1. Continuous Process
Improvement
Project Team Member(s):
Crystal Hardie, E-mail: cdhardie@uncc.edu
Sagar Patel, E-mail: spate137@uncc.edu
Jair Perea, Email: jperea1@uncc.edu
Course: EMGT 6090 Lean Supply Networks
Instructor: Prof. Ertunga C. Ozelkan, ECOzelka@uncc.edu
Industry Advisor(s): N/A

2. Agenda
 What is Continuous Process Improvement?
 Literature Reviews
 Case Studies
 John Deere & Company
 Toyota
 Diebold
 Conclusion

3. What is CPI?
Continuous Process Improvement is a
philosophical practice of improving processes,
services, or products in an ongoing cycle.
Approaches:
Plan, Do, Study, Act
Kaizen
Design of Experiment

4. Literature Review: “No Real Value”
 Problem: Companies do not measure and document their
continuous process improvement implementation
correctly.
 Methods Used:
 Middle Management Down
 Produce feedback, recognition and create longevity
 Monitor and Assess
 Successes can be built upon and Failures can be
learned from
 Conclusion:
 Sharing of Information
 Communication is key

5. Literature Review: “Effectiveness”
 Problem: How can a company increase effectiveness of
their continuous process improvement program?
 Methods Used:
 Conclusion:
 Maximize Brainpower
 Reduce Time
 Understanding Critical Processes
1. Manage Business By
Facts
2. Employee Pride
3. Flowcharts 4. Cause & Effects
5. Voting 6. PDCA

6. Literature Review: “Simulation”
 Problem: How to successfully implement simulation into a
current continuous process improvement program.
 Methods Used: Seven Step Methodology
 Case Study: Commercial Manufacturer Company
 Conclusion:
 Complementary Tool
 Determine Best Decision
1. Identify
Problems
2. Create Focus
Group
3. Educate
Focus Group
4. Incorporate
Simulation
Tools
5. Document
Improvements
6. Measure
Effectiveness
7. Edit Simulation Model

7. Deere & Company
Background
 Largest Manufacturer of agricultural
machinery in the World
 Founded in 1837
 Over 50,000 employees
 Net Income of $3.5 billion
 Created low rent housing for employees
during the Great Depression

8. “Nothing Runs Like A Deere”
Demand Turning & Outsourcing
 1980 Demand Turned
 Union (UAW) feared loss of job security
 Strike of 1987
 Deere created outsourcing program
 Created Agreement with UAW in 1990s

9. “Nothing Runs Like A Deere”
CI Program
“For the first time, Deere factories operated on a pay plan that
established continuous improvement as a baseline expectation.”
(Trimble, CPI at Deere & Company)
 Purpose: Measure Performance and Productivity
 Philosophy: Joint Leadership, Organizational
Structure, Methodology, New Profitable Work,
 Structure: Natural Work Groups (groups of 2-10
people)
 Incentives: Bonus for each pay period

10. “Nothing Runs Like A Deere”
 Organizational Structure:
 Agreement Changes: 2003
 Mandatory Implementation
 2% cap on benchmark
 Pay increase every 6 months
CI
Program
CI Steering
Committee
JD GROW CI GROW
CI Program

11. “Nothing Runs Like A Deere”
 Project: additional effort for improvement
(categories: safety, quality, delivery, efficiency)
 Goal: Achieve NWG goals & create goals for
the John Deere company
 Concerns: All projects are eliminated
 Communication: CI X Changes Conference,
Recognition Program
Results & Ongoing Processes

12. Background
 1926 - Sakichi Toyoda founded TALW
 TPS
 JIT
 1950 – Toyota Motor Sales Company, Ltd. was formed
 Fiscal Year 2013
 Net revenue of $216.7 billion
 Operating income of $13 billion
 Net income of $9.47 billion
Toyota

13. The Toyota Way
 CI is motivated by the challenge of adapting
to change (Political, economic, social).
 CI Processes are evaluated in terms of
efficiency, effectiveness, and flexibility.
Challenge
Continuous
Improvement

14. The Toyota Way
“Human beings think our way is the best, but at Toyota, we are told we
have to always change. We believe there is no perfect way, so we
continue to search. The goal is to break the current condition through
Kaizen.” – Shoichiro Toyoda, Toyota’s Chairman
 Kaizen: Kai (change) zen (good) = IMPROVEMENT
 Self-reflection of processes.
 Identification, reduction, and elimination of suboptimal
processes.
KaizenContinuous
Improvement
Challenge

15. The Toyota Way
 Genchi Genbutsu – “go and see”
 Go to the source of the problem to find the
facts to make correct decisions.
Challenge
Continuous
Improvement
Kaizen
Genchi Genbutsu

16. The Toyota Way
 Kaizen is based, and is oriented towards
people
 Kaizen by supervisors and engineers
 Kaizen by workers through Quality Circles.
Respect
Respect For
People Teamwork

17. Diebold
Background
• Banking manufacturing company founded in 1859
• Make an array of products such as ATM machines and
safes as well as offering security software
• Stresses the goal of continuous process improvement to
make the company more lean

18. The Problem
 Under counter cabinet
process needed attention
 Trouble with not achieving
correct levels of thickness
 Resulting in lost money,
time, and resources

19. Analyze the Process
 Determine what variables had an influence on the
paint coverage
Factor Low High
A – KV 50 85
B – Dose .4 .6
C – Feed 1 2
D – Atom .5 .7

20. Conduct a DOE
2-Level Fractional Factorial Design Test
Run KV Dose Feed Atom
1 -1 -1 -1 -1
2 -1 -1 +1 +1
3 -1 +1 -1 +1
4 -1 +1 +1 -1
5 +1 -1 -1 +1
6 +1 -1 +1 -1
7 +1 +1 -1 -1
8 +1 +1 +1 +1
* Each run repetition will be repeated three times

21. Results
 Feed and Dose had the greatest variation and effect
in the process
Avg - Avg + effect effect/2
1.715 1.813 0.098 0.049
1.861 1.667 -0.194 -0.097
1.471 2.057 0.586 0.293
1.807 1.72 -0.087 -0.0435
1.759 1.768 0.009 0.0045
1.738 1.79 0.0518 0.0259
1.734 1.794 0.0595 0.0298
Factor/Interaction
A - KV
B - Dose
C - Feed
D - Atom
AB(CD)
AC(BD)
BC(AD)

22. Results
 An equation was set up to solve for the target value
of 2 mm thickness
 Optimal values were determined for all variables
 A (KV) – Any setting between 50 and 85
 B (Dose) – Low setting of 0.4
 C (Feed) – Setting of 0.5 (Calculated from prediction equation)
 D (Atom) – Any setting between 0.5 and 0.7

23. A Continuous Process
Summary
 Collaboration between leadership and
workforce is key.
 Set clear and realistic goals.
 Performance must be measured in and
effective way
 Meaningful improvement requires change
“It is not the strongest of the species that survives, nor the
most intelligent that survives. It is the one that is the most
adaptable to change“ - Charles Darwin