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Part Four
Improvement
Figure 20.11 The importance–performance matrix for EXL Laboratories
need of improvement as each is below the minimum level of acceptability for their
respective importance positions. However, two competitive factors, communications and
cost/price, are clearly in need of immediate improvement. These two factors should therefore
be assigned the most urgent priority for improvement. The matrix also indicates
that the company’s documentation could almost be regarded as ‘too good’.
The matrix may not reveal any total surprises. The competitive factors in the
‘urgent-action’ zone may be known to be in need of improvement already. However,
the exercise is useful for two reasons:
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It helps to discriminate between many factors which may be in need of improvement.
The exercise gives purpose and structure to the debate on improvement priorities.
The sandcone theory
holds that objectives
should be prioritized in a
particular order
The sandcone theory
As well as approaches that base improvement priority given on an operation’s specific
circumstances, some authorities believe that there is also a generic ‘best’ sequence of
improvement. The best-known theory is called the sandcone theory, 8 so called because the
sand is analogous to management effort and resources. Building a stable sandcone needs
a stable foundation of quality, upon which one can build layers of dependability, speed,
flexibility and cost, see Figure 20.12. Building up improvement is thus a cumulative process,
not a sequential one. Moving on to the second priority for improvement does not mean
dropping the first, and so on. According to the sandcone theory: the first priority should
be quality, since this is a precondition to all lasting improvement. Only when the operation
has reached a minimally acceptable level in quality should it then tackle the next issue, that
of internal dependability. Importantly though, moving on to include dependability in the
improvement process will actually require further improvement in quality. Once a critical
level of dependability is reached, enough to provide some stability to the operation, the
next stage is to improve the speed of internal throughput. But again only while continuing
to improve quality and dependability further. Soon it will become evident that the most
effective way to improve speed is through improvements in response flexibility, that is,