Continuous Improvement Glossary: Terms and Meanings

Continuous improvement is an important business philosophy for businesses to have more efficient processes and provide better quality products. The continuous improvement method is a proactive method of identifying existing business processes within the company, identifying inefficient areas and making improvements.

There are many terms for continuous improvement. For this reason, we have prepared a glossary of continuous improvement terms to make the concepts related to continuous improvement more understandable and to guide in practice.

Glossary of Continuous Improvement Terms

4M Method

4M analysis is a technique used to identify the causes behind certain effects and to troubleshoot problems. The 4M technique is applied by analysing processes in four categories: people, machines, materials and methods.

  • Machines must operate correctly.
  • Materials must be of high quality.
  • The method must be repeatable and rational.
  • Human development must be supported.

5 Whys Analysis

5 whys, also known as root cause analysis, is a problem solving method that allows analysing a problem by asking "why" five times.

A3 Reporting

A3 reporting is one of the continuous improvement and problem solving techniques. A3 problem solving technique allows summarising all steps regarding current problems, causes, analyses and solution proposals on a single A3 sized page.

Agile Management

Agile project management (APM) is an iterative approach to planning and directing project processes. It breaks project processes into smaller cycles, called sprints or iterations, and thus adapts quickly to changing requirements.

Asakai

Asakai, in Japanese production culture, is a standing meeting held at the production site, where the previous day’s data is evaluated and anomalies are discussed, and a rapid situation assessment is made on safety, quality and efficiency issues.

Activity Diagram

The activity diagram is used for process modelling purposes. It is an approach that models the actions that take place in a business process, the sequence of actions and the conditions that sequence the actions.

Black Belt in Six Sigma

Black belts (in six sigma) are the leaders of the team created to analyse, improve and control the factors that affect customer satisfaction and productivity.

Breakthrough Objectives

Breakthrough goals are long-term, multifunctional, team-driven objectives that aim to transform a company’s processes. Beyond the traditional incremental improvements that continuous improvement focuses on, the goal is radical change. By setting breakthrough goals, a company can focus on key areas of improvement and create a clear vision for the future.

Brainstorming

Brainstorming is a type of meeting that brings individuals together for a common purpose and allows various ideas to be generated quickly and efficiently. It is used in continuous improvement processes to identify inefficient areas and to find solutions to problems.

Business Analysis Planning and Monitoring

A business analyst determines which steps are necessary to finish the business analysis process. These steps organise and manage the business analysis tasks in other knowledge areas. Thus ensuring the smooth running of the entire process.

Business Process

The business process consists of a series of work steps determined to achieve the desired result.

Cause – Effect Diagram

Cause – effect diagram is also known as fishbone diagram or Ishikawa diagram. It helps to identify the possible causes and effects of a problem by visualising them. When applying the fishbone diagram, a team is determined and the team deals with the main and sub-causes of the disruptions related to the processes with the brainstorming method.

CBAP (Certified Business Analysis Professional)

 CPAB, which stands for “Certified Business Analyst Professional”, is a certification programme awarded by the International Institute of Business Analysis Professionals. This certification programme is awarded to validate the business analysis skills of people specialising in business analysis.

Chi-Square Test

The Chi-square test is a statistical test used to determine whether a relationship exists between two categorical variables. This test assesses whether the difference between expected and observed frequencies is statistically significant.

Comprehensive Needs Assessment

Comprehensive needs assessment is a process that enables to identify gaps between the current conditions in a company and the desired goals. Needs assessments are a technique used in continuous improvement processes.

Continuous Improvement

Continuous improvement is an approach used to make continuous and incremental improvements to a company’s products, services and processes. This approach consists of a systematic process that involves analysing existing practices, identifying areas for improvement, generating and implementing solutions. The aim of continuous improvement is to increase quality, customer satisfaction and productivity by eliminating all kinds of inefficient activities.

Continuous Improvement Principles

There are 5 basic principles to realise the continuous improvement approach.

  1. Customer Focus: Understanding customer needs and delivering value to customers forms the basis of continuous improvement.
  2. Employee Participation: In the philosophy of continuous improvement, it is very important that employees participate in the improvement processes with their suggestions and ideas.
  3. Leadership Support: Team leaders should encourage and guide employees for continuous improvement.
  4. Data Based Decision Making: Continuous improvement focuses on making evaluations based on measurable data, not assumptions and predictions.
  5. Standardised Processes: Standardised work ensures that continuous improvement is sustainable.

Continuous Improvement Solution

Continuous Improvement Software offers a common workspace for the business processes carried out by the production, OPEX, quality, OHS and continuous improvement departments of enterprises. The solution moves the work carried out on paper and excel to digital, making it more efficient and easier to carry out.

