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Continuous Improvement - Part 1: Introduction to Operational Best Practices

Written by Alexander Federici | Apr 24, 2025 8:15:00 PM

In today’s fast-paced business environment, continuous improvement is not just a best practice — it’s a necessity for staying competitive. By consistently refining processes, businesses can reduce costs, enhance responsiveness, and increase overall capacity, all while boosting customer satisfaction. However, effective improvement efforts should be proactive rather than reactive, identifying and addressing potential challenges before they become major obstacles.

This blog is the first in a three-part series introducing CMTC’s approach to operational best practices through continuous improvement. In Part 1, we’ll explore the foundational concepts that help companies go from reactive to proactive, reduce waste, improve flow, and build momentum toward sustainable success.

What Is Continuous Improvement & Why Does It Matter?

Continuous improvement is the process of systematically identifying and eliminating waste within your manufacturing and administrative processes, workflows, and services. Continuous improvement aims to drive efficiency, enhance quality, and eliminate waste. As its name suggests, continuous improvement is meant to be done on an ongoing basis. You should never stop searching for ways to optimize your operations — over time, gradual improvements can significantly impact your company’s competitive advantage and bottom line.

When implemented effectively, continuous improvement can help you to:

  • Stay competitive: Your competing manufacturers are working on getting faster and cheaper right now. If you're standing still, you risk falling behind.
  • Improve customer satisfaction: Faster turnaround, better quality, more flexibility.
  • Increase operational efficiency: Less waste, fewer delays, smoother workflows.
  • Reduce costs and enhance capacity: Same team, more output.

And most importantly:

  • Go from reactive to proactive: A continuous improvement process is about shifting your mindset from firefighting to forward thinking.

The Three Core Objectives of a Continuous Improvement Process

CMTC frames continuous improvement around three practical, interdependent goals: capacity, cost, and responsiveness.

1. Capacity: Are you delivering enough to meet demand?

Capacity is about understanding the actual output you’re capable of delivering and whether that matches your demand.

  • Match output to customer needs
  • Forecast and plan ahead
  • Invest in scalable systems

2. Cost: Are you controlling expenses as you grow?

Most small to medium-sized manufacturers are used to solving problems by adding labor or equipment.

To address cost:

  • Focus on cost and quality
  • Target specific drivers
  • Balance speed and expense

The goal isn’t just leaner processes but smarter ones.

3. Responsiveness: How fast can we react?

Responsiveness is your ability to adapt quickly to customer requests, supply chain issues, market shifts, or internal disruptions.

Improving responsiveness means:

  • Shortening lead times
  • Building in flexibility
  • Making information visible and actionable

A continuous improvement process that’s consistent, connected, and clearly communicated will always beat one that’s siloed, opaque, and directed by one or two individuals.

Comparing the Two Major Types of Continuous Improvement Processes: Lean Vs. Six Sigma

There are two major types of continuous improvement processes that we often get asked about: Lean and Six Sigma.

Lean Thinking: Avoiding These 8 Types of Waste

In Lean thinking, value is whatever directly helps meet a customer’s expectations. Nothing more, nothing less.

Here are the eight types of waste CMTC highlights:

  1. Defects: Creates rework, scrap, and lost time
  2. Overproduction: Leads to excess inventory and motion
  3. Waiting: Causes delays and bottlenecks
  4. Non-Utilized Talent: Missed input from frontline employees
  5. Transportation: Unnecessary material movement
  6. Inventory: Ties up space, cash, and time
  7. Motion: Excess movement of people
  8. Excess Processing: Work beyond what the customer asks for

Waste hides everywhere, especially in places that feel productive.

When to Look for Lean Solutions

Lean is the right tool when you want to understand your full process, identify friction points, and start making incremental changes that build momentum over time.

It’s especially valuable when:

  • You’ve got growing lead times and don’t know why
  • Teams are busy, but output isn’t improving
  • You want to create a culture of improvement, not just a one-time fix

The focus isn’t perfection. It’s learning to spot and reduce waste, one change at a time.

Six Sigma: Reducing Variation to Improve Quality

If Lean is about removing waste and improving flow, Six Sigma is about consistency: getting rid of the variation that leads to defects, delays, and rework.

What is Six Sigma?

Six Sigma is a data-driven, statistical methodology that targets process variation. Instead of looking at the whole system, Six Sigma zooms in on one specific area and asks:

  • Where do we see inconsistency?
  • What’s causing it?
  • How do we make this more predictable?

This could mean anything from stabilizing a weld temperature to identifying why some quotes take three days, and others take three hours.

