**3. Continuous improvement**

Constantly pursuing perfection means never being satisfied with what has already been achieved and always seeking to do better. There is a very interesting story of Toyota, on this subject, which was told by the manager, already retired, Isao Yoshino, who was involved in the installation of Toyota's first factory in the USA. This was the NUMMI (New United Motor Manufacturing, Inc.) project, which resulted from a partnership between Toyota and General Motors and led to the construction of a plant in Fremont, California, in 1984. This car factory was the first experience outside Japan, of implementing Toyota's way of management and culture. Returning to Isao Yoshino, the story he told did not convince me at first, but after a long and informal conversation, I was convinced. This story reveals one of the most fascinating aspects of Toyota's culture, and that is as follows: The word "Toyota" comes from the word "Toyoda", which already existed as a brand (Company Toyoda Automatic Loom Works) and which is actually the name of the family that created that company. In terms of writing, both Latin and Japanese, the words Toyota and Toyoda only differ in tenuous detail. However, it is in Japanese

#### *Concepts, Applications and Emerging Opportunities in Industrial Engineering*

writing that it is important to describe this difference: as can be seen in **Figure 4**, the writing of the two words differs only in two small strokes.

So, 10 strokes are needed to write "Toyoda" while only eight are needed to write "Toyota". Why would they then have changed the name from Toyoda to Toyota, being mentioned that even in this change is present, symbolically, a part of Toyota's culture? The first answer that occurred to me, and that may eventually arise to those who know vaguely the Toyota culture, is that movements are spared when writing the word (fewer traces). Although there is an understandable logic here, this is not the answer. The real reason, explained personally by Isao Yoshino, is that in many cultures, the number 10 symbolizes the top (the maximum) and then, according to this logic, 8 means to be good but still a little below the maximum, which implies that it is necessary to improve to reach the top. This allegory aims to make all the people who work at Toyota understand that you are never good enough that you do not have to improve. As Eiji Toyoda said [11]:

#### *"Being satisfied with the current situation can be the first step towards corruption"*

The constant search for perfection (seeking to be 10 assuming that one is always 8) is like a healthy "paranoia", which is based on the fear of letting ourselves relax with the successes of the past and thereby increase the risk of being overtaken by competitors. It is never to allow one to accept that everything is fine, and the truth is that there is always something to improve, there is always some problem unresolved.

On this same topic, Dr. Shigeo Shingo, the co-founder of TPS, said the following: "It is universal truth that those who are not dissatisfied will never make any progress. Yet even if one feels dissatisfaction, it must not be diverted into complaining; it must be actively linked to improvement" [12].

#### **3.1 Continuous improvement versus lean thinking**

Continuous improvement is a concept apparently understood by all but actually being able to implement continuous improvement in an organization is a major challenge. Very often, continuous improvement is confused with Lean Philosophy. This subject can be addressed from various perspectives, and may give rise to numerous discussions, but according to one of the publications of the research group responsible for the name "Lean" itself [5], continuous improvement is only one of the five principles of the "Lean Thinking". The other four principles point in the direction in which companies should align improvement efforts, that is, they tell us where continuous improvement should be directed to.

By way of absurd example, suppose that a company assumes as strategic objective to improve the utilization of all its equipment - that is its vision. This is how the company thinks it can lower costs and be more competitive and sustainable (it does not want to have equipment stopped because it wants to monetize its use). According to this objective, all actions that result in increased use of equipment are interpreted as improvements. However, the truth is that these "improvements" may be increasing stocks, worsening quality, increasing response times, and driving the company into bankruptcy. That is why improvement has to be consistent with the direction ("True North"), vision, purpose and values, which are adequate to the survival and sustainability of the company in the long term. Another example: let us imagine that a change introduced on an assembly line resulted in increased productivity. Now let us imagine that this change has also degraded ergonomic aspects or increased the risk of accident, can we still consider it an improvement?

We believe that the most effective and successful direction to align their continuous improvement work, is guided by the principles that underpin the Lean

**39**

**3.3 Start with CI**

*Continuous Improvement*

whole organization.

*DOI: http://dx.doi.org/10.5772/intechopen.93638*

without destination, no wind is favorable."

company materialize continuous improvement?

will hardly be a sense of belonging and learning.

Toyota factories deployed outside Japan.

Philosophy, the Shingo Model, and the Toyota Way. A necessary factor for success occurs when the top decision makers of an organization deeply believe that these principles are the direction to follow. The other major factor is the implementation of the dynamics and routines necessary for the organization to progress in this direction and this is achieved with a continuous improvement system. This is the form of success: define a good direction (Lean Philosophy, Shingo Model and Toyota Way) and start moving in this direction in a systematic and sustainable way (continuous improvement system). In fact, we can only know whether or not there is improvement if we define the direction we want to take. By saying something very obvious, we only know if we move forward if we know which way we want to go. Many famous stories and phrases allude to this fact. For example, in Alice's story

in Wonderland at one point the girl asks the cat: "Where is the exit? It depends, answered the cat. From what? Alice replied. It depends on where you want to go…". Another example is a phrase from the great thinker Seneca: "When one sails

