The company and its commitment to continuous improvement in the industrial sector

The organization is a specialized provider of industrial services, operating primarily across Europe. With a clear mission to “make the industry work better”, the company is dedicated to optimizing operational efficiency and performance. It serves various sectors, including production and maintenance, and operates through specialized business units such as plastics, hoses, and hydraulic systems.

In addition, the organization is supported by key departments like the central Continuous Improvement (CI) team, which leads the company-wide improvement initiatives. This team plays a crucial role in fostering a culture of continuous improvement and streamlining internal processes, ensuring best practices are effectively integrated and applied across all business units.

Challenges in implementing continuous improvement: overcoming obstacles to cultural change

Implementing the continuous improvement (CI) program involved overcoming challenges that complicated the desired transformation. Although the mission was clear: “—everyone, getting a little better every day, for customers, employees, and the organization”—the journey was far from simple. The organization faced issues related to strategic alignment, resistance to change, and difficulties in effectively applying Lean methodologies. These challenges required constant adaptation and coordinated efforts from all teams. Addressing them was crucial to ensure continuous improvement goals were achieved and sustained over time.

Below are some of the challenges in more detail:

Overcoming resistance to change

One of the primary obstacles to implementing the continuous improvement program was employee resistance to change. Many were accustomed to traditional work methods and did not see the need for change, as the “we’ve always done it this way” mindset was deeply ingrained. This created a significant barrier to accepting new practices and Lean methodologies.

Aligning strategic and operational goals

A major challenge the organization faced was ensuring that the strategic objectives set by top management were translated into practical operational goals for each area of the company. The lack of alignment between leadership’s strategic vision and its practical execution in daily operations created a significant gap, hindering the progress of initiatives and compromising the effectiveness of continuous improvement efforts. This mismatch between what top management saw as long-term goals and what was actually being implemented in the teams’ daily work created a challenge in communicating and clarifying priorities.

Monitoring and continuously improving performance

Before implementing the continuous improvement program, the monitoring of operational processes was decentralized, lacking a unified system that provided clear visibility into performance deviations and areas needing improvement. The absence of a standardized process to ensure operations adhered to established standards and that results were monitored in real time made it difficult to identify problems early.

Structured problem-solving

Many issues faced by team members were recurring and difficult to resolve in a structured manner, which hindered continuous improvement and operational efficiency. Teams often struggled to identify the problems’ root causes and implement permanent solutions. Moreover, problem-solving was frequently reactive, lacking a straightforward approach to prevent issues from recurring.

These challenges resulted in operational inefficiencies and a lack of sustainable solutions, affecting both productivity and process quality. The complexity and absence of a structured methodology for addressing problems contributed to a continuous cycle of unresolved challenges.

Developing leadership and a lean culture

Another key challenge for the organization was ensuring leadership was adequately prepared to sustain a culture of continuous improvement over time. Implementing a lean culture required more than adopting tools and improvement processes; it required leaders at all levels —from strategic to operational— to integrate lean principles into their leadership style and take active responsibility for driving change.

Without adequate and committed leadership, continuous improvement initiatives risked becoming isolated efforts without long-term impact. It was also necessary to develop a mindset of continuous improvement in the teams, capable of solving problems proactively and independently, which could not be achieved without the participation of all employees.

The approach to overcoming challenges and transforming the operational culture

While the organization had already implemented several Lean practices, it became clear that a more integrated model was needed to promote alignment across all levels of the organization. This model aimed to maintain the tools already in use and amplify their impact, ensuring each initiative contributed cohesively to the strategic goals.

The improvement program was supported by four fundamental pillars, which served as the basis for implementing the initiatives and guiding the organizational transformation. The four pillars, which consist of: setting a course and aligning objectives; monitoring and improving performance; solving problems effectively; and improving leadership skills and behaviors, allowed the continuous improvement initiatives to be implemented in an integrated and effective manner.

Each pillar is detailed below with examples of practical actions that have been implemented and translated into tangible results:

Provide direction and aligned goals

Establishing clear and aligned goals ensured all employees were committed to the organization’s strategy. Using the OGSM methodology (Objectives, Goals, Strategies, Measures), the program aligned KPIs across operational teams and management, translating strategic goals into action plans.

