LANGUAGE OF LEAN
Continuous Improvement Process
The continuous improvement process is a method to continuously improve processes and procedures in companies or organizations.
Well known, not only in the lean world is the continuous improvement process (CIP). As it says it is a methodology to continuously improve your processes and procedures in your organization. In short = there is always something that can be improved. CIP is not only a saying it is a mindset and should be deeply anchored in your organizations DNA. Therefore it is a must to be lived and demanded by management as well as to be trained and implemented. As per definition the continuous improvement process has no ending it follows the cycle of PDCA over and over again. The basic principle behind CIP is to consistently observe and analyze your processes, take in consideration employees ideas for improvements, implement those and reassess the results if they are according to planned outcome.
Where das CIP come from: A short excursion in history.
In the 1950s, Japanese companies, best known Toyota, started to integrate the "KAIZEN" philosophy of life in operations. The Japanese word KAIZEN stands for "change for the better". To sum it up it means the continuous improvement process by small steps, every day. The ultimate target above all is to reach the highest customer satisfaction possible which guarantees economic success and is achieved by highest quality of goods and services. So they have to be constantly improved. Just think about the KANO - Model.
From the 1980s, European and American car manufacturer started to adopt the CIP methodology to increase their quality and by this their performance of finished goods.
Since the 1990s the CIP methodology made its way from the shop floor into the offices and has a straight impact on an organizations culture. With the so called PDCA cycle it is a never ending process and supports your whole organization on the path of sustainable growth.
Nowadays it is even part of the ISO9001 that defines the continuous improvement process as one of the "seven principles of quality management".
How to apply CIP
As discussed, CIP means improving through a consistent path of small following steps. Basic prerequisite is the ultimate will of your organization's management and the involvement and motivation of all employees in your organization. Focus on customer satisfaction > What is the customer willing to pay for? Everything that has no value for the customer must be seen as waste and has to be eliminated.
In real life organizations take the CIP approach to conduct regular audits by the Lean/Opex-Team. They analyze current issues or challenges and make suggestions for improvements. Typically the following approach can be seen as a rough guideline.
What should be improved?
Define the process, area or procedure
How should it be like and what is it like now? > Define the Delta
Numbers cracking > Go through the figures, actual and target state.
Describe the deviation or problem
What is the outcome by this deviation?
What are the costs of the deviation? Loss of quantity, rework, etc.
What is the root cause of the problem?
Analysis
What are the potential solutions?
Idea and Solution Mgmt. through teamwork and brainstorming sessions
What solution is the best?
Evaluation of the best solution defined
What measures need to be taken?
Cost-Benefit analysis
Results are presented to decision makers
Defined measures are adopted
Who does what, with whom and at what costs?
Measures are implemented
Verification of effectiveness through KPI tracking
If necessary re-evaluate measures to meet targeted outcome
You see, the methodology is very close related not to say a spin off the PDCA cycle.
The endless, repetitive PDCA cycle basically means permanently observing the processes, analyzing bottlenecks and weak points, develop solutions for improvements. To get a better understanding of PDCA read the article here.
In short:
Plan
Recognition of improvement potential, analysis of the current situation, development of improvement measures
Do
Implementation of defined measures
Check
Check the effectiveness of implemented measures with predefined KPIs
ACT
Constantly monitor and review the improvements through audits or reporting. When expected level of improvement is reached adjust the standardization to new level. If you failed on the expected outcome restart the PDCA cycle.
After the PDCA cycle is finished your area of improvement focus will change. E.g. your bottleneck process will move along the complete process.
KANO Model
The Kano Model shows competitive advantage through knowledge. Therefore it shows the connection between product features and customer satisfaction.
The Kano Model shows competitive advantage through knowledge. Therefore it shows the connection between product features and customer satisfaction.
The Kano model structures and analysis the different types of customer requirements and sorts them into basic, performance and enthusiasm requirements. On the basis of this model, which is also known as the customer satisfaction model, products and services can be further developed which customers are more likely to pay for. The model is named after its inventor, the Japanese professor Noriaki Kano somewhen around 1980.
Thinking about our daily work, the Kano Model is quite interesting for product and service development but can also be used to give some guidance for planned product changes.
Typically when start working with the Kano Model a questionnaire is used to categorize the requirements. This questionnaire then determines which customer requirements should be taken into account for a product and to what extent.
The Kano Model recognizes that customer requirements have three different characteristics that make the purchase of a product more likely if they are met:
BASIC REQUIREMENTS
These are must have requirements by customers for a product or service. There are not highly considered and they alone are not the trigger for the purchase. But if these are missing the dissatisfaction is great. Old but still working example: you wouldn’t buy a car without windshield wipers or a cellphone without internet capability. It is expected to be there.
PERFORMANCE REQUIREMENTS
Requirements that are not taken for granted but are demanded. With a growing availability customer satisfaction grows with it. Performance requirements are defined by the customer, when we stick with the example of a car that means e.g. color, horse power, all wheel drive carplay etc. These are normal customer requirements that ensure higher quality of the product.
ENTHUSIASM REQUIREMENTS
The requirements are not expected by the customer but create enthusiasm when the are fulfilled. E.g. if you buy a new car in the area of the alps and you get free snow chains of a year of free car washes. As customer you do not expect this but you are thrilled when you get it. In other terms we are talking about going the extra mile.
In addition, with the Kano Model you find also those product or service features that are insignificant for customers satisfaction or are even leading to dissatisfaction and therefore rejection of the service or product. However, the absence of such characteristics does not have a positive effect.
What we learn from the Kano Model is that those enthusiastic characteristics become basic requirements over time. You can see this changes ongoing particularly in the technical industry such as car manufacturers and features of new cars, what comes now with the basic equipment was back in time all at extra cost.
The Kano model in practice
Following the Kano approach development teams should constantly keep an eye on the current basic requirements of their customers and try to fulfill on product developments new enthusiasm functions or features.
Customer requirements are typically identified through market research. With questionnaires customers have the chance to explicitly describe their expectations as well as what they don’t need.
Checklist: The Kano model at a glance
With the Kano systematic you are able to structure customer requirements into their characteristics
If basic characteristics are missing, dissatisfaction will occur and the product or service will not fly
Performance characteristics are showing if you understand what the customer wants and if you meet those characteristics the customer is satisfied
Enthusiasm characteristics are showing if you are willing to go the extra mile - long term customer loyalty will be the award
Over time characteristics will shift - so don’t make the mistake and rest on your success
If you want to find out more about the KANO Model I highly recommend Wills’ homepage and tool for KANO surveys. I share his love and believe like him that Kano model surveys should be easy to run. Find out more and visit KANOSURVEYS today.
Unpaid promotion - because it’s a great tool.
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