QUALITY AND CONTINUOUS IMPROVEMENT Practical case of implementation 20 Keys method in Slovenia

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Jože Makoter; dr. Franc Gider Deloitte&Touche Ljubljan d.o.o. Management Consulting Ljubljana SLOVENIA QUALITY AND CONTINUOUS IMPROVEMENT Practical case of implementation 20 Keys method in Slovenia

“If our factorise, through work, assure the quality of our products, it will be to foreigner's to get supplies from us, and their money will flow into the kingdom”. (Jean –Baptiste Colbert, Finance Minister to Louis XlV, 1664) Since 1950s the attitude towards quality has rapidly changed. Something like: 1950s What’s this about quality? 1960s Nice to have good quality but we can sell all we produce so it’s not critical. 1970s Japanese quality is good and we need to match their levels but will add to our costs to get there. 1980s If we get quality right first time that actually saves us money. Crosby tell us that Quality is free. 1990s Achiving high levels of quality, consistently, gives us a competitive edge. Continuous Improvement has become a major theme in manufacturing over the past 15 years and is a certainly core Lean concept. Although Kaizen has become well established since Masaaki Imai’s classic work on topic continuous improvement and breakthrough improvement. Thus Juran refers to breakthrough activities, using project by project improvement. Davenport, in the context of business process reengeering, has referred the sequence of continuous alternation between continuous improvement and more radical breakthrouh by reengeneering. And finally Womack and Jones discuss Kaikaku resulting in large, infrequent gains as being different from Kaizen or continuous improvement resulting in frequent but small gains. There are therefore four types of improvement and there is, or schould be a place for all four types in every organisation. Adopting lean manufacturing does not mean ignoring other forms of improvement to concentrate on kaizen and kaikaku. Involving people in the process of continuous improvement is essential for successful implementation of TQM methods. People are drivers of all changes and key success factor in organizations. The question that arises at this point is: “How to mobilize


massive human potential in companies?” If an organization wants to be innovative and improvement-oriented, it has to work on the following points: § Top management should try to identify ways to explore the potential of people. § There must be a change from power-oriented thinking to people- and customeroriented thinking. § The power base must be shift from the top of the organization to a lower level. Each decision should be made at the lowest possible level. § Top management should help coordinate these activities and provide the necessary support. A basic concept of continuous improvement has five steps, which can be summarized as follows (see figure below): 1. Study current operation and standardize the work procedure. 2. Find the problem areas. 3. Solve the problems and develop improved methods. 4. Implement the new methods. 5. If new methods are satisfactory, develop new work standards. Then go back to item 2 and continue the cycle.

Standardize

Implement New Methods

Find Problems

Solve Problems

Deloitte & Touche helps organizations in Slovenia in implementing the 20 Keys system for continuous improvement which incudes also kaizen and many other tools. 20 Keys (sometimes also called the PPORF – Practical Program of Revolution in Factories) is a holistic system of continuous improvement in organizations. It was created to: § Help organizations achieve their strategic goals. § Improve the speed of learning. § Involve all employees in the process of constant development of the business. § Eliminate all forms of waste (non-value-adding activities). § Energize and motivate employees to work towards achievement of common goals of the whole organization. § Improve competitiveness and profitability of the company. The 20 Keys system comprises 20 fields of a business in which improvements are possible. The base for improvements is benchmarking which uses easy-to-understand visual descriptions and check sheets. An organization can compare itself against best


practices in the world. Benchmarking principle is universal, so that comparisons can be made regardless on industry and size of the company. Also different business units and working groups can be compared among each other. The system provides stepby-step approach for improvements in all 20 fields. Very important is that all employees of an organization are involved in the activities towards improvements. The four pillar keys (Cleaning and Organizing, Rationalizing the System/Goal Alignment, Small Group Activities and Leading Technology/Site Technology) stimulate the development and movement of the inner 16 keys and as these 16 keys start “gearing” each other, the four pillar keys are further stimulated. This process illustrates the “Power of 20” which is the integrated strengthening of a company’s workplace constitution. This allows for the realization of an ideal workplace where waste is reduced within a pleasant, neat and functionally beautiful environment totally focussed on the needs of the customer.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

Cleaning and Organizing Rationalizing the System/Goal Alignment Small Group Activities Reducing Work in Process Quick Changeover Technology Kaizen of Operations Zero Monitor Manufacturing/Production Coupled Manufacturing/Production Maintaining Machines and Equipment Workplace Discipline4 Quality Assurance Developing Your Suppliers Eliminating Waste Empowering Employees to Make Improvements Skill Versatility and Cross Training Production Scheduling Efficiency Control Using Information Technology Conserving Energy and Materials Leading Technology/Site Technology

1

20

11

9

12

7

16 Better

14

5 ENERGISED WORKPLACE

6

17

4

Faster

Cheaper

15

18 19 2

8

10

13 3

Implementation of the 20 Keys system has different stages and can last several years (usually 5). In the first stage, which takes usually one year, 3 – 5 priority keys are selected (on the basis of initial benchmarking results) and implemented. Other keys are trained only. Emphasis is made on training of all employees. In the following stages additional keys are added to implementation, dependent on company’s success in the previous stages. Regular multi level meetings are held every 6 months for review and planing. The companies in Slovenia that are implementing the 20 Keys system have noticed first positive results after one year from the start of the program. The best results are demonstrated in clear definition of corporate strategies, increased motivation of employees, higher productivity, reduction of accidents on work and reduction of work in process.


The 20 Keys system provides a framework for achieving positive changes in the companies. It was proven to be a practical program for personal growth of all employees and improvement of company’s business success.

CONCLUSION Nothing energises an individual or a company more than clear goals and a grand purpose. The leaders, at whatever level, creates the environment which makes things happen. Every body contributes, not only performing their everydays task well, but also by contributing to improvements in their own and the enterprises's performance – not by improving productivity but because they are valued when they make enterprise better place in which to work. All great ideas and techniques about Quality sound great. The trouble is that every single one presented us the solution – which it is not. What we need to do is to sort out what is really relevant for specific company apply it pragmatically and then start to work.

REFERENCES: Suzaki K.: The New Shop Floor Management, The Free Press, New York, 1993. Tomažič L.: Development of Competitiveness in Production, Proceedings of the XXII Seminar on Entrepreneurial Planning and Management, Portorož, 1997, pp. 119 - 129 (in Slovene). Bicheno J.: The Quality 60, Picsie Books, Buckingham, 1998. Kobayashi I.: 20 Keys to Workplace Improvement, Productivity Press, Portland, 1995. Imai M.: Gemba Kaizen, McGraw Hill, New York, 1997. Bichero J.:The Lean Toolbox, Second Edition, Picsie Books, Buckingham, 1998 Wickens Peter D.: The Ascendant Organisation, Macmillan Press Ltd, London, Revised edition 1998.


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