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Justifying Continuous Improvement Projects

April 22, 2013

 by Renaud Anjoran

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Jeffrey Liker and Gary L. Convis, a former executive V.P. of Toyota, mention two great analogies in their recent book:

Continuous Improvement is Like a Diet

Implication

If you relax after 6 months, most of the benefits will disappear.

Cause

Some of the steps we push factories to take are counter-intuitive. If a new general manager arrives after one of our missions, he can get back to a typical "batch-and-queue" organization in just a few weeks.

Example

Reducing the batch size and avoiding over-production are among the best ways to reduce total production costs per unit. But it is human nature to assume that larger batches are always more efficient.

 

A Continuous Improvement Program is Like an Investment in Education

Implication

Some of the changes we implement in a factory can't be tied to a specific ROI.

Cause

We try to avoid "point improvements" here and there (except if that's what the client specifically asks for). Rather, we need to have a coherent plan that impacts the whole production cycle, rather than a specific process. That's how large benefits are ensured.

However, this coherent plan is made up of many elements whose ROI can't be calculated individually.

Similarly, if a students calculates the ROI of a certain course, he cannot see a direct cause-and-effect relationship with the benefits he will get out of it in the long term.

Example

Reducing the setup time of a pressing machine helps save a few hours here and there. But, more importantly, it makes it easier to make smaller batches, and it pulls operators away from the mass production mentality.


 

22 Signs Of Good Factory Management in China eBook

Topics: Manufacturing Consulting

Renaud Anjoran

Renaud Anjoran

15 years experience in China.
Partner, China Manufacturing Consultants.
Worked with hundreds of factories in China.
Certifications: ASQ CQE & CRE; ISO 9001 & 14001 lead auditor.
Author of well-read blog, Quality Inspection Tips.

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