All posts by Hannah Rosenbrock

Benefiting From Use of the Continuous Improvement Model

With many Continuous improvement models to select from, a business owner may find they are confused as to which works best for their needs. The preferred continuous process improvement model of many business owners requires he or she complete five steps, and those new to using this process may wish to start here. Once the process has been implemented, changes can be made to better meet the needs of the company.

REVIEW

During the first stage of the process, detailed testing is conducted to gather information. Individuals in charge of the process review contracts already in place, observe activities and processes, conduct transaction testing and sampling, acquire data and carry out interviews. This stage functions to determine the existing business process flow along with any outlying events which may impact this flow. Doing so allows the company to further understand cause and effect relationships and to identify ways to reduce costs, increase profitability and better manage risks.

RESULTS

Upon completion of the data gathering, the team conducting this process needs to summarise the results. Detail is of great importance at this time because the more a business owner knows, the better they can extrapolate the information from this data. This becomes very critical as the team moves through the process, especially when advancing through the next stage of determining the root cause of various problems or pinpointing areas where improvements can be made to benefit the organisation.

ROOT CAUSE

The results help to determine where opportunities have been missed and what elements are leading to various issues. When the origin of a problem becomes clear, it becomes easier to determine which mitigating controls aren’t working as intended. In many situations, people believe they know where the problem lies, yet they are only describing the symptoms. To identify the root cause, the team overseeing must be extremely familiar with processes and how they work. During this stage, constructive appraisals may be offered with regards to the processes currently being used.

RECOMMEND

After the root causes are identified, recommendations need to be made for improvements. As these recommendations are made, the client needs to take into account their ability to change and the level of risk they are comfortable with. Having this information makes it easier to identify cost-effective solutions the client feels comfortable implementing. New and improved metrics may be needed at this stage to ensure the changes are producing the desired results and anticipated benefits. These metrics increase in importance during the next stage, because they help to keep everyone motivated as the changes are implemented.

REVISE PROCESS

As the name suggests, this is an ongoing process. A collaborative team approach ensures the business stays on track, and this generally requires support from the executive level. With this support, employees obtain the inspiration needed to make the necessary changes and do what is best for the company, even when it requires additional effort on their part. Metrics become of great help in showing workers how the company benefits from these changes and also allows the business owner to determine exactly what is helping and where further modifications need to be made. At this stage, all employees see how productivity is optimised and costs are managed.

Some business owners opt to use the 8 step continuous improvement model, a model which is broken down into four major steps and eight smaller ones. Other companies prefer to make use of the Kaizen continuous improvement model. It’s dependent upon which model business owners feel most comfortable with and is best able to implement. The key to success lies in actually choosing a Continuous improvement model that can be used consistently. Otherwise, the company will not see the desired benefits.

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An Overview of a Business Continuous Improvement Cycle

Whether you refer to it as a plan, cycle, model or continuum, look at any continuous improvement cycle diagram and you’ll see that the basic premise is the same. In essence, the primary every brand of continuous quality improvement cycle begins with the same idea: a specific design or methodology. It is a strategy intended to achieve increased production and efficiency. Continuous improvement cycle, in short, is a phrase denoting a plan of action designed to increase business profits when it is put into action. It is also known as a plan-do-check-act (PDCA) cycle.

What Is a Continuous Improvement Plan?

A Continuous improvement cycle consists of a number of sequential steps. These steps vary slightly from one design to the next, or from one company to another. However, they are all intended to measure the effect a company’s policies and operating procedures have upon its production and profitability. An ongoing improvement cycle starts with a unique scheme, which is then placed into action. After a predetermined amount of time has elapsed, the plan is evaluated, adjusted, and put back in place. In this way, a company’s proficiency and financial performance is constantly evolving upward.

What Makes for a Successful Continuous Improvement Method?

Surprisingly (or not), a key ingredient in any pdca cycle of continuous improvement is employee involvement. Specifically, employees who will be impacted by the changes being instituted. Equally specifically, involvement at the stages of planning and evaluation is referenced. Continuous improvement plans are typically the province of either upper management or else the default responsibility of an assigned project manager. In some companies, particularly larger ones, there exists a schism of awareness between workers and management. When workers are included in the key stages of planning and evaluation, the details of the resulting plans tend to be both more relevant and more effective.

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Is There Anything Else That Makes an Improvement Plan Effective?

