Continuous process improvement (CPI) is the act of implementing improvements to a product, service, or process through incremental or breakthrough changes. It sounds like an indisputably good idea. However, there are three significant pitfalls that can lead to failure if CPI is not properly controlled:
Asking employees to have a CPI mindset typically results in recommendations specific to their own department without an understanding of the downstream impacts. When a pain point or opportunity for improvement is identified, the CPI mindset, driven to rapid-fire advancements, may necessitate a quick fix to remediate the identified issue.
In some cases, this can be an easy win! In other cases, cutting out a step for one department may cause another department to add two steps. It is crucial to resist the urge to make hasty changes before analyzing improvement opportunities within the scope of the end-to-end process. Take into consideration the possible impact on other departments and processes.
Avoid the pitfall: Take a big picture look at the business when considering opportunities for improvement to ensure the improvement will have positive effects companywide.
Another potential risk of a CPI mindset is the inclination to take identified issues at face value. Sometimes the right answer seems obvious, yet the optimal answer is below the surface and less obvious.
Here’s a simple example: Within a CPI-oriented company, an accountant proposed an improvement opportunity to replace a paper cutter whose blade was dull and ineffective. The easy answer: purchase a new paper cutter and check the completed improvement initiative off the list. However, the manager learned the paper cutter’s sole use was to cut printed receipts to fit in the file cabinet. Why not change the printer paper size? The improvement opportunity could be redirected to the printer issue. Then, the manager inquired why the paper receipts were being filed. The printing of receipts had been in place for years, though all receipts were now stored digitally. The ultimate solution was to stop printing and filing receipts. What a shame it would have been had they been satisfied to replace the paper cutter rather than replacing the outdated, burdensome process it was supporting.
The temptation to quickly accept and celebrate small-scale improvements may lead companies with CPI mindsets to adopt a false sense of “great.” In other words, they fail to encourage the significant time or risk associated with larger scale innovation that could put them ahead of the competition.
Avoid the pitfall: Take a more strategic look at proposed improvement opportunities by completing a root cause analysis to identify and resolve root issues beneath the surface.
A CPI-minded company should consider how employees are incentivized to identify and resolve improvement initiatives. If incentivization is based upon quantity of ideas alone, the company may be asking for a long list of low value items, or many valuable but small initiatives that could be better accomplished through one collective initiative. Assessment of the initiative’s overall value should be considered to incentivize employees to bring the most strategic, highest value improvement ideas to the table.
When one-off improvements are made continuously without regard to or coordination with other improvements, it can be difficult to discern which improvement yielded positive results. Improvements should be scheduled in coordination with other improvements. This might mean grouping small improvements into a single cross-functional initiative. Following the implementation of an initiative, action should be taken to test and confirm the expected value of the improvement is achieved.
Avoid the pitfall: Improvement initiatives should be accurately assessed for value, implemented according to a strategic timeline, and tested to ensure expected value is achieved.
To remain competitive within an industry, companies should always be looking for opportunities for improvement. Continuous process improvement can be an effective strategy when an emphasis is placed on strategic, integrated innovation.
Trenegy assists organizations as they seek to remedy inefficiencies and identify opportunities for improvement. Contact info@trenegy.com for a free consultation.
