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Continuous Improvement Strategies for Great Results

Companies need to continuously improve their products, services, and processes to remain competitive, yet many companies struggle in this area. Making use of a continuous improvement model eases the process, but perseverance and persistence become necessary. Improvements take time, and small changes will be needed to see major improvements with time. Continuous improvement strategies help significantly throughout the process. Strategies for continuous improvement provide the desired results when implemented properly and used regularly.

PERFORMANCE MANAGEMENT

Companies in need of Continuous improvement strategies for performance management often turn to the 5S technique. With the use of this philosophy, companies find they are better able to maintain a work space that is organised and clean, promoting enhanced functionality, efficiency, and productivity. Five strategies are actually used here: sort, set in order, shine, standardise, and sustain. Sorting involves removing all unnecessary items, setting in order requires one organise their tools and resources in specific areas so they can easily be accessed, and shine means one puts things away when they are no longer being used. Standardise involves organising all workstations that conduct the same job in an identical manner to ensure job processes are standardised, and sustain requires these standards be maintained and reviewed regularly to allow for continuous improvement.

SERVICE ORGANISATIONS

Those in need of a Continuous improvement strategy for service organisations may find the Kaizen technique to be of great assistance. This long-term approach focuses on making small changes over a period of time. Although results won’t be seen immediately, the end results tend to be impressive. What makes this technique so beneficial is the fact that all employees are fully involved in the process, as this helps to ensure future improvement in all processes. Quality circles, teamwork and personal discipline are three traits that are highly coveted within this strategy.

MANUFACTURING

The Lean technique focuses on maintaining the quality of one’s products while eliminating waste and reducing the employee workload. Areas addressed when using this technique include wasted resources, wasted time and wasted money. When this technique is used, companies witness improved customer satisfaction, an increase in employee morale and processes that are more efficient and streamlined. The goal is to remove any activities that don’t add value to the company to transform a business into one that is more competitive, agile, and profitable.

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GENERAL

Any company may benefit from the use of the Plan-Do-Check-Act continuous improvement strategy. This quality model is designed to be used in a continuous improvement cycle. First, a company identifies or recognises an opportunity and determines where a change needs to be made. A continuous improvement plan is put into place and implemented on a small scale to see how it benefits the company. The results must be reviewed and analysed to see where the plan is working and where further changes need to be made. Successful changes may then be implemented on a larger scale, and unsuccessful ones taken back to the drawing board for modifications.

OUTPUT IMPROVEMENT

When a company feels they need to improve in the area of output, they often turn to Six Sigma. These quality management techniques are designed to identify errors and defects. Changes can then be made within certain parameters to move a process closer to perfection. Only six standard deviations are allowed when this strategy is used, and each deviation must fall between the specification limit and mean in terms of error. Motorola developed this technique, which has saved them more than $17 billion since its implementation.

Continuous improvement processes and strategies being utilised need to be routinely reviewed by business owners to ensure they are still working. The process is ongoing and may be modified at any time to eliminate those strategies that aren’t producing the desired results and incorporating new ones that may be of benefit. Don’t hesitate to remove a Continuous improvement strategy that isn’t working and trying a new one. This process isn’t set in stone, as each business has unique needs, and there’s no one model that works for everyone.
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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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News Corporation Australia

“News Corp Australia embarked on a journey with Think Perform as we wanted to inject a cultural change and needed to get engagement from all of our operating staff – Think Perform were able to provide this.

They have a development process we believe really works, is flexible and meets our needs.

Two years into the program we have thousands of ideas generated from about a thousand employees who have experienced a Think Perform program. This transformation has played a large element in our success, and we are very happy with how it has progressed.”

Marcus Hooke, General Manager – Operations, News Corporation Australia

Laminex Group

“The reason we chose to engage Think Perform was to assist us in driving continuous improvement across all of our manufacturing plants throughout Australia, as part of our manufacturing excellence corporate strategy.

Think Perform is assisting to inspire a cultural change across our business, which has engaged and equipped our factory-floor employees with tools to problem solve and identify waste opportunities. Our frontline managers are also using these tools to assist with their leadership skills to support, coach and mentor employees.

Think Perform’s flexibility to mould and deliver, in line with our Global Manufacturing Excellence program has been paramount, and it’s proven to be fruitful partnership.”

Dennis Biasotto, Continuous Improvement Manager, The Laminex Group

Lotus Doors

“We engaged Think Perform to assist us in skilling our people at the shop floor level to understand how to identify waste in the business and provide the tools to remove that waste.

The empowerment, knowledge and satisfaction that has come from the shop floor has been fantastic and greatly added value to our organisation.”

Stephen Luxmoore, HR & Safety, Lotus Doors

Northern Iron & Brass Foundry

“Having just reported a strong first quarter results, it is without a doubt that our partnership with Think Perform through the delivery of the Manufacturing Excellence program has been a contributing factor.

Overtime across the site has reduced, with bottlenecks no longer an issue, and this time saved has allowed employees to assist other departments. I believe that the model line introduced has created accountability and has improved productivity as a result of this program being part of day to day life at NIBF.”

Joe Vecchio, Manager, Northern Iron & Brass Foundry

News Corporation Australia

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News Corporation Australia entered into a 24 month partnership with Think Perform and Leadership Management Australia to develop over 300 supervisors and managers and over 800 operators employed across nine sites throughout Australia.

CLICK HERE to view the full case study.

How can you get started?

Would you like to improve results in your workplace? Take the 3-5 minute Waste Analysis and we will send you a customised report which includes actionable tips to help you identify and reduce waste in your workplace.

 

Katcon

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The Opportunity:

Katcon operates in a competitive and changing industry and required a partner organisation capable of assisting them in remaining a market leader.

The Solution:

In consultation with Katcon, Think Perform engaged the business in a flexible 4 step “bottom-up” Manufacturing Excellence program.

The Result:

Cultural and overall efficiency improvements with significant ‘attitudinal’ adjustments on the floor, allowing the business to better manage and cope within its industry.

CLICK HERE to view full case study.

 

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