CHAPTER 3
Basics of Continual Improvement Process
At least 80% of white-collar jobs, as we know them today, will disappear entirely or be reconfigurated beyond recognition in just the next 15 years. The transformation may be Ugly and Painful, but it is on with Unimaginable Fury. There is no opt-out button
– Tom Peters
SYNOPSIS
Continual improvement process is a combination of two distinct processes—‘restoration’ to normalcy from an unsatisfactory status and ‘breakthrough’ to reach a new improved state not attained earlier from the current level of normalcy. Tools and techniques play a key role to attain restoration followed by breakthrough. A more important role is played by technical know-how, intuition and conjecture.
Continual improvement
Focus of continual improvement is micro- an activity, an operation or, in general, ‘process’. The following aspects need to be clearly understood to address any task of continual improvement:
- Process and its potential
- Difference between improvement as restoration of a process to the desired/specified level in contrast to a level superior to the desired level, referred to as breakthrough
- Role of technology, tools and techniques and managerial practices in an improvement exercise
The above aspects are common to any improvement task no matter what the nature of a process is. These common aspects are dealt in this chapter.
Process and its potential
A process is a set of clearly laid-out-interrelated activities/operations/jobs all of which together achieve a required output/semi-finished products, service or information. Inputs are transformed into output through the pre-specified activities.
A process is a set-up in which teething problems, if any, are resolved and it is set to operate on a routine basis. It attains certain level of performance. Parameters that affect/ influence performance differ from one type of process to another. Parameters, as a common rule, govern performance of every process.
As we get familiar with the process and its technology, many possibilities appear to improve the performance levels. Hence, as a rule, every process has a good potential to enhance its performance level. This is a common feature of any process. Therefore, every organisation has to focus on continual improvement through a well-planned organised effort to enhance the level of performance of every process to reach its full potential.
Continual improvement activity requires involvement of people. As a rule, every employee of the organisation, no matter where and what level one works, has to be involved in at least two continual improvement projects every year he/she is in the service of the organisation.
To start with, for example, in a manufacturing organisation, the focus should be able to achieve a good internal environment characterised by cleanliness, orderliness, adequately lit and ventilated work place, a trained and highly motivated workforce, quick and easy access to correct tooling, sharply defined processes, smooth material flow with low in-process inventory, preventive maintenance practices that ensure high equipment availability, quality processes that minimise reworks and rejects and proper waste disposal systems.
This internal focus sets the tone and tenor of continual improvement movement in the organisation to change for the better; its typical situation is characterised by piles of in-process stock and waste cluttering a dirty shop floor, material waiting for machines or machines waiting for material, poor safety practices, dim lighting and smoky atmosphere, inadequate supply of appropriate tooling, loose work discipline, no work instruction, grossly inadequate worker amenities, little or no training facilities, etc.
Zero defect level
The ultimate objective is to achieve zero defect level in any process. This is possible when the approach, focus, effort and action is on defect prevention. Thus, any project on improvement has to track down the root cause of the defects relevant to the study, source(s) of the causes action at/on the source to prevent recurring of defects. This exercise needs thorough understanding of a process in a structured and planned manner (Chapter 4).
Is zero defect level attainable?
There can be a lurking doubt about the possibility of reaching zero defect level. This lurking doubt can lead to credibility gap without even one being aware of it. Therefore, one should be conceptually convinced that zero defect is achievable.
Following two examples can help one to develop such a conviction.
Dabbawala of Bombay
The 115-year-old institution of ‘Dabbawalas of Bombay’ peopled mostly with illiterate personnel is ensuring on-time supply of food (lunch carrier) from home to its destination and returning it back to home correctly everyday throughout the year, year after year. It has become a landmark institution in Bombay.
Plague, small pox, polio, leprosy
A country like India diversified in every conceivable manner—physical, social and economical—has succeeded in rooting out many of the diseases such as plague, leprosy and small pox and is well on its way to root-out polio.
Outcome
These two examples should convince us that zero defect is achievable in any far-less complicated arena that an institution/organisation is. In this context, it should be noted that the results stated above in relation to Dabbawala of Bombay as well as rooting out of certain diseases at national level are due to a healthy combination of commitment, right choice of technology and micro planning to attain the target.
