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Analysis>
Process Change>What is Continuous
Improvement? And why the move to Business Process
Reengineering?
It's focusing on improving customer satisfaction by
continuously making incremental improvements to
processes and removing any unnecessary activities.
Many companies make business process improvements
(especially at shop floor level) using a continuous improvement
(CI) approach. Some companies use a model to
help measure and understand the current process to
identify improvements that can be made.
A
model that works quite well is the 7-step process.
The 7-steps are:
1. Initial evaluation – identify and measure
the current “As is” process, usually a process map is
produced
(Click here to read about What is a Process Map?).
The results and the customer’s requirements are
documented. Details of any shortfalls and potential improvement
areas are also indicated
2. Define the problem and the potential cost of
the improvement – use the data obtained in step 1 to
assess what the problem could be and consider the
potential costs to fix the problem
3.
Implement a quick fix (if appropriate)
until the full CI process is complete
4.
Problem solving takes place - identify the
root causes and generate ideas for potential solutions.
Establish the Cost vs. Benefits of each solution.
Click here to go to Analysis Knowledge Base
which provides information about the
different types of analysis tools
that can be used.
5. Corrective action is taken – a solution is
chosen, planned and implemented.
Click here to go to Analysis Knowledge Base
which provides information about the
different types of analysis tools
that can be used.
6.
Evaluate and follow up - Measure again,
ensure the improvement is robust and sustainable.
And if applied, check the quick fix
has been removed
7.
The results are published - successes
are communicated and should be celebrated.
It is
usual to document the CI's progress on a
CI Record Sheet.
The process is continuous and repeats over and over
again, and that is why it is called continuous process
improvement. You might also hear it called business
process improvement or functional process improvement.
Continuous improvement therefore, makes changes in incremental
steps and is based on refining the existing processes.
The
Move to Business Process Reengineering
However, stiff market competition has meant that more
and more companies want breakthrough performance
changes, not just incremental changes, and they want it
now. Few businesses can afford a slow change process.
One approach for rapid change and dramatic improvement
that has emerged is Business Process Reengineering.
The difference between continuous process improvement
and Business Process Reengineering is the starting
point. Continuous improvement is improving today’s
process, whereas business reengineering is starting with
a clean slate (Click
to read about Business Process
Re-Engineering).
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