Continuous improvement - Success rates and factors (article 3 of 4)

As unveiled by the meta study of various research papers identifying the main success factors of continuous improvement projects done in article 2 of this series, the top mentioned success factors for the past 15 years among all these studies are :

-       Project prioritization and selection

-       Management commitment

-       Training

In the following the three main factors will be analyzed in more detail to fully understand them and outline, why they have such a significant impact on overall project success.

Project prioritization and selection

The ability to prioritize and select the right projects is one of the most common factors of success mentionned in the literature. According to Kruger and Ramdass (2010), energy is often dispersed throughout the company when it comes to improvement projects. Some managers will decide to opt for a cost reduction project while others will work on improvement projects with the objective of generating revenue. This has the effect that some projects and resources within the organization are not allocated and aligned with overall organizational objectives.

According to Snee (2010), the projects to be prioritized are those that produce the most value in relation to the company's objectives. They must therefore be prioritized on a common basis in terms of return on investment.

Kumar and al. (2007) affirm that companies with a project selection method are more successful than those without one. Moreover, 60% of the firms surveyed in their study selected their projects on an ad hoc basis. Selecting the wrong projects can discourage management from continuing to support a continuous improvement process in a company. 

Management commitment

Management commitment is essential for a continuous improvement project to be successfully implemented (Antony and al., 2012b; Bhasin, 2012a; 2012b; Coronado and Antony, 2002; Kwak and Anbari, 2006). Management generally has the final say in the allocation of financial, material and human resources. In the majority of projects, one or the other of these resources will be needed and some form of approval will be required (Arumugam, Antony and Kumar, 2013). It is therefore understandable why it is essential to to obtain management's support and ensure active commitment to improvement projects. Management is literally the backbone of any improvement project (Pepper and Spedding, 2010).

Moreover, leaders must not only be involved but also clearly show their commitment to the company's improvement process (Scherrer-Rathje, Boyle and Deflorin, 2009). For example, General Electric's Six Sigma program has been successful with the weekly involvement of their president, the honorable, Jack Welch in the various work sessions (Jeyaraman and Teo, 2010). The involvement of top level management underlines the projects importance and improves the moral and dedication of the teams involved on an operational level.

Training

Training is a critical factor in the successful implementation of continuous improvement approaches (Antony and al., 2012a; Helena and al., 2008). McLean and Antony (2014) argue that employees must be adequately trained and able to understand new concepts and principles in order to successfully implement them. In addition, training is increasing the end user’s commitment to the project they are involved into as well as satisfying their need for accomplishment.

In SMEs, resources are very limited and the budget to train employees in a continuous improvement system is narrow (Antony, Kumar and Madu, 2005). The method used must therefore be simple to require a minimum of resources for implementation. Training techniques need to be optimized and straight to the point. Applying this mindset in large corporations is great to get the management team on board as they will see a good ratio between the effort and payback.

According to Bhasin (2011), management must be committed to training to ensure proper oversight and project success. As, technical aspects must be globally mastered by project teams, the leader must be properly trained as a management professional. It will permit efficient resources utilization and proper communications along the project duration.

In the next article, I want to share with you some ways to heighten your continuous improvement journey with managerial initiatives and techniques.

Bonus

As a bonus, I want to share with you the interrelation matrix, illustrating the link that exists between the factors. If you want to discuss in detail this point or another, you can book a time slot in my agenda via Microsoft Bookings.

Bibliographical references

Arumugam, V., Antony, J. & Kumar, M. (2013). Linking learning and knowledge creation to project success in Six Sigma projects: An empirical investigation. International Journal of Production Economics, 141(1), 388-402.

Antony, J., Bhuller, A. S., Kumar, M., Mendibil, K. & Montgomery, D. C. (2012a). Application of Six Sigma DMAIC methodology in a transactional environment. International Journal of Quality & Reliability Management, 29(1), 31-53.

Antony, J., Krishan, N., Cullen, D. & Kumar, M. (2012b). Lean Six Sigma for higher education institutions (HEIs): Challenges, barriers, success factors, tools/techniques. International Journal of Productivity & Performance Management, 61(8), 940-8.

Antony, J., Kumar, M. & Madu, C. N. (2005). Six sigma in small- and medium-sized UK manufacturing enterprises: Some empirical observations. International Journal of Quality Reliability Management, 22(8), 860-74.

Bhasin, S. (2011). Performance of organisations treating lean as an ideology. Business Process Management Journal, 17(6), 986-1011.

Bhasin, S. (2012a). An appropriate change strategy for lean success. Management Decision, 50(3), 439-58.

Bhasin, S. (2012b). Prominent obstacles to lean. International Journal of Productivity & Performance Management, 61(4), 403-25.

Coronado, R. B., & Antony, F. (2002). Critical success factors for the successful implementation of six sigma projects in organisations. TQM Magazine, 14(2), 92-99.

Helena, S., Pinto, B., de Carvalho, M. M. & Ho, L. L. (2008). Main quality programs characteristics in large size Brazilian companies. International Journal of Quality & Reliability Management, 25(3), 276-91.

Jeyaraman, K., & Teo, L. K. (2010). A conceptual framework for critical success factors of lean Six Sigma: Implementation on the performance of electronic manufacturing service industry. International Journal of Lean Six Sigma, 1(3), 191-215.

Kruger, D. J. & Ramdass, K. (2010). Assessment of the reasons for failure and critical success factors implementing CI projects: Case study results from the South African Apparel and Manufacturing industry. Dans 2010 IEEE 17th International Conference on Industrial Engineering and Engineering Management (IE&EM2010), 29-31 Oct. 2010. (Piscataway, NJ, USA), p. 1891-7. Coll. 2010 IEEE 17th International Conference on Industrial Engineering and Engineering Management (IEEM2010)

Kumar, U. D., Saranga, H., Ramirez-Marquez, J. E. & Nowicki, D. (2007). Six sigma project selection using data envelopment analysis. TQM Magazine, 19(5), 419-441.

Kwak, Y. H. & Anbari, F.T. (2006). Benefits, obstacles, and future of six sigma approach. Technovation, 26(5-6), 708-715.

McLean, R. & Antony, J. (2014). Why continuous improvement initiatives fail in manufacturing environments? A systematic review of the evidence. International Journal of Productivity & Performance Management, 63(3), 370-6.

Pepper, M. P. J. & Spedding, T. A. (2010). The evolution of lean Six Sigma. International Journal of Quality & Reliability Management, 27(2), 138-55.

Scherrer-Rathje, M., Boyle, T. A. & Deflorin, P. (2009). Lean, take two! Reflections from the second attempt at lean implementation. Business Horizons, 52(1), 79-88.

Snee, R. D. (2010). Lean Six Sigma - getting better all the time. International Journal of Lean Six Sigma, 1(1), 9-29.