Diagnostic journey
  • Diagnosticians skilled in data collection,
    statistics, and other problem-solving tools are
    needed at this stage.
  • Some projects will require full-time, specialized
    experts while others can be performed by the work
    force.
  • Management-controllable and operator-controllable
    problems require different methods of diagnosis
    and remedy.

48
5. Remedial journey
  • The remedial journey consists of several phase an
    alternative that optimizes total cost
  • (similar to one of Deming implementing remedial
    action, and dealing with resistance to change)

49
Holding the gains
  • This final step involves establishing the new
    standards and procedures, training the work
    force, and instituting controls to that the
    breakthrough does not die over time.

50
Motorola Six-steps approach to Continuous
Improvement (Stretch Goals)
  1. Identify the product or service What work do I
    do?
  2. Identify the customer Who is the work for?
  3. Identify the supplier What do I need and from
    whom do I get it?
  4. Identify the process What steps or task are
    performed? What are the inputs and outputs for
    each step?
  5. Mistake-proof the process How can I eliminate or
    simplify tasks? What poka-yoke devices can I use?
  6. Develop measurements and controls, and
    improvement goals How do I evaluate the process?
    How can I improve further?

51
THE SEVEN-STEP METHOD FOR CONTINUOUS IMPROVEMENT
  • There are many variants of the seven-step method.
  • The description of a typical variant might look
    very much as follows (Rao, Carr, Dambolena, Kopp,
    Martin, Rafii Schlesinger, 1996).

52
THE SEVEN-STEP METHOD FOR CONTINUOUS IMPROVEMENT
  • Step1. Select a problem and describe it clearly.
  • Step 2. Study the present system.
  • Step 3. Identify possible causes.
  • Step 4. Plan and implement a solution.
  • Step 5. Evaluate effects.
  • Step 6. Standardize any effective solutions.
  • Step 7. Reflect on process and develop future
    plans.

53
Step1. Select a problem and describe it clearly
  • A meaningful and relevant problem is selected.
  • The problem is defined in terms of a gap between
    what is currently happening and what would be
    happening under ideal circumstances.
  • The importance and relevance of the problem are
    underscored.
  • Any preliminary data that are relevant to the
    problem are put forth.
  • Metrics that will be used to measure progress are
    determined.
  • Any necessary operational definitions are
    developed.
  • Goals are set, a team is formed, a leader is
    chosen, and a schedule is developed.

54
Step 2. Study the present system
  • The present system is flowcharted.
  • Data are collected on how the current system
    operates, including data on the metrics that were
    selected for measuring progress.
  • Variables that may be related to the problem are
    identified, and data are collected on those
    variables.
  • All data are examined to find any relevant
    relationships. )

55
Step 3. Identify possible causes
  • Potential causes for the problem are identified
    through brainstorming by workers familiar with
    the process.
  • A cause-and-effect diagram is developed.
  • Most likely causes are singled out by those same
    experienced workers.

56
Step 4. Plan and implement a solution
  • A list of possible solutions is developed, also
    through brainstorming.
  • The solutions are evaluated.
  • One or more solutions are selected for
    implementation.
  • The implementation is planned and the solutions
    are implemented.

57
Step 5. Evaluate effects
  • Data on the metrics selected for measuring
    progress are collected again.
  • Other relevant data are also collected.
  • The data are analyzed, and a determination is
    made on the effectiveness of the solutions that
    were implemented.

58
Step 6. Standardize any effective solutions
  • Solutions that proved effective are adopted
    permanently.
  • They are made part of standard operating
    procedures.
  • The possibility of instituting those better
    methods elsewhere is considered and analyzed.

59
Step 7. Reflect on process and develop future
plans
  • The problem-solving effort just completed is
    reviewed in order to draw as many useful general
    conclusions as possible.
  • A summary is made of what was learned.
  • A decision is made on whether further improvement
    is needed on the problem that was just tackled
  • if not, other problems on which work is needed
    are identified.

60
Quality Control System for CI
61
Principles/Philosophies of Continuous Improvement
Thinking (CIT)
  • Undertake improvement regularly and on long-term
    basis in the production and service systems.
  • CIT needs a conducive and supportive climate for
    creativity and innovation.
  • The direction and purpose of improvement need be
    clear and/or well communicated to relevant
    parties or members involved.
  • Total commitment and involvement of top
    management and all relevant parties are required
    for a successful implementation of CIT.
  • Learn, understand and apply the principles and
    philosophies of CIT.

62
Principles/Philosophies of Continuous Improvement
Thinking (CIT)
  • Create CIT awareness through education and
    training.
  • Eliminate complacency and tidak apa(couldnt be
    bothered) attitude and instill a need for
    continuous improvement of the production and
    service systems.
  • Understand all the elements as well as be able to
    identify relevant elements in various situations
    needed for successful implementation of the CIT.
  • Teach, institute and promote creativity
    organization-wide.
  • Institute a well plan recognition and reward
    program for CIT.

63
Principles/Philosophies of Continuous Improvement
Thinking (CIT)
  • CIT does not always start with an issue, a crisis
    or problem, but is also used to enhance the
    existing production and service systems and
    optimizing opportunities.
  • CIT applies creativity thinking to produce
    quality and valve-added products and services.
  • CIT need not be a top-down approach but can
    also start from various levels across the
    organization or initiated by individuals.
  • Sense of ownership is very vital or essential
    for a successful implementation of CIT.
  • Be proactive to achieve CIT.

64
Thank You
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