Continuous Improvement

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Continuous Improvement

• Frances Jørgensen
• Frances_at_plan.aau.dk

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Then and Now Perspectives

• THEN
• Higher quality Higher costs
• Larger quantities Lower costs
• Employees 2 hands

• NOW
• Higher quality Lower costs
• Smaller quantities Lower costs
• With every 2 hands comes a free brain!

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Kaizen (Imai, 1986)

• Kaizen
• Process-oriented results can only be improved if
  processes are improved
• People-oriented based on the belief that
  peoples natural desire for quality and value,
  and that it will pay for itself in the long run.
• Standard-oriented standards are required in
  order for improvement to occur.

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What is CI?

• CI is the planned, organised, and systematic
  process of ongoing, incremental and company-wide
  change of existing practices aimed at improving
  company performance
• (Boer et al., 2000).

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CI

• is based on
• Continuous development learning
• Full utilization of employee potential
• Employee responsibility for improvement

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Balancing Radical Change CI
continuous improvement
Practice or performance standard
maintenance
continuously improved practice or performance
standard
radical innovation
maintained practice or performance standard
practice or performance standard development
without maintenance
radical innovation
Time
Kilde Imai, 1986
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Kaizen/Innovation Comparison (Cole, R., CI2000
Conference, Aalborg)
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Kaizen/Innovation Comparison (contd)
INNOVATION
KAIZEN
FEATURES
Maintenance Improvement
Scrap and Rebuild
Mode
Spark
Tech breakthrough
Conventional know how
Requires great investment, little maintenance
Requires little investment, lots maintenance
Practical Requirements
People
Effort Focus
Technology
Evaluation Criteria
Process focus
Results focus
Works well in slow growth economy
Suited to fast growth economy
Advantage
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Key Aspects of CI

• Suggestions, support of recognition, pay, and
  educational systems
• Application of production techniques
  quality-related management methods, tools, and
  techniques.
• Individual group-based contribution (within and
  across functions)
• Not obligatory or volunteer rather, normal,
  daily activities.
• Organization-wide support involvement
  (production, management, departments e.g.
  product/process development)

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Key aspects of CI (contd)

• Top down / bottom up planned, strategy driven
  and emergent contributions to strategy
  development.
• Various levels of integration between action and
  reflection PDCA cycle (problem
  identification/solution proposals in Japan/USA)
  full ownership of entire cycle (analysis,
  solutions, implementation in Scandinavia).
• Encourage individual organizational learning as
  part of daily activities
• Numerous projects occurring simultaneously not
  hit and miss
• Not just in production moving into service areas
• Not just internal processes moving into supply
  chain and networks

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Benefits of CI

• Small improvements in quality, costs, delivery
  time, safety, job improvement, etc.
• Establishes foundation for other (larger)
  improvements (i.e. radical changes)
• Maintenance improvement of larger changes (e.g.
  Lego maintenance of BPR project results)
• Development of competencies, learning,
  self-management (e.g. Coloplast autonomous teams)

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Plan Do Check Act
Planning and preparation, based on an analysis of
existing practices and performance Plan
Act The new practices are standardized but
opportunities for further improvement remain open

Do Implementation of the plan
Check Check whether changes have resulted in
expected improvements
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• 1 technician from each of 4 teams goes to the
  managers office at least once each day
• Accounting
• workdays i 1997 230 days
• Distance to office 2x90 180 m there and back
• 4180230 165.600 m 165 km
• Conclusion
• If these trips are cut by just one ½, 83 km
  walking is saved.
• What about coordinating the teams? What about
  another form of communication?

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CI Development
CI Maturity Levels
CI Maturity Model (Bessant Caffyn, 1997)
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• The Maturity Model
• Natural CI No formal CI structure,
  problem-solving is seldom often conducted by
  specialists.
• Systematic CI Formal attempts at creating,
  supporting, and maintaining CI formal
  problem-solving procedures are used and supported
  by basic CI tools. CI often run parallel to work
  processes.
• Goal-oriented CI In addition to above, formal
  diffusion and application of strategic goals,
  with monitoring measuring of CI in relation to
  these goals.
• Pro-active/self-driven CI In addition to above,
  with the responsibility for CI being assumed by
  the problem-solving units themselves (department,
  groups, etc.)
• Strategic CI Full implementationthe learning
  organisation, a dominate lifestyle involving all
  in organisation. Active learning occurs naturally
  and is shared automatically. Combined large
  small innovations

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Problems with CI

• If you dont see any problems, you wont look for
  improvements
• Lack of continuous training and development
• Lack of a CI strategy
• Small improvements lack glamour
• Lack of true management commitment
• Lack of systems, procedures, practices to support
  CI
• Lack of other enablers (e.g. communication,
  change agents, common understanding)

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Want more?

• Americas Most Successful Export to Japan
  Continuous Improvement Programs by Schroeder, D.
  and Robinson, A. (1991), Sloan Management Review,
  Spring, pp. 67-81.
• CI Changes From Suggestion Box to Organisational
  Learning, CI in Europe and Australia by Boer et
  al. (Eds.) (2000), Aldershot Ashgate.
• A Journey through Self-Assessment, Learning, and
  Continuous Improvement, yours truly.2003.