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On the questions of theories and technologies of continuous improvement

Theories and technologies of continuous improvement explain that organizations develop and grow through constant change and improvement of all forms and activities. The essence is in the fact that success of the leading companies in the global arena does not only depend on the fact that they spend time on long-term improvements, but also that they perform improvements in more than one area. Thus, organizations achieve a synergistic effect on a number of improvements taking place simultaneously in the same organization. Japanese management methods form essential framework for the theories and technologies of continuous improvement.

It is believed that Japanese approach to management (especially if it relates to quality) has a number of distinguishing features, but the comparative analysis shows that the theoretical principles are universal, and in this sense they are international. Quality management system of progressive foreign firms where these concepts have found the most complete and correct practical implementation are similar in nature.

Distinctive elements of the Japanese approach to quality management are the following:

  • focus on the continuous improvement of processes and results of work in all divisions;
  • focus on the quality control process, not on the product quality;
  • focus on prevention to the acceptability of defects;
  • a thorough research and analysis of emerging issues on the basis of the upstream (i.e. from a subsequent operation to the previous one);
  • culturing the principle: «Your customer is the performer of the next manufacturing operation»;
  • full consolidation of responsibility for the quality of the results of work for the direct perpetrator;
  • active use of the human factor, the development of creative potential of employees, the cultivation of

The basic concept of the «Japanese miracle» is a perfect technology, including production technology, management and maintenance. Many firms have widely adopted computing and microprocessor technology, advanced materials, automated design systems, widely use statistical methods that are fully computerized. A characteristic feature of the design quality control    system in recent years is that its composition includes a communication system and a user communication system for providers.

Solutions to the problem of further improving the quality of managers of firms see only in cooperation, mutual trust of suppliers, producers and consumers. The main thing they see in the mandatory establishment of the causes of inadequate quality, regardless of where they are found from the supplier or the consumer, and the implementation of joint activities to address the identified causes as soon as possible.

Creating a network of suppliers implies responsibility and  a  serious  commitment on behalf of the company management and workers. Network is connected with the organization on a subcontracting condition and effectively provides assurance to subsystems. It also provides financial, technical and organizational support to establishing quality control in the modernization of   production facilities, and so on. For this purpose, special programs for the review of the  state  of  affairs from suppliers in the field of quality products, the study of their production capacity, training and education, development and other activities that affect the quality of products supplied are always in place.

The concepts of total quality management (TQM), Kaizen, lean production (Lean production, Toyota Production System TPS), Kanban, 6 sigma, etc. are examples of the implementation of incremental changes in the organization. Basic ideas and principles of the theories and technologies of constant improvements have been originally used in industrial organizations, and in spite of this, they are widely used in other areas as well.

In order to understand the content of the theories of continuous improvement, it is necessary to refer to the history of documented quality systems, which consist of five stages (so-called five-star quality, Table 1) 

Table 1 – Description of quality systems and key changes in management science

Description of quality systems and key changes in management science Description of quality systems and key changes in management science 

This way the basic concept which is based on the theory and technology of continuous improvement is Total Quality Management. There are many definitions of TQM. According to Kanji «Total quality management a system of actions aimed at achieving the satisfaction and delight of consumers (clients), the growth opportunities of workers, higher, long-term revenue and lower costs” [3].

Quality  assurance  is   part   of   TQM and is a system of measures to ensure customer confidence in the quality of the production (Picture 1). 

 Key elements of TQM Note – based on source [

Picture 1 – Key elements of TQM Note – based on source [4] 

TQM as a management system is focused on continuous improvement of quality, in other words TQM philosophy is based on the principle no limits to improvement. Despite the fact that achieving zero defects is impossible, TQM advocates for zero ddee-fects and problems and dwells on the progress.

Also «kaizen», the method used in Japanese companies is  noteworthy  to  mention.  “Kaizen” in Japanese means  “continuous  improvement.” It is a system of interrelated activities that increase and improve the quality, technology, processes, productivity, leadership, and other areas of the organization.

It is the process of improving the participation of all from senior managers to technical personnel even involved in cleaning and maintaining the cleanliness of the office and industrial premises. The kaizen system focuses on staff and each employee offers an improvement in the organization’s activities on a regular basis.

Minor improvements is the essence of kaizen, since a large number of small changes eventually lead to large-scale changes.

Thus kaizen is a collection of unique practices and management techniques that have received worldwide recognition. Under the “umbrella” of kaizen several well-known tools and ideas business improvement are placed (Kanban, quality circles, the system of offers and improvements, automation and robotization, zero defects, 6 Sigma, the work in small groups, standardized work, just in time), which eventually turned into self-management concept.

