Helping industry towards

continuous improvement
The UK CIRCA project

J. Bessant, J. Burnell, R. Harding and S. Webb

The CIRCA project ('Continuous Improvement, Research for Competitive

Advantage ') is an innovative collaboration between industrial and
academic partners to enable industry to harness and exploit its most
valuable resource - the creativity and enthusiasm of its employees. The
authors discuss the principles and components of CIRCA in the context of
the significant potential offered to industry by the introduction and
development of continuous improvement.
The authors are with the Centre for Business Research, Brighton Business School, Falmer,
Brighton BNt 9PH, UK. Tel: +44273600900. Fax: +44273685896.

Continuous improvement (CI) is not a new
phenomenon. Examples of the approach can be
found back in the 19th century, and it was clearly an
important factor during the second world war in
mobilizing the energies, enthusiasm and creativity of
factory workers towards solving the urgent problems
of high-quality, high-output production for the war
effort. In recent years, it has become clear that parts
of Japanese industry (for example, the motor and
electronics industries) have been able to achieve
extremely high performance levels through the
systematic application of the principles of Clover a
sustained period of time.
CI is a simple concept which can be applied to
improvements across many dimensions of
manufacturing. For example, it has been used to
demonstrable benefit in improving quality,
flexibility, delivery performance, service
performance, product development cycles and
inventory management. As such, it can find
applicability in all types of organization and across
the entire spectrum of industrial sectors. It is also an
attractive concept because it is low in capital
intensity: it depends for its success not on expensive
machinery but on harnessing the creativity and
enthusiasm latent in all employees of the
organization.
Collaboration between industrial and academic
partners is providing an ideal forum for pre-
competitive research investigating and exploring the
concept of CI. The role of the academic partner is
such that it provides an interface between the
industrial companies by mapping the needs of the
companies and matching these needs to the
experience of others. This helps to promote an
experience-sharing environment that is non-
threatening to all concerned.
The need for research
The Manufacturing, Organizations, People and
systems initiative (MOPS) of the UK Department of
Trade and Industry (DTI) is concerned with
promoting industry-led research, and with ensuring
the dissemination of useful lessons, tools and
techniques to industry. Typical MOPS projects focus
on the people and organizational aspects of
manufacturing enterprises, exploring how
competitive advantage can be created and sustained
through their development. This article describes a
research project which will explore the topical issue
of creating and sustaining continuous improvement.
CI is of interest to all firms across the manufacturing
spectrum. Since it implies relatively little in the way

