Continuous Improvement - Part 3: Key Tools for Continuous Improvement

So far in our continuous improvement series, we’ve covered the basics of implementing a continuous improvement philosophy, as well as some of the core concepts that will help you solve problems more efficiently.

But identifying and solving problems is only part of the journey. The next step is redesigning your processes so those problems don’t return.

For Part 3, we’re getting into the tactical side of continuous improvement. This blog will cover practical strategies manufacturers can use to reduce lead time, eliminate waste, and contribute to overall operational improvements.

Here’s what we’ll cover:

• How Value Stream Mapping helps expose waste in your current processes
• Why lead time and cost are more connected than you might think
• The difference between push and pull systems — and why it matters
• The role of quick changeovers (SMED) and batch size reduction
• How to create flexible workcells that improve flow and communication
• Tools for sustaining progress through standard work and visual controls

Let’s begin with the relationship that underpins most manufacturing inefficiencies: lead time and cost…

Why Lead Time and Cost Are Inseparable

Along your continuous improvement journey, you’re likely to wonder whether it’s better to focus on reducing lead times or costs as your first priority. The good news: they’re not as distinct as you might think.

Consider this quote from Henry Ford:

“One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.”

How Lead Time Drives Up Costs

In manufacturing, lead time is a cost multiplier. The longer it takes to move a product from raw material to finished good, the more overhead, waste, and inefficiency get baked into the process:

• More waiting means more work-in-process (WIP) inventory
• More movement increases handling, transport, and rework risks
• Delayed shipping ties up capital and postpones revenue
• More firefighting means less time for improvement

When parts and processes sit idle, money is being spent, but value isn’t being added.

How to See Waste Clearly: Value Stream Mapping

To start reducing your lead times, you first need to understand where time is being spent and where it’s being wasted. To achieve this, we recommend Value Stream Mapping (VSM).

A value stream map tracks the flow of materials and information from the moment an order is received to the point it's delivered. It highlights every step in the process — both value-added and non-value-added — and gives you a visual breakdown of where delays, bottlenecks, or unnecessary steps are hiding.

Start with the Current State

The first step is to document your process as it currently exists. This means:

• Quantifying both value-added (VA) and non-value-added (NVA) time
• Identifying specific sources of waste (e.g., inventory sitting, unnecessary motion, rework)

Plan for the Future State

Once the current state is mapped, you can begin designing a future state that you’ll reach using the PDCA cycle (refer to Part 2 of this blog series if you’re unfamiliar):

• What should the process look like?
• Where can handoffs be eliminated or compressed?
• Which steps can be streamlined or automated?

Think of VSM as a planning tool. It gives teams a shared understanding of how things work today and a blueprint for how to improve tomorrow.

Four Key Tactics to Systematically Reduce Lead Time

With your current and future state mapped out, the next step in operations improvement is execution. Here are four proven strategies manufacturers can use to start driving down lead time immediately…

1. Rethink Your Layout

Many facilities are organized into a functional layout. You have machines in one area, assembly in another, and inspection somewhere else. It sounds logical, but what this means is that products will often need to make their way through the entire facility every time.

Instead, we recommend looking at your product families. These are groups of products that all follow similar process steps. Ask yourself:

• Can we reorganize equipment and personnel around specific product flows?
• Can we co-locate processes that naturally feed into one another?

This results in a more streamlined process layout that enables faster flow, less travel time, and fewer inventory pileups.

2. Push vs. Pull: Move from Forecast to Demand

In a traditional push system, production is driven by schedules and forecasts. Work is released based on expected demand, not actual need. This often results in overproduction, bloated inventories, and long wait times between steps.

A pull system, on the other hand, produces only in response to real demand signals. Downstream activity triggers upstream production, creating tighter alignment between workflow and customer needs.

In short,

• Push = Supply-driven, schedule-based, prone to waste
• Pull = Demand-driven, responsive, leaner operations

Shifting even part of your process from push to pull can significantly reduce lead times and contribute to major operational improvements.

3. Reduce Batch Sizes

Large batches create long wait times between process steps. Most parts in a batch sit idle while only one is being worked on.

Smaller batches = faster flow

But to make smaller batches practical, you must first improve your ability to change over quickly — more on that in the next section.

