Continuous Improvement: Change that works

David CesarDirector, SS&G Parkland

2Why continuous improvement?

Aggressive Competitors

Market Uncertainty

Increasing Costs

Global Market

Demanding Customers

Harder to Find Good Talent

Difficult Lenders

Margin Compression

Gov. Regulations

Changing Technology

3Don’t allow your success to depend on who

is gunning for you

4Simple definition• Continuous improvement is systematically identifying and eliminating waste as

quickly as possible and at the lowest possible cost

• Every process has waste

• Customers don’t pay for waste, YOU DO

• 7 types of waste– Overproduction

– Inventory/WIP

– Unnecessary motion

– Waiting

– Transportation

– Over processing

– Defects/rework/repairs

5Key features

• Break processes down to bite-sized pieces (manageable and easy to understand)

• Continuous improvement is change employees accept‒ Improvements are based on many small changes rather than the drastic

changes‒ As the ideas come from the workers themselves, they are less likely to be

radically different and easier to implement (employee involvement)‒ Encourages workers to take ownership for their work, and can help

reinforce teamwork and improve worker motivation

6Key features – process vs. results• Results are ALWAYS historical

– Yesterday– Last week– Last month

• Improved RESULTS can ONLY be obtained by improving the PROCESS

• The PROCESS is NOW!

7Wanting a different result and not looking at processes has been

defined

8

Key feature – speak with data

• Improving a process and increasing efficiency is achieved through speaking with data

• Don’t assume – Go and see; observe and measure• Analyze data• Make decisions with data• Take action based on data• Check results with data

9

CI Team – internal supplier, internal customer, and worker(s)

Continuous Improvement

Assess/ Reassess

Plan and Design

(brainstorm)

Implement

Evaluate/ Validate

10

Key performance indicators

• Business truism – What gets measured gets improved• Measuring for the sake of measuring will not improve results• An employee or team within the company needs to own each

measurable being tracked and MUST have the ability to influence the result

• The KPIs chosen need to directly impact performance — the bottom line

11

What is the outcome

• Improved competitiveness• Increased profitability

– Doing more with the same– Doing the same with less

• Employees who are involved – doing their jobs better, faster with the goal in mind

12

Keys to success

• Create a sense of urgency, have a vision, and communicate it continuously

• Knock down the roadblocks to your employees success• Don’t declare victory too soon. Ask your managers every day,

every week, every month what have we done to improve our processes/performance

13

When aiming for your competitors, which are you?