0950-4222/92/030185-05 © 1992 In Print Publishing Ltd 185

Helping industry towards continuous improvement
of capital investment, it is also of particular
relevance to small and medium-size enterprises
(SMEs).
The main theme of the research is that
considerable competitive success can be gained
through a continuous stream of incremental
improvements made over a sustained period of time.
Experience and research have demonstrated the
significant potential of CI to enhance
competitiveness across several dimensions, such as
productivity, quality and flexibility. It is for these
reasons that a collaboration between academic and
industrial partners has been formed. The academic
partners bring their research skills and provide a
non-threatening interface between industrial
collaborators who bring their experiences.
At its heart, CI is an organizational innovation,
requiring the mobilization and commitment of all
employees within a firm. Experience in the UK has
shown that CI can work, but its introduction and
successful management is not automatic - hence the
need for research on the topic. The project
'Continuous Improvement, Research for
Competitive Advantage' (CIRCA) of the Centre for
Business Research has three principal aims:
• To identify the processes whereby CI can be
created and sustained.
• To develop a methodology for establishing and
maintaining CI.
• To develop a 'toolbox' of techniques to support
such a methodology.
Under the umbrella of CI there is clearly a wide
range of potential research projects. The CIRCA
project will contribute in the following ways:
(i) Through the development of a generic
methodology which will provide the framework
for initiating and sustaining CI in any firm. This
will be developed from a synthesis of prior
experience, research results and the findings and
deliverables of other groups, both academic and
industrial, working within and outside the
MOPS progamme.
(ii) By carrying out detailed 'action research' with a
group of collaborating firms on five key problem
areas within CI which have been identified by
the group as important. The primary focus for
all of these activities is the shop-floor and
emphasis will be placed on the development of
robust and usable tools suitable for this
environment. The specific research areas are:
(a) developing problem finding and focusing
tools; (b) developing effective communication
mechanisms for use within CI programmes; (c)
186
developing mechanisms for maintaining CI in
the longer term; (d) developing an effective and
usable process for capturing organizational
learning from CI activities; and (e) developing
suitable shop-floor level measures, benchmarks
and presentation methods for CI projects.
(iii) Assembling a 'toolbox' of inputs to support the
process described in (i) and (ii) above. Many of
the relevant tools may already have been
developed or form part of the research activity
of other projects within MOPS and beyond (for
example, work funded by ACME (Application
of Computers in Manufacturing Engineering) or
the Joint Committee of the Science and
Engineering Research Council/Economic and
Social Research Council (SERC/ESRC), or
under other DTI programmes such as
Manufacturing, Planning, Implementation or
Managing in the 90s).
Structure of CIRCA
The project is a two-year, pre-competitive,
collaborative research project involving a
consortium of industrial, consultancy and academic
partners. There will be two axes to the programme:
• Detailed 'action research' within a small core
group of companies, learning by introducing and
experimenting with CI projects and sharing
experiences.
• A wider network of companies interested in, or
practising CI, which will provide the opportunity
for sharing experience and enhancing the
diffusion of good practice.
The project is led by Lucas Car Diesel Systems, who
already have extensive and widely recognized
experience in the field of continuous improvement.
Day-to-day project management is carried out by
the Centre for Business Research (CBR) (where the
academic research team is based) liaising closely
with Lucas.
Project questions
Developing problem finding and focusing tools. At
the operational level, CI programmes need to have
robust mechanisms to enable shop-floor groups to
find and prioritize the problems on which they will
work. This becomes increasingly important as the
'obvious' problems are dealt with and the
momentum of the CI project begins to tail off. There
are a variety of simple tools already available for
problem finding and focusing and the intention is to
evaluate these and to develop and test additional
tools to support this activity.
INDUSTRY & HIGHER EDUCATION September 1992

