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• Continuous improvement linked to value - Financial reviews of all
improvement activities should be scheduled regularly to assess the costs
and benefits of the activities and to redirect them, as necessary.
• Documentation of the continuous improvement process - Experience
shows that some very good continuous improvement systems failed
because they were dependent on one or two active individuals. When
those individuals were promoted, transferred, or left the company, the
system suffered or died because it did not constitute a way of life at the
company.
• Link to business plan - The continuous improvement system needs to fit
the long-term company goals as well as be consistent with the established
quality and business systems.
• Effective internal audit program - The continuous improvement system
must be validated periodically to assure that it is working properly. An
effective internal audit of the system will point out needed preventive and
corrective actions and ultimately provide that assurance.
5. Performance Measures
Section 4.1.2 The supplier shall develop performance
measures such as waste, defects, cycle time, quality and
customer satisfaction.
In order to improve, the supplier needs to measure business performance.
Measurement allows management to make better decisions, identify areas
needing improvement, allocate resources, control processes and ensure that
customers are satisfied. Measurements help management understand where
they are and whether they are making strides in achieving their goals.
A performance measure is a quantifiable assessment that provides a way of
evaluating the condition, status, effectiveness or changes in business or work
processes. Performance measures should include high-level business and
economic measures as well as part and process measures (e.g. profit, costs
and asset utilization, along with scrap, rework, cycle time and inventory).
The first and most meaningful measurements are linked to the company's
bottom line and to customer satisfaction.
