Executive Summary
Continuous Process Improvement (CPI) is a strategic approach for developing a culture of continuous improvement in the areas of reliability, process cycle times, costs in terms of less total resource consumption, quality, and productivity. Deployed effectively, it increases quality and productivity, while reducing waste and cycle time.
(CIP, or CI) is a management process whereby delivery (customer valued) processes are constantly evaluated and improved in the light of their efficiency, effectiveness and flexibility.
Continuous improvement is an ongoing effort to improve products, services or processes. These efforts can seek "incremental" improvement over time or "breakthrough" improvement all at once.
Among the most widely used tools for continuous improvement is a four-step quality model—the plan-do-check-act (PDCA) cycle, also known as Deming Cycle or Shewhart Cycle:
- Plan: Identify an opportunity and plan for change.
- Do: Implement the change on a small scale.
- Check: Use data to analyze the results of the change and determine whether it made a difference.
- Act: If the change was successful, implement it on a wider scale and continuously assess your results. If the change did not work, begin the cycle again.
Table of Contents:
- Introduction of CPI
- Research Design
- CPI Cycle
- Organization balanced scorecard
- Organization mission
- Organization Vision
- Organization Critical success factor
- Organization Objectives
- Organization Performance measure & targets
- Organization Improvement action
- Organization mission
- How to Determine Which Processes are Relevant for Continuous Improvement
- Possible performance measures:
- Financial
- Customer
- Internal process
- Knowledge & learning
- RESEARCH OBJECTIVES
- Bibliography
- Interviews
- Books
- Websites
- Research Results
- Conclusion
- Financial
This article presents a methodology for the continuous detection and definition of process performance improvement opportunities, especially as these pertain to the quality of operations (such as product quality). The problem is first reduced to an essentially pattern recognition formulation, for which an integrated and adaptive methodology combining analogical reasoning and symbolic induction is developed. The resulting classification of past records of data is used to support the construction of a decision support system for the generation/selection of operating suggestions lead to performance improvements. The overall approach complements the usual set of statistical tools, commonly employed to address quality management problems. The basic methodology is also extended to handle fuzzy class definitions and function learning formulations. Case studies, covering both simulated and real industrial situations, illustrate the concepts and their practical utility. |
CONTINIOUS PROCESS IMPROVEMENT ACCORDING TO GARMENTS MANUFACTURING INDUSTRY IN PAKISTAN
We were assigned the research project of Total Quality Management (TQM). We choose Garments Manufacturing Industry to know that how they work on Continuous Process Improvement (CPI). We adopted the following organizations:
- TESSCO GARMENTS barkat Market
- AQSA BRANDS karim block Allama Iqbal Town
- CROSS ROADS karim block Allama Iqbal Town
Our research design includes:
- Exploratory research.
Whereas,
- Field survey
- Interviews
- Questionnaires.
Will form the basis of our primary data collection
The study, based on this survey consist on these following sub headings which cover all aspects related to continuous process improvement
GENERAL
LEDERSHIP STYLE
STRATEGIC VISION
INTERNAL PROCESS &
HUMAN RESOURCESS ABOUT THE BUSINESS.
CONTINIOUS PROCESS IMPROVEMENT
INTRODUCTION:
Continuous improvement of the entire organization constitutes basics of TQM. It involves a disciplined and systematic circular process
that leads to gradual improvement towards total quality. In
order to realize total quality, everyone within the organization should consider continuous improvement as something normal. Teamwork, inter-personal skills, and the correct implementation the explained methods and techniques are necessary in order satisfy customers. By working continuously according to this approach
and by familiarizing yourself with related skills, you will be able to constantly satisfy stakeholders. Consequently, this must be systematically eliminated and employees will speak the same 'TQM language'. The number of instances of doing things right the first time thus increases.
continuous Improvement Cycle
Improvement cycle can be broken down into four phases:
- Process Selection and Definition: This involves selecting
a critical process related to the business strategy eligible for continuous improvement.
- Process valuation and Standardization: This entails the description, evolution & standardization of the selected process.
- Process Improvement: This is the continuous 1 of the evaluated processes according to the PDCA cycle.
Personal Improvement: This implies to the continuous individual improvement according to the new Plan -Do-Act-Challenge.
(PDCA) cycle of Rampersad (Rampersad, 2004)
Organizational Balanced Scorecard
The Organizational Balanced Scorecard (OBSC) is related to Rampersad's Total Performance Scorecard concept (see Chapter 3). It includes the overall (corporate) organizational mission, vision, core values, critical success factors strategic objectives, performance measures, targets & improvement action. These elements are divided along crucial categories of business results such as:
WHY DO WE EXIST?