The concept of “kaizen” is interesting  because it involves the institutionalization (consolidation) of organizational changes, as well as helps managers to build a strategy for change in the organization.

Next a comparative analysis – strengths and weaknesses of the theories and techniques of continuous improvement are presented.

TQM is an approach of managing an organization aimed at maintaining quality, constant organizational change and  improvement.  It  involves all members of the organization to meet customer needs. Its advantages:

  • Commitment to continuous improvement and focus on the culture of organizational changes;
  • Reduces costs;
  • Improves the quality of all processes within the organization;
  • Increases attention to consumers customers;
  • Inolves long-term planning. Disadvantages of TQM:
  • Despite the focus on consumers inadequate market research may become a failure of total qquuaall-ity management;
  • Time costs (the amount of  time  spent  on the changes and improvements often de-motivate employees);
  • High degree of formalization of procedures and processes.

Kaizen – a continuous process of improvement and changes of all kinds of resources at an enterprise. Its advantages:

  • It is possible to apply the method to any organization (from small to large);
  • Small investments;
  • Focus on development.

The disadvantage of the method is the need to have an established system of motivation to maintain a corporate culture and small, but numerous changes in the organization.

JIT (just-in-time) logistics concept involves organizing the movement of goods and materials to the site accurately and on time. Its advantages:

Creation of conditions of a continuous-flow production);

Decreases costs by optimizing extra costs; Reduces costs at an inventory level;

The disadvantage of the method is the fact that lack of inventory may lead to queues. Also, it is sometimes difficult to ensure a perfect consistency between the stages of production of goods.

Kanban a mothod of provision an organization or a production facility with material resources only in the right quantity and at a certain time. Its aaddvvaann-tages:

Low costs of storage of goods and materials; Reduction of the production cycle;

Rapid turnover of assets and stocks.

However, there may be difficulties associated with the consistency between the stages of production, and consequently there is a risk of failure of production.

6 Sigma – a quality improvement process that enables to reduce a number of defects and statistical deviations and errors in the firm. Its advantages:

  • Versatility (can be applied to improve all business processes);
  • Focus on the final result; Reduction of costs.

Disadvantagesst is difficult to build such a flawless system which will monitor everything and detect all errors.

Quality circles – meetings of workers in which they lead discussions, analyze and adjudicate issues of an organization. Advantages:

  • Focus on specific practical problems;
  • Improved employee morale of an Employees receive the opportunity to apply their knowledge in practice and share experiences with colleagues). However, one the biggest disadvantage is that quality circles imply devotion of employee time and this in turn may lead to great workload to them [5].

If there is trust and good relationships with suppliers then all aforementioned practices work successfully. They provide ways to improve the quality of products and services offered. Thus continuous improvement methods of management give significant savings of time and resources needed to carry out incoming inspection of materials and components coming from the vendor’s.

All mentioned practices are targeted at creating the company’s own subcontracting network which works with the customer on a long term basis. Japanese firms were able to prove that even in conditions of free competition similar principle is more effective than practiced in the West, (annual contest subcontractors).

Japanese techniques for improving the performance of organizations (compared to Western) imply incremental improvements and can be beneficial in terms of investments of resources. Improvement style of western companies, mainly associated with innovations requires large investments. Gradual improvements of Japanese organizations have been successful without significant material investments. This way, theories and technologies of continuous improvement involve reliance on an ideal model, and the changes are implemented on the achieved results. It is noteworthy to say that changes are made gradually and continuously, rather than dramatically and immediately.

 

References 

  1. Ilenkova D., Ilenkova N.D., Bandurin A. V., Yagudin C. Yu., Voronina E. M., Kvitko A. V., Kuznetsov V. I., Mhitaryan V. S., Shusterman E. S. Upravlenie kachestvom: uchebnik / pod red. S.D. Ilenkovoy. – M.: YuNITI, 1998. – 204 c.
  2. Basovskiy L. E., Protasev B. Upravlenie kachestvom: uchebnik. – M.: INFRA-M, 2001. – 212 s.
  3. Kanji Total Quality Management and Statistical understanding // Total Quality Management. – 1994. – Vol. 5, # 3. – P. 35-58.
  4. Efremov S. Sem graney sovremennogo menedzhmenta // Menedzhment v Rossii i za rubezhom. – 1997. – # 7, 8. – S. 3–13.
  5. Possible conflicts related to failures of programs and projects of improvements / changes. (Mishin M. Upravlenie kachestvom: uchebnik dlya studentov vuzov. – Izd. 2-e, perer. i dop. – M.: YuNITI-DANA, 2005. – 463 s.

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