Question

companies have strive to enhance the production effectiveness. Some companies have switched from a “management by exception” philosophy to a “continuous improvement” viewpoint. The change is subtle, but significant. Continuous improvement focuses on comparing actual performance to the ideal (i.e., perfection). Consequently, all variances are negative (how can you do better than perfect?). The largest variances indicate the areas with the greatest amount of “waste,” and, correspondingly, the greatest opportunity for improving the bottom line. What are the advantages and disadvantages of this practice?

Answer 1

Continuous Improvement or Kaizen, was originally started in Japan and used by their companies. This is the reason why Japanese are so advanced when it comes to their efficiency and quality of delivery. The practice has since been adopted across all business around the world. The technique focuses on continuous improvement for achieving zero defect production.

Advantages:

1. It focuses on process improvement and identifies the lapses to take course corrective actions to eliminate the mistakes and wastages.
2. Makes individuals responsible thereby increasing their involvement and morale.
3. Reduction in inspection reduces cost.
4. Requirement of people involvement and their co-ordination improves the teamwork.
5. All changes are made keeping customer satisfaction in mind.

Disadvantages:

1. People are generally uncomfortable with the changes and with this management technique change is the only thing which is continuous. Change is good but if not handled properly can be damaging to any organization.
2. People tend to loose confidence very fast if it does not work.