Yes. In addition to involving key employees, it is also helpful when management gets involved at the production level and works alongside the employees affected by the plan. In fact, this sort of “walk the talk” leadership is often credited as the primary reason a continuous improvement plan succeeds. Employees respect managers who have demonstrated the willingness and ability to perform their jobs and that show appreciation. In addition, management’s focus has much to do with an initiative’s success. It is important to focus on and reward problem prevention. Patience is equally important, as are long-term goals. All concerned do well to acknowledge that improvement is, essentially, a process, and not an event.

Is Continuous Improvement a Specific or General Type of Plan?

It is both. It’s common to find a continuous improvement cycle template that applies broadly to any number of different industries, such as those that provide services as well as manufacture products. An continual improvement approach might be applied to a given company as a whole as well as to various departments, teams, or even internal processes. The goal with any type of consistent progression is to achieve small, incremental improvements over time. The circular nature of the cycle model, with its built-in pauses for evaluation and adjustment, provides ample and necessary opportunity for feedback and discussion. Improvements are measured and documented, and overall business progression is thoughtful.

The precepts that govern continuous organisational change—design, execution, evaluation, and improvement—apply with equal effectiveness across a broad spectrum of models. Corporations, educational institutions, nonprofits and civic groups all benefit from the application of such a strategy. Although the end products of such organisations may vary, their goals are remarkably similar. After all, who wouldn’t like to achieve more while using less, and do so in a shorter length of time and, ultimately, end up the better for having done so?
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Lean Organisations & 5S

The Questions

What is 5S? Is housekeeping really that important? Is 5S as simple as a clean desk policy?

If it is, then why do so many attempts to introduce it into an organisation fail? Why do many organisations spend hours cleaning up, only to be back where they started three months down the track? Why is 5S the foundation of Lean Manufacturing?

The Answers

On the surface 5S is a systematic five-step approach to housekeeping. In reality it’s a process that needs extensive leadership, discipline and focus to create the mindset to maintain a workplace that reflects quality, ownership, teamwork, discipline and pride.

For those who need a reminder, 5S refers to Sort Out, Set in Order, Shine, Standardise and Sustain.

Very often, after the directive is given to embark on a 5S program, a blitz is implemented and as a result the piece of kit or line looks like a million dollars. But this only lasts for a few months before its back to its previous state, or worse.

What happened? S1, S2 and S3 were probably done well, yet S4 and S5 didn’t get a look-in. The difference? Very simply put, S1 – S3 are all about looking world-class, whereas S4 and S5 are all about behaving world-class. A big difference! One big clean up barely changes inherent behaviours.

Changing behaviour needs consistency in expectations, feedback and consequences, both positive and negative. Most importantly change requires strong role modeling on a daily basis, not just before an audit or customer visit. It is surprising how often managers and supervisors walk past rubbish or spills and seem oblivious to it. Remember, the state of the workplace is a reflection on management, not anyone else.

For an organisation to live 5S, its managers must truly understand their goals and principles on a daily basis. When they see something awry they need to correct it immediately with those responsible. Leading by example means bending down and picking up rubbish, rather than just walking past it. Leading by example means “Walking the Talk”. Then, the team will respond and model management behaviours and priorities.

The 5S mindset is fundamental to becoming a Lean Organisation. We need discipline to follow Kanbans.  We need discipline to follow standardised work patterns. 5S is the best way to introduce the organisation to discipline.

A Lean Organisation does not have the time to waste looking for tools during a change-over, does not waste money on excess inventory, does not waste space on unneeded items and does not waste time re-doing work. 5S eliminates waste.

A Lean Organisation also has a committed and accountable workforce. A workforce that wants to participate in continuous improvement. When we ask operators if they still need this tool or materials, we are asking them to be involved, to make a decision and be accountable. When we ask operators what they need to organise their workplace, we need to respond, take action and invest to and show the operator that they are important, and that we value their input.  As management, we need to be committed.


by Garry Smith, Think Perform Facilitator

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Print Industry

Think Perform have partnered with the nation’s premier print organisation and with small to medium sized print organisations to assist them in coping with consumer’s changing preference for online media. Our transformational programs have resulted in wasted activity being stripped out of daily production processes with the potential for millions of dollars in savings. Additionally, we are working with these clients to improve their flexibility in production, which will allow for the creation of new lines of revenue.

Our Unique Delivery Process, focusing on ‘creating exceptional results through people’ is the platform used for operational and leadership staff to identify improvement projects making tangible change possible and providing a measurable ROI.

