10

ESSENTIALS OF TQM:
CONTINUOUS IMPROVEMENT

CONTINUOUS IMPROVEMENT: WHAT IS IT?

Continuous improvement can be considered as the 'wheels' of the organisational
vehicle. It is the effort produced by the wheels which will make the vehicle move
forward. Organisations in the past have been concerned with doing 'more of the
same'24 with disregard for customer feedback and market demands. When perform
ance decreases, organisations tend to double their efforts in 'doing more of the
same'. Others called this approach 'Local Optimisation'29 where different
groups within one organisation focus on their own area of interest. This is
thought to be due to lack of communication, lack of shared goals and lack of co-
operation.
The traditional approach towards improvement lacked in consistency, in will
and determination and in measurement of effort made, which are all necessary if
superior performance is to be achieved in a modern business environment. Table
10.1 briefly summarises the traditional approach to continuous improvement and
its limitations. 17

Table I0.1 Traditional approach to continuous improvement

Type of approach
------�---- -----
Undertaking capitol investment programmes to
modernise factories plant and equipment
localised improvement initiatives
Limitations
Planning and implementation timescales are usually extended
Payback/benefits toke much longer than predicted
Valuable production and industrial engineering resources become
heavily committed lo project's life following
commissioning
Areas tackled may not be the ones that can provide biggest
improvements for business performance
Improvements mode in one area may cause unanticipated
problems elsewhere
Day lo day pressures mean that required resources for the
project may not be consistently forthcoming

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Various proposals have been put forward to explain what needs to be done to
change the approach to continuous improvement.

1 Use of critical thinking skills for effective problem-solving: 4 The wealth of

specialised knowledge in any business is far more important than any
technological sophisticated innovation. More emphasis needs to be placed on
people.
2 Continuous improvement is not a standard management practice: 8
Continuous improvement requires critical thinking and management techniques such
as SPC. 4 3 The customer is the next process in the chain. Customer feedback
and input should not be regarded as a necessary evil but more as an opportunity
for
conducting improvement. 3
4 Create a management system which will consider continuous improvement as
a never-ending activity: Conway suggests the following: 11
'To improve all work processes we must know about all the work at all levels. We use our knowledge and
understanding of these work processes to find the problems, errors, complexities and waste, and get rid of them. The
company must improve internal and external processes, seeking to measure and improve quality with a customer focus.
Customers define quality, and we con�nuously improve our processes to give them the quality services and products
they require.'
5 Quality at the heart of business strategy: This point was raised by various gurus
and champions of quality.13 Juran for instance argued that what was missing
in the West is a 'grand strategy' which puts quality into the business plan. He
suggested the following six steps for establishing a strong continuous improvement
programme.

• Providing leadership from the top;

• Establishing vision and policies;
• Establishing and deploying quality goals;
• Providing resources and training;
• Establishing measurements;
• Reviewing performance regularly;
• Rewarding the reward system.

The role of senior managers in instigating successful continuous improvement

programmes has been argued by others. Kano for instance13 debates that continu
ous improvement depends on the effort of a lot of people. This requires what
Kano called 'crisis consciousness'. Kano concluded that crisis consciousness is
what pushes people forward to make improvements.
6 Total optimisation: Using people's skills and knowledge so that they are no
longer confined to a localised area but geared towards a total goal oriented
organisation. 29 Optimisation can be achieved by providing people with the
necessary tools and direction, by creating a supportive environment and by
sharing results with everyone concerned.

To come to an acceptable definition of continuous improvement therefore one

has to accept that major changes have to take place and the shift of emphasis
has to be heavily biased towards people. In addition goals have to have a long
term characteristic. Most of all and as suggested by Juran, a quality strategy has
to be incorporated in the overall business plan to make continuous improvement
a viable proposition.
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 Total Quality Management for engineers

Changes required for the introduction of continuous improvement do not

necess arily mean more expenses to the companies concerned. As has been argued
by Butlin17 the introduction of continuous improvement has the following
attractions:

• Continuous improvement can be implemented in a short period of time and

functions on an ongoing basis;
• Implementation of continuous improvement can be carried out in a structured
manner;
• The continuous improvement scheme is shopfloor based and uses minimal
internal and external resources;
• It is an inexpensive approach to improving business overall performance.

The necessary changes required for the implementation of continuous

improvement are more in terms of attitudes and beliefs rather than financial
commitments. As Suzaki suggests: 29
We may grasp an idea intellectually, but our hearts may not be in it enough to put it into practice.'

Suzaki29 strongly argues that the following seven points determine the successful
criteria of continuous improvement programmes:

I Challenging conventional beliefs;

2 Bias towards experimentation: This is the best means by which problems can be
made visible;
3 Tolerance for failure: Continuous improvement comes from a learning
cycle; 4 Trust;
5 Teamwork: Total as opposed to local optimisation;
6 Flexibility: Rigid structures will inhibit progress;
7 Discipline: Stick to set standards and conduct measurement wherever possible.

The above seven points reflect change in attitudes where commitment is reflected
by what is in the heart rather than the magnitude of financial investment
programmes. However changing people's attitudes for the introduction of
continuous improve ment may be a daunting task. The best description of
continuous improvement is perhaps the one given by Kehrl 26 who argues that:
'Continuous improvement comes only when individuals are motivated to achieve regular improvements in all areas of
their work. It is acceptance of the reality that people and their brain children - like their own children - require
years of patient nurturing before they reach the potential that was there at birth. Technology is important, but
equally important is what we do in the years after we get the new machine or process or system in place. With a
continuous improvement approach, the benefit of a major step in technology is multiplied by the many small steps
that follow. And that holds true whether you are dealing with improvements in quality, marketing, design,
productivity, financial systems, or human development.'