When to Use It

Six Sigma’s methodology can be utilized when:

  • You’re seeing defects or out-of-spec products
  • A process is unreliable or unpredictable
  • Inconsistencies are slowing down downstream operations

Six Sigma works for recurring quality issues or when the next step in your process keeps getting jammed up because of inconsistencies upstream.

The Goal

By reducing variation, you can:

  • Improve quality and reliability
  • Minimize rework and scrap
  • Make life easier for the next step in the process

Lean clears the clutter. Six Sigma fine-tunes the performance. When used together, they create a continuous improvement process that combines system-wide thinking with precision-level problem-solving.

Value Stream Mapping: Learning to See

A continuous improvement process requires you to be able to see problems clearly, objectively, and end-to-end. That’s what Value Stream Mapping (VSM) allows you to do.

What is Value Stream Mapping?

A Value Stream Map captures every step required to deliver a product or service from the customer order to the final shipment. It identifies:

  • Where time is being spent
  • Where inventory is piling up
  • Where communication breaks down
  • Which steps are actually adding value, and which aren’t

By capturing how your system actually performs, VSM creates a foundation for a targeted, effective continuous improvement process. But before you can improve the future, you need to assess the present.

Start with the Current State

Begin by creating a current state map. This captures the way your process works right now — warts and all. You’ll look at:

  • Process vs. wait time at each step
  • Inventory levels between operations
  • Changeover and cycle times
  • Staffing, training, and equipment readiness

This data lets you pinpoint inefficiencies that may be invisible day to day.

Here’s an example of what a current state map looks like in action:

Then, Design the Future State

Next comes the future state map — a redesigned version of your process aligned with your strategic goals. Here, you’re aiming to:

  • Eliminate non-value-added steps
  • Reduce lead times and inventory
  • Improve process flow and team responsiveness by linking operations and information
  • Build in more flexibility and reliability

Your future state doesn’t have to be perfect, but it should be intentional, actionable, and measurable.

Here’s an example of what a future state map looks like in action:

Building Buy-In Through Lean Training

Even the best continuous improvement process will stall without buy-in from the people doing the work. That’s why Lean training plays a critical role in sustaining any continuous improvement efforts.

Lean training introduces your team to the core principles of continuous improvement in a hands-on, highly relatable way. CMTC often starts with a Lean 101 simulation, which covers:

  • Key Lean tools and concepts (like flow, pull, and waste reduction)
  • Real-time practice in a simulated work environment
  • Measurable outcomes after each round of improvements

Participants actively apply Lean thinking, observe results, and develop the mindset needed to bring those lessons back to the shop floor.

What makes this so effective is that it builds a shared language and reinforces a culture of experimentation. Team members learn that they’re not just allowed to suggest improvements — they’re expected to.

Once your workforce sees how small changes lead to big results, you create momentum that drives long-term engagement. And when your team is aligned and motivated, you’re in a much stronger position to track meaningful progress.

Measuring Progress and Managing the Journey

Continuous improvement processes are constantly ongoing, they’re part of a strategic plan. That’s why measuring progress and managing change over time is just as important as the initial implementation.

CMTC recommends a few key strategies to keep your improvement journey on course:

  • Use metrics that matter: Focus on KPIs that reflect strategic goals, such as lead time, defect rates, or capacity utilization.
  • Make progress visible: Use dashboards, boards, or visual management tools to keep teams informed and engaged.
  • Prioritize with purpose: When improvement opportunities pile up, use tools like the A3 methodology or X-matrix to stay focused and aligned.

One critical insight: Don’t try to fix everything at once. Sustainable improvement happens in small, manageable steps, each one guided by measurable learning.

As teams begin to see their own impact on performance, accountability grows. That’s what allows continuous improvement to shift from a leadership initiative to an organization-wide habit.

Embedding a Continuous Improvement Process into Operational Best Practices

A continuous improvement process isn’t just a set of tools or a once-a-year initiative — it’s a mindset that reshapes how your organization works, solves problems, and adapts to change.

By focusing on capacity, cost, and responsiveness and by applying proven frameworks like Lean, Six Sigma, and Value Stream Mapping, manufacturers can begin to transform day-to-day operations into a strategic advantage.

But success doesn’t happen by accident. It requires:

  • Engaged teams with the training to identify and act on opportunities
  • Systems that measure performance and guide priorities
  • A leadership mindset that views improvement as ongoing — not optional

If you’re ready to dig deeper, explore CMTC’s library of recorded webinars and upcoming events. Or, contact CMTC to schedule a free consultation on how to build a continuous improvement process at your organization.