The Printing industry has been hit hard over the past five years as a number of social and economic trends have worked against it. Consumers are increasingly choosing to receive information via alternative mediums, such as the internet, rather than via printed materials. This has led to a decline in demand for the services of professional printers. New media continues to encroach into the domain of book and periodical publishing, as the printed word proves slow to produce and costly to distribute. Consumers and businesses are increasingly trading and conducting business online without the aid of printed materials. The Printing industry is expected to generate revenue of $7.9 billion and employ 34,800 people in 2013-14, making it one of the largest manufacturing industries in Australia.’¹

¹ Printing in Australia – Industry Snapshot, IBIS

FMCG

Think Perform’s transformational staff development programs are conducted through the implementation of our Unique Delivery Process. Our consultative approach to building a partnership allows our clients in a high quantity, highly competitive and demanding marketplace to ‘create exceptional results through people’ and to measure a return on their investment with an increased ability to strategise towards making further tangible gains over the long term.

With over ‘1.2 million employees in the retail sector’¹ and with turnover exceeding ‘$110 billion per annum coming from the food, beverage, grocery and produce sector’,² Australia’s broad FMCG (Fast Moving Consumer Goods) market is moving forward with cautious optimism about its future.

Challenges remain in enhancing sustainable growth and building competitiveness from overseas competitors. Rising commodity prices, energy and labour costs and downward pressure from an immensely competitive retail market are driving forces behind industry’s need to find new ways of doing business with more efficiency.

Think Perform’s FMCG clients have come to them with an open mind seeking a partnership with an organisation with a sound understanding of the challenges they face in meeting the demands of their supply chain and balancing them with the need to make cultural improvements.

² Chapter 1, page 2, State of the Industry Report

Transport, Distribution and Logistics

Think Perform’s transformational staff development programs build confidence and capability through the implementation of our unique delivery process.

Working to build truly sustainable long term partnerships, we provide our clients with a measurable return on investment and the ability to create exceptional results through people.

‘With its reach into almost every aspect of daily life, from the goods we consume to the way we commute, the Transport and Logistics Industry makes a strong contribution to the economy. Gross value added to the economy by the industry grew at 3.6% a year from 1985/86 to 2010/11, which was just slightly higher than for the economy overall. The Transport and Logistics Industry is set to continue its strong contribution to the economy. Employment across the industry is forecast to increase proportionally more than in the rest of the economy, reaching 870,000 workers in 2017’.¹

With a forecasted increase between ‘2010 and 2030 of 50% in truck traffic, 90% in rail freight, and 150% in freight container arrivals and departures, and with over 3,800 km of rail lines to be laid’,²  organisation’s ability to remain competitive will come down to its ability to continually improve and innovate.

This need to innovate will require staff to be ‘upskilled’ through development programs improving their ability to prepare, act, measure, adapt and thrive in a changing environment.

¹ Page 4, TLISC Environmental Scan 2013
² Page 6, TLISC Environmental Scan 2013

Agriculture

Think Perform’s national reach allows us, with our clients, to implement our Unique Delivery Process transforming businesses. Our clients are increasing their competitiveness through improved processes which result in productivity gains and provide a measurable ROI. Our consultative approach to building long term partnerships creates confidence with businesses around the country, proving that by create exceptional results through people they can build a sustainable future.

With Australia’s supermarket duopoly continuing their growth and the seemingly exponentially increase in the number of middle class people in Asia with a love for Australian produce, the industry has grown to ‘A$237 billion with a workforce of over 825,000 people (excluding retail sales)’.¹

Remaining competitive and profitable given shrinking margins are key challenges for business, as is adequately filling the skills shortages gap that exists in both metropolitan and regional areas of Australia.

¹ Page 15, Agrifood Skills Australia 2013 Environmental Scan

Manufacturing Industry

We know that the manufacturing industry is facing challenge. At Think Perform we offer shop floor continuous improvement programs to help transform businesses using our Unique Delivery Process. Our consultative approach to building partnerships, allows us to tailor a Continuous Improvement program that provides a measurable ROI. Approved improvement projects are driven by your leaders and operational staff allowing us to create exceptional results through people.

‘It is an accepted reality that Australia’s manufacturing landscape has vastly changed. With generally lower productivity levels, an over reliance on resources, increasing energy prices, inflated costs of labour and materials, and high valued dollar, remaining relevant in today’s environment is an ongoing challenge’.¹

Organisations are now seeking innovative ways to improve their productivity and efficiency, with the aim of finding improved methods to their systems and practices resulting in increased revenue and/or the removal of costly activity in their production processes wasting vital time and money.

¹ Page 6, MSA Environmental Scan 2013