Improvement as ‘restoration’ and ‘breakthrough’
Improvement is a combination of two processes—restoration and breakthrough. One should know the difference between the two to achieve real improvement.
Restoration is to restore the expected level. Breakthrough is to excel the current level of performance. Restoration is attaining a state of ‘good health’. It is also a case of improvement like recovering after illness. Excelling the highest percentage of marks achieved in 12th standard examination is also a case of improvement with a difference that the result achieved is better than the previous best—a case of breakthrough. Distinction between restoration and breakthrough can be seen in the examples given in Table 3.1.
Restoration is a process of reaching and maintaining the expected levels of performance. Breakthrough is a process of reaching new levels hitherto not achieved in the company and maintaining it. New levels can be voluntarily specified or benchmarked against the best levels achieved elsewhere.
TABLE 3.1 Improvement as ‘Restoration’ and ‘Breakthrough’
Improvement version as |
||
|---|---|---|
| Case example | Restoration | Breakthrough |
| Equipment utilisation | Present level has fallen from 96% to 80%. Factors of under-utilisation are identified and actions are taken. Utilisation level improves and reaches 98 over a period of time. | Utilisation as per the best company is 99.5%. Investigation is undertaken and new level achieved is 99.75% |
| Cycle time | The cycle time in a process is 2 hr. It is required to be 30 min. Interfering factors are identified and the cycle time of 30 min is achieved | Cycle time of 30 min is the current standard. A new target of 15 min hitherto not achieved is set and attained. |
| Class performance | The average score in English for Class X is consistently maintained at 80 ± 15% | New methods of teaching and coaching resulted in achieving the result 90 ± 10%. |
Thus, although restoration and breakthrough are improvements, the real version of improvement belongs to the category of breakthrough. This happens only after the process of restoration. Therefore, in any process to achieve breakthrough which, in fact, is the objective and purpose of improvement, the process should necessarily pass through the phase of restoration. This understanding helps to avoid the false sense of having achieved ‘improvement’ when it is a mere case of overcoming sickness/inefficiency. In our observation, nearly 60 per cent of the improvement studies made belong to the category of restoration. To attain world-class competitiveness, each process must exhibit a history of break-through improvements. In any institution/organisation, restoration and breakthrough co-exist naturally. Without restoration, breakthrough is not possible. This path of restoration and breakthrough enables us to gain a good understanding of the processes and procedures to improve, exercise better control and to think in terms of creative solution which improve the status quo.
Technology
Technical knowledge or know-how of a process is the single dominant resource which leads to improvement. Understanding of technology and its application to solve problems in a process are specific, unique and a subject of continuous learning. It is good to have a documented procedure to know the status of understanding in each process. One such document can be a continuous record of problems/bottlenecks solved, specific actions taken to solve the problems, etc. Another document can be the problems in the process which need to be solved. Such a document reflects the gaps in the know-how of the process and it can be a very valuable source for improving the process through enrichment of the process know-how. These are mentioned to highlight the importance of technical know-how, its continual updating and application in improvement efforts.
Upgradation of technology and having a state-of-the-art technology are necessary and important. More important is that such technologies must be fully exploited. For example, in a manufacturing institution/organisation, what is the point of investing Rs. 20 lakh in a CNC machine tool which is kept idle half the time due to poor maintenance practices or inadequate internal logistics?
Tools and techniques
There are certain tools and techniques which are of great help in developing and stimulating the habit of logically, analytically and holistic thinking. One should know how to use these tools and techniques. Some of these tools are listed in Annexure 3A.
There are also certain quantitative tools and techniques. A list of quantitative tools is also given in Annexure 3A.
In general, the problem is explained and also described in terms of the deficiencies experienced. Explanation and description have only limited value and cannot help in bringing the right focus on the problem. Focus is brought to bear on a problem when details are putforth through quantitative terms. In this context, quantitative tools and techniques help to analyse the problem through data/information associated with it. This approach helps to select problems on priority, analyse the cause of problems and identify the major causes, examine relationships, if any, to detect cause-effect phenomenon and thus can help to understand technology better and use the know-how effectively. It should be noted that quantitative techniques are never a substitute but can greatly substantiate for ones technical insight, knowledge, intuition. Relative importance of the impact of technology and techniques on problem-solving are shown in Table 3.2 to drive home the point that techniques are meant to understand technology in its newer ramification in any given situation. This is important in the present context when continual improvement is turning ‘elitist’ through technique belts. This trend creates a wrong impression among operating personnel that technique is more important than technology.
