Lean production

How do you work with continuous improvements in production?

Continuous improvement means that the factory systematically and continuously identifies losses, addresses root causes, and ensures that the improvements are sustained, in small steps that never end. The work is driven in a recurring improvement cycle: measure, analyze, prioritize, act, and follow up. The OEE system is one of the tools needed in the work on continuous improvement. The OEE system provides factual basis for the improvement cycle, as it shows where the losses are, how large they are, and whether the measures have had an effect.

By Robin Ottenfelt · CMO

Fact-checked by Mikael Persson · Co-founder and CEO ·

Published · Last updated

Continuous improvements mean that the factory systematically and continuously identifies losses, addresses root causes, and ensures that the improvements are sustained over time.

Continuous improvement means that the factory systematically and continuously identifies losses, addresses root causes, and ensures that improvements hold, in small steps that never end. The work is driven in a recurring cycle: measure, analyze, prioritize, act, follow up. An OEE system provides the cycle with a factual basis because it shows where the losses are, how large they are, and if the actions have had an effect.

The concept of continuous improvement comes from Lean and the Japanese tradition of Kaizen, but the principle is simple and universal. Great results are built from many small improvements carried out with persistence. This guide goes through what is required for improvement work to function in practice, why most initiatives lose momentum, and how an OEE system becomes the engine that keeps the work alive.

Why do most improvement initiatives lose momentum?

Most improvement initiatives lose momentum because they are run as projects instead of as ways of working. A project has a beginning and an end. When the consultant goes home, the driving force changes jobs, or management turns its attention to the next initiative, the work dies out. Continuous improvement is by definition not a project. It is a rhythm that should be part of daily operations.

Experience from the hundreds of factories that Good Solutions has worked with shows that they have succeeded in identifying six success factors: clear goals and a vision to work towards, skills to analyze and address, motivation in the team, resources in the form of allocated time, a reliable factual basis, and a concrete action plan. If one of them is missing, the work falters.

The resource most often missing is time. Improvement work requires time, and time must be allocated by management. The second most common deficiency is the factual basis. Without reliable data on where the losses are, prioritization becomes a guess, and a guess gives random results.

This is where the OEE system comes in. It solves the factual basis permanently and makes the results visible, which in turn strengthens motivation.

What does the improvement cycle look like in practice?

The improvement cycle consists of five repeated steps: measure, analyze, prioritize, act, and follow up. Each step has a concrete meaning in a factory.

Measure. Automatic data collection from the machines combined with operators' coding of stop causes. The measurement must be continuous, not a one-off effort. Data from factories shows that around 80% of stop causes are not machine-related, which is exactly why the operator's coding is crucial.

Analyze. Break down losses by cause, line, article, shift, and time. Look for patterns. Which losses are frequent but short? Which are rare but expensive? Which recur on the same machine part?

Prioritize. Choose few things. Three prioritized losses that receive real resources beat ten that no one has time for. Prioritize by value: the loss that costs the most capacity or the most money comes first.

Act. Root cause analysis, action, owner, and date. Small actions are implemented immediately; larger ones are planned. Involve the operators, as they often both see the cause and have the solution.

Follow up. This is where factories that succeed differ from those that do not. The follow-up shows if the action had an effect. If the stop cause disappears from the statistics, it works. If nothing changes, another round is done. Without follow-up, no one knows what worked, and the same problem is addressed multiple times.

At Sibbhultsverken, this cycle was run systematically over 12 months. The result was 19.4% higher OEE in one cell and 40% in another, 73% fewer technical stops, 63% fewer unplanned stops, and 30% lower scrap costs. Volume increased by 15% without additional shifts. None of this came from a single major action. Everything came from many small improvements.

What role does an OEE system play in continuous improvements?

The OEE system plays three roles: it shows where the potential lies, it makes the results visible, and it keeps the work honest.

It shows where the potential lies. Without loss analysis, improvements are prioritized based on gut feeling, and gut feeling often points in the wrong direction. With loss analysis, it is visible in black and white which losses cost the most. At Barilla Wasa in Filipstad, systematic work with losses led to utilization rising from 75% to 94%, net production increasing by 15%, and downtime decreasing by 22%. At the same time, CO2 consumption fell by 28%, because better-utilized machine time is also more energy efficient.

It makes results visible. Motivation is built by visible progress. When the team sees the OEE curve turn upward after an action they suggested themselves, the energy that keeps the work going is created. Dashboards on the floor make progress a part of everyday life, not a figure in a report that management reads.

