Wednesday, December 9, 2009

Benefits of Continuous Improvement

(a) Better performance, which produces increased profits

(b) Improvements in customer satisfaction

(c) Increases in staff morale.

(d) Improvement on a continual, step-by-step basis is more prudent than changing things all at once.

(e) Better communication within organization.

(f) Improvements in relations with suppliers

(g) Better use of resources

(h) More efficient planning.


Case Study (1)

Volex is committed to a program of Continuous Improvement across all its operations. All improvement projects have a specific customer focus and are based on measured progress against firm targets or industry benchmarks. We also encourage the active involvement of our employees. Many sites operate Kaizen schemes with cross-functional project teams applying working-level improvement actions on many topics including environmental, health and safety programs.

At Volex, Continuous Improvement is considered a crucial process to achieve competitive advantage for our customers and ourselves. We accord high management priority to key product and service-level improvement projects. Programs that integrate the results using international models of performance improvement are then used to set senior management performance targets for the subsequent years.

The process of improvement links closely with personal development. Volex is strongly committed to the training and development of his employees worldwide. Through our knowledge, skills and experience, we help ensure the success of our customers’ projects around the world everyday.”

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Case Study (2)


Chrysler ‘s Five Star Dealer Incentive Program is designed for improving or creating processes to quickly find what creates customer dissatisfaction and find ways to fix these issues.

The first step for dealers is to contact their customers to get feedback on their sales or service experience. The use of this feedback is mandatory, as getting information and not using it is seen to lower trust, increase frustration and cost money.

Dealers are required to put in place processes that not only resolve customer problems but also allow them to learn from the customers. This is the hallmark of continuous improvement: collecting information at every opportunity and putting it to use.


Dealers are also required to provide training for staff who deal with customers, as efforts to make change are seen to be constrained unless all staff understand not only that they can have an effect, but that they are expected to have an effect.


(source: BPP :Learning Media)

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