Continuous Improvement: The Seven Secrets
Lean and Green
By Mark Sutcliffe   
Monday, 28 April 2008
Seven secrets of continuous improvement
Seven lessons can lead to a successful implementation of continuous improvement programs.

Hundreds of manufacturers have improved operational performance and gained a competitive advantage by implementing continuous improvement (CI) programs such as lean and Six Sigma. Nonetheless, risk-averse manufacturers are sometimes hesitant to pursue CI methods, fearing that they may be too drastic, unsustainable or abstract to apply in a practical and manageable manner. Luckily, the reasons some CI efforts fail are easily identifiable, and manufacturers can reduce risk and gain more confidence in pursuing CI programs if they are aware of common pitfalls.

Manufacturers looking to implement CI programs that effect real and lasting change must approach CI methodically and map their path forward carefully. By examining strategies that have led to demonstrable results with other companies, we have boiled this down to seven key lessons.

1. Support CI Initiatives with Change Management Efforts
CI programs involve more than just process changes; to ensure enduring success, they also require cultural changes. This degree of change can be met with resistance if it is simply imposed on employees.

By effectively communicating project goals, scope and steps with employees at all levels throughout the program implementation, and providing them with ample training and input, manufacturers can manage this change more smoothly and secure employee buy-in. Also, many manufacturers that have involved shop-floor employees in CI projects from the outset have uncovered great ideas and identified considerations that might otherwise have been overlooked. They have also seen how deeper participation and understanding has given employees a sense of project ownership that has improved results.

2. Have Clear Business Goals
More often than companies would like to admit, initiatives to implement a new system or methodology can become more about the implementation than its end goals, getting caught up in the logistics and losing sight of the purpose. This can be avoided by clearly defining the CI project’s goals, phased milestones and expected benefits, and continually monitoring the project’s progress against those goals.

3. Enable Real-Time Visibility and Transparency
Despite the wealth of information generated by manufacturing execution systems, many manufacturers lack the simple visibility and transparency into their businesses that they need to track performance and manage their businesses effectively. To derive true value out of this raw information, manufacturers need to implement easy-to-use tools that turn data into intelligence and enable them to analyze and adjust activities in real time – not just spot a problem after it has already taken its toll.

4. Take Action
Achieving real-time visibility and transparency is only valuable if the insights this produces are effectively applied. Disseminating relevant information in a targeted manner to the users or managers who can benefit and act on it is critical to ensuring true continuous improvement. Manufacturers must also empower operators to act on information and display management commitment to doing so at all levels to motivate ongoing refinement.

5. Secure Executive Sponsorship
High-level executive sponsorship for a CI project is essential to developing a unified vision and commitment across department and cultural lines. Without it, it is difficult for any CI project to secure the authority or resources required to ensure success, remove obstacles, handle contingencies and drive key decisions.

One common pitfall, however, is a trailing-off of executive support and involvement as the project progresses. This should be avoided at all costs, as it is antithetical to the concept of continuous improvement and can prevent a project from maintaining momentum and yielding ongoing results. One effective strategy for avoiding this is to form a steering committee with high-level executive involvement that continues to meet and evaluate program results over time.



 
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