Continuous Improvement

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 . 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 . 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) . 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. The method was transformed to a circular model called Shewhart’s cycle the same year . 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) . 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 . Deming, nonetheless, kept himself distant from the tool and after thirty years in 1980 he introduced the Plan-Do-Study-Act (PDSA) cycle . 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!

CI

CI is a broad concept in regard to possible application in every company that is eager to have the transformation philosophy. Hence, there are multiple methods, philosophies, tools, techniques, theories and strategies by which Continuous improvement can be 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 . 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 . It targets ongoing/continuous improvement involving all levels of hierarchy (top management to workers) . 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 . 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.

• 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). On the other hand, improvement relates to all the actions taken to enhance the current standards. Moreover, improvement is classified as Kaizen or Innovation. The former refers to minor constant improvements over time philosophy followed in the east, while the latter is a result of breakthrough investment in technology or equipment followed majorly by the west.

• 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. This approach should accompany every tool application.

• Executing the Plan-Do-Check-Act (PDCA) cycle and Standardize-Check-Do-Act (SCDA) cycle. Kaizen uses two very identical and important tools to serve firstly, as maintaining and improving factors regarding the standards. As any process must be initially standardized as to be in a state of improvement the use of the SCDA cycle achieves stabilization in the process. In the famous words of Taiichi Ohno ‘Where there is no standard, there can be no kaizen’. In other words, the SDCA cycle is applied when there is no available standard. While the outcome of a process can be known, the lack of standards in it result to inconsistency and instability in the process itself. Hence, as mentioned before the SDCA cycle contributes to the creation and maintenance of standards and processes. FIGURE The figure above illustrates the SDCA cycle. As ‘Standardize’ we refer to establishment of the standards that we want to achieve. This action is executed collectively by all employees responsible for the task or the process. The formal writing of it is done by the supervisor or the team leader. Next, is the step ‘Do’ referring to the execution of the first step namely the standard . After that, the evaluation of the previous application in terms of meeting expectations is step number three named as ‘Check’. In ‘Gemba kaizen a common-sense approach to a continuous improvement strategy’ this procedure is also followed by questions as ‘did it happen because we did not have a standard?’, ‘did it happen because the standard was not followed?’, ‘did it happen because the standard was not adequate?’ in case of an deviation from the standards being carried out, leading as such to proper establishment of the standards. Lastly, in step ‘Act’ reviewing, assessment of the deviations and implementation of the corrections occurs.

Subsequently, when the current process or task has been standardized and is in a state of control the execution of the PDCA cycle occurs to improve the current performance of it and create new standards for application. Firstly, ‘Plan’ is the action taken regarding the initialization of the target for improvement. ‘Do’ and ‘Check’ are performed the same as in SDCA cycle. Finally, ‘Act’ is the wide scale application as to prevent the initial problem from happening or defining the goals for new improvements .

• Prioritizing quality. Out of the three most important objectives of quality, cost and delivery (OCD) quality should always possess the strongest priority. This is an immediate result of the importance of delivering high quality to customers in regard of enhancing competitiveness due to that. Making compromises in delivery times or costs should not be considered as a solution. That, however, requires resilient dedication from the management as the aforementioned options can be considered as alternatives risking as such the assurance of the high-quality deliverables of the product and the company’s life.

• Speak with data. Kaizen identifies itself as a problem- solving procedure. The gathering along with the analyzation of the data must be implemented to fully recognize the situation and be in a state which the company can be correctly solved. Intuitive approaches such as hunches or feelings are not considered relevant thus lacking science in approaching the problem. The starting point in improvement begins in the collection of data clarifying the focus area that needs to be addressed.

• Considering the customer as the next process. The axiom ‘the next process is the customer’ means that the next process should be always considered for the customer. All tasks are a series of processes and every process has a supplier and a customer. As customers we identify two types internal that are withing the company and external that belong out in the market . The majority of people working in a company will relate to internal customers. The axiom mentioned before creates a commitment that a defective part or handling of inaccurate information should never proceed to the next process. The end-result concluded by following this concept is that the external customer receives a high-quality product or service.

Kaizen Systems

To achieve the kaizen strategy, the following systems should be introduced and instructed.

• Total Quality Control/Total Quality Management (TQC/TQM) These two systems do not only affiliate as quality-control activities but as strategies to help management in augmenting competitiveness and profitability by improving all aspects of the business. In these systems quality inherits the highest importance however, there are more variables to be considered as cost and delivery. Furthermore, everybody is involved in the organization by the TQC/TQM systems and that is expressed by the ‘T’ which means total. On the other hand, ‘C’ expresses control or process control. The key processes must be realized and then establish control and continuous improvement in order to achieve better results. The management should set up a plan to check the process versus the result to improve the process, not to criticize the process judging from the result. Activities that belong to TQC/TQM are policy deployment, building quality assurance systems, standardization, training and education, cost management and quality circles.

• Just-in-Time Production System

• Suggestion system Another significant system 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 . 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.

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