A continuous improvement session was conducted with top management to reinforce alignment on the program’s scope, targets, and allocated resources. As a result, a two-year strategic plan was developed, guiding the next steps in the CI implementation and emphasizing the importance of strategic alignment in achieving consistent results.

Monitor and improve performance

Performance monitoring was enhanced by implementing daily stands (Levels 1 and 2) to improve team communication and transparency. These daily meetings were structured using visual management tools, such as boards, for tracking operational and safety KPIs.

These actions were further supported by the introduction of the 5S system for the organization of the workplace and the establishment of standard work, which ensures process consistency and facilitates the early detection of deviations.

Additionally, Kaizen Events were held in various areas to identify and eliminate waste in key processes, driving rapid improvements with significant impact.

Solve problems effectively

Different problem-solving frameworks were applied based on the complexity of each initiative. For short-term, immediate impact, and low-complexity operational improvements, the teams structured the problem and the improvement action on a standardized format: A6. For more strategic and complex, long-term challenges, the 9-step A3 methodology was applied. In the first year, a process improvement board—a visual management tool—was introduced to centralize and organize these initiatives, allowing for continuous monitoring and prioritization based on expected impact. This problem-solving structure has resulted in the completion of 34 A6 initiatives and 10 ongoing ones. In the second year, in addition to 3 completed A3 projects, a total of 6 are still ongoing.

In addition, the use of tools such as the Ishikawa diagram has helped teams to identify the root causes of complex problems. For example, in the logistics sector, the analysis led to workflow optimization and improved collaboration between teams.

Leadership, skills, and behaviors

The organization invested significantly in developing Kaizen Lean leaders, focusing on training and fostering a Lean mindset at all levels. A Lean Academy was established, offering structured training programs to develop leaders as Lean Practitioners and Lean Thinkers, enabling them to apply and disseminate Lean principles within their teams. This approach drove a mindset shift across the organization, empowering teams to identify problems and implement effective solutions independently. In addition, the application of the Coaching Kata and Improvement Kata helped to reinforce the culture of continuous learning and leadership.

Special attention was also given to integrating the Lean culture into the decision-making process. Leadership was encouraged to promote team autonomy, creating an environment where accountability and continuous improvement were at the core of daily operations. This enabled the organization to adapt and evolve in an agile and sustainable manner.

Results achieved through the implementation of the continuous improvement program

Implementing a structured continuous improvement program led to substantial gains across various operational and strategic areas. The results demonstrated significant performance improvements, highlighting the effectiveness of the adopted approach.

Quantitative results

The continuous improvement program, grounded in Lean Management principles, delivered notable advancements in key operational and organizational performance indicators:

Performance:

• Increased efficiency in product inbound processes by 25%, optimizing the flow and management of incoming products.
• Increased production performance by 34%, reaching levels close to excellence at various process stages.
• Improvement in the dispatch and delivery of products by 6%, ensuring greater precision and confidence in logistics operations.

Health and Safety:

• 73% reduction in pending safety actions, demonstrating a commitment to a safer working environment.
• 33% decrease in employee absenteeism rates, indicating employee well-being and engagement improvements.

Financial Savings:

• Over 15% reduction in direct operational costs, driven by eliminating waste and savings in recurring expenses.

Qualitative results

The impact of employee engagement in continuous improvement was evident in both skill development and the strengthening of the Lean culture. Through investments in employee training via Lean Training programs, over 95% of staff received training in Lean Thinker methodologies, empowering them to identify improvement opportunities and implement solutions independently. Additionally, approximately 30% of teams were certified as Lean Practitioners, acquiring advanced skills to lead strategic projects such as A3 initiatives and Kaizen Events.

Consistent continuous improvement practices fostered a more dynamic and collaborative organizational environment. Teams demonstrated greater proactivity in problem-solving and alignment with strategic goals, solidifying a culture focused on operational excellence.

We are committed to respecting our clients’ confidentiality. While we have altered or omitted their names, the results are genuine.