Why does our organization exist? Who are we? What do we do?
Where are we? What is our identity? What is the purpose of our existence? What is our primary function? What is our ultimate main objective?
For whom do we exist? Who are our most important stakeholders?
What fundamental need do we fulfil?
WHERE ARE WE GOING TOGETHER?
What is the most ambitious dream of our organization? How do we envision the future?
What are our long-term ambitions? What do we want to achieve? Where do we go from here?
How do we see a desirable and achievable shared future situation, and what are the change routes needed to reach it? What changes lie ahead in the business landscape?
WHICH FACTORS MAKE US UNIQUE?
What is the most important factor of our organizational success? Which organizational factors are essential for our organizational viability?
What are our core competence?
WHAT RESULTS DO WE WANT?
Which short term measurable results must we achieve?
HOW CAN WE MEASURE THE RESULTS?
What makes the organizational vision and objectives measurable?
Which values must be obtained? What are the targets?
HOW DO WE WANT TO ACHIEVE THE RESULTS?
How can we realize the objectives? Which improvement actions are we going to implement?
How do we create a platform for the developed strategies? How will we communicated this to the people?
Organizational Mission
The organizational mission encompasses the identity of the organization and indicates its reasons for existence: for whom it exists, why it exists, which needs it fulfils, what its ultimate objective is, what its primary function is, and who its most important stakeholders are Related questions include: What activities are we occupied with? What kind of services or products do we provide? How do we define the customers we serve? On whose behalf do we make an effort? Which unique values do we give to our customers? A successful mission statement also describes, to a greater extent, the organization's activities and identifies the range of work in terms of customers, employees, services and products. The mission determines the nature of the organization and is timeless. This 'genetic code' of the organization is meant to help employees build a common understanding of the main objective, increase their devotion, and provide an explanation as to why their organization is different from the others. An effectively formulated and forcefully articulated mission creates unanimity in the behavior of employees, strengthens their single-mindedness, and improves the atmosphere of mutual communication within the organization.
Organizational Vision
The organizational vision contains the most ambitious dream of the organization. It provides a shared vision of a desired and feasible future situation, as well as the route needed to reach it. It indicates what the organization wants to achieve, what is essential for its success, and which critical success factors make it unique. It also shows where and how the organization wants to distinguish itself from others. This implies that the organizational vision provides an insight into core competences: the fields in which the organization excels the reasons why customers use its products and services, and the principles of the employees. The vision lelos the organization determine which core competences helps the organization determine which core competences must be kept intact and saved, and in which future direction the organization should move. It also contains ethical starting points and is closely related to the organizational culture. The vision, in contrast to the mission, is tied to a timeline, and is related to strategic objectives and performance measures. Performance measures make the vision measurable. An effectively formulated vision guides personal ambitions and creativity, establishes a climate that is fertile for drastic changes, strengthens the organization's belief in the future, and therefore releases energy in people. Together the organizational mission and vision express the soul of the organization. They form its collective organizational\ ambition and have an important impact on the relationship | between the employees and the organization.
Core Values
The organizational vision is also based on a set of shared values that are used to strengthen the like-mindedness, commitment & devotion of employees & to influence their behavior positively.
Organizational Critical Success Factors
A Critical Success Factor (CSF) is one where in the organization must excel in order to survive, or, one that is of over-riding importance to organizational success such strategic issues determine the competitive advantage of an organization. They include factors in which the organization wants to differ from others and make itself unique in the market, and, as such, are related to its core competencies critical success factors are also related to the above motioned BSC perspectives and thus form an integrated part of the organizational vision.
Organizational Objectives
Organization objectives are the Rational objectives are the measurable results that must be
reached. They describe the expected results should be achieved within a short-term interval of time in order to realize the long-term vision. These objectives are derived directly from the critical success factors and create realistic milestones. Quantifying objectives, however, is avoided in the BSC; it will take place at a later phase via performance measures and targets. Each CSF has one or more objectives that are related to one of the four BSC perspectives. These strategic objectives form part of a cause-and-effect chain, resulting in the final organizational objective.
Organizational Performance Measures
A Performance Measure (PM) is an indicator related to a CSF and the strategic objective and is used to judge the functioning of a specific process. These indicators are the standards by which the progress of the strategic objectives is measured. It is essential to consider these indicators when putting strategic plans into action. When they are interconnected such that managers can deduce a certain course of action from them, they provide management with timely signals for organizational guidance, on the basis of the measurement of (process) changes and the comparison of the measured results to the standards. Therefore, performance measures make the organizational vision and objectives measurable.
