Stop fixing and start improving

stop fixing problems and start improving

If you have a friend or acquaintance who is a business owner, I bet there is not one time you met that the conversation doesn’t gravitate toward business stuff.  As a result, you hear stories about the enterprise’s performance.  When things are not going as expected, you talk about things he or she want or should do in their business.  Moreover, they keep talking about problems and how they fix them.  The problem is that they should stop fixing and start improving processes.

Stop fixing and start improving

Richard is the owner and general manager of a chemical laboratory.  Every once in a while, I see him at a bar we both frequent. As we have friends in common, several times our groups get together to have a good time.  Inevitably, I heard Richard talking about the problems he had in the lab many times.  However, it took me several months to convince him to do something about it.

During the time that Richard was talking about inefficiencies, his business was suffering.  ChemTest was not releasing results on time or keeping up with demand.  Therefore, the customer service rate was declining.  Also, he was missing the opportunity to grow the business.  Every day, Richard and his team were working very hard to get caught up with the tests.  Richard thought he was fixing the problem by hiring a new lab technician.  

But the real problem is that he was not fixing this problem.  Even more, he did not fix the situation of running out of reagents by increasing the inventory level.  Neither the testing errors by hiring a laboratory helper to organize and label samples.  Richard was trying to fix problems by throwing more resources into the business.  In fact, instead of fixing, he should have been improving the processes.

This is the time to stop fixing and start improving

Like, Richard, many business owners or leaders are focus on fixing problems day in and day out.  But there are two problems with that approach.  First, probably they are only dealing with the symptoms of the problem, not the cause.  Hence, there is no such thing as fixing or solving the problem.  And second, they are not improving the business processes.

Process improvement using simple and common-sense solutions is the best way to eliminate waste and increase safety, quality, and efficiency.  It is also the best way to achieve the fastest delivery times without spending lots of money.  Continuous improvement is a people focus system.  Leadership takes care of the team and the team takes care of the problems.  Through skills development and lean thinking, the team learns to improve their work area and processes.

As a consequence, leadership would have more time to think about improvements, new products, and how to grow the business.  How long have you been thinking about doing something to change your business performance?  Have you considered a continuous improvement strategy?  These days, more than ever it is critical to building a flexible business capable of adjusting to market changes as fast as possible.  This is the time to stop fixing, and start improving.

What are your business goals?

you can achieve your business goals with continuous improvement

I bet that one of your business goals is to deliver high-quality products to the customer at the lowest cost. The goal of lean or continuous improvement is to provide the customer with the highest quality, at the lowest cost, in a shorter time. It sounds to me that both goals are the same, what do you think?  

Business goals and continuous improvement

Continuous improvement achieves the goal by continuously eliminating waste. To achieve your business goals, you need to learn what it is and eliminate it. Your customers don’t have problems paying for activities that transform materials into finished goods or processed information. We call those activities value-added.  However, they are not willing to pay for the waste in your process.

The customer should not pay for the cost of fixing errors, waiting time, or excess inventory. These activities are non-value-added or waste. Therefore, the target of continuous improvement is to eliminate them.

What is waste? The seven types of waste in continuous improvement

Waste has seven categories: transportation, inventory, motion, waiting, over-production, over-processing, and defects. There is another category added later, which is the underutilization of people’s talents.

  • Transportation is an essential part of operations, but it does not add value from the customer perspective. The goal of CI is to minimize transportation to the minimum necessary.
  • Inventory of raw materials is also a necessary evil, but you do not want to have excess inventory. Excess inventory is at risk of being damaged or become obsolete.  
  • Any motion of a person’s body that is not related to adding value is a waste. Poor ergonomic designs make people move their bodies more than necessary, causing safety and productivity issues. 
  • Waiting for materials, for approvals, for a phone call, or for shared equipment to become available are all examples of waste.  
  • Over-production is when we make too much because we are producing ahead of the real demand. Over-production creates more waste in the form of inventory, motion, waiting, and others.
  • Over-processing is doing more than what the customer requires. For example, when you receive items in a box that is three times the appropriate size.
  • defect is when we make a mistake or produce defective items. Fix defective products comprise time, material, and other resources.  
  • Underutilization of people’s talents is not letting people work at their full capacity. Examples are lack of training, not trusting in their capacity to improve processes, and siloed thinking.

Achieve your business goals with continuous improvement

What are your business goals? Is one of them to deliver a high-quality product at a low cost? Are you targeting to increase your business profitability? Do you want to grow your business? If you answer yes to any of the last three questions, then continuous improvement is the business strategy you are looking for. Contact us, and we will work together to improve your business processes from the customer’s perspective.