It keeps the work honest. Without measurement, it is easy to believe that an action has worked. With measurement, the truth is visible. It protects the team from spending time on actions that feel good but do not produce any effect.

How do you get started without it becoming too big?

Get started by starting narrow, proving the value, and scaling up from there. Factories that try to improve everything at once spread resources so thin that nothing gets finished. Factories that succeed choose a line or an area where the value is clearest, run the improvement cycle there, and use the result as proof to scale.

Willo in Växjö, a contract manufacturer with over 60 CNC machines, shows how quickly the start can go when the order is right. Half the factory was trained and up and running with the platform in six weeks, and the other half followed at the same pace. Willo had also gone through Produktionslyftet earlier, which provided a foundation in lean working methods to connect the data to. The combination of working methods and factual basis is exactly what continuous improvements need.

A good start sequence looks like this: choose a defined area, secure data quality there, run the improvement cycle for three months with clear priorities, show the result to the organization, and then scale to the next area. The proof from the first area makes the rest of the rollout easier, as no one needs to be convinced in theory anymore.

How do you keep the work alive through the years?

The work is kept alive through rhythm, visibility, and management's persistent demand. Three mechanisms make the biggest difference.

The pace. Daily management catches deviations, weekly improvement meetings drive actions, and monthly meetings show trends. When the pace is established, improvement work becomes part of how the factory functions, not something done on the side. If you connect this to the factory's capacity planning with a 3 to 6-month horizon, the increased capacity makes a big financial difference.

Visibility. Visible results create pride, and pride creates endurance. Orkla Nidar in Trondheim has worked with the platform since 2016 and has raised the entire factory's OEE by 10%. That is eight years of persistent work, not a campaign.

Management demand. When management requests the same facts every week that the teams work with, it signals that the work is important. When management stops asking, it is interpreted as a shift in priority, and the work dies in silence. Persistent demand is free and crucial.

How does Good Solutions work with continuous improvements?

Good Solutions is a platform built to help the factory drive continuous improvements and includes an OEE system. We call it the Manufacturing Improvement Platform.

Measurement is the means, improvement is the goal. Machine connectivity and the operator tool secure the factual basis. Loss analysis in reports and timelines shows where the potential lies. Dashboards make progress visible to everyone, from operator to CEO. Quality management, maintenance, and energy are linked to the same data, so that improvement work can encompass the entire operation.

Around the platform are services aimed directly at endurance. The OEE Acceleration Program is a structured 4 to 6-month program for teams already using the platform who want to increase their pace: on-site current state analysis, clear goals, a concrete action plan, and regular follow-up. The five-day restart program helps factories where work has lost momentum to get started again, with system review, signal verification, and skill enhancement for various roles. Operational implementation, with experience from 300+ factories, ensures that the working methods are in place from the start.

The results for customers follow the same pattern. Kavli produced 5,000 tons more in 2024 than the year before without more shifts or machines. Paulig UK raised the entire factory's OEE by 10% within 12 months. TitanX increased net production on a line by 19% during a quarter. In all cases, it is the improvement work that has created the results, with the platform serving as both a source of facts and an engine.

FAQ

What is the difference between continuous improvements and an improvement project?
A project has a start and an end; continuous improvements do not. The project solves a defined problem; continuous improvements are a pace where the factory continuously identifies and addresses losses. The project can be part of the work, but it is the pace that yields results over time.

How much time do continuous improvements require?
Less than most people think, but the time must be allocated. A daily 15-minute management meeting, a weekly one-hour improvement meeting, and time for those responsible to implement actions. The lack of allocated time is the most common reason why the work dies out.

Where should we start if our OEE is around 50%?
With loss analysis. At 50% OEE, there are almost always a few loss categories that dominate, often changeovers, recurring technical stops, or uncoded stops. Prioritize the largest, address them, follow up, and take the next. The industry average is between 50 and 60%, so the starting position is normal and the potential is great.

Do we need lean training before we start?
No, but the basics help. The most important thing is to get started with the cycle: measure, analyze, prioritize, act, follow up. Methods like PDCA, SMED, and root cause analysis can be learned along the way, preferably linked to real problems in your own factory rather than at a desk.

How do we know if the improvement work is working?
In two ways. Addressed losses should decrease or disappear entirely from the statistics. The trend for OEE, quality, and changeover times should point in the right direction over months. If actions are implemented but the statistics do not move, it is a sign that the root causes have not been addressed and the analysis needs to be deepened.

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