Transcript Continuous Improvement - UPM EduTrain Interactive Learning

Continuous
Improvement: Overview
and Steps
Unit 4
Unit Objectives


Discuss the overview of continuous
improvement.
Discuss quantum of improvement and
improvement potential.

What are the continuous improvement
Strategies?

Discuss the various continuous improvement
method/approach.
The Objective of any Quality
Management System (QMS) is….
CONTINUOUS
IMPROVEMENT
OBJECTIVE
Process
Improvement
PRINCIPLES
Customer
Focus
Total
Involvement
ELEMENTS
Leadership
Education and Training
Supportive Structure
Communications
Reward and Recognition
Measurement
Improve

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

To raise to a better quality or condition.
To make better.
To make something more valuable.
Improve on means to do or make better than
as by additions or changes.
Improvement connotes or denotes
1.
2.
3.
4.
5.
6.
7.
A betterment.
An increase in excellence of quality or condition.
Profitable use.
Progression, upgrading
An addition or change that improves something.
Representing a higher degree of excellence.
A change or addition to something to make it more
valuable (an increase in value).
Continuous
A series of improvement - no end point, on
going effort
Traditional notion of
Improvement

has always been concern with removing
defects, overcoming problems, putting faults
right (negative orientation of western
thinking).
New notion of improvement

is to look at something which seems perfect
and then set about improving it (is not only
limited to putting things right).
Continuous Improvement
Thinking (CIT)

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continually building quality
incorporate consistent adjustments to quality.
accepts the notion that all product and services can be
continually improved.
This is the thinking that must be accepted in the organization.
This thinking should be developed and instilled so employees are
always in a mode of trying to improve quality.
If we established this thinking of always striving to improve the
quality of products or services, then we have adopted CIT to
obtain the highest level of satisfaction for our customers on an
ongoing basis.
Many opportunities for
improvement exist

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Organizations should also consider improving employee
morale, satisfaction, and cooperation;
Improving the design of products with features that better
meet customers needs, and which achieve higher
performance, higher reliability, and other market-driven
dimensions of quality; and
Improving the efficiency of manufacturing systems by
reducing worker idle time, and unnecessary motions,
and by eliminating unnecessary inventory, unnecessary
transportation and material handling and scrap and
rework.
Closing the Gaps through Continuous
Improvement (Exhibit 1)
Internal or
external
supplier
Input
Process A
Output
Quality
characteristics
Internal or
external
supplier
Needs,
requirements,
and
expectations
Are there any gaps?
If so, close them
Closing the Gaps through
Continuous Improvement
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Organizations involve a myriad of processes
& virtually all processes are linked to other
processes.
For any process (process A), the inputs to that
process are outputs of other processes in the
organization.
So Process A is a supplier to the next
customer and a customer to its suppliers.
Closing the Gaps through
Continuous Improvement
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The customer of process A has some requirement,
needs or expectations for the output of process A.
On other hand, the output of process A has some
characteristics that are relevant to these customer
expectations.
These are technically called the quality
characteristics of the output.
Closing the Gaps through
Continuous Improvement

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To the extent that there is a gap between
these characteristics and the customer’s
expectations, there is a quality problem.
This quality problem is the responsibility of
the owner of process A.
Continuous improvement is a frame of mind
that continually forces us to systematically
search for those gaps and systematically
close them as long as it is feasible to do so.
Quantum of Improvement Exhibit 2
GH
I
H
W
LO
Modify
Combination
Adaptation
Alter
Change of
Tuning
Simplification Sequence
Addition
Incremental
Intermediate
Elimination
Replacement
Metamorphosis
Revolution
Regeneration
Innovation
Reengineering
Transform
Convert
Recreation
Reorientation
Quantum Leap
Quantum of Improvement and
Improvement Potential- Exhibit 3
Improvement Potential
Quantum of
Improvement
Breakthrough
improvement
1. Elimination
2. Combination
3. Sequence
Breakthrough
or
Incremental
improvement
4. Simplification
Incremental
improvement
5. Addition
Continuous Improvement and Breakthrough Approaches (Exhibit 4)
Customer
satisfaction
Customer
satisfaction
Time
Time
(b) Pure Breakthrough
(a) Pure Continuous Improvement
Customer
satisfaction
Time
(c) Continuous Improvement and Breakthrough
Continuous Improvement and
Breakthrough Approaches to Customer
Satisfaction
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The Japanese practice of ongoing, small-scale
continuous improvement (Exhibit 4a) has also been
contrasted with the typically American search for
large scale breakthroughs (Exhibit 4b).
These two approaches were thought for sometime
to be rather mutually exclusive.
There are now consider to complementary and the
better results of the combined approach which
Deming has called continual improvement (Exhibit
4c).
Continuous Improvement Strategies
- Exhibit 5
Expected Impact
Breakthrough
Incremental
h
c
n
Be
us e nt
o
u m
n
i
t ove
n
Compr
I
Ongoing
m
g
n
i
k
ar
R
gi
n
ee
g
n
i
er
e
n
Periodic
Application Frequency
Occasional
Continuous Improvement
Strategies