Organizational Targets
A target is the quantitative objective of a performance measure. It is a value that an organization aspires towards, and the realization of which can be measured by means of a performance measure. In other words, targets indicate the values to be attained.
Organizational Improvement Actions
Improvement actions are strategies undertaken to realize the organizational mission, vision and objectives. The actions which provide the largest contribution to the critical success factors or chosen for implementation
How to Determine Which Processes are Relevant for Continuous Improvement
In order to determine which processes are relevant for improvement, it is necessary to make a detailed division in terms of sub-processes and process sections for each business process up to the action level (Rampersad, 2001B). Start with the key processes. The most important processes of Jet Interior, a producer of airplane interiors, are illustrated in Figure
Financial
- Shareholder value
- Return
- Return on investment
- Investment level
- Cash flow
- Revenue growth
- Sales
- Operational costs as a percentage of sales
- Margin
- Profitability = sales/costs + interests received
- Percentage of deviation from the budget
- Productivity = output/input = result/costs
- Actual productivity = actual result/actual costs
- Expected productivity = expected result/expected costs
- Result = output = (all produced units x sales prices + dividends)
- Labor productivity = result/labor costs
- Labor costs = man hours x hourly wage
- Capital productivity = result/capital costs
- Capital costs = annuity value of used capital goods
- Material productivity = result/material costs
- Material costs = purchased material - storage costs
- Miscellaneous productivity = result/miscellaneous costs
- Miscellaneous costs=energy, maintenance, insurance, etc.
- Integral productivity = result/(labor costs + capital costs + material costs + miscellaneous costs)
- Effectiveness = actual result/expected result
- Gross value added = sales - used raw material, goods and services needed to produce these products '
- Net value added = gross added value – depreciation (Consumption of durable capital goods)
- Value added OPT annual
- Sales marketing department
- Circulation velocity of stock Percent inventory
- Purchasing price versus market p, Purchase share in relation to safes
- Number of suppliers
- price
- Percentage of revenue from
- new products
Customer
- Market share Market growth
- Percentage of customers who terminate relationship.
- Number of highly satisfied customers Degree satisfaction of customers Number of potential customers Potential revenues Time needed to answer a complaint Time needed to solve a complaint Degree of customer loyalty Number of 'non-sales'
- Costs associated with losing a customer or gaining a new customer
- Sales loss as a result of dissatisfied customers Number of visits to important customers Number of meetings with customer groups to be informed about their demands, requirements, ideas and complaints
- Number of concrete objectives with regard to customer satisfaction
- Number of guidelines related to optimal customer Satisfaction
- Percentage of cases where the telephone is answered within three rings
- Accessibility
- Costs of marketing
- Sales marketing department
- level of satisfaction internal customers
- Number of customer returns of customers satisfied with communication
Internal process
- Invoicing speed
- Delivery time (between order and delivery)
- Time needed to present an offer
- Percentage of delayed orders
- Response time to a service request
- Lead-time for product development
- Percentage of sales from new products
- Time needed to launch a new product on the market (time-to-market)
- Percentage of sick leave
- Percentage of latecomers
- Downtime
- Percentage of personnel who find n challenging work & they do
- Percentage of forms filled in correctly
- Percentage of correctly performed function behavior on-onented
- Percentage of rejects or percent approved
- Percentage of scrap
- Percentage of damaged material
- Percentage of returned material i Percentage of injuries due to dangerous work I Percentage of safety incidents
- Percentage of environmental incidents
- Percentage of processes that are statistically controlled
- Percentage of processes with real-time quality feedback
- Percentage of delayed orders
- Delivery reliability; percentage of deliveries
- Completed on time and according to the specifications
- Quality costs consisting of:
- Internal failure costs: Costs linked to correcting mistakes before delivery of the product such as scrap, rejects, adjustments, downtime of equipment, labor sitting idle while waiting for repairs and sales discounts for inferior products,
- External failure costs: Costs that regard the adjustments of malfunctions after delivery of the product, such as repair costs, travel and lodging, expenses, replacement costs, stocking spare parts, loss of customers' goodwill, guarantee and warranty costs, and costs of dispatching goods
- Prevention costs: Costs that are related occurrence of above-mentioned costs, such as designing the product and the related process for the quality control process
- Judgment Cost: essential importance, such as through customer surveys, phone interviews and customer panel discussions. Customer surveys are a powerful tool to obtain information about what the customer trunks and expects. In general, questionnaires are used with different questions, which may vary from organization to organization. The exhibit below lists a number of clues about how to correctly formulate these questions (Philips Electronics, 1994).
