What is the continuous improvement process (CIP)?
The continuous improvement process is the ongoing effort that is put into incrementally refining products, services and processes. It is closely related to process optimization and the iterative approach.
It originated with the Japanese car manufacturer Toyota and its production system shortly after the Second World War. Later, it evolved into lean management and is highly valued by companies worldwide.
The principle of continuous improvement is similar to the Japanese philosophy of life and work Kaizen. This literally means “change for the better”.
Principles of continuous improvement
Maximize benefits while reducing unnecessary use of resources. This is an integral part of continuous improvement as derived from the lean methodology..
Achieving this relies on the following important principles:
Consistency
As the name suggests, this process thrives on continuity. One big change is no longer needed. Instead, small detail-oriented improvements are made over time.
Orient around what already exists
The starting point is the status quo. Companies do not introduce anything new during continuous improvement. Rather, they focus on their existing processes and procedures. They work to perfect something that already exists instead of immediately defining a completely new procedure.
Measurability
The focus is on the positive effects of changes. Therefore, continuous improvement requires measurability. Results should be as quantifiable and standardized as possible. This reinforces that the change worked and provides valuable learning to guide future optimizations.
Bottom-up
Employees drive continuous improvement. They suggest small improvements to the processes and procedures they know best and take responsibility for them.
Cyclical approach
The consistency of continuous improvement means that it never ends. As with the Plan-Do-Check-Act (PDCA cycle) cycle, steps are repeated iteratively. In general, the cyclical approach is characteristic of the continuous optimization of processes, procedures, services and more.
Objectives of the CIP method
The implicit goal of a continuous improvement process is to optimize products, services, processes, project management and activities. This is done until they are almost perfect.
The overarching aims are to
- operate efficiently,
- eliminate waste and
- align processes and workflows more directly with relevant company goals.
In detail, this can involve many important objectives, such as the following:
1. Increased efficiency
Working in an efficient way is critical in the corporate world. With each incremental improvement to processes, work becomes easier and swifter. Thus, efficiency goes up.
2. Improved products
If continuous improvement is primarily about products – or even services – then quality plays an important role. Operational processes must be consistently geared towards achieving the best possible products and services. This helps the company be successful.
3. Reduced waste and costs
Those who continuously optimize processes eliminate wasteful steps and costly materials. They also save money by speeding up creation or service delivery.
4. Increased competitiveness and future viability
Companies gain an advantage over their competitors by focusing on constant progress and continuous improvement . Keeping a constant eye on optimization is insurance that positions companies for future success.
5. Increased customer satisfaction
When teams improve the quality of products and services, customer satisfaction is higher. After all, optimizations are almost always noticed. An added benefit is that clients who see the effort are more likely to remain loyal and recommend the company to others.
6. Motivated employees
Cumbersome processes frustrate employees. When leaders create a culture of ongoing improvement, employees are less likely to get frustrated. They are more likely to enjoy the work they are doing.
Continuous improvement in ITSM
In IT Service Management (ITSM), the principle of continuous improvement is essential. Continual Service Improvement (CSI) plays a central role in the ITIL (Information Technology Infrastructure Library) framework. This process ensures that optimizations are structured, systematic and in line with the company’s strategies and objectives.
This process aims to continuously evaluate and optimize IT services and their management. The objectives are largely in line with those of continuous improvement in general.
It helps teams:
- adapt to a changing technological landscape,
- make data-driven decisions and
- establish a culture of review and improvement.
Relevant steps in ITIL
Typically, the CSI approach in ITIL includes the following seven step model:
- Decide on a strategy. This defines the vision. It describes what should be achieved and how it aligns with the business objectives.
- Measurements are defined. The team also considers what can be measured in order to demonstrate that improvement has happened.
- Gather data. At this point, it’s time to look into the processes. Begin gathering data about the current state.
- Process data. Combine and clean data so that clear insights into the services and processes can be made.
- Analyze data. The current situation and key performance indicators are reviewed. Areas for change and potential solutions are identified.
- Present and use information. The information gleaned from the data review is presented to all stakeholders. Together, they identify areas in which actionable changes should take place.
- Implement change. Implementing continuous improvements means that they must be continuously monitored and adjusted as needed.
Important connections to continuous improvement
There are frameworks, approaches and working methods that are important in the context of improvement processes. Some continuous improvement methods include the following.
The DIN standard ISO 9001:2015
This is an international standard that defines requirements for the quality management in companies. The aim of this standard is to meet customer and regulatory requirements. This is done by creating systems based on the standard’s guidelines.
The point is that DIN EN ISO 9001 places great emphasis on continuous improvement and a process-oriented approach. Companies that acquire this certification must focus to a high degree on optimization processes. In this context, continuous improvement serves to achieve sustainable positive development that increases overall performance.
Root cause analysis
Anyone who seriously wants to improve must first understand what potential exists. This goes hand in hand with identifying the causes of any problems and suboptimal processes.
Root cause analysis (RCA) – which is also used for IT problems, for example – can play an important role. In an iterative process, cause-and-effect relationships are uncovered until the underlying cause of a problem is finally uncovered.
The following steps are part of this approach:
- Define the problem.
- Collect data about the problem.
- Determine possible contributing causes by establishing a timeline and brainstorming possible causes.
- Identify the root of the issue. Narrow down the causes until the primary contributing factor(s) are clear.
- Prioritize the causes and begin to develop solutions to these.
- Implement the solution and continue to monitor and adapt it over time.
Although root cause analyses relate specifically to problem solving, they are also very important for improvement processes in general.
Total Quality Management (TQM)
TQM is an older management approach that invites everyone within the organization to participate in continuous improvement. It is relevant today because several of its defining principles have been absorbed by other standards and frameworks. These include:
- Being customer focused
- Being process oriented
- Involving all employees
- Using data to make decisions
- Clearly communicating
- Having a systematic approach to continuous improvements
Workflow management
The CIP principle is closely related to workflow management. After all, the aim in this area is to make work processes as efficient and targeted as possible. When continuous optimizations are often quite granular and detail-oriented, they often target specific workflows.
Differentiation from automation
Improvements and automation are widely considered to be very similar. This makes sense insofar as changes such as workflow automation or process automation often result in improvements.
However, these are actually fundamentally different approaches. For example, if someone automates a process, this does not mean an improvement has been made. It merely recreates what exists in a new automated way.
In practice, automation often requires optimization in order to be profitable. It requires reviewing processes before they are automated. After all, automating suboptimal processes makes little sense.
Conclusion: Continuous improvement – a key to success
Continuous improvement is an ongoing effort that has enormous value to companies. Making things better and better in small steps delivers high added value. Many smaller iterations often pay off more than a single big-bang improvement, especially in the long term. One of the secrets of success lies in the precision and attention to detail that continuous improvement brings.
Consistency, repetitive reviews and iterative approaches are what reliably optimize processes and workflows. They are most likely to bring them to perfection. In this way, companies can operate more efficiently, increase quality and reduce costs.
ITSM in particular benefits from the continuous improvement process (CIP). After all, there are lots of adjustments and problem-solving required. Each must focus on accuracy and consistently high quality.
Find out how OTRS can support continuous improvement in your company.
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