What is Continuous Improvement?

Chris Mittendorf

Schnuck Markets, Inc.

Founded in St. Louis in 1939 We operate 102 stores (97 under the Schnucks name and 5 under the Logli name) in 7 states -- Missouri, Illinois, Indiana, Wisconsin, Tennessee, Mississippi and Iowa. More than 15,000 associates There are 99 in-store pharmacies and a pharmacy distribution center. We also operate our own warehouses, transportation fleet, dairy plant, bakery plant, central kitchen and floral design center.

Continuous Improvement Definition

Continuous -- 1 : marked by uninterrupted extension in space, time, or sequence Improvement -- 1 : the act or process of improving 2 a : the state of being improved; especially : enhanced value or excellence b : an instance of such improvement : something that enhances value or excellence

Names of Continuous Improvement

Kaizen Six Sigma Plan, Do, Study, Act (Deming Cycle) Total Quality Management Lean

Kaizen
Some overall Kaizen goals include:
Elimination of waste activities that add cost but do not add value. Just in time delivery Standardized work Paced moving lines

Three principles that must be in place:

Process and results (not results only) Systemic thinking (big picture view) Non judgmental, non-blaming (blaming is wasteful)

Six Sigma
Fundamental Objective
Implementation of a measurement based strategy that focuses on process improvement and variation reduction through projects.
DMAIC process is for existing processes falling below specification and looking for incremental improvement. DMADV process is for developing new processes or products at Six Sigma quality levels.

Plan, Do, Study, Act

Plan Develop a plan for improving quality at a process and predict the results. Do Execute the plan, first on a small scale. Study Evaluate feedback to confirm or to adjust the plan. Act Make the plan permanent or study the adjustments.

Total Quality Management

Defined as a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, production, customer service, etc) to focus on meeting customer needs and organizational objectives. Maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers.

Lean
Initially focused on manufacturing processes, but now is expanded to all processes. Aimed at the elimination of waste in every area. Goal is to incorporate less human effort, less inventory, less time to develop products and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.

The Beginning of Continuous Improvement

Schnucks has worked with a number of consultants in the past regarding improving a number of processes within:
Our Stores Our Distribution Center

Our Transition
2004
Schnucks learned a Continuous Improvement methodology that we now execute.

Other consultants brought us fish, but now we know how to fish.

Methodology
Teaches a collaborative approach specifically aimed at building internal capability to find and eliminate waste through the study and improvement of work. Provide training and coaching in addition to actively involving cross-functional teams in the study, change, and improvement of their work.

Methodology (continued)
A system for the study, change and improvement of all work and work processes
Improvement Change Change of behavior

Methodology (continued)
Shrink is often the largest material waste, but
Purchasing and merchandising policies Food handling and storage Excess energy Wasted employee time Out of stocks

Are all forms of waste.

Methodology (continued)
The hard truth is that while most companies believe they are doing or have done a lot of work to improve, they have, in fact, only barely started to get at the enormous waste.

Keys to Success
Pareto mentality (quantification) Leadership from the top Infrastructure to support efforts Training Simple, powerful methodology and tools Moved people into action Enabled people to make changes

Good is the Enemy of Excellent

Why Use Teams?

All of us are better than any of us. Ray Kroc, Founder, McDonalds

Team Structure
Sponsor Resource Specialist Scribe Member Member Leader Member Timekeeper Member Facilitator

In God We Trust
All others BRING DATA!

Improvement Examples
Right Place Right Specifications Right Price Right Supplier

Challenges
Tools needed Information needed Have to challenge assumptions What do you not know? Working together

So What is Continuous Improvement?

You need to determine what that means for your company. During my journey, it has become evident that it means something different for every company and to your customer.