Continuous Improvement (CI)

Abstract

Continuous Improvement (CI) is a transformation philosophy that is correlated directly with certain methodologies and strategies executed that provide with constant enhancement and development of services, products, and processes [5]. It also aims at minimizing cost reduction for companies and businesses and eliminating root causes of problems. This concept often named as Continuous Improvement Process (CIP) is implemented to increase the company’s profit and competitiveness in the short term in addition to sustain these in the long one [5]. William Edwards Deming (October 14, 1900 – December 20, 1993) is generally considered the father of Continuous Improvement, however the person behind the first breakthrough correlated with CI was Walter Shewhart. He is considered one of the first pioneers of Total Quality Management (TQM) [2]. He developed the straight-line process in 1939 in terms of statistical control for specification, production and finally inspection regarding quality control (QA) for products [2]. The method was transformed to a circular model called Shewhart’s cycle the same year [2]. The model was then modified by William Edwards to the Deming Wheel that himself presented in 1950 to an eight-day seminar in Japan sponsored by the Japanese Union of Scientists and Engineers (JUSE) [4]. Masaaki Imai the famous inventor of Ky-zen (good-change) in English states in his book ‘’ Kaizen (Ky’zen), the Key to Japan’s Competitive Success’’ that Japanese executives reformed Demings wheel to the Plan-Design-Check-Act (PDCA) tool [3]. Deming, nonetheless, kept himself distant from the tool and after thirty years in 1980 he introduced the Plan-Do-Study-Act (PDSA) cycle [4]. While Continuous Improvement can be broad and abstract it has its roots in manufacturing, some other concepts that it can be affiliated to are quality control, operations analysis, management and mostly anything that includes processes. Finally, CI is defined from Aristide van Aartsengel and Selahattin Kurtoglu as ‘any state of “being” beyond the state of “becoming.” It is the highest stage of maturity that an enterprise business as a whole can attain. Attaining this highest stage of maturity does not happen overnight; it takes time! [6]

CI

CI is a broad concept in terms of possible application to every company that is eager to have the transformation philosophy. Hence, there are multiple methods, philosophies, tools, techniques, theories and strategies by which contribution in CI is achieved.

KAIZEN

Introduction to Kaizen Kai-zen (change-good=improvement) it is defined both as a philosophy and a method. It originated from Masaaki Imai in Japan while being one of the most famous CI methods globally in lean production. It can be applied to all corporate functions in a company although being closer to design, production and market [3]. Masaaki Imai defines it as our way of life be it our working life, our social life, or our home life deserves to be constantly improved [3]. It targets ongoing/continuous improvement involving all levels of hierarchy (top management to workers) [3]. The development of Kaizen is gradual or inch by inch rather than executing major steps. In addition it does not require huge investment capitals yet calls for extensive continuous effort and considerable commitment that entail dramatic results.

Principles The management principles that are commonly known as Total Quality Control (TQC), Zero Defects (ZD), Just-in-time (JIT), Kamban (signboard) are used constantly under the Kaizen way of life and are important tools for the application of Kaizen.

Another significant principle that is adopted in Kaizen, is the fact that there is a suggestion system incorporated in the company’s structure. Distribution of rewards for employees that try to tackle daily problems and obtain savings from these suggestions or meet managerial criteria is a commonality. These criteria can be grouped to Process-Oriented and Results-Oriented as mentioned in the Kaizen book [3]. The Process-oriented criteria is a mirroring of the significance being given in effort by the Japanese culture except than outstanding results. Process-Oriented criteria can be attendance in meetings, willingness of participation, total number of problems solved and report submissions.

Kaizen concepts Management should be in state to implement the following significant concepts to apply the Kaizen strategy while introducing a very concise policy statement. [7]

• Kaizen and management The two important functions that management should attend regarding Kaizen is maintenance and improvement. Maintenance is achieved through executing activities that sustain the current situation as well following the SOPs (standard operating procedures).

• Process vs result Another important principle is the consideration of imperfection in processes in terms of always having space for improvement. In addition to the process-oriented mentality inherited Kaizen strictly considers that firstly a process must be improved in order to get better results.

• Executing the Plan-Do-Check-Act (PDCA cycle) and Standardize-Check-Do-Act (SCDA cycle)

• Prioritizing quality • Speak with data • Considering the customer as the next process Major Kaizen concepts stated in [7]

Application

Provide guidance on how to use the tool, concept or theory and when it is applicable

Limitations

Critically reflect on the tool/concept/theory and its application context. What can it do, what can it not do? Under what circumstances should it be used, and when not? How does it compare to the “status quo” of the standards – is it part of it, or does it extent them? Discuss your article in the context of key readings / resources provided in class. Substantiate your claims with literature

Annotated Bibliography

Provide key references (3-10), where a reader can find additional information on the subject. The article MUST make appropriate references to the and reference material provided in class – either incorporating it as a source, or critically discussing aspects that are missing from it but covered by this article. Summarize and outline the relevance of each reference to the topic (around 100 words per reference). The bibliography is not counted in the suggested 3000 word target length of the article.