Continuous improvement is at the heart of a successful business strategy. To achieve this, companies often adopt a continuous improvement model, which involves implementing a continuous improvement process. A key component of this approach is the use of continuous improvement software or a platform.

Such continuous improvement platforms provide the necessary tools and resources to streamline the implementation of a continuous improvement business strategy. By fostering a culture of continuous process improvement, organizations can adapt, evolve, and thrive in today’s ever-changing business landscape.

Continuous Improvement for Competitive Advantage

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What is a Continuous Improvement Process?

Continuous Improvement can help your company achieve incremental improvement over time. This ongoing effort enables the identification of areas for improvement of current processes, such as improving quality, increasing productivity or reducing waste.

Continuous Improvement Methods

There are many methods of continuous improvement, all with the goal of improving processes through establishing a company culture where employees are encouraged to seek out and identify areas for improvement.

Plan – Do – Check – Act (PDCA) – This method defines the 4 cycles of continuous improvement. It’s a problem-solving system which includes planning incremental changes, reviewing the resulting data to evaluate the results, and implementing ongoing improvement through standardization.
- Plan: Leaders start by setting goals based on current performance.
- Do: Teams test improvements to hit those goals. This step heavily depends on employee involvement.
- Check: Results are measured to see how things changed.
- Act: If the new approach delivers results, the standard process is locked in so the improvement is stable.
Lean methodology – Focuses on reducing waste and creating efficient workflows to optimize processes.
Six Sigma – Aims to reduce defects and variability in processes in order to improve quality.
Total Quality Management (TQM) – This method emphasizes a continual improvement process across the entire organization, focusing on getting the company’s people involved in process changes and increasing customer satisfaction.
Theory of Constraints (TOC) – Focuses on removing constraints in order to facilitate optimized resources and workflows.
Root Cause Analysis (RCA) – Seeks to identify the root causes of problems to implement long-term solutions.
Benchmarking – Identifies improvement opportunities by comparing key metrics against industry standards or competitors.

What does 5-on-5 have to do with a continuous improvement cycle?

Summer is a great time for a pick-up game of “5 on 5” basketball. When playing a game of “5 on 5” in basketball, the key to success is for the team to work well together, utilize the strengths of each of the players and repeatedly work their process as defined by the coach.

As the process is repeated over and over again through the course of the season, the really great teams “develop a chemistry,” which is something that is unseen and not quantifiable, but which gives the team an edge over its competition, that leads to success.

The same is true in the business world for companies that want to improve and succeed.

A business team needs to work well together, utilize the strengths of each of the team members and use a process that is repeated over and over. The following continuous improvement cycle used repeatedly will lead to a new “chemistry” within the organization so that the culture begins to change to one of continual improvement.

A 5 Step Continuous Improvement Cycle

Whether a company is going down the path of implementing a new ERP business system or simply making improvements in some part of the organization, the following five-step cycle is one that we use on a formal basis.

It can be a quick blitz to accomplish a focused task or a longer-term assignment that is making a more significant change in the organization. Regardless, this 5-step process provides the structure needed for making the improvement.

The Stages of Continuous Improvement are:

Define

Identify the target process
Organize and empower an improvement team
Describe the issues, concerns or opportunity
Collect current performance data
Create a process map

Identify

Identify the process customers and suppliers
Define the process inputs and outputs
Define the process requirements
Identify wastes and value-added activities
Generate a list of potential improvements

Select

Establish desired performance goals
Prioritize the potential solutions
Establish the selection criteria
Select the best solution(s)
Define the desired process

Implement

Develop an action plan to achieve the goals
Develop process performance metrics
Document the solutions(s)
Test the changes
Implement per the action plan

Evaluate

Establish ongoing feedback
Measure progress per the action plan
Compare results with desired performance goals
Determine corrective actions that need to be taken
Repeat the cycle to define new opportunities

The key to really being successful using this process is the very last step – going back to the beginning and looking for new opportunities. Without this, it is a one-time change, not continuous improvement.

By using this cycle on a formal basis over and over as problems or opportunities are addressed in the organization, inherent use of the cycle will begin to occur since people will become accustomed to it and the culture of the organization will begin to embrace the idea of continuous improvement.

This resulting chemistry that begins to develop will be unseen and not quantifiable but will provide an edge for the organization so that it can succeed within itself and against the competition.

Benefits of the Continuous Improvement Cycle

Implementing a Continuous Improvement Process (CIP) can offer many benefits for manufacturers. For example, companies can see significant improvements in cost reduction through reducing waste and inefficiency which translate to better profit margins or lower operating costs. Continual improvement also leads to increased efficiencies in production and delivery time, and faster adaption to changes in the market or from customer demands.

Other benefits can be seen in your workforce, providing employees with more opportunities for engagement leading to increased productivity, while fostering a culture of innovation. Plus, continuously improving processes can help prevent defects, leading to increased product quality and customer satisfaction. Finally, consistent measurement can help businesses stay ahead of the competition by driving data-driven decisions and enhanced offerings.

Successful Implementations are Just the Start

Businesses should never stop striving to improve their manufacturing practices. While a first step may involve implementing new technology—such as a modern ERP system—continual improvement is key to achieving successful outcomes that drive long-term growth. Implementing the right process improvement methodology that aligns with the goals of the business is fundamental to success.

With so many business processes at play in any kind of manufacturing operation, it can be difficult to manage it all without systematic controls. Utilizing the right tools and techniques to monitor progress, modify plans, and implement changes makes it easier for companies to streamline their processes and continue running efficiently.

If you’d like help understanding how best to implement a continuous improvement cycle in your own business, contact us – we’re here to help you get started.