What is Continuous Quality Improvement? – Definition, Process & Methodologies – Video & Lesson Transcript | Study.com

Continuous Quality Improvement

So what exactly is continuous quality improvement? What does it do? And who does it affect? Continuous quality improvement, or CQI, is a management philosophy that organizations use to reduce waste, increase efficiency, and increase internal (meaning, employees) and external (meaning, customer) satisfaction. It is an ongoing process that evaluates how an organization works and ways to improve its processes.

The underlying philosophy of continuous quality improvement is that when problems arise it is generally a result of poor work design, unclear instructions, or the failure of leadership, not the people performing the processes. But for those organizations that utilize continuous quality improvement – as most do in some form or another nowadays – how they improve their products and processes permeates the culture of an organization; it’s not just for the management team to worry about.

The philosophy behind CQI stresses the need for teamwork among all levels of employees and maintains that all employees are valuable members of the team. Assuming that employees are doing the day-to-day work that keeps the organization running, they are better equipped to suggest changes than perhaps the leaders are, who often are dealing with more bureaucratic matters. As such, employees are encouraged to analyze their work processes and make suggestions as to how to improve them for the good of the company.

Although a primary reason for cultivating a CQI work environment is to increase efficiency and, in many cases, profits, continuous quality improvement also encourages accountability by creating an environment in which all employees become personally invested in their organization. As all employees are invested in the process, everyone in the organization – as well as customers – are affected, hopefully, for the better!

Plan, Do, Check, and Act

One of the most popular manifestations of continuous quality improvement methodologies comes in the form of a method called Plan, Do, Check, and Act, or PDCA, which involves a company utilizing a 4-step process on a loop, over and over again, ever hoping to better its process.

The first stage is to ‘Plan’, meaning data about the organization’s processes is collected and carefully analyzed. This is accomplished by forming teams of individuals who understand the process, defining a goal, understanding the needs of end-users, and identifying ways to measure success. After the collection and analysis of data, it is necessary to identify ways in which improvements may be made.

The next stage is called ‘Do’, when the changes suggested by team members in the planning phase are implemented. Both leaders and employees play a vital role in implementing these changes.

In the ‘Check’ stage, the process is once again analyzed and measured against predetermined guidelines to see if goals have been met. One way to measure success is to link continuous quality improvement to organizational strategic goals, larger objectives for the company as a whole. Once continuous quality improvement is linked to strategic goals, success may be measured by identifying whether or not goals for improving the process were met or if the changes made brought the company closer to meeting their strategic goals.

Finally, in the ‘Act’ stage, if a new process was successful, it is standardized for future use. The ‘Act’ stage may allow room for the new processes to be tweaked or, if they were unsuccessful, abandoned. Upon completion of ‘Act’, the PDCA methodology is repeated.

Lesson Summary

Continuous quality improvement is a business tool used to improve organizational processes. It asks the question, ‘Is there a better way to do this?’ Continuous quality improvement stresses the need for accountability, teamwork, input from all levels of the organization, and a continual practice of reviewing and adjusting processes.

It uses the Plan, Do, Check, Act or PDCA cycle, which is a four-step method to continuously improve processes. During the ‘Plan’ step, data about the organization’s processes is collected and carefully analyzed. It is during the ‘Do’ step that the changes suggested by team members in the planning phase are implemented. Next is the ‘Check’ step, during which the process is once again analyzed and measured against predetermined guidelines to see if goals have been met. Finally, the ‘Act’ step is when the new process is implemented, tweaked, or abandoned.

Learning Outcomes

After viewing the lesson, you should find that you can:

• Explain the philosophy of continuous quality improvement
• Describe the Plan, Do, Check, and Act method