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39
‘Toyota workers
have been living
and breathing CI
through their entire
careers. Kaizen is a
natural part of they
way they work.’
IT IS DIFFICULT to find a
modern day CEO who does not
claim their organisation is fully
committed to the process of
continuous improvement (CI).
In almost every sector cost
pressures are increasing,
customers are making rising
demands on product quality, the
complexity and sophistication
of offerings is going up, and
product ranges are becoming
wider. Just to stand still in this
environment companies need to
get better at what they do. To
compete and win they must do
so at a faster rate than their
competitors.
Making CI work, however,
requires far more than
management recognition of its
importance. Even larger firms
with otherwise sophisticated
management practices often
adopt surprisingly ineffective
methods. One of the most
common mistakes is to introduce
incentives for CI – by building
improvement targets into the
key performance indicators
(KPIs) of managers, or by
offering rewards for successful
improvements – without giving
management teams and shop
floor personnel the critical tools
and infrastructure they need to
achieve results.
A COMMON
MISCONCEPTION
At the root of much of the
difficulty with CI is a
misunderstanding of practice
in Japanese companies such as
Toyota, where CI has already
evolved to an extremely high
level. In the Toyota production
system, improvement is
considered to take place at three
levels. First comes Gemba
kaizen , which is small, frequent
and low cost improvements
introduced and implemented by
front line workers. Gemba kaizen
provides the platform of
relentless change which keeps
the operating system constantly
evolving.
Periodically, the pace of
improvement slows and Gemba
kaizen will be supplemented by
Jishuken – the introduction of ‘a
fresh pair of eyes’. This usually
entails bringing personnel in
from other areas of the
organisation to identify
improvement opportunities that
proximity and over familiarity
may have concealed from the
frontline team. Jishuken not
only gives performance a kick,
increasing the rate of
improvement, it also re-
engergises and re-enthuses the
frontline team, getting them
key points
FOUR KEY STAGES
TO IMPROVEMENT
THE TOOLS, processes and
infrastructure required to support
continuous improvement (CI)
efforts change as a firm evolves.
There are four key elements,
however, that form the foundations
of a sustainable CI programme.
A change methodology for
getting from the current state
to the desired future state
An idea management system
– a process for collecting,
processing, prioritising and
implementing improvement
ideas
An organisation that supports
the implementation of these
improvement suggestions
back on the kaizen track.
Finally, and usually only
at times when a natural
discontinuity occurs such as the
introduction of a new model line
or the need to dramatically
the Japanese
Continuous improvement (CI) is more than just a
management fad. It is a basic tenet of operations practice in all
modern industries. Yet too many companies fail to understand
and implement the requirements for a successful, sustainable
CI programme, says Mark Hallum .
www.theiet.org/management August/September 2007 Engineering Management
Operating system definition –
a detailed understanding of the
way things are now and the
way they should be in the
future
connection
344823548.004.png
39
‘Toyota workers
have been living
and breathing CI
through their entire
careers. Kaizen is a
natural part of they
way they work.’
IT IS DIFFICULT to find a
modern day CEO who does not
claim their organisation is fully
committed to the process of
continuous improvement (CI).
In almost every sector cost
pressures are increasing,
customers are making rising
demands on product quality, the
complexity and sophistication
of offerings is going up, and
product ranges are becoming
wider. Just to stand still in this
environment companies need to
get better at what they do. To
compete and win they must do
so at a faster rate than their
competitors.
Making CI work, however,
requires far more than
management recognition of its
importance. Even larger firms
with otherwise sophisticated
management practices often
adopt surprisingly ineffective
methods. One of the most
common mistakes is to introduce
incentives for CI – by building
improvement targets into the
key performance indicators
(KPIs) of managers, or by
offering rewards for successful
improvements – without giving
management teams and shop
floor personnel the critical tools
and infrastructure they need to
achieve results.
