Edward demings plan-do-check pdca cycle

Business, Accounting and Finance

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Implement systems to ensure that individuals and teams are actively encouraged and supported to participate in decision making processes, assume responsibility and exercise initiative............... 7

Activity 1 ............................................................................................................................................... 19

Use the organisation’s systems and technology to monitor and review progress and to identify ways in which planning and operations could be improved .............................................................. 53

Improve customer service through continuous improvement techniques and processes ............... 57

Manage records, reports and recommendations for improvement within the organisation’s systems and processes ......................................................................................................................... 76

Activity 5 ............................................................................................................................................... 79

Application

This unit describes the skills and knowledge required to implement the organisation’s continuous improvement systems and processes. It covers using systems and strategies to actively encourage the team to participate in the process, monitoring and reviewing performance, and identifying opportunities for further improvements.

Management and Leadership – Management

Elements and Performance Criteria



1. Implement continuous improvement systems and processes	1.1 Implement systems to ensure that individuals and teams are actively encouraged and supported to participate in decision making processes, assume responsibility and exercise initiative
	2.2 Improve customer service through continuous improvement techniques and processes

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1.1, 1.2, 2.1, 3.2, 3.3

1.1, 1.2, 2.1, 2.2, 2.3, 3.1, 3.2, 3.3

• Selects vocabulary, grammatical structures and

Oral
Communication

1.2, 1.3, 2.3

• Monitors adherence to organisational policies and procedures and considers own role in terms of its contribution to broader goals of the work environment

Interact the

individuals to seek or share information

•	Collaborates	with	others	to	achieve	joint

evaluating options against agreed criteria
• Evaluates effectiveness of decisions in terms of how well they meet stated goals
• Uses digital applications to access and filter data, extract, organise, integrate and share relevant information
• Recognises the potential of new approaches to enhance work practices and outcomes

Unit Mapping Information


BSBMGT403 Implement continuous improvement	BSBMGT403A Implement continuous improvement

Assessment requirements

Modification History

Performance Evidence

Evidence of the ability to:

• implement, monitor and adjust improvement plans, processes and procedures to improve

performance

To complete the unit requirements safely and effectively, the individual must:

• give examples of continuous improvement processes

monitoring performance for continuous improvement.

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assume responsibility and exercise initiative

What is ‘Continuous Improvement’?

(Evolution)

Continuous improvement initiatives frequently occur within the framework of a Total Quality Management (TQM) system. TQM is intended as a tool to help organisations increase productivity, decrease costs, and improve the quality of outputs so that they are more valued by customers. Producing high-quality, reliable outputs that are useful to customers increases value. As the name states, TQM are about total quality, not partial quality, so continuous improvement must reach all operations.

Continuous improvement is incremental rather than revolutionary. It involves continual examination of every work process to identify gradual enhancements. Complex processes are broken down into sub-processes, and then improved.

Total Quality Management (TQM)
TQM is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements.

• Commitment to quality
• Communication of the quality message, and
• Recognition of the need to change the culture of the organisation to create total quality

These are the foundations of TQM, and they are supported by the key management functions of people, processes and systems in the organisation.

A fundamental requirement is a sound quality policy, supported by plans and facilities to implement

approach, should result in a quality organisation, with satisfied customers and good business results.

• Developing and publishing corporate beliefs, values and objectives, often as a mission

• Reviewing and improving the management system

• Communicating, motivating and supporting people and encouraging effective employee

Everything we do is a Process, which is the transformation of a set of inputs, which can include

action, methods and operations, into the desired outputs, which satisfy the customers’ needs and

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Principles of Continuous Improvement

Continuous improvement enables individuals and teams to manage the quality of all they do in

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Five ways to continuously improve
There are five common ways of making improvements, using a continuous improvement process:

• Reduce resources, which reduces waste
• Reduce errors, which decreases inadequate work performance
• Meet or exceed customer expectations
• Reduce risk – make the process safer, resulting in higher productivity due to fewer accidents and compensation claims
• Increase the job satisfaction of those involved in a process, leading to higher productivity and fewer errors

management.

Systems should be in place to ensure that all employees know what to do and how to do it. They

How can you improve systems for superior customer service?

There are four key areas to focus on:

Ask questions, such as:

• Do our suppliers meet our needs?

do we ensure that the right systems are in place?

To work out whether a specific process or system needs improving, ask these questions.

	Enhance communication? Reduce costs without reducing quality?

If the answer to any of these is NO, then the step needs to be removed from the process, and it needs to rewritten to ensure the best use of resources available.

As a functioning participant in the decision-making process, employees understand their ideas are an important contribution to the company, and gives them the power to influence the outcome of their work, leading to increased job satisfaction and a positive attitude, not only toward their position but also to the company itself. Internal Resources

No organisation can achieve consistently high results in today’s market with an unmotivated workforce.

In fact, your employees can be your greatest asset!

Collaborative decision making

A quality workplace culture supports and promotes communication right across the organisation.

become a reality.

Leaders who encourage and promote collaborative decision-making have the confidence to involve

• Set challenging goals

• See change as an opportunity, not a threat

estimates. Too often, hunches and gut feel address symptoms of a problem or opportunity to

improve, but don’t address the real causes. A range of common TQM tools used to provide

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	Implement a solution
 Histograms	 Force field analysis  Strengths, Weaknesses, Opportunities

• Suspend judgement – don’t worry if ideas are good, bad or absurd – sometimes what seems silly can lead to real insight to a problem. Try not to constrain thinking
• Get as many ideas out as possible – they will be sorted and ranked later
• Write them down – good ideas can easily be lost if not recorded
• Make sure everyone has a say

Nominal group tecnique

Cause and effect diagrams

Cause-and-effect diagrams are also known as fishbone diagrams. They are used to help analyse

the central spine of the fish.

• Look deeper into each possible cause by asking “why” five times. For example, asking


2. Why?	They don’t know what to do.


5. Why?	We thought it would reduce the project cost

and implement decisions in a way that will optimise success. It involves:

• Defining both the current and the desired situation clearly.

• Deciding which are the most important or significant driving and resisting forces. Nominal group technique can help here.

Leaders must help to provide an environment that encourages success and tolerates taking risks. There is a level of organisational maturity required, where leaders are willing to hand some responsibility to workers, and where the causes of problems are examined, rather than blaming individuals. Leaders must: