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ELEMENT
3
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PHILOSOPHIES AND METHODOLOGIES OF
CONTINUAL IMPROVEMENT
LEARNING OUTCOMES
On completion of this element, you should be
able to:
zz Understand the process for identifying and
prioritising areas for improvement:
Describe the process of continual improvement
––
––
Outline methods an organisation could use
to identify and prioritise opportunities for
improvement.
––
List and explain the purpose of the basic tools
of problem solving.
––
Use tools and methods to identify the root
cause of a problem.
––
Identify and explain possible constraints to
improvement.
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from problem identification to problem
prevention.
© RRC International CQI Unit 305 - Element 3: Philosophies and Methodologies of Continual Improvement
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Contents
THE ‘PROJECT-BY-PROJECT’ APPROACH
The Project-by-Project Improvement Process
Revision Question
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KAIZEN3-6
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Revision Question
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BENCHMARKING3-8
What is Benchmarking?
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Types of Benchmarking
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Revision Question
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GOAL DEPLOYMENT
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Nature and Purpose
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Application3-11
Advantages of Goal Deployment
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Limitations of Goal Deployment
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Revision Question
3-12
SIX SIGMA
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Six Sigma Concepts
Six Sigma Benefits
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Conclusion3-19
Revision Question
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SUMMARY3-20
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EXAM SKILLS
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| CQI Unit 305 - Element 3: Philosophies and Methodologies of Continual Improvement
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The ‘Project-by-Project’ Approach
KEY INFORMATION
• Joseph Juran, a key thinker in the field of quality management, pioneered the ‘project-by-project’ approach
to quality improvement; he suggested both a project structure and a 10-step sequence to achieve quality
improvement.
GLOSSARY
PARETO PRINCIPLE
The Pareto Principle – also known as the 80:20 Rule,
is a theory that argues that 20% of any entity is
responsible for 80% of its results. For example, 20%
of the causes of a process problem are responsible
for 80% of the non-conformities. Using this
technique allows the ‘vital few’ to be separated from
the ‘trivial many’. As a consequence, priority can be
given to those problems that will have a meaningful,
positive impact when addressed.
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This element examines a selection of philosophies and
methodologies associated with the process of continual
improvement. The content looks at more over-arching
concepts that are commonly used by organisations to
provide a framework within which continual improvement
can flourish.
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• Juran stressed that all employees participating in project teams need to develop skills in such matters as team
participation, problem-solving tools/techniques, etc. This is because project teams need to base all decision
making on both understanding and data of a factual nature.
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Defining where exactly the boundaries lie between a
continual improvement philosophy and a methodology
often seems somewhat vague in practice, interpretation
and applications being subject to much variation.
Nevertheless, all the frameworks examined below
provide a roadmap to improvement, utilising any number
of proven analysis tools and methods – these will be
discussed within different elements of this course.
MORE…
Joseph M. Juran (1904-2008) was one of the key
American gurus and made many contributions to the field
of quality management. During his substantive career Juran
progressively developed ideas for shaping organisational
quality, including:
Joseph M. Juran is another key contributor to the
subject of quality management. Read more about
this key quality ‘guru’ by visiting: www.jmjuran.com/
biography.htm.
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THE PROJECT-BY-PROJECT IMPROVEMENT
PROCESS
• Top management involvement.
• Popularisation of the Pareto Principle.
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• The need for company-wide training in quality.
• Defined quality as ‘fitness for use’ with five required
attributes as quality of design, quality of conformance,
availability, safety and field use.
Juran argued that quality is achieved within an organisation
via a strategic and structured approach. He further stated
that “all improvement takes place project by project, and
in no other way”. Also, when adopting this approach it’s
important to select projects carefully and apply higher
quality where it makes sense.
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• The project-by-project approach to quality
improvement.
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The ‘Project-by-Project’ Approach
Within the project-by-project approach for quality
improvement implementation it is recommended that two
kinds of teams are formed – see figure below:
• Steering committee:
–– Consists of management.
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–– Obtains project nominations from all employees.
–– Selects current year’s projects.
–– Appoints individual project teams.
• Project teams to work on analysing problems,
developing and implementing solutions.
Steering
Project
Team 1
Team 2
Project
Team 3
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Committee
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Project-by-project team structure
10-Step Sequence to Quality Improvement
Juran provided the following 10-step sequence for the project-by-project guide to quality improvement:
1. Create awareness of the need and opportunity for improvement.
2. Set goals for improvement using cross-functional sources.
3. Organise to reach goals.
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4. Provide training.
5. Carry out projects to solve problems.
6. Communicate progress of improvement projects.
7. Give recognition to people contributing towards quality improvement.
8. Communicate results.
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9. Measure the progress of improving quality against defined targets.
10.Integrate improvement into the organisation’s systems.
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The project-by-project structure can potentially lead to many project teams being formed within the business.
Irrespective of how many teams are formed, however, Juran (consistent with other quality gurus of the time) was
insistent that continual improvement could only be successfully achieved via knowledge. It is therefore essential that
all participating project team members develop skills in such matters as team participation, problem-solving tools/
techniques, etc.
This knowledge is absolutely vital as the main purpose of the project teams is to solve problems. The associated
decision making to achieve this must be based on both understanding and data of a factual nature.
