As indicated in my previous TQM article titled: TQM Implementation Project published on May 13, 2006 02:48:20 pm, I have shared issues pertaining to Data Collection, Trend Charting, Pareto Analysis and Why-Why Analysis in my last article – ANALYZE PHASE. In this article, there are two steps to deal with, namely; Plan the Improvement and Implement the Improvement Plan in the D.A.I.C. Methodology.

IMPROVE PHASE: Based on various analysis of causes of the problem, planning and execution of plan to improve or resolve the root causes of the problem is the key objective of this IMPROVE Phase. There are several tools involve in doing so, namely:-

   1. Brainstorming of action / solution
   2. Selection Grid
   3. Benchmarking
   4. Cost-Benefit Analysis
   5. Control lot and testing
   6. Pilot the action / solution
   7. Force-Field Analysis
   8. Prevention Planner

As I have dealt with Brainstorming and Selection Grid in my last article – DEFINE PHASE published on [May 20, 2006 03:13:23 pm]. In this article, I will focus the rest of the tools i.e. Benchmarking and Cost-Benefit Analysis

Case Study in Benchmarking I have no intention to elaborate the power of benchmarking but to share what can it be when it is used as a tool in improvement projects. There are two aspects namely:

      a) Benchmark the result Team has to benchmark the result of the material loss if possible from the same industries. As far as Material Loss Reduction team is concerned, they are not able to obtain information from similar industry or competitors. However, team is able to gain access to other sister plant for similar products. This is extremely helpful for the team to use it for the purpose of setting improvement targets. At least, team can comprehend the performance gap within the sister plants

      b) Benchmark the process As an alternative source of information, team has to benchmark how the other sister plant able to control the Material loss to the percentage that is much lower than the team’s project. A trip to the sister plants seems to be logical. However, the team has to make preparation before the visit so that they can be very focus on what to look for in term of the processes. To summarized, specific benchmarking can help the team to set their improvement target.

Cost-Benefit Analysis This is a useful tool to use for team to select from various options of solutions. For each solution, team has to evaluate the cost of the solution option in details side by side with the Benefit of such solution option. Then a Benefit and Cost (BC) ratio is calculated. Once the BC ratio for all solution options is calculated, it will be rank according to the highest ratio. Obviously, the higher the ration, the higher is the benefit for the solution option.

In summary, this IMPROVE PHASE is a starting point for team to plan for improvement actions. The two tools mentioned above will ascertain a solution option is confirmed. In my next article, I will continue to how team uses various tools to improve their project. I welcome readers feedback how else I could present these articles.

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Resource Box: About the Author, LM Foong

The author provides consulting services specializing in TQM Implementations in manufacturing and service sector. He provides facilitation workshops and hands-on application in Cost Reduction and Productivity Improvement projects. He publishes TQM articles, ebooks, case studies, trainer manual and presentation slides. Please click To View Free TQM articles or Please Visit my Web Site for other TQM related matters

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