TABLE 3.2 Impact of Knowledge of Technology and Techniques on Problem Solving
| Knowledge of tools and techniques | Knowledge of technology |
|
|---|---|---|
| Very good | Poor | |
| Very good | Very good Better utilisation of time, effort, resources |
Feeble |
| Poor | Fair Insufficient usage of time, effort, resources |
Poor |
The body of these tools is growing enormously. Some of the tools and techniques are covered in this chapter.
Managerial practices
Achieving zero defect level requires building a culture of continual improvement. The characteristic features of such a culture are as follows:
- An environment that enables an employee to keep up the spirit of enquiry and challenge the status quo.
- Organisational commitment to enable everyone to learn and apply the needed know-how, tools and techniques to bring about improvement.
- Organisational enforcement that makes every employee contribute to the improvement by involving himself at least in two improvement projects in a year, every year the employee is on the rolls of the company.
- Organisational mechanism to have regular continual improvement projects in every functional area in the company involving all levels of hierarchy.
- System of monitoring and evaluating continual improvement projects.
Issues related to the managerial aspects of continual improvement process are discussed in Chapters 26–28 and 30–31.
Model
The model of continual improvement is given in Figure 3.1. The circle shown in Figure 3.1 is the Deming circle characterised by P–Plan, D–Do, C–Check, A–Act (PDCA).
Conclusion
The linkages of a continual improvement task are process, technology, tools and techniques for analysis and thinking and managerial practices. Each link and its relationship with other links need to be understood to bring about a holistic approach in any improvement task. In addition, one has to know the distinction between restoration and breakthrough type of improvements to guard against the undesirable, but commonly found tendency of confining oneself with restoration at the expense of ‘breakthrough’.
Figure 3.1 Continual improvement model
Annexure 3A: Tools for quality and their brief description
Source: TQC News—CD TVS Brakes Division.
Brief description
1. Seven group dynamic tools
1.1 Democratic rules of order. The role of this method is to transform meetings from swamps to designed experiences.
1.2 Self-management enablement skills. Leaders use a set of practices to provoke groups into managing themselves.
1.3 Learning enablement management. When the value and importance of a work are not felt and experienced, it is blown-up to highlight its role and link in the bigger scheme of things like major direct work section and a meta work station.
1.4 Walk-the-talk. Walk-the-talk is credibility, it is an emotional discipline distinctively different from physical discipline. Credibility enhances commitment. Therefore, credibility is seen and experienced when commitment to implement and adopt new ideas are of high order.
1.5 Affect task concept balancing. A technique to assess the relative contribution of affect task, and conceptual concerns in all the major daily activities of a work process fragment and its people.
1.6 The three job week. Every job has three parts linked to the past, present and future. The contents of each part cover the thoughts as well as practices. Drawing a picture of every job in terms of its three parts and contents and making it accessible to all concerned, help one to shed the irrelevant past, focus on the relevant future and work presently to meet the future demands. This is the process of looking beyond the settled task, working today for tomorrow and constant rejuvenation by discarding the irrelevant and unproductive ones.
1.7 Development group hobbying. Improvisations with existing functions and structures of work targeted to create unanticipated new capabilities are exercised in disciplined fashion in this technique.
2. Seven statistical tools
2.1 Check sheet. To collect data in a simple and systematic method.
2.2 Pareto diagram. To identify ‘vital few’ and ‘trivial many’. This is explained with plenty of examples in Chapter 19.
2.3 Cause-effect diagram. To display the relationship between causes and effects.
2.4 Histogram. To display the distribution of data.
2.5 Graphs/control chart. To display the data in a visual and easily understandable manner. To see whether the process is under stable conditions.
