Question

In detailed explanation discuss the benefits and potential drawbacks of applying a continuous improvement process in an organization

Answer 1

The continuous improvement process is an approach to improve by making changes in an organization's products, services, or processes on an ongoing basis to achieve better results/outcomes. The benefits of applying a continuous improvement process in an organization are first, increase organization's efficiency. It means that the process will help an organization to complete jobs or tasks with less utilization of resources (time, cost, and labor). For example- fast food restaurants installed a self-order counter that reduced waiting time, order taking time, and serving time. Now, the Fast food restaurant process is more efficient.

Second, a Continuous improvement process results in lower cost, improved quality, and better customer satisfaction. The process helps an organization to find flaws, defects, and mistakes in its products, services, or process. the team makes a plan to eliminate those flaws/defects so that product, service, or process can be improved in terms of quality and cost. When the product or service is of high quality and free from flaws then customers are satisfied. For example- A bank improved the transaction processing feature of its internet banking application. Now, Customers do not face any bugs and able to make a cash transfer in seconds. Now, customers are happy and satisfied.

Third, Continuous improvement increases employee's morale, engagement, and creativity. When management involves its employees to take part in continual improvement then employees feel more valued and engaged. They present their ideas and solutions to a problem. They channelize their creativity to create an innovative idea to improve an organization's product, service, or process. For example- NFC in-built cards in a retail store could result in a fast self check out. Customers just tap the card on items and it would be added to their cart and payment will be debited from their linked bank account. Some other benefits of the process are Increase profitability and Low employee turnover.

Potential drawbacks of applying the process in an organization are Time consuming process because The process is based on Incremental improvement. The problem either big or small, The process takes small steps based on pre-determined assumptions. In addition to that, Pre-determined assumptions lead to defined objectives that may not be desirable by all people in the team. Undesirable and poorly defined objectives could do more harm to an organization.

second, If the process is not implemented correctly then the process could result in stifling of innovation and demotivated staff in an organization. For example- not communicating the objectives to all team members or shot down ideas and opinions of employees even though ideas are good and inadequate support from management then the process could have more negative outcomes on an organization.

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Both Negative and Positive feedbacks are there which are discussed in detailed