Continuous improvement, which is sometimes called Japanese term "kaizen" is engaged in the relentless pursuit of improving a product or process in the small workflow. This is a component of the concepts of ”just in time" and total quality management (TQM). Implementing continuous improvement should be based on well-formulated and structured approach to the use of common tools required to solve problems, in particular Pareto analysis, histograms, correlation diagrams, charts, cause-and- effect relationships, control charts and diagrams of the process.
A decent model for the types of activities required for the continuous improvement cycle is the "Plan - do - check – act”, which is sometimes called the Deming cycle. At the planning stage the data collection and target setting function are carried out. At the next stage the countermeasures. The verification phase is evaluation and performance measurement countermeasures are taken. At the stage of action the improvements are standardized and used in other parts of the organization.
An example of application of the philosophy of continuous improvement for the management of suppliers is a program of "Honda", which is called "BP". BP is an abbreviation, in this case, indicating the best position, best productivity, the best product, best price, and the best partners. It is a process lasting for 13 weeks that is focused on eliminating waste and is based on the fact that the richest source of ideas for improvement and finding creative ways is people just doing their job. The Deming cycle "plan- do-check" - act is used in “BP”, as well as in all initiatives to improve the "Honda».
