In the manufacturing industry, continuous improvement is both a philosophy and strategy for long-term success. Based on the Japanese business philosophy of “Kaizen,” it seeks to optimize production activities that generate value and eliminate waste. Continuous improvement uses an integrated approach where processes, products and services are monitored on a regular basis and continually improved in all areas of the business.
There are many types of well-known process improvement methodologies, each of which differs widely in their approaches to reducing inefficiencies. These methodologies include Six Sigma, Lean Manufacturing, Total Quality Management, Business Process Management, 5 Whys Analysis, and Plan, Do, Check, Act (PDCA). Implementing the right methodology often depends on the type of business, and which processes the business wants to improve and why.
In the first of this two-part blog, we will explore the advantages of continuous improvement and the many benefits manufacturers can generate from applying the process on a consistent basis.
CONTINUOUS IMPROVEMENT AS A CULTURE
Many in the manufacturing industry consider continuous improvement as the sole domain of ownership and managers. However, the most effective manufacturers make continuous improvement a culture where everyone in the business looks for ways to streamline, simplify and improve operations company-wide.
A successful continuous improvement culture typically includes the following key elements:
- Identify all problems. Inefficient processes need to be improved, regardless of size. Small problems should not be ignored as they can lead to big problems that impact other parts of the production process.
- Everyone can contribute ideas. Great ideas don’t just come from the top. In fact, shop floor personnel are often in the best place to identify opportunities for improvement.
- Provide recognition and rewards. An effective continuous improvement culture welcomes and rewards employee suggestions that improve some aspect of the business. Even if an improvement idea doesn’t pass muster, employees should be acknowledged for proposing it.
- Conduct regular process reviews. For continuous improvement to succeed, companies should evaluate the effectiveness of new processes or changes compared to old ones. Otherwise, they can end up engaging in continuous change rather than continuous improvement.
- Process updates. Processes that were effective for a long time don’t always stay that way. Unless production managers re-examine their methods, they might not notice that teams are no longer working as efficiently as they should.
BENEFITS OF CONTINUOUS IMPROVEMENT
Increasing efficiency is only one of the many benefits that can result from a process improvement methodology. Continuous improvement can:
- Reduce costs by eliminating waste and optimizing systematic processes.
- Foster an environment where innovation and creativity thrive. Improving processes not only shrinks waste, but it also often uncovers a better way of doing things.
- Improve product quality by having employees actively monitor job quality, detect issues early, and promptly implement corrective actions.
- Increase productivity by simplifying production processes and removing bottlenecks and inefficiencies.
- Motivate shop floor workers to solve the problems they encounter on their own. By communicating their value to the business, workforce morale, engagement and retention will increase.
- Improve customer service by combining motivated employees with superior product quality for fewer returns, faster delivery times, and a premier customer experience.
- Enhance competitive positioning by creating an agile manufacturing enterprise capable of adapting quickly to changing market conditions.
- Increase profitability by eliminating waste, reducing costs, improving quality, and simplifying production processes throughout the business.
Read part two of this blog for examples from real manufacturers like you, then learn how our dedicated Continuous Improvement team can help you business improve customer interactions, respond to internal and external changes, and better your operations.