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What Is Continuous Process Improvement (CPI)?

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What is Continuous Process Improvement (CPI)?
Continuous Process Improvement is a process which allows managers to continuously improve the quality of all kinds of processes like production, administrative, and service within a firm. Since it is a customer-driven system, both internal and external customers of the firm define and demand their requirements that are then implemented into the system. The new tools that are required to operate CPI effectively include :
1. statistical analysis, process analysis techniques
2. group problem-solving techniques
3. statistical process control, one of the most powerful and widely used tools What is Statistical Process Control (SPC)?
Statistical process control (SPC) is a management philosophy that relies on straightforward statistical
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• Implement a systematic procedure to identify the root cause of problems and prevent them from occurring again.
• Managers should encourage teamwork and reward the team for their accomplishments. Also, they should remove any inter-departmental barriers.
Monitoring critical success factors and cost drivers:
Critical success factors like Return On Investment, on-time deliveries, throughput, customer lead-time and headcount productivity can all be monitored using statistical techniques (i.e. control charts). Thus, the natural variations in the critical success factors become important. Moreover, control charts create performance “bands,” which symbolize the natural variation of a process that is under control. Anything outside the band indicates an out-of-control process and may need further investigation if it is a frequent event.
Cost drivers of various processes can also be monitored with control charts. A few examples of factors that affect cost are:
1. cycle times,
2. overtime,
3. schedule attainment,
4. machine availability,
5. setup
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