Mr. Fidel Castro, Cuba’s long-term serving leader, is said to have advised Mr. Hugo Charvez, the President of Venezuela, ‘You are the President of Venezuela, Not the mayor of Carcas’
– The Hindu, 26 August 2005
By nature, one has a sense of pride and self-esteem. One also knows that self-pride and esteem are achieved and demonstrated through one's work. One is also aware that ability to solve problems enhances one's standing. Though these facts are known to everyone, they are not manifested in one's daily work. They get manifested when the work set-up allows every employee to be creative and a problem solver. It is the responsibility of the management to provide such a work set-up where the focus is on achieving continual improvement (CI) through problem solving and people involvement. Therefore, the success of continual improvement process (CIP) in any enterprise is hinged on the task the management undertakes to demonstrate transparently the commitment it has for CIP as well as the organisational mechanism it sets up to promote, maintain and monitor the progress of CIP in the organisation. A typical approach to accomplish this task is discussed in this chapter.
Managing continual improvement consists of reflecting the commitment of top management to organise and practice continual improvement as a key result area in the organisation. This is accomplished by focusing the attention on hardware as well as software aspects of continual improvement.
Hardware implies organisational structure to channelise the effort and enthusiasm for continual improvement through planning, coordination and monitoring of all activities related to continual improvement.
Software refers to the value system to promote continual improvement based on conviction and commitment besides developing and maintaining a sharp, focused and alert mindset on improvement.
Tools and techniques are needed to practice software as well as hardware of continual improvement. The relationship between hardware and software is profound and cannot be ignored as could be seen in Table 26.1.
TABLE 26.1 Effect of Relationship Between Hardware and Software on Outcome of Continual Improvement
Status of hardware | Status of software | |
---|---|---|
Strong | Weak | |
Strong | Strong–Strong Self-sustaining; results certain; results sustain |
Strong–Weak Ordinary or poor results; slave driven; focus on software |
Weak | Weak–Strong Ordinary or poor results; plan to strengthen hardware |
Weak–Weak Dying, heading to be dead wood |
All the preceding chapters have dealt with issues related to software as well as hardware. In this chapter, certain uncovered points are dealt.
Management commitment is to be seen in action, facilitation, support and not through exhortions, cheer leading, posters. Hence, management commitment to continual improvement process (CIP) is operationalised as under:
Regarding training programmes, the following points are to be specifically noted.
TABLE 26.2 Responsibilities—Chief Coordinator
Main responsibilities |
---|
Plan, organise, coordinate with HODs and monitor and report the progress of CIP to the management Prepare, maintain and update master list of CIPs (as described later in this chapter) Organise training programmes/work shops on diverse aspects of CIP (as explained in different chapters of this book) Organise celebrations to intensify the movement of CIP Undertake yearly assessment of CIP (discussed later in this chapter) |
The typical list of diverse learning programmes is in Annexure 26A.
Continual improvement projects are carried out by teams. Hence, the importance of building a team, working as a team, contributing through the team and achieving through the team need to be emphasised in a formal as well as an informal manner. The characteristics of a team player are listed in Table 17.8. The dictum ‘Together Each one Achieves More’ that stands for ‘TEAM’ needs to be internalised by every individual employee.
Social dimensions outlined here need to be recognised to work as a team.
Individuals promoting team approach and strengthening team work need to be recognised. In this context, the CC and HODs have to give utmost attention and care for developing the culture of team work.
One of the best examples of team building is the effort that is underway to build a strong cohesive Indian cricket team through a series of integrated measures as under, according to the understanding of the authors who are watching the exercise with great interest:
The above approach is generic in nature and can be adopted to any field.
There are different types of projects for improvement study. For a comprehensive view on diverse types of projects, it is worth categorising them according to the classification in Table 26.3. This also facilitates the process of project solution.
The continual improvement projects, no matter to which category they belong to, can be located in any of the four areas in Table 26.4—local area, spread over different departments of the organisation, across the supply chain within national borders and the ones beyond national borders.
It is a good starting point to list all the problems in a category location-wise and maintain a master list. Such a list needs to be prepared and constantly kept updated and easily accessible to all concerned. Consensus is the basis of including any problem in the list. Any employee can propose projects/problems to be included in the master list. There can be a documented procedure on the process of including a project/problem in the master list.