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 Total Quality Management for engineers

THE IMPLEMENTATION OF CONTINUOUS IMPROVEMENT: HOW TO DO IT?

It is hard to pinpoint what exactly triggers off successful implementation of
continuous improvement as a never ending activity. It is even harder to be inspired
by championing organisations in the West since successful efforts at continuous
improvement have to be sustained for a long period of time. This also makes it
harder to try and prescribe how the process of continuous improvement can be
introduced and managed since organisations are at different levels of the
competitive

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 Essentials of TQM: Continuous improvement

spectrum and are also characterised by various cultures, management systems,

resources, skills, etc.
One can however pinpoint very accurately why major moves to implement
continuous improvement fail. 14
• It has been reported for instance that if quality is ill defined or merely
confined to meeting technical specifications, this effort will be doomed to fail.
Quality has to be appreciated for its more pervasive role in transforming
parameters of competitiveness and enabling workers and managers alike to raise
work standards for excellence.
• Management commitment once again keeps appearing as a prerequisite for
making continuous improvement programmes successful. There are no
compro mises in this area. Any half hearted effort will lead to failure in
continuous improvement initiatives.
• Continuous improvement cannot be treated as another fad or a management
exercise for a specific purpose. It is only when quality is accepted as a new
way of working and doing business which is essential for companies' survival,
that continuous improvement efforts are likely to succeed.
• Lack of appreciation of the need to change organisational culture. It is vital
that an organisational transformation takes place in order to reap the benefits
from continuous improvement activities.
• Continuous improvement cannot be based on use of statistical tools and tech
niques alone. Improvement does not happen by using control charts and
collecting data statistically. Processes have to be owned, well understood,
investigated and continuously improved.
Perhaps a starting point for the introduction of continuous improvement pro
grammes is to ensure management understanding of the potential benefits which can
be obtained from the implementation of quality, and to ensure their total
commit ment. Management commitment has to pervade down to the bottom
layers of the organisations concerned, to get everyone on board and everybody
appreciating the need to compete on quality and the need to improve overall
performance. This is perhaps the first step towards conducting a cultural change.
This could take a long time to achieve and management have to be patient to
give people time to re-adjust and be convinced of the need to embark on a major
quality improvement process.
Besides structuring the pyramid for continuous improvement and allocating
responsibilities, management have to ensure that people are adequately trained and
provided with modern tools and techniques to be used for continuous
improvement programmes. Various changes have to take place such as
management systems, communication systems, structural changes, reward
systems, decision making pro cesses and performance measurement criteria (not
result-based but process-based).
Juran suggests that for a quality improvement process to start bringing about
benefits will take many years. 13 He estimated that:
• Choice of strategy will take one year;
• Improvements at a test site, plus evaluation of results will take one year;
• Scaling up to companywide improvement, including strategic quality management
at test site will take two years;
• Scaling up to strategic quality management will take up to two years.
Various ways of introducing continuous improvement have been suggested.
Some guidelines have been summed up in Table 10.5 from different literature.
The various
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 Total Quality Management for engineers

propositions are all valid, based on practical examples and will all have many
common approaches.
Table 10.5 Some guidelines for implementing continuous improvement

Reference Suggested factors

14
A context that shapes the expression of all work - its vitality, creativity, and quality
Empowering people with the information, resources and support they need to ful� express
their capabilities
Intense and pervasive communication about direction, co-operation, problems and results Constant
discovery and elimination of barriers to peo�e's performance
7 A set of core concepts that provide common terminology and ideas about quality and its
meaning and application to everyone's work
A systematic and common process that everyone uses for identifying and working quality issues
through to effective prevention or corrective action
A set of managing elements that define the areas for change in an effective organisational change
process
5 Familiarisation !ongoing)
Development of o team network
Training
lntrodvction of measurement techniques Strat8!)ic
planning (ongoing)
18 Create constancy of purpose for improvement of product and service
Adopt the new philosophy
Cease dependence on mass inspection
End the practice of awarding business on the basis of price tag alone
Improve consta� and forever the system of production and service
Institute training
Adopt and institute leadership
Drive out fear
Break down barriers between staff areas
Eliminate �ogans, exhortations, and targets for the workforce Biminate
numerical quotas for the workforce
Eliminate numerical gook for peo� in management Remove
barriers that rob people of pride of workmanship Encourage
education and self-improvement for everyone Take action to
accom�ish the transformation

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 Essentials of TQM: Continuous improvement

Table 10.5 Some guidelines for implementing continuous improvement (cont)

Reference Suggested factors
16
Recognition and articulation of the quality problem
Gaining senior managemen(s commitment and increasing quality awareness within the organisation
Formulating a company-wide quality management system
21
Using a series of short-term achievable proposals for quality improvement
Support, involvement and legitimisation from the appropriate level of top management
A critical mass of 'masters' who have the theoretical and experiential foundation to make the effort
work
Well-thought through and evolving improvement plans that integrate with other strategic plans
Application of the appropriate tools and techniques
Mechanisms to offset entropy. The improvement process must be managed with the same level of
discipline given to managing budgets and technology
Patient impatience. Real change and the impad of that change takes time
Tremendous amounts of integration, co-ordination, communication and conflict management A
supportive infrastructure