In my last article, I addressed the cost of poorly performing processes (COP³), which can be as high as 40 percent of sales (competitively challenged) (see, “Cost of Poorly Performing Processes,” CryoGas International, January 2016, pp. 28–30). In this article we move from poorly performing to high performing process that are synonymous with organizations that have sustained excellence with a COP³ of less than 10 percent (competitive).
An organization with waste can be profitable in the age when demand exceeds supply. That is no longer true. The focus is to move from chaos and uncontrolled processes to calm, controlled process (see, “Gas and Supply – Pursuit of Excellence, From Chaos to Calm” CryoGas International, August/September 2012, pp. 60–61). High performing processes are critical, competitive assets and sustaining them is of the utmost importance to your business.
So how can you sustain and improve the progress you have made so far through the use of Continuous Improvement methods? First, you start with senior management. Eighty percent of organizations fail to leverage the full potential of continuous improvement. The number one reason is — senior management is not committed to and/or doesn’t understand the real impact of continuous improvement and is unwilling to accept that cultural change is often required to make it work.
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