2.6 Scatter diagram. To study the relationship between two sets of data.
2.7 Stratification. To group the data by common characteristics.
3.1 Relation diagram. A relation diagram of objects is arrows freely connecting them in any order.
3.2 Affinity diagram. The affinity diagram reveals groups affiliated to different factors/ classification.
3.3 The system diagram. System diagram reveals groups stratified under certain criteria and linkage of the one type of group with another.
3.4 The matrix diagram. The fundamental role of the matrix diagram quality is to enable work forces to give up thinking in single factor terms and that multi-dimensional and multi-factor aspects of problems be acknowledged.
3.5 Matrix data analysis. A matrix data analysis involves a matrix with numeric data at its intersections.
3.6 Process decision chart. The process decision chart is an operations research method simplified for general work for the use in quality.
3.7 Arrow diagram. The arrow diagram is just a generalization of PERT charts for scheduling the numerous actions expected of people in such a way that critical paths/ dependencies can be monitored and protected during implementation.
4. Seven implementation tools
4.1 Control points. Control points are measurement points in a process that capture causes acting on the process and determining the quality of its outcome.
4.2 The add-on/replacement matrix. One dimension of the matrix shows the changes to be made to solve a problem in the process and determine the quality of its outcome.
4.3 The pain-sharing matrix. The pain-sharing matrix shows all the steps in the process in one dimension, marked to show which steps embody proposed changes.
4.4 Process empowerment rooms. Process empowerment rooms combine word coordination software and electronic meeting mediation software that support all the steps of modelling a process.
4.5 Discipline stretch rooms. Workers carry out intense group exercises in work-related skills in immensely faster or better manner.
4.6 Stress relief measures. Stress relief measures are mostly in the form of entertainment inputs based on incidents, situations of entertainment-value culled out from work situations and relationships. Work force exposed to such inputs obtain comic relief as well as appropriate message for cultivating stress-free behaviour.
4.7 Serial equality. An accounting system equalises privilege and pain over intermediate periods to repay those members of groups who sacrifice for the group’s benefit during an activity.
5. Seven process tools
5.1 A delta T. A way of modelling one’s work process; it compares theoretical vs. actual times, costs, qualities and outcomes from each process step segment and problem solving the largest and most problematic gaps.
5.2 Value analysis. This defines the functions required to deliver customer satisfaction with the product, arranging such functions to show dependences among them and evaluating the functions to find areas to improve in the product design.
5.3 FAST diagram. Charles Bytheway’s functional analysis systems technique is a diagram of a particular sort, tailored for showing the results of value analysis.
5.4 Iterator/recursor analysis. Iterator/recursor analysis examines all the steps in a process and notes identical sets of steps that can be done by the same system, similar sets of steps that can be done parameterising a single implementation system for them, and steps repeated exactly or partially on different size scales of the process for execution using a single system parameterised by size scale.
5.5 Variance analysis. This identifies all the steps of a process (mental work, physical work, relation maintaining or establishing work and others).
5.6 Empowerment path matrix. The rows of the empowerment path matrix are the major steps of a cross-unit to implement each major empowerment step.
5.7 Competency matrix. The rows of the competency matrix are types of work, learning, influence and customer-priority competency.
6. Seven knowledge tools
6.1 Consultation map. The consultation map is a matrix having two or three dimensions.
6.2 Mastery timeline. A mastery timeline shows the time till mastery level is reached for every step in a process and for conditions of mastery in tools, techniques and coordination.
6.3 Inadequate/bias chart. A chart ranks people and jobs by the type of thinking typically needed to obtain required outputs from them in the available configurations of work.
6.4 Improvisation chart. A map shows where past improvisations with a process have taken place and where present improvisations with a process should be encouraged since improvement is about to happen there.
6.5 Practical intelligence matrix. The rows of the matrix are the major dimensions of practical intelligence—conceptual, emotional, social, executional, physical and hetrogenial.
6.6 Organisational knowing matrix. Organisational knowledge is stratified according to functional area. For each item of knowledge the ‘bench mark’ level is stated along with the corresponding ‘present status of knowledge’ in the organisation. A comparison of the two indicates the areas where the enterprise is enjoying competitive edge and where it is to be achieved. The entire information when presented column-wise becomes a morphological matrix.
6.7 Knowledge fractality chart. A chart has all the size scales of the institution/organisation as rows and all the kinds of knowledge of near benchmark level as columns.
7. Seven advance statistics tools
7.1 Simple correlation. Simple correlation compares data on one variable’s value to data on another variable’s values in a way that possible causal influence between them can be ruled out entirely or possibly ruled in (correlation is not equivalent to causation and does not prove it).
7.2 Multiple correlation. It is same as simple correlation except that it is done for many independent and dependent variables at the same time.
7.3 Stratification. It is a qualitative (examination of extremes and identification of polar opposite phenomena) and quantitative method (from exploratory data analysis) for identifying possible causal relationships in data for explicit investigation using other statistical methods.
7.4 ANOVA. ANOVA (Analysis of Variance) is a statistical technique for proving the possibility of causal relationship among several variables where one or more of the variables have no specific number values from among nearly continuous but discrete values.
7.5 Multiple regression. It is the same as multiple correlations except that the other shows us a number giving the degree of relationship, where multiple regression analysis gives information on the kind and shape of relationship between variables.
7.6 Design of experiments. A set of principles for creating experiments defines relationship of variable value that accomplish customer satisfaction.
7.7 Factor analysis. A data reduction technique handles a huge number of variables whereby a few variables among the several relevant ones are examined to assess their influence and importance.
8. Seven systems tools
8.1 Situational feed forward diagram. A diagram of all steps in a work process shows the effects of feed forward from one step to any other further down, chronologically in the process.
8.2 Situational feedback diagram. A diagram of all steps in a work process shows the effects of feed backward on prior steps in a process.
8.3 Non-local effects diagram. A diagram of a set of related physically continuous processes showing for each step in a process the effects it has on related or contiguous processes.
8.4 Conditions-of-doing effects diagram. A diagram captures, for all the steps in a process, the requisite of doing that step and their effects in feed forward and feed backward terms.
8.5 Catastrophe effects diagram. A diagram examines preset quantitative levels of key failure mode variables affecting a process.
8.6 Holographic state map. A diagram shows all size scales and process steps of all processes in a company that are addressing each of the major challenges of the company at any given time.
8.7 Time series analysis. A statistical technique foretells the future or predicts future values from the present and past ones.
9. Seven management-by-events tools
9.1 Participatory research assembly. A mass workshop event gets major research results almost immediately by mobilising hundreds and thousands of employees and others in a highly structured workshop process carried out for several days, entire weeks, or evenly spread over a day.
9.2 Participatory town meeting. A smaller version of the participatory research assembly, the town meeting only involves upto few hundred people.
9.3 Participatory cabaret. A mass workshop invents art forms as acts in a particular cabaret celebration.
9.4 Problem-solving unit. A very rapid form of conducting problem-solving process for cross-units. Workshops are for 3 days or a weekend of 16-hr days.
9.5 Value conversation. In some companies, a value conversation is an accruement to the 15-min daily company-news meeting for all employees.
9.6 Venture business consult. A 10-day workshop brings together all the parties needed to fund, legally create, lead, supply, support and define venture business for a cross-unit. It is a smaller version of the participatory research assembly, which involves upto a few hundred people.
9.7 Customer understanding tour. A company-led vacation scheme mixes world tours of competitors and national tours of the other competitors with highly subsidised relaxation activities in a company group format that is deliberately cross-functional yet allow friends with functions to travel together.
10. Seven customer understanding tools
10.1 Loss function. It is a quadratic functional representation of the costs, the customer of a product and the company supplying the imperfect product has to pay for bad quality.
10.2 Neural net emotion detection. A famous facial muscle measurement technique detects inarticulate customer feelings in the presence of Q test product.
10.3 Focus group protocols. In every group of people working together there exists certain expressions, voice intonations and body language that appears to affect interpersonal interaction. These behaviourial aspects perceived as ‘stink’, ‘sting’, source of irritation, shall shed down all such attributes once they are understood as ‘normal’ and ‘natural ones’. To facilitate this conditioning of mind, such attributes are coded, recognised as normal for the group, and hence treated as harmless ‘focus group protocols’.
10.4 Voice of the customer gathering displays. Test product displays in shopping centres have microphones on the products to pick up customers’ casual remarks as they interact with the products.