A COMMON
MISCONCEPTION
At the root of much of the
difficulty with CI is a
misunderstanding of practice
in Japanese companies such as
Toyota, where CI has already
evolved to an extremely high
level. In the Toyota production
system, improvement is
considered to take place at three
levels. First comes Gemba
kaizen , which is small, frequent
and low cost improvements
introduced and implemented by
front line workers. Gemba kaizen
provides the platform of
relentless change which keeps
the operating system constantly
evolving.
Periodically, the pace of
improvement slows and Gemba
kaizen will be supplemented by
Jishuken – the introduction of ‘a
fresh pair of eyes’. This usually
entails bringing personnel in
from other areas of the
organisation to identify
improvement opportunities that
proximity and over familiarity
may have concealed from the
frontline team. Jishuken not
only gives performance a kick,
increasing the rate of
improvement, it also re-
engergises and re-enthuses the
frontline team, getting them
key points
FOUR KEY STAGES
TO IMPROVEMENT
THE TOOLS, processes and
infrastructure required to support
continuous improvement (CI)
efforts change as a firm evolves.
There are four key elements,
however, that form the foundations
of a sustainable CI programme.
A change methodology for
getting from the current state
to the desired future state
An idea management system
– a process for collecting,
processing, prioritising and
implementing improvement
ideas
An organisation that supports
the implementation of these
improvement suggestions
back on the kaizen track.
Finally, and usually only
at times when a natural
discontinuity occurs such as the
introduction of a new model line
or the need to dramatically
the Japanese
Continuous improvement (CI) is more than just a
management fad. It is a basic tenet of operations practice in all
modern industries. Yet too many companies fail to understand
and implement the requirements for a successful, sustainable
CI programme, says Mark Hallum .
www.theiet.org/management August/September 2007 Engineering Management
Operating system definition –
a detailed understanding of the
way things are now and the
way they should be in the
future
connection
344823548.005.png
41
‘Continually
improving a
system that is
fundamentally
ineffective will
never deliver
effective results’
the CI process. During the early
architect and implement phases
methodology will be highly
standardized and quite
prescriptive, allowing team
members to apply and become
familiar with new tools as
painlessly as possible and giving
them an insight into their
effectiveness. Ultimately, these
methodologies become much
more adaptive, with a strong
understating of underlying
principles allowing team
members to select and adapt
tools according to their needs.
To fulfil this demand
successfully the CI organisation
must be able train, distribute
and manage resource in order to
keep up with this demand and
maintain enthusiasm and
momentum.
Ultimately, during the kaizen
phase of the process, the CI
infrastructure takes much less
of a day-to-day role in the
management of improvement
activities. Instead, they act as a
resource which frontline teams
can draw upon if they are short
of ideas or staff to fulfil specific
improvement objectives, or if
the pace of improvement slows
and a Jishuken shake-up is
required to re-energise and
restart change. In mature
companies the CI organisation
often begins to extend its
influence to work with
companies out in the supply
chain.
Balancing the pace of change
is another big challenge in CI
introductions. CI
implementations must walk a
fine line between going too fast –
leaving a confused, frustrated
and disenchanted workforce –
and too slowly, getting bogged
down in administration and
losing the commitment and
enthusiasm of management.
While the pace of change that
an organisation can support
varies tremendously according
to its history, capabilities and
culture, the warning signs of
incorrect pacing are clear and
constant. Facing a backlash from
shop-floor staff ? Pace is
probably too quick, it is time
to slow down and expend more
effort talking the process
through. Managers grumbling
about too many CI meetings?
The process is probably slowing
down; it is time to commit more
resource to action at the shop
floor.
Continuous improvement is
an admirable and attainable goal
for any operation, but its
successful implementation is
not simply a case of copying
processes observed elsewhere.
The journey to a robust,
sustainable CI culture is an
evolution that requires
companies to identify their
strengths and weaknesses, and
key notes
CONTINUAL
IMPROVEMENT?
IT’S A PEOPLE
THING
THE IMPORTANCE of placing
high-calibre people in the CI
organisation cannot be
overemphasised. A good
continuous improvement
specialist must be self-motivated,
action-oriented and skilled in both
technical problem solving and
coaching, and mentoring and
motivating the teams they work
with. Unfortunately, people with
these characteristics are usually in
very high demand elsewhere in
the organisation: they are high
performing the team leaders, line
managers and plant mangers.
