Professional Documents
Culture Documents
Learning Guide
Unit of Competence: Manage Continuous Improvement System
Module Title: Managing Continuous Improvement System
LG Code: EIS MOC4 220812
TTLM Code: EIS MOC4 M220812
LEARNING OUTCOMES:
At the end of this module the trainees will be able to
Meseretab Page 1
LO1: Review programs, systems and processes
1.1 Establish strategies to monitor and evaluate performance and sustainability of key
systems and processes
Evaluation is never an easy task and consequently there are a lot of suggestions for how to
monitor and evaluate the performance and sustainability of systems and processes.
Three types of strategies that could be used to monitor and evaluate the performance and
sustainability of key systems and processes could be:
Goal-based evaluation
Goal-free evaluation
Criteria-based evaluation
1. avoid the risk of narrowly studying stated program objectives and thereby missing
important unanticipated outcomes
2. Remove the negative connotations attached to discovery of unanticipated effect: “The
whole language of side-effected or secondary effect or even unanticipated effect tended
to be a put-down of what might well be a crucial achievement, especially in terms of new
priorities.”
3. eliminate the perceptual biases introduced into an evaluation by knowledge of goals; and
4. Maintain evaluator objectivity and independence through goal-free conditions..
There are formative and summative approaches containing different measures or criteria.
All of the approaches, formal-rational, interpretative or criteria-based, are different ways and
their primary message is the evaluator should act in order to perform evaluation. Besides this
“how-message” it is also important to decide about what to evaluate. When evaluating systems
and processes we can think of many different situations that can be evaluated.
From the questions on how to evaluate and what to evaluate we derive a matrix consisting of two
dimensions “how to evaluate” and “what to evaluate”. The combination of the two dimensions
results in a variety of evaluation types and the purpose is to, on an ideal typical level, identify
Meseretab Page 2
and characterize each of the evaluation types. The aim is to support different choices of how to
perform an evaluation depending on the evaluation situation and conditions.
1.2 Undertaking detailed analyses of supply chains, operational and product/service delivery
systems
A supply chain is a system of organizations, people, technology, activities, information and
resources involved in moving a product or service from supplier to customer. Supply chain
activities transform natural resources, raw materials and components into a finished product that
is delivered to the end customer. In sophisticated supply chain systems, used products may re-
enter the supply chain at any point where residual value is recyclable
The primary objective of supply chain management is to fulfil customer demands through the
most efficient use of resources, including distribution capacity, inventory and labour. In theory, a
supply chain seeks to match demand with supply and do so with the minimal inventory
network of facilities that procures raw materials, transforms them into intermediate products
or services and then finished goods or service, and delivers them through a distribution
system
procurement, production and distribution, viewed as interlinked not as discrete elements
Value chains
The value chain, is a concept from business management that was first described and
popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating
and Sustaining Superior Performance.
A value chain is a chain of activities for a firm operating in a specific industry
Meseretab Page 3
1.3 Performance measures, and assessment tools and techniques are identified, and
their effectiveness is evaluated
The evaluation model could be applied as part of that strategy to monitor and evaluate the
performance of key systems and processes.
Meseretab Page 4
This type of evaluation is inexpensive and easy to administer using interaction with the
participants, paper forms and online forms.
Evaluation tools:
Individual pre- and post-training tests for comparisons
Assessment of action based learning such as work-based projects and role-plays
Observations and feedback by peers, managers and instructors
Level 3 Evaluations - Transfer
Evaluations at this level attempt to answer the question of whether the training in systems and
processes has been transferred back to the job. This evaluation is typically performed three to six
months after training. The evaluator would ask questions such as "Are the newly acquired
knowledge, skills or attitude being used in the environment of the learner"? This evaluation
represents the truest assessment of a program's effectiveness but is costly. It is often impossible
to predict when changes in behaviour will occur. Careful planning decisions are needed for this
level of evaluation in terms of when to evaluate, how to evaluate and how often to evaluate.
Evaluation questions:
Did the trainees put their learning into effect when back on the job?
Were the relevant skills and knowledge used
Was there noticeable and measurable change in the activity and performance of the
trainees when back in their roles?
Was the change in behaviour and new level of knowledge sustained?
Would the trainee be able to transfer their learning to another person?
Is the trainee aware of their change in behaviour, knowledge, skill level?
Meseretab Page 5
Did the representative open each telephone customer dialog using his or her name and
department?
Was the representative able to describe to you and categorize the customer's objections as
either misinformation or valid?
Did the representative use the appropriate model answer in response to each objection
Did the representative close each sales call with a request for purchase?
If the prospect did not make a purchase, did the representative end the call with specific
future action steps?
Did the representative complete call history records that include summaries of who, what,
where, when, and why?
Evaluation tools:
Individual pre- and post-training tests or surveys
Face-to-face interviews
Observations and feedback from others
Focus groups to gather information and share knowledge
Level 4 Evaluation- Results
This evaluation measures the success of the training program in term that executives and
managers can understand such as increased production, increased sales, decreased costs,
improved quality, reduced frequency of accidents, higher profits or return on investment,
positive changes in management style or in general behaviour, increase in engagement levels of
direct ports and favourable feedback from customers, peers and subordinates.