1.
2.
3.
Three combined strategies or approaches
have emerged for CI:
Incremental CI
Benchmarking
Reengineering (Breakthrough)
Incremental CI (ICI)
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ICI is an approach used on an ongoing
basis for incremental gains
ICI is also known by the Japanese term
Kaizen
It is ladder – step by step approach
Benchmarking
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Search for and emulates the best available
practices and processes.
Generally requires more resources than ICI
and can usually be expected to provide larger
gains.
Benchmarking advocates encourage
periodically repeating benchmarking efforts to
close gaps between “what is” and “what could
be”.
Reengineering
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Unlike ICI or benchmarking, reengineering is intended to
totally change something.
It is the fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements
in critical, contemporary measures of performance, such
as cost, quality, service and speed.
Rather than incremental gains of two or even 20%,
reengineering is used to break through to new levels.
However, improvements of this magnitude are not easily
obtained and requires both justification and
determination.
Basic Idea of Continuous
Improvement
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Find weakness
Set a goal for improvement
Make a plan to achieve the goal
Implement the plan --- keep track
Check for progress
Start over
Continuous Improvement
Method/Approach
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The Kaizen
The PDCA Cycle
The Breakthrough (Juran's Improvement
Program)
Motorola Six-step approach (Stretch
Goals)
The Universal Seven-Step Method
KAIZEN
The Japanese incremental
continuous improvement
What is Kaizen?
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Kaizen means improvement
Kaizen means ongoing improvement involving
everyone, including both managers and workers
Kaizen philosophy assumes that our way of life – be
it our working life, our social life, or our home life –
deserves to be constantly improved
The message is “not a day should go by without
some kind of improvement being made somewhere
in the organization”
Simply staying in business required unending
progress, and Kaizen has become a way of life
WESTERN VS JAPANESE
APPROACH
Western
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West’s innovation-and
results-oriented thinking
Innovation strategy is
technology driven and
thrives on fast growth and
high profit margins
Practice of reviewing
people’s performance
strictly on the basis of
results and not rewarding
effort made
Japanese
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Japanese kaizen and its
process-oriented way of
thinking
Its messages is one of
improvement and trying
to do better
It does not mean that
innovation can or should
be forgotten.
Both innovation & Kaizen
are needed
JAPANESE MANAGEMENT
Figure 1: Japanese Perceptions of Job Functions (1)
Has two major
components:
Top Management

Middle Management
Improvement
Supervisors
Maintenance

Workers
Figure 2: Japanese Perceptions of Job Functions (2)

Top Management
Middle Management
Supervisors
Workers
Innovation
KAIZEN
Maintenance
1. Maintenance –
activities directed toward
maintaining current
technological, managerial
and operating standards
2. Improvement – those
directed toward
improving current
operating standards
3. Improvement can be
broken down into
KAIZEN and INNOVATION
JAPANESE MANAGEMENT
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Kaizen signifies small
improvements made in
the status quo as a
result of on going
efforts

Innovation involves a
drastic improvement in
the status quo as a
result of large
investment in new
technology and/or
equipment
WESTERN MANAGEMENT
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Figure 3: Western Perceptions of Job Functions
Top Management