10.5 Voice of the customer interaction matrix. For every customer, his/her requirements are classified into two categories, (a) easier to meet and (b) harder to meet. This is summarised in a tabular form indicating customer, his/her corresponding requirements which are easier to meet and the ones harder to meet. This matrix helps to register the voice of customer to facilitate interaction with customers.
10.6 Expert system voice determinant matrix. This matrix contains expert systems that represent the causal determinants of one of the features of a product and extend their influence on other customers around the world.
10.7 Customer leadership establishment chart. This is an action plan where customers are promoted as leaders to advertise the product and services of the company. This is accomplished by making the customers develop a taste for the product and its usage and thus extend their influence on other customers around the world.
11. Seven commitment tools
11.1 Mentorship coverage map. Group of people having 8, 12, 16 or 20 years experience in a cross-unit or company; it facilitates pairing them with newer and less experienced people for a suitable period to facilitate the completion of osmotic influence.
11.2 Action readiness chart. A diagram showing five factors required for changing human behaviour and scoring individuals and groups on each quality dimension, as well as work processes.
11.3 Purposing matrix. A set of score sheets having rows containing the requisites of high performance.
11.4 Detachment costing. A technique used to measure the ability of people to engage proactively in new arrangements to make themselves and the company succeed.
11.5 Engagement costing. A technique measuring the ability of people to detach themselves from past habits, traditions, attitudes and practices to make themselves and the company succeed.
11.6 Endurance costing. The endurance matrix measures the responsibility that people embody for finishing what they start even when job transfers move them from the site of their original work.
11.7 Meta-action diagram. A diagram measures the relative portion of work, meta work and meta–meta work in a job.
12. Seven innovation tools
12.1 Morphological forecasting. It combines unmet customer needs with unused technical capabilities to find possible areas of new products or enhancement of existing products.
12.2 Idea rooms. Idea rooms are asynchronous workshops where people walk up and workout/think about/examine their ideas.
12.3 Consensus graphs. Paper or computer software systems show each individual idea or piece of evidence added to on-going arguments.
12.4 Delphi. A problem/a derived result/a deficiency is stated in a word or few words. Group of people from diverse backgrounds look at it and come out with a variety of approaches/methods/tactics to solve the problem/deficiency or achieve a desired result. This is done in one or more sittings spread over a few days.
12.5 Paradoxon analysis. It is a problem-defining and problem-solving method.
12.6 Daily life protocols. Transcription record of all the mundane things done and said in specific everyday situations such as preparing the morning coffee or straightening the top of one’s desk.
12.7 Product metaphoric transposition matrix. Several aspects of a product are listed. To derive suitable lessons, if any, for any another product, these aspects are applied to that product and their relevance is examined.
13. Seven social connectionism tools
13.1 Process deployment automation. This includes work coordination, electronic meeting facilitation and self-managing document technology.
13.2 Function execution by mass-work events. During mass participation events, firms distribute the most mundane work to thousands who do in hours what a handful of people would otherwise spend a year in doing it.
13.3 Cognitively balanced jobs and careers. A map contains the cognitive requisites and opportunities of all the jobs in a person’s career with an institution/organisations.
13.4 Value-added process career. A map shows the final impact of a person’s work at all previous job positions.
13.5 Cross-unit promotion paths. Cross-unit promotion paths show ways of networking the work forces that are members of a particular cross-unit.
13.6 Self-explaining work process. Work systems interactively tutor those using them. Full motion video help announces news to process steps and publishes information to such process steps instead of to specific individuals.
13.7 Paradoxon in smallest work unit. A system addressing the major challenges of an institution/organisation in each of the smallest units conducting work.
14. Generation of quality tools
The seven tools for new product planning are as follows.
14.1 Group interview. A tool for the need of identification.
14.2 Questionnaire survey. A tool for the need of verification.
14.3 Positioning analysis. A tool for research of product map.
14.4 The concept checklist. One tool for conceptualisation.
14.5 The table type conceptualisation. Other tools for conceptualisation.
14.6 Conjoint analysis. A tool for concept test/determination of optional concept.
14.7 Quality table. A tool for linkage to design.