Definition – An operational philosophy based on the premise that performance improvement is the ongoing responsibility of everyone in the organization. Continuous improvement is a total quality philosophy in which every process and system is subject to constant scrutiny to (1) eliminate waste, (2) reduce response time, and (3) simplify process or product design.
Continuous improvement is change that is focused on increasing the effectiveness and/or efficiency of an organization to fulfill its policies and objectives. It is an ongoing effort to improve products, services, and processes. Continuous improvement process efforts seek for constant improvement over time rather than a radical, all-at-once improvement “breakthrough”. With more frequent, incremental changes, improvements are easier to implement and require less investment. The saying goes, “an ounce of prevention is worth more than a pound of cure”.
How We Use Continuous Improvement
The belting experts at MIR commit time and extra effort in analyzing all aspects of a facility’s activities necessary to move product through their system. Working closely with maintenance, engineering, sanitation, storeroom, and purchasing, MIR experts conduct ongoing “audits” of every facet of an operation, monitoring and tracking the performance of the products installed. Our goal is to ensure preventative measures that are necessary to enhance throughput are handled proactively.
As continuous improvement specialists, we work to provide cost savings and increase efficiency for our customers through value-added services including new and improved belting and materials options, OEM part conversions, quality process improvements, product repairs, and priority access to new products and materials through exclusive vendor relationships with world market leaders.
Hard Cost Savings vs. Soft Cost Avoidance
MIR works to provide CI to our customers through two methods: hard cost savings and soft cost avoidances.
Hard cost savings, often seen as tangible bottom line reductions, are easily defined and characterized by:
- Year-on year saving over the constant volume of purchased product or service
- Direct reduction of expense or a change in process that directly reduces expenses
- Process improvements that result in real and measureable cost or asset reductions
- Net reductions in prices paid for items or a change to lower cost alternatives
Soft cost avoidance is much more difficult to define, but is typically viewed as improvements that reduce costs through improved process efficiency, employee productivity, or increased output without increasing resource expenditure costs. Some examples of cost avoidance include:
- Resisting or delaying a supplier’s price increase
- Additional services provided at no cost
- Long-term contracts with price protection provisions
- Replacement of product or material that increases efficiency or reduces downtime
MIR works with its customers to identify and standardize these costs to provide measurable cost savings and increase productivity. Our commitment is to continue to, at all times, bring value-added justification to your belting experience.
Click here to see examples of CI that we have provided our customers.