The fact that companies are unable to reap the full benefits of innovation has little to do with specific process improvement programs such as lean or Six Sigma. Instead, the problem lies with how a new process improvement initiative interacts with the physical, economic, social, and psychological structures in which the implementation takes place. Any process can be improved by allocating additional effort to either work volume or performance, but it’s important to note that the two activities do not produce equivalent results. Overtime work in an operation increases the output but only for the duration of the overtime. However, improvements in process capabilities boost the output generated by every subsequent hour of effort.
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Comments
Thank you for an excellent article
Though I generally find the Quality Digest articles to be well written and often entertaining, I found this article to be exceptionally well crafted and of immediate use to me. I am engaged in crafting my own argument to release budget for process improvement tasks to take to my senior managers, and was able to refine many of my own statements by reflecting the vision presented here. Thank you!!!
My experience confirms what is written in this article
I work in a service oriented company that processes a large volume of data from multiple sources each day. In many ways it is similar to a manufacturing environment. The interesting part is I have seen many of the things and learned many of the lessons discussed in this article.
For example, we have faced downsizing the last few years and workers were indeed reluctant to tell managment they couldn't handle extra work. This made improvement efforts difficult as the workers continued to focus on "production" type tasks. When improvement implementations began to occur, the extra workload led to corners being cut in activities like organizing and monitoring. As a result, some problems were not detected for several weeks and the cleanup was cumbersome.
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