Continuous Improvement Bill Gaw

8/8/2019 Continuous Improvement Bill Gaw

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Continuous improvement

Theory of Constraints, Materials Requirement Planning,Enterprise Resource Planning, Just-In-Time, Total QualityManagement, Business Process Reengineering , and Flow

Technology are some of the initiatives that have been launchedin industry over the last decade. While some companiesimplementing these programs have achieved significantadvances in quality, speed and costs, most have failed toachieve promised results. According to industry gurus, the

winners attribute their success to adopting the followingmanagement practices:

Creating a clear vision or strategy Real-time management commitment A focus on processes rather than results Timely management support Effective tactical planning Ongoing relevant training Empowering a qualified program champion Team dynamics development Monitoring tactical execution Implementing a recognition/reward system

I agree with the above list, but I believe that most companiesemploy most of these management practices in their business.Why is it then that when most companies launch a new quality,production or inventory control initiative it slowly and graduallytranscends into just another failed management attempt toimprove performance? "New programs never thrive, they justfade away" is the hallmark of such companies andconsequently they never reach their full growth and profitpotentials.So if the above list of management practices doesn't reallyseparate the winners from the also-rans - what does? Why are

some companies successful at obtaining positive results fromsuch initiatives while other companies fail? If it's not on theabove list of manage-ment practices - what is it?I try to answer that question in this week's article. It appearsbelow.Have a nice day, and stay connected.

Bill GawBusiness Basics, LLC6003 Dassia Way

Oceanside, CA [email protected]
mailto:[email protected]:[email protected]


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760-945-5596

The Answer: Quick-Hitting ProcessImprovement,kaizen ,six sigma,lean,Deming cycle

A study of successful companies will invariably show that theyhave developed a culture of gradual, continuous improvement.

This culture provides the basis for new initiativeimplementation success. The Japanese call it kaizen - amanagement culture of gradual, continuousimprovement. I describe it as "a tenacious focus on quick-hitting, process improvements." If you doubt the power ofgradual, continuous improvement you need to study thecareers of Vince Lombardi and Tiger Woods. Their huge successstories are testimonials to kaizen. Vince Lombardi focused hisplayers on the continuous improvement of the execution ofbasics - that's kaizen! Tiger Woods attributed his success to his

relentless quest for a better swing, for higher qualitygamesmanship and a daily pursuit of perfection - that's alsokaizen!In business, kaizen focuses on three basics; WorkplaceEffectiveness, Elimination of Waste and Standardization. As anintroduction to kaizen, I have delineated below their mostimportant features:Workplace EffectivenessThe 5Ss:

1. Sort - - - - - Separate work-in-process, tools, machinery,products and documentation into necessary and the

unnecessary and discard the unnecessary.2. Straighten - - For easy and fast access when needed,everything has a place and everything is in its place.

3. Scrub - - - - - Keep machines and working environmentsclean.

4. Systematize - - Develop routine practices for cleaningand checking.

5. Standardize - - Follow procedures and standardize.Continuously improve processes and reestablishstandards.

Elimination of Waste, Strain and DiscrepancyA simple checkpoint systems

1. Manpower2. Technique3. Methods4. Time5. Facilities6. Jigs and Fixtures7. Materials8. Production Volume9. Inventory10.Place11.Way of thinking

The Five Ws and the One HWHO - Who does it? Who is doing it? Who should be doing it?


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Who else can do it? Who else should do it?WHAT - What to do? What is being done? What should bedone? What else can be done? What else should be done?WHERE - Where to do it? Where is it done? Where should it bedone? Where else can it be done? Where else should it be

done?WHEN - When to do it? When is it done? When should it bedone? What other time can it be done? What other time shouldit be done?WHY - Why does he do it? Why do it? Why do it there? Why doit then? Why do it that way?HOW - How to do it? How is it done? How should it be done?Can this method be used in other areas? Is there any other wayto do it?Problem-Solving Tools

1. Pareto diagrams - Used to display the relativeimportance of all of the problems or conditions in order

to: choose the starting point for problem solving, monitorsuccess, or identify the basic cause of a problem.

2. Cause-and-effect diagrams - Used to identify andexplore and display the possible causes of a specificproblem or cause.

3. Histograms - Used to discover and display thedistribution of data by bar graphing the number of unitsin each category

4. Control Charts - Used to discover how much variabilityin a process is due to random variation and how much isdue to unique events and/or individual action in order to

determine whether a process is in statistical control5. Scatter diagrams - Used when you need to displaywhat happens to one variable when another variablechanges in order to test a theory that the two variablesare related.

6. Graphs - There are many kinds of graphs employeddepending on the shape desired and the purpose ofanalysis. Bar graphs compare values via parallel bars,while line graphs are used to illustrate variation over aperiod of time. Circle graphs indicate the categoricalbreakdown of values; radar charts assist in the analysisof previously evaluated items

7. Checklists - Used to gather data based on sampleobservations in order to begin to detect patterns. This isthe logical point to start in most problem-solving cycles.

Kaizen calls for use of the full PDCA (Plan, Do, Check, Action)problem-solving cycle. PDCA demands that team members notonly identify problem areas but also identify the causes,analyze them, implement and test new countermeasures andestablish new standards and/or procedures.StandardizationObjectives

1. Represent the best, easiest and safest way to do a job.2. Offer the best way to preserve know-how and expertise3. Provide a way to measure performance


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4. Show the relationship between cause and effect.5. Provide a basis for both maintenance and improvements6. Provide objectives and indicate training goals7. Create a basis for audit or diagnosis8. Provide a means for preventing recurrence of errors and

minimizing variability"If not, why not - The Whys" checklistA. Operator

1. Does he follow standards?2. Is his work efficiency acceptable?3. Is he problem-conscious?4. Is he responsible? Accountable?5. Is he qualified?6. Experienced?7. Is he assigned to the right job?

B. Machine/Facilities1. Does it meet production requirements?

2. Does it meet process capabilities?3. Is the maintenance effective?4. Is the inspection adequate?5. Does it meet quality requirements?6. Does it make any unusual noises?7. Is the layout effective?

C. Materials1. Is there excess work-In-process?2. Is the right material in the right place at the right time?3. Is there rework and scrap?4. Is there any wasted materials?

5. Is the handling efficient?6. Is the work-in-process damaged?7. Is the layout effective?8. Is quality standard adequate?

D. Operations Method1. Are the work standards effective?2. Are work standards upgraded?3. Do methods produce a good product?4. Is it an efficient method?5. Does the sequence of work create a smooth flow?6. Is setup time minimized?7. Are the temperatures and humidity acceptable?

8. Are the lighting and ventilation adequate?9. Is there adequate contact with the previous and next

process?Kaizen keeps you thinking and proactive in your pursuit toimprove. Bottom line results come slowly but surely and theseincremental gains eventually add up to a significantcompetitive advantage. The spirit of kaizen can also provideinnovative actions that can yield amazing breakthroughs inspeed, quality and cost.Without kaizen, you and your employer will gradually becomecomplacent and accept the status quo as your business culture.As I see it, the lack of kaizen in a business culture is theprimary cause of new program failures and the downfall of


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many companies.

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Continuous Improvement Bill Gaw