However, Level 4 evaluations are difficult to measure and correlate with training. For example,
an increase in sales could be attributed to several factors such as training and product
promotions.
This model could be used to measure and evaluate a range of systems and processes such as:
1.4 Performance reports and variance are analyzed from plans for all key result areas of the
organization
1.6 Seek advice from specialists, where appropriate, to identify technology and electronic
commerce opportunities
Meseretab Page 7
life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile
devices and telephones as well.
Contemporary electronic commerce involves everything from ordering "digital" content for
immediate online consumption, to ordering conventional goods and services, to "meta" services
to facilitate other types of electronic commerce.
2.2 Foster creative climate and organizational learning by promoting interaction within
and between work groups
An organization’s climate, or work atmosphere, represents the primary backdrop that influences
employees’ beliefs about their work environment. The climate affects the setting and ongoing
adjustment, as well as employees’ expectations about what the organization desires and expects
of them..
Climate factors such as leader support, autonomy, challenging work, adequate resources, work
group support, and positive supervisor relations all influence employee creativity. Examples of
leader support and positive supervisor relations include removing obstacles, supporting and
championing team members’ ideas, inquiring regularly about work and progress, recognizing
good work (both privately and publicly), helping when problems arise, and asking for ideas.
Autonomy relates to the perception that employees have the independence to decide how they
will approach their jobs.
Interaction within and between work groups
Social interaction at the work place promotes enhanced collaboration, higher Meta cognition,
richer sensory experience by way of emotion, better planning where each staff member feels
included, creating a better understanding of common values and purpose. Leaders who promote
social interaction within their organization are able to engage a wider range of human
intelligence which includes physiological, social, emotional, constructive, reflective and
dispositional. In this manner, a wider range of human intelligence is integrated in a natural
manner to achieve the individual and organizational goal..
Meseretab Page 8
2.3 Encourage, test and recognize new ideas and entrepreneurial behaviour where
successful
Strategies for Creating Corporate Entrepreneurship
There are a number of approaches an organization can take in creating corporate
entrepreneurship. It is important to understand that when an entrepreneurial environment is
created, the ethos of the original enterprise often changes dramatically. Traditions will be set
aside in favor of new processes and procedures. Some people, uncomfortable with operating in
this environment, will leave; others will thrive in a system that encourages creativity, ingenuity,
risk taking, teamwork, and informal networking, all designed to increase productivity and make
the organization more viable.
The key to creating an entrepreneurial environment is to develop and articulate a specific
strategy for encouraging innovative activity. The steps that managers need to follow to establish
an entrepreneurial strategy could be as follows.
This process of assessment of current strategies for entrepreneurial activity has some major
components. The first involves an assessment of the current organizational situation. Several
questions can help management in this task, and by applying the answers, managers may be able
to assess the organization's environment and readiness for change.
Has the company developed effective ways to access the resources needed to try new
ideas?
Are the managers prepared to allow experimentation with new products or services?
Does the organization encourage risk taking and tolerate mistakes?
Are the employees more concerned with new ideas or with defending their turf?
Is it easy to form autonomous project teams within the corporate environment?
Meseretab Page 9
The third component is to identify specific objectives for corporate entrepreneurship strategies
and the programs needed to achieve them.
The fourth component is to ensure that the three key elements of the innovation process are
present:
2.4 Accept failure of an idea during trialling, and recognise, celebrate and embed success
into systems
To begin the process of embracing the brighter side of failure and allowing it’s sometimes harsh,
but important life lessons to be revealed, consider these strategies:
Meseretab Page 10
Try not to rush your answers. Careful discernment can be enlightening and will lead to a
better understanding of what can be learned, and avoided, the next time.
3. Acceptance
Accepting failure is to be fully aware of the present moment without judgment or shame.
There is a difference, however, between accepting failure and reconciling yourself to it.
You do not have to settle for failure, but by accepting failure when it happens, you are
accepting yourself as being appropriately, and significantly, human and failures are a
learning opportunity.
4. Ask for help
when we fail, we are not alone. Everybody fails.
Because of this, we are eager to help others. We understand the feeling all too well. Our
capacity to show compassion is a gift we don’t just give to the recipient, but we give to
ourselves, too. Compassion provides a measure of comfort and hope and everyone is
invited to receive it.
The next time you fall short of a goal or when a situation does not turn out as expected,
understand there are others who understand exactly how you feel. Reach out to your
colleagues, friends and work colleagues. Don’t be afraid of asking for help!