4. Accelerate Changeovers with SMED

Single-Minute Exchange of Die (SMED) is a structured approach to reducing setup time, ideally to under 10 minutes.

Faster changeovers make small batches feasible. That means greater flexibility, faster lead times, and higher equipment utilization.

Think about the typical time wasted during a changeover. We’ve found it often looks like this:

• Preparation and material/tool checks: 30%
• Mounting/removing tools: 5%
• Calibration and settings: 15%
• Trial runs and adjustments: 50%

By organizing tools, standardizing setups, and cross-training team members, many manufacturers can cut changeover time in half or more — often on the first try.

Practical Steps for SMED Implementation

• Create setup cards that standardize every step and list required tools
• Use 5S principles to keep tools visible, organized, and always in their place
• Train teams to work without disruption, and assign roles to streamline tasks
• Target a 50% reduction on the first try — a common result in early SMED efforts

As you optimize your process, aim for One-Touch Exchange of Die (OTED), where changeovers take 90 seconds or less.

Now, let’s look at how to support these gains with physical workcells built for one-piece flow...

Designing Effective Workcells

Once you've reduced setup time and enabled smaller batches, the next step in continuous improvement is to focus on how work physically flows through your facility. That’s where workcells come in.

A workcell is a logical grouping of equipment, materials, and personnel arranged to support a specific product or product family. Identifying product families begins during Value Stream Mapping, where you identify products that require the same or similar process steps. Remember, even dissimilar products can belong to the same family, if they go through similar steps. The goal is to eliminate wasted motion, waiting, and handoffs by enabling “one-piece flow,” where each item moves continuously from one step to the next without delay.

Why Workcells Matter

Workcells are especially useful for manufacturers transitioning away from traditional assembly lines or functionally siloed layouts. They allow for:

• Faster processing with less movement and inventory buildup
• Better communication between team members
• Greater flexibility through cross-training and role rotation

The U-Shaped Advantage

The optimal design? A U-shaped workcell with team members on the inside and material replenishment on the outside. This layout:

• Allows operators to quickly assist or relieve one another
• Improves visual management and flow visibility
• Enables real-time adjustments and teamwork
• Keeps material restocking separate from core processing

Even in high-mix, low-volume shops, workcells can bring order to complexity by creating predictable, streamlined flows for key product types.

With your layout optimized, your next focus should be reinforcing the habits that keep improvements in place by standardizing the work itself.

Make It Stick: Standard Work and Visual Management

Improvements only matter if they last. Without reinforcement, even the best ideas fade. Old habits creep back in, shortcuts return, and lead times drift upward. That’s why standard work and visual management are essential.

Standard Work: Define the One Best Way

Standard work captures the current, most efficient, reliable method for completing a task. Standard work isn’t set in stone but must be followed until a new method is proposed, tested and verified.

Tools that support standard work:

• TWI Job Methods: A method for breaking down jobs into essential steps and identifying the safest, fastest, and easiest way to complete them
• Set up cards and checklists: Prevent drift during changeovers or daily routines
• Role clarity: Everyone knows their responsibilities and when to escalate problems

Visual Management: Make Performance Visible

When information is visible, problems can’t hide. Visual tools give teams and leaders instant feedback and make it easier to course-correct in real time.

Examples include:

• Daily production metrics displayed on the shopfloor
• Color-coded cues for material movement, inventory levels, equipment status, or safety alerts
• Shadow boards and tool outlines to maintain workplace organization

Pair visual management with leader standard work. Implement a simple cadence of check-ins, coaching, and follow-up, and this will give you the structure needed to sustain gains long after the initial excitement wears off.

Continuous Improvement Means Progress That Doesn’t Stall

From value stream mapping and process layout changes to pull systems, SMED, and workcells, the goal is to create faster, leaner, and more responsive operations. Sustain those improvements through standard work, visual management, and structured leadership routines. Continuous improvement isn’t a one-time event — it’s a mindset. Each gain becomes the new baseline. Each future state becomes the next current state.

If you’re looking for guidance on how to apply these continuous improvement principles to your operation, CMTC is ready to help. Contact us and let us know if you have questions we didn’t answer in this blog series, or if you’d like to know more about how we can tailor solutions to your unique needs.