Technical article
Continuous Improvement for Sustainable Business Success
To succeed in today’s market environment, companies must innovate. At the same time, they must continuously improve business performance and product quality. However, the growing variety of product variants—as seen, for example, in the automotive industry—and the shortening of product life cycles make this increasingly difficult. Innovations are typically associated with high investments and timing that is difficult to predict. In contrast, there is the continuous improvement process (CIP). Through small improvements, it optimizes the functionality and/or quality of a product and also helps manage increasing complexity.
Innovation and continuous improvement can be combined
The following chart shows that innovation and continuous improvement are not mutually exclusive, but rather two complementary approaches that ensure maximum success for both the company and its customers.
The CIP focuses, among other things, on simplifying processes, enhancing safety, and improving product and process quality. A key characteristic of such processes is that they follow a control loop, as described, for example, by the PDCA cycle (Plan-Do-Check-Act).
Implementation options
One tool used by virtually all manufacturing companies in this context is the FMEA (Failure Mode and Effects Analysis). It enables companies to identify and assess product risks and their impact on customers as early as the product development phase. The issues identified through this process can lead to improvements not only for a specific product but also across the entire company. However, contrary to the intent of the CIP, these findings are often not used for company-wide improvement initiatives. There are many possible reasons for this. Examples include the additional time and financial costs involved, a lack of expertise in implementation, and a lack of support from supervisors.
Lessons Learned
So-called "lessons learned" can also contribute to continuous improvement. The term refers to the retrospective analysis of a project (or a product or process) in order to identify weaknesses or gain new insights that can be applied to future projects. Unfortunately, however, improvement ideas identified through this process are all too often shelved or used only to a limited extent for future or concurrent activities. In addition to the two examples listed, which can contribute to CIP, the list could go on indefinitely.
Why does the CIP work? And why doesn't it?
Whether the CIP contributes to increasing a company’s success depends on several factors. In addition to proper design, the methodologically correct application of the process is also of essential importance. The extent to which this process is embedded in the thinking and actions of a company’s employees also plays a decisive role. The question arises as to whether CIP is implemented due to standards and guidelines or because it is an integral part of the company’s philosophy. The latter should be the goal of every company in order to achieve long-term success. Do you have questions about quality management in general? Do you need support in implementing selected tools, including those related to CIP and the introduction of lessons-learned processes? Please feel free to contact us.