2.5 Undertake risk management and cost-benefit analysis for each option or idea approved
for trial
Risk analysis
Risk analysis is a technique to identify and assess factors that may jeopardize the success of a
project or achieving a goal. This technique also helps to define preventive measures to reduce the
probability of these factors from occurring and identify countermeasures to successfully deal
with these constraints when they develop to avert possible negative effects on the
competitiveness of the company
Meseretab Page 11
LO 3: Implement innovative processes
3.1 Sustainability/continuous improvement is promoted as an essential part
of doing business
Sustainability/continuous improvement May include but is not limited to:
Meseretab Page 12
for making improvements, employees tend to start taking more initiative to ensure they
have success to show all the time.
3. Celebrate successes. Acknowledgement is a major motivator and feeling rewarded makes
people want achieve more and do it better. Managers need to take the time to give credit
where credit is due. This can include a congratulatory phone call or note, flowers on
someone's desk, a gift, and tickets to the ball game, a plaque or a mention at a company
meeting.
4. Give clear direction about company or department goals. Employees need to have a clear
picture of where their work fits into the big picture and what they can do to contribute to
the success of the organization. Elaborate at meetings, through memos and agendas and
in one on one discussion. Share the message and vision regularly.
5. Make failures into opportunities to learn. In order to improve, you have to understand
what goes wrong and what could have been done better in any given situation. Challenge
your people to do post-mortem analyses to figure out what could have gone better.
6. Challenge your people to look at what has gone right and look for what could make it
better. The continuous improvement process needs constant coaching. Statements like, "I
like the way you did.... what you think would take it to the next level?" or "We did a great
job with this product. How are we going to wow our customers next?"
7. Ask employees to recommend and help set benchmarks and targets for upcoming quarters
and years. Soliciting input as to how things can be better not only reinforces continuous
improvement thinking, but it creates another mechanism for employees to invest
themselves in their roles and the organization’s success.
3.2 Address impact of change and consequences for people, and implement transition plans
A strategy to address the impact of change and consequences for people, and implement
transition plans would be to conduct constant and ongoing evaluation of the effect of the change
and keep implementation plans and transition plans on track.
Meseretab Page 13
The involvement of all of the stakeholders is essential and a strong focus on the continued
implementation through strong leadership backed up by management and staff support is critical
to the successful implementation of transition plans.
The change process can be challenging for everyone and must be managed in a professional way
using strong communication and consultation.
Strong leadership is critical and the leadership vision must be motivational and inspirational.
Management must be focused on the targets, outcomes, KPIs and KRAs so that the change is
embedded and becomes systematic in the organization and systemic in the way the organization
does its business.
To achieve this, strong leadership is critical and it is important to understand the difference
between a leader and a manager.
Managers Leaders
Implement the vision Create the vision
Plan, budget and organize the team Align people and inspire them
Maintain order and system Create and build processes
Manage the impact of change Create change proactively
Measure day-to-day Keep the values visible
Control and problem solve Collaborate
Contribute to teams Motivate and inspire
Seek step-by-step improvement Keep a helicopter view
Continue to challenge the status quo
Meseretab Page 14
3.3 Ensure objectives, timeframes, measures and communication plans are in place to
manage implementation
An evaluation and review technique (PERT) which was theorised by Luttman, Laffel and
Pearson (1995) could be useful to conduct regular evaluation and review and provide
opportunities to modify the change management plan to achieve change program objectives.
Program (Project) Evaluation and Review Technique is a project management tool used to
schedule, organise, and coordinate tasks within a project. It is basically a method to analyse the
tasks involved in completing a given project, especially the time needed to complete each task,
and to identify the minimum time needed to complete the total project. PERT planning involves
the following steps:
Perhaps the best known evaluation methodology for judging training programs is Donald
Kirkpatrick's Four Level Evaluation Model that was first published in a series of articles in 1959
in the Journal of American Society of Training Directors. The series was later compiled and
published in a book, Evaluating Training Programs in 1975. While Kirkpatrick has written a
number of books on the subject, his best known work is the 1994 edition of Evaluating Training
Programs.
Meseretab Page 15
Learning - the extent to which the learners gain knowledge and skills
Behaviour - capability to perform the learned skills while on the job
A result -the impact - includes such items as monetary, efficiency and/or moral.
Meseretab Page 16
3.5 Follow up failure by prompt investigation and analysis of causes and manage emerging
challenges and opportunities effectively
Failure Investigation is the process of understanding the key attributes of a particular failure and
identifying the likely causes of failure.
Root Cause Analysis is the process of conducting an analysis to identify the physical, human,
and latent causes of a particular undesirable event.
3.6 Ensure that learning’s from activities are captured and managed to inform future work
A continual improvement process (CIP or CI), also often called a continuous improvement
process, and is an ongoing effort to improve products, services, or processes. These efforts can
seek "incremental" improvement over time or "breakthrough" improvement all at once. Delivery
(customer valued) processes are constantly evaluated and improved in the light of their
efficiency, effectiveness and flexibility.
Meseretab Page 17
The ideas come from the talents of the existing workforce, as opposed to using R&D,
consultants or equipment – any of which could be very expensive
All employees should continually be seeking ways to improve their own performance
It helps encourage workers to take ownership for their work, and can help reinforce team
working, thereby improving worker motivation
Meseretab Page 18