How Do You Formulate Your Questions?
• Ask questions which can lead to action. You have to be able to do something with the reply.
• Ask answerable questions. The customer must be able to know the answer to the question.
• Ask clear questions. The customer should not be in I doubt about the meaning or the intention of the question. Be specific. Do not ask complicated questions, which require more than one sentence. 1
• Avoid too much detail. You can always ask a number 1 of customers after the survey has been completed to 1 give you some additional clarification. I
• Ask questions which have only a limited number of 1 answer. This allows the customer to answer quickly 1 and accurately. 1
• The customer must consider the questions relevant. 1 Don't include a specific subject, which is of less 1 importance to the customer in a customer satisfaction 1 survey. '
• Ask the customer about his overall satisfaction. For example: consider all these aspects, what is your overall satisfaction with the suppliers we have discussed here?
• The last question is for the customer. At the end of the survey, always ask the customer if any subject that he feels is important has been missed in the survey.
• Keep it short. Answering all the questions should not take more than 15 minutes. If you make the list
RESEARCH OBJECTIVES:
The purposes being to:
- Identify that how an organization treats with its employees.
- Determine the relations between origination and its customer.
- Determine how the recruitment practices affect organizational outcomes.
BIBLIOGRAPHY:
BOOKS:
- Managing total quality, Enchasing personal & company value, hubert K Rampersad.
WEBSITES:
- http://en.wikipedia.org/wiki/Total_Quality_Management.
INTERVIEWS:
- Mr.Ali, Owner of Tesco Garments. [Interview] June 09.
- Shahzad, Manager of AQSA Brand. [Interview] June 09.
- Khalid, Manager of Cross road franchise {Interview} June 09.
APPENDIX: QUESTIONNAIRE
1=no, 2= somewhat & 3=yes
General: Yes somewhat No
1.Do u know who your customers are 3 2 1
And how many there are:
2.Do u listen effectively to all your customers
And do u familiarize yourself with their situation?
3.Do u routinely conduct serves among your
Customers? About your products and services
4.Do all your employees know about the results?
5.Did you segment your customers based on
Their needs
6.Are more than 75% of your customers satisfy
7.Do you anticipate customer needs?
8.Do you consider each customer a unique partner?
9.Are complaints addressed within two businesses?
and resolved within one week?
10.Do you encourage dissatisfied customers to notify
you of their complaints?
11.Do you have Customer help desk or call center 3 2 1
12.Do you know the percentage of customers
who terminate their relationship with your
Organization due to dissatisfaction?
13.Are complaints systematically registered and
analyzed in your organization?
14.Do you measure the degree of customer loyalty?
15.Do you regularly advise customers about your
Products/services that best fit their needs?
16.Do you know what the costs are when you lose?
a customer?
17.Do you maintain relation with your customers &
do you Expand these relationships?
Leadership style yes
somewhat
No
1.As a manager, do u know how many 3 2 1
Complaints are received yearly?
2.Have you integrated customer satisfaction?
Into your organization's vision?
3.Is the management open to suggestions?
And ideas from customers?
4.Are the customer wishes continuously taken
Into consideration when taking decisions?
Strategic vision
yes
somewhat
No
1.Have u developed E-business strategies for the 3 2 1
coming Years to increase customer satisfaction
2.If the strategy regarding customer orientation
continuously Communicated to all employees
3.Do you continuously benchmark with regard to
customer satisfaction
4.Do you consider customer information a strategic assets
Internal process: yes
somewhat
No
1.Have you appointed process owners for controlling 3 2 1
Business process
2.Do your phone fax, internet a& other e-business
tolls match the way Ur customer preferred
to communicate
3.If the phone in your organization answered within
3 rings in more 80% Of the cases
4.Do u use measured customer satisfaction has
an indicator for process Improvement
Human Recourses:
yes
somewhat
No
1.Do you give extra rewards to employees who
Continuously Perform in a customer 3 2 1
oriented manner.
2.Do you encourage your employees to generate ideas
regarding to Increase the customer satisfaction
3.Do your have an introductory program in
which new employees are also educated
concerning the importance of satisfied customers
4.Do your marketing employees receive training
for at least 2 weeks, each year in customer orientation..
