In today’s challenging market there is no doubt that companies need to improve their competitiveness. The market has become saturated with products from competitors from all over the globe. Globalized business has created business competition that many companies have never experienced before. As a result, companies need to be quick and nimble in order to answer to the demand for high quality products produced at shortened delivery times, increased services, and very competitive prices.
Companies that want to remain competitive are faced with two common solutions. The first is investment and purchasing technology. This obviously requires financial resources, which generally requires short term price increases to recover the extra costs. Also, the future market competition cannot be assured as a result the company can face financial difficulties from the added debt.
The second solution is continuous improvement. This solution is generally chosen because unlike investing which costs a lot of money continuous improvement doesn’t require a large capital investment. Continuous improvement still increases competitiveness it just does it by focusing on a company’s human resources. A company’s most important asset is its human resources; however this huge and powerful resource is generally not utilized in most companies. Keep in mind as we move forward that continuous improvement uses five pillars:
1. Involve all company employees and managers
2. Look for savings without using an investment
3. Quantify information
4. Use common sense
5. Implement ideas
Implementing continuous improvement
Continuous improvement also known as improvement projects are generally large and can take some time to complete. However, there are smaller forms of continuous improvement entities that are sometimes referred to as quality circles, suggestion programs, and improvement groups. In a lot of cases...