It is essential to define and believe in a path and constantly share it with the

It is important to clarify the difference between doing improvement and doing continuous improvement. For many, notably Rother [2], continuous improvement is something that happens periodically through technical innovation, projects or improvement events. However, these types of disruptive occasional improvements do not in fact create an effective culture of continuous improvement. As mentioned above, getting an organization to actually have continuous improvement is no easy task and requires very large structural changes. Moreover, continuous improvement can no longer be seen as just a factor of competitive advantage over the competition, but as a survival factor. Companies that do not continuously improve their performance will eventually succumb to their competitors. Continuous improvement is no longer an option and has become the form of survival; the question is: how can each

In its fullness CI happens when everyone, every day, implements a small improvement in their area of influence. It is much better for many small improvements to happen continuously than major improvements happening occasionally. When everyone continually contributes to improving their areas aligned with the strategy and the higher purpose of the company, everyone benefits from learning, everyone feels included and everyone grows up with the organization. If the improvements are the result of large projects carried out by external people, there

The difficulty of implementing and maintaining continuous improvement is enormous, and few companies can do so effectively. It cannot be believed that CI can be achieved and maintained effortlessly and without constant dedication and attention. It is a bit like maintaining equipment or maintaining relationships. It is necessary to maintain constant attention and care. This difficulty is reported in "Toyota Way to Continuous Improvement" [13]. In this work, the authors state that even Toyota has difficulties in maintaining continuous improvement, especially in

A common first step toward continuous improvement is based on hiring consultants with experience in implement lean tolls to improve processes performance

**3.2 Continuous improvement versus occasional improvements**

#### *Continuous Improvement DOI: http://dx.doi.org/10.5772/intechopen.93638*

*Concepts, Applications and Emerging Opportunities in Industrial Engineering*

the writing of the two words differs only in two small strokes.

not have to improve. As Eiji Toyoda said [11]:

must be actively linked to improvement" [12].

**3.1 Continuous improvement versus lean thinking**

us where continuous improvement should be directed to.

writing that it is important to describe this difference: as can be seen in **Figure 4**,

So, 10 strokes are needed to write "Toyoda" while only eight are needed to write "Toyota". Why would they then have changed the name from Toyoda to Toyota, being mentioned that even in this change is present, symbolically, a part of Toyota's culture? The first answer that occurred to me, and that may eventually arise to those who know vaguely the Toyota culture, is that movements are spared when writing the word (fewer traces). Although there is an understandable logic here, this is not the answer. The real reason, explained personally by Isao Yoshino, is that in many cultures, the number 10 symbolizes the top (the maximum) and then, according to this logic, 8 means to be good but still a little below the maximum, which implies that it is necessary to improve to reach the top. This allegory aims to make all the people who work at Toyota understand that you are never good enough that you do

*"Being satisfied with the current situation can be the first step towards corruption"*

The constant search for perfection (seeking to be 10 assuming that one is always 8) is like a healthy "paranoia", which is based on the fear of letting ourselves relax with the successes of the past and thereby increase the risk of being overtaken by competitors. It is never to allow one to accept that everything is fine, and the truth is that there is always something to improve, there is always some problem unresolved.

On this same topic, Dr. Shigeo Shingo, the co-founder of TPS, said the following: "It is universal truth that those who are not dissatisfied will never make any progress. Yet even if one feels dissatisfaction, it must not be diverted into complaining; it

Continuous improvement is a concept apparently understood by all but actually being able to implement continuous improvement in an organization is a major challenge. Very often, continuous improvement is confused with Lean Philosophy. This subject can be addressed from various perspectives, and may give rise to numerous discussions, but according to one of the publications of the research group responsible for the name "Lean" itself [5], continuous improvement is only one of the five principles of the "Lean Thinking". The other four principles point in the direction in which companies should align improvement efforts, that is, they tell

By way of absurd example, suppose that a company assumes as strategic objective to improve the utilization of all its equipment - that is its vision. This is how the company thinks it can lower costs and be more competitive and sustainable (it does not want to have equipment stopped because it wants to monetize its use). According to this objective, all actions that result in increased use of equipment are interpreted as improvements. However, the truth is that these "improvements" may be increasing stocks, worsening quality, increasing response times, and driving the company into bankruptcy. That is why improvement has to be consistent with the direction ("True North"), vision, purpose and values, which are adequate to the survival and sustainability of the company in the long term. Another example: let us imagine that a change introduced on an assembly line resulted in increased productivity. Now let us imagine that this change has also degraded ergonomic aspects

or increased the risk of accident, can we still consider it an improvement?

We believe that the most effective and successful direction to align their continuous improvement work, is guided by the principles that underpin the Lean

**38**

Philosophy, the Shingo Model, and the Toyota Way. A necessary factor for success occurs when the top decision makers of an organization deeply believe that these principles are the direction to follow. The other major factor is the implementation of the dynamics and routines necessary for the organization to progress in this direction and this is achieved with a continuous improvement system. This is the form of success: define a good direction (Lean Philosophy, Shingo Model and Toyota Way) and start moving in this direction in a systematic and sustainable way (continuous improvement system). In fact, we can only know whether or not there is improvement if we define the direction we want to take. By saying something very obvious, we only know if we move forward if we know which way we want to go.

Many famous stories and phrases allude to this fact. For example, in Alice's story in Wonderland at one point the girl asks the cat: "Where is the exit? It depends, answered the cat. From what? Alice replied. It depends on where you want to go…". Another example is a phrase from the great thinker Seneca: "When one sails without destination, no wind is favorable."

It is essential to define and believe in a path and constantly share it with the whole organization.