Continuous Learning

Continuous learning is the process of self-improvement by continuously acquiring new knowledge and skills. The development of a continuous learning culture in a company helps employees to stay up-to-date in their fields, keep up with change and work more efficiently.

Creating a Workflow

Workflow creation is a method that aims to increase efficiency and make things more streamlined by identifying and organising the steps required to complete a specific task or process.

DMAIC

DMAIC stands for Define, Measure, Analyse, Improve and Control and is a technique used in continuous improvement processes. DMAIC is often used in Six Sigma projects and offers a systematic approach to improve the performance of processes.

  • Define: Defining the process that needs to be improved.
  • Measure: Data is collected to measure current performance related to the process.
  • Analyse: Understanding the root cause of the problem with the collected data.
  • Improve: Develop and implement solutions.
  • Control: Establishing control mechanisms to ensure the sustainability of improvement results

Employee Participation

Employee involment refers to the active participation of employees in business processes and decision-making processes. Employee participation enables employees to share their experience and knowledge, identify problems, propose solutions and increase productivity.

Employee Rewarding

Employee rewarding is the rewarding of successful employees by the company in order to motivate them for their performance and contribution to the company. These rewards are separate from salary. They can be monetary or physical.

Employee Motivation

Employee motivation is the sum of both intrinsic and extrinsic triggers that enable employees to complete their work efficiently. Factors such as appreciation and recognition, career and personal development opportunities, rewards and job satisfaction have a decisive impact on employee motivation. These factors increase employees' commitment to their jobs and significantly improve their performance and overall job satisfaction. Motivated employees contribute to the success of the organisation, creating a more dynamic and productive environment at work.

Employee Engagement

Employee engagement refers to the level of motivation and loyalty of employees to their jobs and companies. Engaged employees increase productivity by contributing more to their work.

Feedback

Feedback is constructive and directive feedback given to evaluate and improve employee performance, behaviour or work results. Feedback is given to reinforce employees’ strengths, improve their deficiencies and improve their overall performance.

Feedback Culture

Feedback culture is the habit of communicating and responding to feedback between employees and management and taking action according to this feedback. It ensures open and transparent communication between managers and employees.

Future Status

The future state refers to the ideal path realised to reach the targeted state with the new conditions determined.

GANTT Diagram

The Gantt chart is a visual project planning tool used to organise, manage and track project-related tasks and resources. All project-related information such as resources, completion status, time and constraints are shown on the chart.

Green Belt in Six Sigma

Green belts are teams that work to improve issues that negatively affect profitability, efficiency and quality in production processes through problem solving techniques.

Hansei

Hansei means “personal reflection” in Japanese and is an improvement method used in the Toyota system. It is applied by taking the improvements made in past problems as an example. The aim of this method is to prevent the repetition of errors in different processes.

Innovation

Innovation is the process of making innovations and improvements to existing products, services or processes. This process may involve the development of existing methods and practices or the introduction of a completely new process.

Jishuken

Jishuken is a management-driven Kaizen process in which management staff identify areas for continuous improvement and disseminate the information throughout the organisation to encourage Kaizen activities.

Kaizen

Kaizen, which means change for the better, is an approach that focuses on making improvements to eliminate inefficiencies to maximise efficiency and performance.

Kaizen Software

Kaizen solution is a solution that offers the methods used by businesses to carry out improvement processes on a digital platform. It is used to capture and evaluate improvement opportunities across the business, develop plans, reward and measure changes.

Layout Optimisation

Layout optimisation is the process of arranging the space allocation of equipment and other physical assets in a production or service environment in such a way as to minimise operating costs and maximise process efficiency. 

Leadership

Leadership in continuous improvement refers to a leadership approach that enables the company to continuously improve and fosters a culture of improvement. Leaders motivate and inspire employees and support them to participate in continuous improvement processes.

Loss and Waste Analysis

Waste analysis is a technique that enables the identification, measurement and elimination of inefficient and non-value adding practices that inhibit growth in the production process.

Market Positioning

Market positioning is the process of creating a unique image of a product, service or brand in the minds of the target audience. This strategy aims to differentiate from competitors and create a strong brand identity.

Near Miss

Near miss is an event that occurs in the workplace that does not harm the employee, workplace or equipment, even though it is likely to harm the employee, workplace or equipment.

Near Miss Reporting

According to the Occupational Health and Safety (OHS) Law, all near-miss incidents that occur in the workplace must be reported. Near-miss reporting is the reporting of a near-miss event as soon as it occurs.

Onsite Quality

Onsite quality is an approach that aims to ensure that the operations that produce value get the job done right every time. This method aims to ensure quality at the source and eliminate quality control and correction activities. It identifies problems in the relevant process during production, eliminates them together with their root causes and thus prevents the same problem from recurring.

Operational Excellence (OPEX)

Operational excellence is an approach that involves the effective use of labour and technology to improve business processes, increase efficiency and achieve sustainable success.

