Passive Incremental


The classic type of passive incremental improvement is the suggestion scheme, with or without rewards, and with or without team emphasis. The classic team based passive incremental improvement method is the Quality Circle. Contrary to popular conception, the reward-based suggestion scheme is alive and well at many Japanese companies. At Toyota's US plant, for instance, awards are based on points and range from $10 to $10,000. Toyota has the attitude that all suggestions are valuable, so the company is prepared to make a loss on more mundane suggestions to develop the culture of improvement. But at the other end of the Pareto company reckons that the top 2.5% of suggestions pay for the entire reward programme, even though a good number of suggestions at the bottom end are loss-making taking into account the implementation time. Thomas Edison is reported t have said that the way to have great inventions to have many inventions. Toyota also insists that all suggestions are acknowledged within 24 hours and evaluated within a week. Non-acknowledgement and non-recognition have probably been the major reason for suggestions schemes producing poor results and being abandoned.

Likewise, team based Quality Circles are an integral part of the Toyota Production System. At Toyota, QC presentations to senior management occur almost every day. At Japanese companies QCs often meet in their own time. Management involvement and support are crucial elements. Edward Lawler has described a "cycle of failure" for many Western QCs. The following sequence is typical. In early days the first circles make a big impact as pent-up ideas are released and management listens. Then the scheme is extended, usually too rapidly, to other areas. Management cannot cope with attending all these events, and is in any case often less interested. In the initial phases, the concerns of first line supervisors, who often see QCs as a threat to their authority, are not sufficiently taken care of in the rush to expand. Some supervisors may actively sabotage the scheme; others simply do not support it. Then, as time goes on, with less support from management and supervision, ideas begin to run out. The scheme fades. And it is said, "QCs are a Japanese idea which do not work in the Western culture". (By the way, it was Deming who introduced circles to Japan, albeit that Ishikawa refined the methods).

From the forgoing we lean a few important lessons; (1) not all improvements will pay, but creating the culture of improvement is more important. (2) Give it time, and expand slowly (3) recognition is important - management cannot often be expected to give personal support, so establish a facilitator who can (4) do not underestimate potential opposition, (5) react, and fast, to suggestions and (6) give them the tools and techniques, and probably the time.