Innovation
Middle Management
Supervisors
Workers

Maintenance
Western perception of
management is given
in Figure 3
There is little room for
KAIZEN concept
The worst companies
are those which do
nothing but
maintenance – no
internal drive for
kaizen or innovation
Comparison of Innovation and
Kaizen-based Strategy
Innovation:
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Creativity
Individualism
Specialist-oriented
Attention to great leaps
Technology-oriented
Information: closed,
proprietary
Functional (specialist)
orientation
Seek new technology
Line + staff
Limited feedback
Kaizen:
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Adaptability
Teamwork (systems approach)
Generalist-oriented
Attention to details
People-oriented
Information: open, shared
Cross-functional orientation
Build on existing technology
Cross-functional organization
Comprehensive feedback
Important Elements of Kaizen
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1. A systematic and collaborative approach to crossfunctional problem-solving
2. A custom-driven strategy for improvement – seek
to satisfy the customer and serve customer needs
3. A system approach and problem-solving tools
4. A process-oriented way of thinking and people’s
process-oriented efforts for improvement
5. A gradual rather than abrupt change
6. Everybody’s business
The Kaizen Umbrella
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Customer orientation
TQC (total quality control)
or CWQC (Company-wide
Quality Control)
Robotics
QC (Quality Control) Circles
Suggestion system
Automation
Discipline in the workplace
TPM (Total Productive
Maintenance)
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Kamban (signboards, cards
or chits)
Quality improvement
Just-in-time (JIT)
Zero defects (ZD)
Small-group activities
Cooperative labormanagement relations
Productivity improvement
New-product development
Problem-solving is the Starting
Point of KAIZEN
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The starting point of kaizen is to recognize the need
This comes from recognition of a problem
If no problem is recognized, there is no recognition of the need for
improvement
Complacency is the arch enemy of KAIZEN
It emphasizes problem-awareness and provides clues for
identifying problems
Once identified, problems must be solved
Thus Kaizen is a problem-solving process
Kaizen requires the use of various problem-solving tools
Improvement reaches new heights with every problem is solved –
the improvement must be standardized
PDCA SEVEN-STEP METHOD
6. Standardize solution
7. Reflect on process
and develop future
plans
5. Evaluate effects
1.
2.
3.
Select and describe
problem
Study present system
Identify possible causes
4. Plan and implement
solution
Continuous Improvement of
Quality through PDCA
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Through continued
application of the cycle,
the organization gets to
higher and higher
quality levels.
(4)
Action
(1)
Plan
(3)
Check
(Study)
(2)
Do
Quality
Continuous Improvement of
Quality through PDCA
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In other words, PDCA is a system for making
continuous improvements to achieve the
target or ever-higher performance levels.
The PDCA cycle is always shown as a circle
to indicate the continuous nature of
improvement.
All types of improvement and improvement
maintenance require iteration.
Continuous Improvement of
Quality through PDCA
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The PDCA principle of iteration gives you a system
for making improvements in a step-by-step way,
doing the best job you can within relatively short
improvement cycles.
In that way you can try an improvement and get real
feedback regarding the direction and distance of
targets or goals.
It is important to get improved products or services
rapidly to markets or in the hands of the next
process, in order to get this user feedback.
The Breakthrough (Juran's
Improvement Program)
180
Overtime hours
160
BREAKTHROUGH
140
120
100
80
60
40
20
0
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
The Breakthrough (Juran's
Improvement Program)
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Joseph Juran emphasized the importance of
developing a habit of making annual improvements
in quality and annual reductions in quality-related
costs.
Juran defined breakthrough as the accomplishment
of any improvement that takes an organization to
unprecedented levels of performance.
Breakthrough attacks chronic losses or, in Deming's
terminology, common causes of variation.
The Breakthrough (Juran's
Improvement Program)
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All breakthroughs follow a common sense
sequence of discovery, organization,
diagnosis, corrective action, and control.
This "breakthrough sequence" is described
and formalized in a 16-session
videotape/workbook series entitled Juran on
Quality Improvement, which is summarized
below.
The Breakthrough (Juran's
Improvement Program)
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1. Proof of the need
2. Project identification
3. Organization for breakthrough
4. Diagnostic journey
5. Remedial journey
6. Holding the gains
1. Proof of the need
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Managers, especially top managers, need to be
convinced that quality improvements are simply
good economics.
Through data collection efforts, information on poor
quality, low productivity , or poor service can be
translated into the language of money - the
universal language of top management - to justify a
request for resources to implement a quality
improvement program.
2. Project identification
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All breakthroughs are achieved project by project,
and in no other way.
By taking a project approach, management provides
a forum for converting an atmosphere of
defensiveness or blame into one of constructive
action.
Participation in a project increases the likelihood that
the participant will act on the results.
3. Organization for breakthrough
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Organization for improvement requires a clear responsibility for
guiding the project.
The responsibility for the project may be as broad as an entire
division with formal committee structures or as narrow as a
small group of workers at one production operation.
These groups provide the definition and agreement as to the
specific aims of the project, the authority to conduct
experiments, and implementation strategies.
The path from problem to solution consists of two journeys:
 one from symptom to cause (the diagnostic journey) and
 the other from cause to remedy (the remedial journey), which
must be performed by different individuals with the
appropriate skills.
4. Diagnostic journey
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Diagnosticians skilled in data collection, statistics,
and other problem-solving tools are needed at this
stage.
Some projects will require full-time, specialized
experts while others can be performed by the
work force.
Management-controllable and operatorcontrollable problems require different methods of
diagnosis and remedy.
5. Remedial journey
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The remedial journey consists of several phase
an alternative that optimizes total cost
(similar to one of Deming implementing remedial
action, and dealing with resistance to change)
Holding the gains