PDCA Cycle

The PDCA Cycle is a technique commonly used in continuous improvement processes. It is also known as the Deming Cycle or Shewhart Cycle.

The PDCA Cycle is a four-step approach consisting of the steps “Plan, Implement, Check, and Take Action”. As the name suggests, it is a cycle, so it is not a one-time process. By returning to the beginning again and again, it ensures the continuation of continuous improvement efforts.

Steps of PDCA Cycle

  • Plan: Identify areas for improvement and develop a plan.
  • Do: Put the planned steps into practice.
  • Check: Check whether the improvements have achieved the objectives, evaluate performance and identify gaps.
  • Act: Make corrections and improve the process according to the results obtained in the control phase. If the target has been achieved, standardise; if not, correct the error and repeat the cycle.

Performance Management System

Performance management is a strategic approach to improve and sustain employee performance. This approach consists of continuous efforts by management to develop employees, set clear goals and provide regular feedback throughout the year. Thus, employees both find opportunities for development and are supported in achieving their goals.

Progress Line

A progress line is a method used in project management to understand where a project is in the work step. This method helps to see steps that are delayed, steps that are progressing normally, and steps that are completed early.

Process Map

A process map visually defines the workflows of a process and enables teams to better understand the process. It is a method that helps to identify areas to be improved and to produce solutions. It can be applied on paper or through a software.

Root Cause Analysis

5 root cause analysis, also known as root cause analysis, is a continuous improvement method that enables to identify the root causes underlying problems and to produce solutions.

Root Cause Analysis

Root Cause Analysis is a systematic method used to identify the root causes of a problem and to prevent the recurrence of the problem by eliminating these causes. This analysis focuses on the underlying root causes of problems, not just the surface symptoms.

Root Cause Analysis Steps

In 5 steps, it is necessary to follow five steps to manage the root cause analysis process in the most efficient way.

  • Identify the Problem: analyse the current situation and identify the abnormal situation.
  • Collect Data: Collect and evaluate all aspects of the situation before identifying the underlying problems.
  • Identifying Causal Factors: Identify the factors causing the problem, taking into account the available data.
  • Identify Root Causes: Use root cause analysis methods to discover the root causes underlying each causal factor.
  • Propose and Implement a Solution: Develop and implement plans to prevent the problem from recurring.

Six Sigma

Six Sigma is a management strategy used to identify, measure, analyse, improve and control processes to achieve operational excellence in businesses. This strategy uses statistical methodology and data-driven approaches to eliminate defects.

Skill Matrix

A skills matrix is a chart that assesses the skills and competences of employees and identifies skills gaps for improvement processes.

Standardization

Standard work is a set of works determined according to certain rules, dimensions, standards and product type.

STOP 6 Analysis (Serious Accident Prevention Analysis)

ST0P-6 is a method of identifying and classifying risks that forms the basis of occupational safety culture in the Toyota Production System. Risks that may cause death and serious injuries (getting caught in machinery and equipment, entrapment, falling from height, etc.) are analysed and mapped in the work area. Employees are informed about these risks and the precautions to be taken. A risk mitigation plan is created to reduce the identified risks. This plan is reviewed at regular intervals and improved when necessary.

Value Stream Mapping

Value Stream Mapping is a technique that aims to identify value-adding and non-value-adding steps by analysing all the processes that a product or service goes through from the beginning until it reaches the end user.

Voice of the Customer

The voice of the customer is a term that refers to the customer’s feedback about their experiences and expectations and the business’s receipt of this feedback into the system. It focuses on meeting customer needs and developing products/services according to these needs.

Voice of the Customer Research Methodologies

Voice of the Customer Research Methodologies

Voice of the customer research takes place through the use of various techniques to collect and analyse customer feedback.

  • Surveys: Surveys can be conducted using tools such as Google forms or over the phone.
  • Customer Feedback Forms: Feedback is collected by placing them on products or services.
  • Social Media Monitoring: Comments made by customers on e-Commerce platforms or social media about brands and products are analysed.
  • Observation: Customer behaviour and customer interactions with the product/service are observed.
  • Customer Journey Mapping: By analysing the customer journey, touch points are identified during the interaction process with the brand, from initial awareness to post-purchase support.
  • Interviews: One-to-one customer interviews are conducted to gain a deep understanding of the customer’s experiences, expectations and needs.
  • Focus Groups: Small focus group meetings are held with customers to establish open dialogues and gain valuable insights.
  • Customer Support Interactions: Customer support interactions (email, chat, phone records) are analysed to identify common customer issues and challenges.
  • Net Promoter Score: Net Promoter Score is used to measure customer loyalty and satisfaction. In this method, customers are asked to rate the likelihood of recommending the product or service to others on a scale from 0 to 10.

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