TABLE 26.3 Classification of Projects
Category | Issues related to the category |
---|---|
Revenue management | Customer retention Revenue per customer Service speed Service quality Quality cost |
Cost management | Yield Cycle time Productivity-man-power Service/product performance |
Fixed-asset management | Facilities utilisation Capacity utilisation Safety and environment Technology upgradation |
Working capital management | Inventory turnover Accounts receivable days Bad accounts Non-performing assets |
Growth management | Market penetration Revenue from new markets Service/product development Revenue from new applications/ new products/services Creation of social assets Intellectual capital |
TABLE 26.4 Functioning of CIP Team
Project location | Team composition and team leader | Pattern of functioning |
---|---|---|
Local area Section/Department [(A)] | ‘Shop floor’ personnel choose the project; constitute the team whose number is restricted to 3–5; and choose the team leader | Team leader in consultation with team members specifies the day, time, place, and duration of team meeting in advance. It is preferable to have the frequency of meeting as once per week and if need be, more often. Record the proceedings of the meeting as per format in Annexure 26B. Once the study is over, another one is taken up and the cycle continues. The team and team leader can change for the next project. |
Spread over different departments [(B)] | HODs concerned decide the project to be taken up and also notify the team members. Duration of each project is fixed in advance. Team members are entitled to make any changes in the project, if need be with the consent of the HOD. | The team selects the team leader. Team leader in consultation with team members specifies the day, time, place, and duration of team meeting in advance. It is preferable to have the frequency of meeting as once per week and if need be, more often. Record the proceedings of the meeting as per format in Annexure 26B. Once the study is over, the team is abandoned and the next project is taken up. |
Across the supply chain within as well as outside national borders [(C)] | Chief Coordinator in consultation with all concerned HODs and others in the supply chain decides the project. | Project team leader, logistics of its working, time-span are decided project-wise. Chief Coordinator facilitates this. Once the study is over, the team is abandoned and the next project is taken up. |
Brainstorming is a tool adopted to reach consensus. All persons concerned with a problem are involved in the brainstorming exercise. The CC has the responsibility to establish the master list and keep it updated.
Every continual improvement project has a team with a leader. Once a project is completed, another one is taken up and it need not necessarily have the same team. Route map for handling a project is the subject matter of Chapter 27. Details of functioning of a team are given in Table 26.4.
The HOD is directly responsible for directing, coordinating, reviewing (A) in Table 26.4; likewise the CC is responsible for (B) and (C) of Table 26.4. The CC through HODs also ensures that the place for the meeting and the facilities for conducting the meeting are made available. The HOD is also responsible for identifying resource persons to serve as facilitators to the teams of (A) in Table 26.4 and to help and facilitate each team to progress smoothly by helping and guiding the team when it gets stuck due to any reason.
After the conclusion of the study, each team prepares a report and submits to the HOD/CC. An abridged version of the report is prepared as per the format in Annexure 26C for presentation to a wider audience.
Guidelines to be followed during its deliberations over a project are in Annexure 26D.
During the past few years, we have had the privilege of serving as judges of the continual improvement projects presented in Quality Circle competitions/conventions held at in-plant, intra-plant, state and national levels. This experience has indicated the presence of the following features common to majority of the projects.
The above observations cast no reflection on the excellent spirit of commitment and interest shown by shop floor personnel in achieving improvement. But the observations do point out to the need to improve the very process adopted in an organisation for selecting projects for continual improvement.
Process of selection of projects for continual improvement needs to be rational and purposeful. For providing such a basis for selection, there should be a database on the trend of performance parameters. The performance parameters whose trend is not up to the desired level in spite of their routine review and action, are the candidates fit for in-depth investigation, analysis, action and follow up through CIP route. Problem selected for CIP on the basis of trend has the merit of not being a sporadic spike but a real one that has defied the routine actions and hence demanding special effort for its resolution.
To assess trend of performance parameters, the pre-requisite is to have an elaborate database in every section/department covering all the relevant performance characteristics related to production, downtime, consumption of utilities, WIP, cycle time, etc. Likewise, it is essential to have a database to reflect the trend in respect to each of the issues covered in every category of Table 26.3.
Designing database, setting performance indices, monitoring of the trend as per the desired frequency is an easy and comprehensive task at present with the use of IT. In this context, the authors wish to make reference to the TL 9000 Quality Management System which sets out several meaningful measurements on quality of supplies—hardware, software and services—made by telecommunications industry for its customers. It is worthwhile for non-telecommunications industries also to adopt similar type of measurements starting with sharing of customer-quality standards. It is to be noted that the characteristic feature of the present day knowledge society is the migration of knowledge from one area to a totally different unconnected area and find its use there. IT facilitates the process of generation and migration of knowledge in a fast, flat and non-circuitous manner in all directions. Hence, the ‘world’ has acquired the new metaphormic expression “flat world”. In this flat world there is continuous renewal and upgrading—none should be averse to it. Hence, it is wise to be free from ‘OK for telecom, but not for us’ syndrome and get benefited from the information contained in the system referred above.
The CC has the responsibility to report the following to the management as well as initiate suitable measures.
HODs must make a quality assessment of the CIP projects of their area as given in Annexure 26E and submit a report to the CC for necessary action.
