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Continuous Improvement Firm (CIF) A Firm Continuously Improving on Customer Value Due to Improvements in Productivity and Quality |
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By Vadim Kotelnikov, Founder, Ten3 BUSINESS e-COACH Innovation Unlimited, 1000ventures.com
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"Achieving good performance is a journey not a destination." |
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Arguments for Adopting the Incrementalist Perspective
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Continuous Improvement the Main Source of Growth for:
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CIF and Total Quality Management (TQM) two different perspectives of the same phenomenon
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Issues
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MP
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CIF
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Strategic advantage
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Large volume of homogenous output
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Production flexibility
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Workforce
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Narrow specialization
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Multi-skilled
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Output based on
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Forecasted demand
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Real demand
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Productivity success factors
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Quality of management; its ability to plan and to direct the implementation of those plans
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The ability of the entire work force, not just management, to constantly improve both the product and the processes whereby it is produced
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Barriers to Successful CIF
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Balanced Organization: 5 Basic Elements Performance Management (Water):
What is Continuous Improvement Firm (CIF)? CIF is a firm continuously improving on customer value due to improvements in productivity initiated by the members of the general work force. Productivity in CIF is broadly defined to include all facets of product quality as well as output per worker. A basic operating principle of the CIF is that improvements in product quality often produce simultaneous reductions in costs. The key success factor in this endogenous, incremental and continuous technological and operational change is the organization and management of the firm in such a way that all members are motivated to promote change and are supported in their effort to do so. What is remarkable about the CIF is its ability to operate simultaneously in all innovative arenas: strategy, new products, new technology, new organizational forms, and new customer relationship management.
How To Lead Creative People
By: Max DePree
Be wary of incremental changes they
replace creativity and real innovation...
More
18 Leadership Lessons from Colin Powell
The most important question in
performance evaluation becomes not "How well did you perform your job
since the last time we met?" but "How much did you change it?"....
More Case in Point Canon: Eliminating 9 Wastes The objectives of Canon Production System (CPS) are to manufacture better quality products at lower cost and deliver them faster.
Canon invited all their employees to suggest
ideas for improvement and developed 6 Guidelines for the Suggestion System
to make it most effective.
Case in Point 14 TQM Slogans at Pentel Pentel is a Japanese firm manufacturing stationary products. The following is a list of 14 Pentel's slogans for explaining Total Quality Management (TQM) and Quick and Easy Kaizen philosophy to its employees.
Create a Process-managed Enterprise Enterprise-wide business process management "integrates everyone and everything once; thereafter, process design, transformation and experience take place freely and continuously, not as a series of infrequent, long-winded, piecemeal and distracting "integration projects" for each new process design. In this way, participants truly learn about the process and the side effects of change on the business."9... More
CIF
versus
Mass Production (MP)
Firms The ultimate competitive goal of the CIF is the ability to produce consumer goods on a custom basis for immediate delivery at costs lower than those featured by standard MP firms. The key to achieving this flexibility and lower costs lies in the generalization of the work force. Kaizen Kaizen means "improvement". Kaizen strategy calls for never-ending efforts for improvement involving everyone in the organization managers and workers alike... More Implementation of Kaizen Strategy: 7 Conditions One of the most difficult aspects of introducing and implementing Kaizen strategy is assuring its continuity. When a company introduces something new, such as quality circles, or total quality management (TQM), it experiences some initial success, but soon such success disappear like fireworks on summer night and after a while nothing is left, and management keeps looking for a new flavor of the month. This if because the company lacks the first three most important conditions for the successful introduction and implementation of Kaizen strategy... More Quick and easy Kaizen helps eliminate or reduce wastes, promotes personal growth of employees and the company, provides guidance for employees, and serves as a barometer of leadership. Each kaizen may be small, but the cumulative effect is tremendous. The quick and easy kaizen process works as follows:
Three Stages of the Suggestion System 1. Encouragement. In the first stage, management should make every effort to help the workers provide suggestions, no matter how primitive, for the betterment of the worker's job and the workshop. This will help the workers look at the way they are doing their jobs... More STRIDES Problem Solving Model
The
STRIDES model
was developed by the Quality Support Council of
Eliminating Bureaucracy Bureaucracy makes work and creates climate in which the customer comes third well after the management and the company's other employees.How much of your energy is expended on purely internal activities? if you spend less than 20% of your energy on external customers, than bureaucracy has taken hold... More Lean Manufacturing and Six Sigma
Lean
manufacturing, supplemented by Six
Sigma principles, can help your company attain the goal of continuous
improvement but only when embraced as a core corporate philosophy and
rooted in the corporate
culture.
Six Sigma, the quality-assurance principles that are often integrated with lean production and enterprise-wide process management efforts, is another. The principles and techniques that the two terms encompass deliver impressive bottom-line results in industrial manufacturing. 13 Tips for Transitioning Your Company To a Lean Enterprise The Toyota Way: 14 Principles
5S The 5S Program defines the steps that are used to make all work spaces efficient and productive, help people share work stations, reduce time looking for needed tools and improve the work environment... MoreTPS-Lean Six Sigma TPS-Lean Six Sigma is like a turbo-charged Lean Six Sigma program. TPS-Lean Six Sigma is a revolutionary, holistic concept. It actively has human capital embedded in Lean Six Sigma in a manner that not only stimulates commitment, integrity, work-life balance, passion, enjoyment at work and employee engagement but also stimulates individual and team learning in order to develop a motivated workforce and sustainable performance improvement and quality enhancement for the organization... More Be the Best Possible 10 Tips by Ten3 NZ Ltd.
Key Features of the CIF... Eight Best Practices of Successful Companies... Continuous Improvement as a Mindset... Three Questions To Be Systematically Asked by Everyone in CIF... Process-managed Enterprise... BPMS: Business Process Management System... Process Thinking... Systems Thinking... Systematic Thinking... Get Employees Involved... Leverage Your Service-Profit Chain... Reward System... Importance of Proper Motivation... Inspiring People... Energizing People... Use 80/20 Analysis to Pinpoint Improvement Areas... Real Time Business Development... Incremental Innovation vs. Radical Innovation... Idea Management... Letting the Best Idea Win... Case Study Dell Computer Corporation... Case Study "Great Game of Business"... Case Study Toyota... Case Study GE Work-Out... Case Study Amazon.com... Case Study Avis...
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Bibliography:
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