This final step involves establishing the new
standards and procedures, training the work force,
and instituting controls to that the breakthrough
does not die over time.
Motorola Six-steps approach to
Continuous Improvement (Stretch Goals)
1.
2.
3.
4.
5.
6.
Identify the product or service: What work do I do?
Identify the customer: Who is the work for?
Identify the supplier: What do I need and from whom do I get
it?
Identify the process: What steps or task are performed? What
are the inputs and outputs for each step?
Mistake-proof the process: How can I eliminate or simplify
tasks? What poka-yoke devices can I use?
Develop measurements and controls, and improvement
goals: How do I evaluate the process? How can I improve
further?
THE SEVEN-STEP METHOD FOR
CONTINUOUS IMPROVEMENT
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There are many variants of the seven-step
method.
The description of a typical variant might look
very much as follows (Rao, Carr, Dambolena,
Kopp, Martin, Rafii & Schlesinger, 1996).
THE SEVEN-STEP METHOD FOR
CONTINUOUS IMPROVEMENT
Step1. Select a problem and describe it clearly.
Step 2. Study the present system.
Step 3. Identify possible causes.
Step 4. Plan and implement a solution.
Step 5. Evaluate effects.
Step 6. Standardize any effective solutions.
Step 7. Reflect on process and develop future plans.
Step1. Select a problem and
describe it clearly
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A meaningful and relevant problem is selected.
The problem is defined in terms of a gap between what is
currently happening and what would be happening under ideal
circumstances.
The importance and relevance of the problem are underscored.
Any preliminary data that are relevant to the problem are put
forth.
Metrics that will be used to measure progress are determined.
Any necessary operational definitions are developed.
Goals are set, a team is formed, a leader is chosen, and a
schedule is developed.
Step 2. Study the present system
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The present system is flowcharted.
Data are collected on how the current system operates,
including data on the metrics that were selected for
measuring progress.
Variables that may be related to the problem are
identified, and data are collected on those variables.
All data are examined to find any relevant relationships. )
Step 3. Identify possible
causes
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Potential causes for the problem are identified
through brainstorming by workers familiar with the
process.
A cause-and-effect diagram is developed.
Most likely causes are singled out by those same
experienced workers.
Step 4. Plan and implement a
solution
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A list of possible solutions is developed, also
through brainstorming.
The solutions are evaluated.
One or more solutions are selected for
implementation.
The implementation is planned and the solutions
are implemented.
Step 5. Evaluate effects
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Data on the metrics selected for measuring
progress are collected again.
Other relevant data are also collected.
The data are analyzed, and a determination is
made on the effectiveness of the solutions that
were implemented.
Step 6. Standardize any
effective solutions
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Solutions that proved effective are adopted
permanently.
They are made part of standard operating
procedures.
The possibility of instituting those better methods
elsewhere is considered and analyzed.
Step 7. Reflect on process and
develop future plans
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The problem-solving effort just completed is
reviewed in order to draw as many useful general
conclusions as possible.
A summary is made of what was learned.
A decision is made on whether further
improvement is needed on the problem that was
just tackled;
if not, other problems on which work is needed are
identified.
Output
(products)
Inputs
(materials)
Process
Inspection
and
measurement
Inspection
and
measurement
Inspection
and
measurement
Comparison
with
standard
Comparison
with
standard
Quality
acceptable
?
Quality
acceptable
?
Corrective action
Corrective action
Quality Control System for CI
Comparison
with
standard
Quality
acceptable
?
No
Yes
Yes
No
No
Process-related
Material-related
Identify
cause
Yes
Principles/Philosophies of Continuous
Improvement Thinking (CIT)
1.
2.
3.
4.
5.
Undertake improvement regularly and on longterm basis in the production and service systems.
CIT needs a conducive and supportive climate for
creativity and innovation.
The direction and purpose of improvement need
be clear and/or well communicated to relevant
parties or members involved.
Total commitment and involvement of top
management and all relevant parties are required
for a successful implementation of CIT.
Learn, understand and apply the principles and
philosophies of CIT.
Principles/Philosophies of Continuous
Improvement Thinking (CIT)
6.
7.
8.
9.
10.
Create CIT awareness through education and training.
Eliminate complacency and ‘tidak apa’(couldn’t be
bothered) attitude and instill a need for continuous
improvement of the production and service systems.
Understand all the elements as well as be able to
identify relevant elements in various situations needed
for successful implementation of the CIT.
Teach, institute and promote creativity organizationwide.
Institute a well plan recognition and reward program for
CIT.
Principles/Philosophies of Continuous
Improvement Thinking (CIT)
11.
12.
13.
14.
15.
CIT does not always start with an issue, a crisis or
problem, but is also used to enhance the existing
production and service systems and optimizing
opportunities.
CIT applies creativity thinking to produce quality
and valve-added products and services.
CIT need not be a “top-down” approach but can
also start from various levels across the
organization or initiated by individuals.
“Sense of ownership” is very vital or essential for a
successful implementation of CIT.
Be proactive to achieve CIT.
Thank You