Our Research about Tessco
History:
Started business about 25yrs ago, with a capital of 0.5 million & it is not a chain store, located at barket market, new garden town, Lahore..
Overview:
Mr.Ali the owner of Tesco cooperate us a lot…The information provided us in a very friendly environment…There were 5 sales man & they receive 2% commission on their own sales, they r not involved in any export, but they do import from uk, china & Thailand etc…They r running their brand under the name of Rafaera collezioni… They stich according to demand of their customer like trouser, shirts. Their daily turnover is 50,000-60,000 Max..They just deal in man & women…
Research Results under this statically method:
42-51= excellent, 40-42= Good & 37-40= satisfactory
General
We asked 17 questions related about customers, when we count their ratings, according to statically method.
Total Score: 43
Average = 2.529
Result: Excellent
Leadership:
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about management, when we count their ratings, according to statically method.
Total Score: 12
Average = 3
Result: Excellent
Strategic Vison:
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about future goals, when we count their ratings, according to statically method.
Total Score: 10
Average = 2.5
Result: Excellent
Internal Process
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about future goals, when we count their ratings, according to statically method.
Total Score: 8
Average = 2
Result: Good
Human Resouce:
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about future goals, when we count their ratings, according to statically method.
Total Score: 7
Average = 1.75
Result: Satisfactory
Drawback:
They are disoriented due to the load shedding & disaster of Pakistan economy. That's why they offer summer & winter sales in which they reduced their profit margin to 0…
Our Research about AQSA
Overview:
They r located at karim block, Allama Iqbal town, Lahore. basically aqsa brand is a franchise of multiple brands i.e river stone, equater ,couger,ex boutique, royal tag & free egde.. they do import & export..
Research Results under this statically method:
42-51= excellent, 40-42= Good & 37-40= satisfactory
General
We asked 17 questions related about customers, when we count their ratings, according to statically method.
Total Score: 37
Average = 2.17
Result: satisfactory
Leadership:
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about management, when we count their ratings, according to statically method.
Total Score: 10
Average = 2.5
Result: Excellent
Strategic Vision:
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about future goals, when we count their ratings, according to statically method.
Total Score: 09
Average = 2.25
Result: Good
Internal Process
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about future goals, when we count their ratings, according to statically method.
Total Score: 09
Average = 2.25
Result: Good
Human Resource:
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about future goals, when we count their ratings, according to statically method.
Total Score: 12
Average = 3
Result: Excellent
Our Research about Cross roads
Overview:
They r located at karim block, allama iqbal town, Lahore. Their main factory located at rivand manga road…they do import & export…basically it's a chain store & about 45 franchises all over the Pakistan…their total capital is 5 million & franchise is on rent… Rent is 50,000…Company itself give training to their employees & also give rewards in terms of cash on yearly basis…This organization is loyal towards their employees.. The owner is getting 25% commission on total monthly sales.. The best thing we see there is that they are totally depended on E-commerce
Research Results under this statically method:
42-51= excellent, 40-42= Good & 37-40= satisfactory
General
We asked 17 questions related about customers, when we count their ratings, according to statically method.
Total Score: 37
Average = 2.17
Result: satisfactory
Leadership:
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about management, when we count their ratings, according to statically method.
Total Score: 9
Average = 2.25
Result: Good
Strategic Vision:
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about future goals, when we count their ratings, according to statically method.
Total Score: 10
Average = 2.5
Result: Excellent
Internal Process
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about future goals, when we count their ratings, according to statically method.
Total Score: 11
Average = 2.75
Result: Excellent
Human Resource:
Research Results under this statically method:
10-12= excellent, 8-9= Good & 6-7= satisfactory
We asked 4 questions related about future goals, when we count their ratings, according to statically method.
Total Score: 10
Average = 2.25
Result: Good
Conclusion about our project:
All of the organization we explored, started with the huge amount of capital, everybody is trying to get achieve its goal in any way against their computers in shape of interior & infra-structure of business, prices, quality, quantity, e-commerce, warranty, customer satisfaction etc…
The main Draw back everyone discloses with us is economic instability of Pakistan and the load shedding factor which affect them a lot…that's why these factors compel the origination to offer the winter & summer sales in which they reduced their profit margin.
There is lack of 2 way communication between top level management & front level employees…
We conclude that every organization prefer their front line employees in the minimum requirement of matric..
All of the organization we explored that they every organization give rewards & commissions to employees from their monthly sales to motivate them & to increase their profit ratio..
At the End we enjoyed our research & everyone treat us with a great attention & praise our hard work..
Thank you