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Juran was also very keen for project teams to focus on
addressing the root causes of problems as opposed to
merely addressing symptoms. He described this process
as “the journey from symptom to cause”. The symptom
is merely an indication that something is wrong with a
process, the root cause often being something completely
different in nature.
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The ‘Project-by-Project’ Approach
MORE…
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Juran puts much emphasis on organisations prioritising
their problems for improvement and he duly popularised
the Pareto concept within industrial environments. Later
in this course the Pareto Principle is discussed in detail.
This principle is useful to assist organisations in their
prioritisation of improvement projects by differentiating
between the vital few and the trivial many. Expressed in
other words, Pareto states that a few factors account for
the largest percentage of a total.
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The Pareto Principle referred to within this element
is a very important technique in achieving process
improvement. We will cover this technique later but
to get a quick overview of this principle visit:
www.pinnicle.com/Articles/Pareto_Principle/
pareto_principle.html.
© RRC International REVISION QUESTION
1. Using a simple sketched diagram, draw Juran’s
recommended structure for achieving a projectby-project approach. Briefly explain the main
objectives for each group of people identified
within your diagram.
(Suggested Answer is at the end.)
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Kaizen
KEY INFORMATION
• The Kaizen philosophy for continual improvement is focused on small step changes that involve all employees
within the business.
• Kaizen projects will usually follow six clearly defined stages.
Everyone in the organisation can contribute to the Kaizen
process. The roles of organisational personnel are:
• Senior/Executive Management
Senior Management are responsible for:
–– Establishing Kaizen as a corporate strategy.
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The Kaizen philosophy involves everyone in an
organisation working together to make improvements,
and may be viewed as a culture of sustained continuous
improvement focusing on eliminating waste in all the
systems and processes of an organisation.
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• The business culture necessary for sustained Kaizen success needs to emanate from senior management who
need to slowly embed the Kaizen principles and beliefs within the rest of the organisation.
–– Communicating their commitment to the
workforce at all levels in the organisation.
GLOSSARY
Senior/Executive Management should ensure that:
KAIZEN
–– Adequate resources are allocated for Kaizen to
work.
Japanese word meaning gradual and orderly,
continuous improvement. ‘Kai’ means ‘change’, and
‘Zen’ means ‘good’.
–– Policies, systems and procedures which are
developed carry executive authority.
• Middle Management
Middle managers are responsible for actually
implementing the policies of Kaizen established by
Senior/Executive management. They ensure that
employees receive adequate training to implement and
understand Kaizen, and establish, maintain and improve
work standards.
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Kaizen requires involved leadership, capable of guiding
people to continuously improve their ability to meet
expectations of high quality, low cost, and on-time delivery.
Through the improvement of the quality of work during
every stage, from concept to product design, manufacture
to sales and marketing and after service, it is possible to
dramatically reduce the cost of operations while improving
quality.
The philosophy of Kaizen considers that “Quality begins
with the customer”.
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• Customers increasingly want better quality products
at a lower price. This has historically proven a problem
for organisations which must stay profitable in order to
satisfy their customers, employees, shareholders and
management.
• Organisations are now required to establish internal
systems which can assure quality, manage cost and
deliver the products in time for the customers.
• Supervisors
Supervisors apply Kaizen at the functional level. They
provide coaching for teamwork activities, facilitating
and making Kaizen suggestions.
• Employees
Employees should all participate in Kaizen, either
through the teamwork or improvement activities
or by undertaking necessary training, or education.
Employees should be encouraged to make or consider
Kaizen suggestions, and engage in continuous selfimprovement activities.
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• In addition to accredited management systems,
organisations increasingly try to manage and reduce the
cost of operations and employ their resources more
efficiently.
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• Kaizen is dedicated to continuous improvement in
small increments, at all levels, forever.
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TOPIC FOCUS
The Stages of Kaizen Philosophy
The following stages are usually followed for implementing a Kaizen project:
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Kaizen
2. Measure existing operational performance levels.
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1. Standardise – this means standardising current operational processes, i.e. make sure everyone is being consistent
with the same process; this task needs to be done right at the outset of any Kaizen improvement cycle.
3. Establish desired improvement targets, comparing existing measurements to these targets within the Kaizen plan.
Typical areas for improvement might be related to the following:
–– Operator’s own work.
–– Machines and processes.
–– Improvements in office work.
–– Resources, e.g. energy, material, etc.
–– Working environment.
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–– Improvements in product quality.
Priority lists need to be established together with a required resource plan, e.g. estimated operator time required
to achieve the tasks; from an operator point of view, the longer an improvement activity takes, the more
frustrating it becomes for everyone involved. It is often necessary, therefore, to plan improvement via small,
achievable steps that keep people’s enthusiasm high.
4. Develop innovative solutions to meet the Kaizen target.
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5. Implement, and then subsequently standardise, the new improved processes/operations.
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6. Continue improvement cycle again and again.
A Kaizen culture is not simple to apply or indeed sustain. It needs to initially emanate from senior management who
need to slowly embed the Kaizen principles and beliefs within the rest of the organisation.
Often, the main barriers to Kaizen success include:
• Inter-departmental or functional resistance.
• Lack of available cash to implement improvements.
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• Management political power concerns.
Despite the difficulties outlined above, Kaizen can provide a very effective framework to foster continuous
improvement within an organisation.
© RRC International REVISION QUESTION
2. Outline the stages involved in a typical Kaizen
improvement project.
(Suggested Answer is at the end.)
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