Full commitment to the
process requires just these people
to staff the CI organisation. In
successful CI implementations a
role in the CI team is considered
to be an important stepping stone
on the path to senior
management. Organisations that
take this approach find that their
high calibre people deliver much
more as part of the CI
organisation than they could if
wholly devoted to a single point in
the value stream.
Quantity matters as well as
quality. As demand for CI rolls out
across a company, continued
enthusiasm depends on the
ability to successfully fulfil this
demand. Experience suggests that
in most situations around 1.5 per
cent of the workforce should be
devoted to the CI organisation in
order to deliver this capability.
the lean philosophy. It embraces
the best of improvement process
and technical lean solutions,
while addressing management
infrastructure and the mindsets
and capabilities that are
necessary within an
organisation in order to be
ultimately successful.
Alongside a change
methodology, frontline team
members need the tools and
capabilities to be able to solve
problems and come up with
creative solutions. There are
many simple-to-use tools that
can be extremely powerful
problem identification and
solving aids on the shop floor.
Single minute exchange of dies
(SMED) techniques to improve
the pace and reliability of
changeovers, for example,
statistical process control charts
to spot trends before problems
occur, or cause and effect
diagrams to aid the diagnosis
of issues.
The methodologies adopted by
the shop-floor teams will tend to
change during the evolution of
CI ORGANISATION
INFRASTRUCTURE
Continuous improvement
activities require support. A CI
infrastructure is designed to
help the organisation to
implement the three elements
discussed above. A dedicated CI
organisation provides a host of
services to the organisational
frontline, from the generation
and direct implementation of
improvement ideas to capability
building and skills development.
The changing role of a
company’s CI infrastructure
over time is a fundamental
driver of successful CI
evolution.
During the architect phase,
the CI team takes a driving role
in the improvement process.
Often working with external
support from consultants or
customer CI experts, the team
will be responsible for designing
and implementing the Kaikaku
process, the dramatic pilot phase
improvements, and for training
the frontline representatives
who will cascade the process
across the organisation. At this
stage, the relationship between
the CI team and the rest of the
organisation is very much a
push process: often reluctant
frontline teams must be
persuaded to adopt new
processes and techniques.
During the implement phase,
the CI team needs strong
training and project
management skills. The
dramatic improvements
achieved in pilot projects very
quickly create a pull demand
from elsewhere in the
organisation for similar work.
to implement processes and
allocate resources appropriately.
They must then be prepared to
continually review and modify
these processes and
infrastructure as that culture
matures.
Mark Hallum is an expert
associate partner in the
manufacturing practice of
McKinsey & Company, and
also a former employee of both
Toyota and Honda
www.theiet.org/management August/September 2007 Engineering Management
344823548.006.png 344823548.007.png
41
‘Continually
improving a
system that is
fundamentally
ineffective will
never deliver
effective results’
the CI process. During the early
architect and implement phases
methodology will be highly
standardized and quite
prescriptive, allowing team
members to apply and become
familiar with new tools as
painlessly as possible and giving
them an insight into their
effectiveness. Ultimately, these
methodologies become much
more adaptive, with a strong
understating of underlying
principles allowing team
members to select and adapt
tools according to their needs.
To fulfil this demand
successfully the CI organisation
must be able train, distribute
and manage resource in order to
keep up with this demand and
maintain enthusiasm and
momentum.
Ultimately, during the kaizen
phase of the process, the CI
infrastructure takes much less
of a day-to-day role in the
management of improvement
activities. Instead, they act as a
resource which frontline teams
can draw upon if they are short
of ideas or staff to fulfil specific
improvement objectives, or if
the pace of improvement slows
and a Jishuken shake-up is
required to re-energise and
restart change. In mature
companies the CI organisation
often begins to extend its
influence to work with
companies out in the supply
chain.
