My previous articles have progressed from strategy implementation to action. Implementing continuous improvement models comes with a large amount of work, including managing and monitoring different improvement teams to ensure that the measures achieve the desired results and minimizes losses.
When finally putting planned measures into practice, we must ensure that the measures are effective and that the schedule is adhered to. Occasional audits are the most effective way to ensure that schedules are followed and the desired quality of activities achieved. For a continuous improvement team, an average of three audits is an appropriate number; the first two take place while the team is still working and the last one after the team has been dissolved. In practice, of course, the number of audits depends on the team’s size and priorities. For example, a Twelve-Step Kaizen team’s first audit takes place after they have completed the fourth step and identified differences between how the process causing losses should work and how it actually works. The second audit takes place after the eighth step, at which point the team has identified the root causes and planned countermeasures. This second audit should involve people who have the power to decide how or whether to implement the proposed countermeasures. Countermeasures can be so costly that decision-makers postpone or reject them entirely. A clear decision taken before any actions are taken allows the team to focus on other, cheaper solutions. The team can also perform a cost-benefit analysis of the proposed countermeasures at this stage. Countermeasures are not worth investing in unless they produce a proportionate benefit. However, it is important to note that benefits can be non-monetary and can be obtained through training and involving people to continuous improvement activities. Investing in people will bear fruit in the form of qualitative improvements in teams and procedures.
A proven approach to auditing is coaching the teams that do not yet have ample experience with using the applied methodology. An inexperienced team needs a lot of support and guidance. The word “audit” comes from a Latin word meaning “to hear or listen”; audits are not about pointing out mistakes. With an experienced team that has deep methodological knowledge, however, pointing out possible shortcomings or even errors is an appropriate audit approach. The audit also provides a good understanding of the team members’ possible future training needs or of whether the processes for setting up continuous improvement teams themselves need to be changed.
Companies should use audits comprehensively for various continuous improvement measures and processes, such as:
- autonomous maintenance teams;
- complying with Clean, Inspect, Lubricate standards in process lines;
- implementing the 5S method;
- organising continuous improvement teams; and
- performing safety-related activities, such as separating from energy during maintenance.
The top management of a production plant should participate in audits as often as possible, and the knowledge that there will be repeated audits motivates employees to improve the quality of operations in many ways. Active managerial involvement conveys to the entire organisation the management’s commitment to the use of continuous improvement models, and the management team also gets first-hand information about the organisation’s level of maturity and how continuous improvement models are taking root in its daily operations. However, assessing an organisation’s maturity and progress requires management to have a sufficiently deep understanding of continuous improvement methodologies. Managers must visit production facilities as often as possible, whether there is a direct need to investigate a specific problem (go to the spot – Gemba) or simply to interact with production employees to hear how things are going for them and what challenges or development ideas they have.
Organisations become more self-governing as they mature. A sufficiently mature organisation’s continuous improvement teams can analyse their own work at such a level that they notice any shortcomings in their application or understanding of the methodology and bring them to the steering group’s attention.
A steering group typically manages the development of a production plant’s operational activities, and the steering group plays a key role in applying continuous improvement. The steering group first draws up plans and then monitors their implementation. The steering group must always remain objective in its activities. In the end, a management review ensures that the plans have been effective and implemented in a way that supports the production plant’s indicators and goals. The management review ensures the quality of the steering group’s work.
A frequency of once per week is appropriate for steering group meetings when the organisation is working on many continuous improvement measures in different places. A small unit does not need to control operations as often and could carry out the necessary work with monthly meetings. In very small units, the same people are likely involved in almost every measure on a practical level, and consequently, the steering and monitoring of the progress on implementing measures can already be taken care of in day-to-day operations. Every organisation should look for the practices that suit them the best. One size does not fit all.
Aurelia Turbines is beginning its journey in world class manufacturing and is just starting to form its own practices. The Operations Department steering group has just been established, and we are moving from a one-person-led organisation to a more collective one. The group covers all aspects of operations, from material procurement to product delivery. A group is always stronger than an individual, and all of the group members’ expertise must be utilised to achieve the company’s goals. Next year will bring various new activities for the Operations Department, and ensuring high-quality fulfilment will bear fruit long into the future.
Stay tuned. Our story continues next month.
The author has extensive experience in the practical implementation of continuous improvement in operations.