The CC needs to prepare a balance sheet on continual improvement projects every year, highlighting the expenditure incurred on CIP, revenue generated by CIP in terms of tangible and intangible factors.
In the overall assessment, provision has to be made to assess the improvement in the quality of human resources in terms of enhancement in the ability to (a) solve problems, (b) work in teams and (c) handle problems confidently. Not much attention is in evidence to measure these aspects of the quality of human resources related to transformation in capability.
Everyone aware of the following major reasons for setback in CIP; watches for their onset, if any, at the earliest; takes measures to nip them at the very beginning to maintain a lively dynamic environment in the company for CIP.
The CC as well as HODs focus on the following key points to maintain a healthy environment in the organisation to keep the revolutionary zeal of CIP sharp and straight:
For the Chief Coordinator (CC), it is worthwhile to assimilate and practice the advice of Castro to Charvez mentioned at the beginning of the chapter. It helps to focus on mobilising CIP in the enterprise as an ongoing people’s movement with a mission to enhance the worth and self-esteem of individual employees; sharpen customer focus; eliminate waste in all forms; and step-up the speed of each process by dismantling WIP, time-traps, and non-value-adding activities.
The thought of synergistic impact is best understood through the words of Aldous Huxley, "Excellence is not what happens to you: It is with what you do with what happens to you".
It is not enough if a few improvement projects are active at all times or if the company participates in the national / international contests and wins laurels. The whole institution / organisation must have CIP as an unflagging passionate movement at all times, year after year. Such a thing happens when there is a synergistic impact. Hence measurements of synergistic impact need to be devised, measured, monitored to trigger intervention when required. Some of the measurements that can track the trend of synergistic impact are given in Table 26.5. CC, CIP can be responsible for measuring, monitoring and action on synergistic impact.
TABLE 26.5 Synergistic Impact
The above measurements can be made once in a quarter. The quarterly trend over a period of time indicates a synergistic impact when measurements on (1) and (3) decreases and that of (2) increases.
The entire work force can work together to channelise their energy towards achieving improvement on a continual basis only when the entire task of CIP is managed well and proceeds on a pre-determined path. Some of the key points discussed in this chapter need to be adopted to have a proper well-planned and coordinated system for managing CIP as a key result area.
Revision no.: | Date: |
---|---|
Code | Title of programme |
A | Induction programme History of the company; its business and customers; track record; value system; quality policy and practices; general discipline |
B | Quality discipline B.1 Housekeeping; B.2 Technical discipline—WI; B.3 Defect prevention; B.4 Correction, corrective action and preventive action; B.5 Job safety; B.6 Attendance, punctuality; B.7 First-aid and fire fighting |
C | Functional skills (not job skills) C.1 Team building; C.2 Brainstorming; C.3 Bench marking |
D | Job skills Specially designed programmes to enhance operation skills for cutting-edge in every functional area such as manufacturing, maintenance, transport, canteen and security |
E | Methodologies programme for continual improvement E.1 Quality circles; E.2 Cross functional teams; E.3 Waste reduction; E.4 Housekeeping (5S); E.5 Safety; E.6 Environment; E.7 Mistake proofing; E.8 Preventive maintenance; E.9 Data Orientation, tools for pattern discovery through data |
F | Methodologies for logical thinking and analysis like cause–effect diagram; checklist; force field analysis; FMEA, attribute listing |
G | Techniques G.1 SPC; G.2 Value engineering; G.3 Activity-based costing; G.4 Simple tools for problem analysis—quantitatively; G.5 Production planning; G.6 Statistical test of significance; G.7 Design of experiments |
H | Specialised skills H.1 CAD/CAM; H.2 Computer application; H.3 ERP; H.4 Leadership |
I | Life support programmes I.1 Handling stress; I.2 Handling mid-life crisis: death, divorce, separation, indiscretion; I.3 Planning for retirement |
J | ‘Mould’ breaking programmes J.1 Visioning and goal setting; J.2 Creativity; J.3 Networking; J.4 Leadership of future |
K | Life-skills recognised by WHO, for happy life K.1 Problem solving; K.2 Decision making; K.3 Critical thinking; K.4 Creative thinking; K.5 Effective thinking; K.6 Interpersonal relationship; K.7 Self-awareness; K.8 Empathy; K.9 Coping with emotions; K.10 Coping with stress |
CIP title and code:
CIP team name and members:
Team leader:
Day, time, place of meeting:
The guidelines are
Impact of Problem and Solution
Solution found | Problem formulation | |
---|---|---|
Correct | Incorrect | |
Correct | A: Correct–Correct Good impact |
B: Correct–Incorrect Very poor; retrieval difficult |
Incorrect | C: Incorrect–Correct Poor; retrieval possible |
D: Incorrect–Incorrect Disastrous |