Balancing the pace of change
is another big challenge in CI
introductions. CI
implementations must walk a
fine line between going too fast –
leaving a confused, frustrated
and disenchanted workforce –
and too slowly, getting bogged
down in administration and
losing the commitment and
enthusiasm of management.
While the pace of change that
an organisation can support
varies tremendously according
to its history, capabilities and
culture, the warning signs of
incorrect pacing are clear and
constant. Facing a backlash from
shop-floor staff ? Pace is
probably too quick, it is time
to slow down and expend more
effort talking the process
through. Managers grumbling
about too many CI meetings?
The process is probably slowing
down; it is time to commit more
resource to action at the shop
floor.
Continuous improvement is
an admirable and attainable goal
for any operation, but its
successful implementation is
not simply a case of copying
processes observed elsewhere.
The journey to a robust,
sustainable CI culture is an
evolution that requires
companies to identify their
strengths and weaknesses, and
key notes
CONTINUAL
IMPROVEMENT?
IT’S A PEOPLE
THING
THE IMPORTANCE of placing
high-calibre people in the CI
organisation cannot be
overemphasised. A good
continuous improvement
specialist must be self-motivated,
action-oriented and skilled in both
technical problem solving and
coaching, and mentoring and
motivating the teams they work
with. Unfortunately, people with
these characteristics are usually in
very high demand elsewhere in
the organisation: they are high
performing the team leaders, line
managers and plant mangers.
Full commitment to the
process requires just these people
to staff the CI organisation. In
successful CI implementations a
role in the CI team is considered
to be an important stepping stone
on the path to senior
management. Organisations that
take this approach find that their
high calibre people deliver much
more as part of the CI
organisation than they could if
wholly devoted to a single point in
the value stream.
Quantity matters as well as
quality. As demand for CI rolls out
across a company, continued
enthusiasm depends on the
ability to successfully fulfil this
demand. Experience suggests that
in most situations around 1.5 per
cent of the workforce should be
devoted to the CI organisation in
order to deliver this capability.
the lean philosophy. It embraces
the best of improvement process
and technical lean solutions,
while addressing management
infrastructure and the mindsets
and capabilities that are
necessary within an
organisation in order to be
ultimately successful.
Alongside a change
methodology, frontline team
members need the tools and
capabilities to be able to solve
problems and come up with
creative solutions. There are
many simple-to-use tools that
can be extremely powerful
problem identification and
solving aids on the shop floor.
Single minute exchange of dies
(SMED) techniques to improve
the pace and reliability of
changeovers, for example,
statistical process control charts
to spot trends before problems
occur, or cause and effect
diagrams to aid the diagnosis
of issues.
The methodologies adopted by
the shop-floor teams will tend to
change during the evolution of
CI ORGANISATION
INFRASTRUCTURE
Continuous improvement
activities require support. A CI
infrastructure is designed to
help the organisation to
implement the three elements
discussed above. A dedicated CI
organisation provides a host of
services to the organisational
frontline, from the generation
and direct implementation of
improvement ideas to capability
building and skills development.
The changing role of a
company’s CI infrastructure
over time is a fundamental
driver of successful CI
evolution.
During the architect phase,
the CI team takes a driving role
in the improvement process.
Often working with external
support from consultants or
customer CI experts, the team
will be responsible for designing
and implementing the Kaikaku
process, the dramatic pilot phase
improvements, and for training
the frontline representatives
who will cascade the process
across the organisation. At this
stage, the relationship between
the CI team and the rest of the
organisation is very much a
push process: often reluctant
frontline teams must be
persuaded to adopt new
processes and techniques.
During the implement phase,
the CI team needs strong
training and project
management skills. The
dramatic improvements
achieved in pilot projects very
quickly create a pull demand
from elsewhere in the
organisation for similar work.
to implement processes and
allocate resources appropriately.
They must then be prepared to
continually review and modify
these processes and
infrastructure as that culture
matures.
Mark Hallum is an expert
associate partner in the
manufacturing practice of
McKinsey & Company, and
also a former employee of both
Toyota and Honda
www.theiet.org/management August/September 2007 Engineering Management
344823548.001.png 344823548.002.png
344823548.003.png
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