Developing effective communication mechanisms for
use within CI programmes. Communication is
essential to the success of CI programmes, both in
terms of providing a mechanism for the sharing and
building of commitment to strategic goals and at the
level of experience and knowledge sharing between
CI groups. A variety of options (both formal and
informal) exists for communication and the research
activity here will evaluate these in terms of their
appropriateness and effectiveness in supporting CI
and, if necessary, specify and develop alternatives.
Developing mechanisms for maintaining CI in the
longer term. A major reported difficulty with CI
programmes is the loss of momentum over time.
While it is relatively easy to create enthusiasm and
commitment to a CI project, the evidence suggests
that after a short 'honeymoon' period in which
considerable improvements can be made, the energy
and commitment to the concept fall off. Thus there
is a need for closer research into the causes of this
and the development of tools to support the 're-
ignition' of CI programmes on a regular basis.
Developing an effective and usable process for
capturing organizational learning from CI activities.
There is a risk in large-scale CI programmes
involving many problem-solving groups that there
may be duplication of effort and 're-invention of the
wheel'. For CI to make its full contribution, there is
a need to develop mechanisms to capture learning
for the organization as a whole, so that problems of a
similar nature to those already solved elsewhere can
benefit from prior experience. The research here
will explore and evaluate the range of mechanisms to
facilitate such learning capture.
Developing suitable shop-floor measures,
benchmarks and presentation methods for CI
projects. To sustain CI programmes, it is necessary
to develop robust and usable measures for indicating
the extent of improvement, and to make this
information widely visible. The research in this area
will concentrate on identifying existing measuring
approaches and developing alternatives where
appropriate.
The output from this will be a state-of-the-art review
of experience with continuous improvement in the
UK. This report will provide an early deliverable
from the project and will be disseminated through
the CIRCA CI Industrial Network (see below) and
via publication to industry.
It is our aim to co-ordinate these existing and
INDUSTRY & HIGHER EDUCATION September 1992
He/ping industry towards continuous improvement
emerging inputs rather than re-invent the wheel.
Thus a by-product of the research will be an
integrating framework to link much current research
activity. A key deliverable will be a user interface to
this array of resources and tools, to enable the firm
implementing CI to make most effective use of a
wide range of research findings to support their
activities. Many relevant tools have already been
developed or form part of research activities of other
projects. We are aware of work in several areas
which might form an input to such a toolbox: this
includes projects on developing tools for strategy
formation and review, inter-firm relationship
mapping and measuring, cell management,
teamworking and robust problem-solving tools for
the shop-floor.
There will also be considerable demonstration
effect, through case histories, demonstrator sites,
etc, which will show the benefits offered by
continuous improvement and ways in which it might
be implemented.
The industrial-academic consortium
The CIRCA consortium emerged through extensive
discussion with a number of interested organizations
who recognized the potential value of CI within their
own operations, but also saw the need for research
and experience sharing to enable the process to
operate effectively. A workshop provided an
opportunity to discuss outline project proposals in
greater detail and enabled the identification of a
core group of companies which have formed the
main consortium, and a wider list of interested
organizations which forms the basis of our CI
network.
At the outset it was recognized that CI could be of
particular benefit to SMEs, and one of the project
aims is to provide a methodology and toolbox to
enable SMEs to start and maintain the CI process.
This does not mean that larger companies will not
benefit. In developing the toolbox it will be
necessary to draw upon the extensive body of
experience already existing in larger organizations
which are some way down the CI route, and to find
other organizations with skills in software and
training technology development to aid in the
dissemination process.
Selection of partners for the core group reflects
these concerns, and the consortium includes SME
test sites (where the methodology and toolbox will
be piloted), large experienced user firms, an
academic institution providing the research skills
and project management, and organizations with
187
Helping industry towards continuous improvement
skills in developing and disseminating the findings.
A number of organizations, with a wide variety of
experience, expertise, resources and skills, have
been involved in the development of this project.
Membership of the core group, together with an
indication of their status and role in the project is as
follows: Lucas Car Diesel Systems (Lead Company
and focus for research on communication; Centre
for Business Research (academic partner, day-to-
day project coordination and management, and key
research activities); Chessell Ltd (small electronics
firm, part of larger Eurotherm group, focus for
research on problem finding and focusing tools);
Concord Lighting Limited (medium-sized firm,
currently part of larger GTE group, focus for
research on measuring and benchmarking); Crendon
Group Ltd (small fabrications firm, main role as a
test site for the generic methodology); IBM Havant
(two main roles - as an experienced user and as a
developer of software and other de liverabIes to
support consultancy activities in CI); Intek Europe
Ltd (small training technology firm, main role in
developing suitable deliverable products from the
research outputs). It is also anticipated that some
SMEs within the network will become involved in
the core research as test sites for the methodology.
Deliverables
The CIRCA project will produce a number of
deliverables which will enable industry to exploit
more effectively the opportunities offered by CI.
Specifically, these are as follows.
A generic methodology/framework for initiating and
sustaining C/. This, and the toolbox described
below, will be included in a prototype training and
development package which will be further
developed and marketed commercially by several of
the core collaborators.
A 'toolbox' of resources (tools, packages, techniques,
etc) to support C/ programmes. Many of these tools
are already available or are under development
within the MOPS initiative or elsewhere. The main
deliverable of the CIRCA project in this connection
will be to integrate them into a common resource
and to provide a user-interface to assist
identification and selection of the most relevant and
suitable tools for particular CI problems in particular
contexts.
Specific tools. Arising from the CIRCA activities,
specific tools wiIl be developed to support CI
activities in five key areas:
188 INDUSTRY & HIGHER EDUCATION September 1992
• A set of tools/techniques and a selection guide to
assist shop-floor CI groups in finding and
selecting problems. This will take the form of a
paper-based manual or workbook and a set of
training inputs to develop problem-finding skills
and to enable users to make use of the full range
of options. Software support for the selection of
tools wiIl be explored during the research.
• A communications management workbook to
assist in diagnosis of needs, selection and
matching of the most effective communication
routes for CI programmes. Again this will be
supported by a training programme and the
research project will deliver a prototype training
package.
• A model process, supported by a management
workbook, for ensuring the long-term
maintenance of CI programmes. This will
include inputs on reward system management,
strategy review and goal setting and motivation
of CI groups.
• A set of measurement or benchmarking aids for
use within CI programmes. This will take the
form of a handbook for CI group users,
indicating the kinds of approaches available in
measurement of a wide variety of improvement
areas, mechanisms for involvement in the
collection and interpretation of data, and
options in the presentation and display of
performance against these measures. This will
be supported by a training programme and the
research project will deliver a prototype training
package.
• A management report on the problem of
capturing organizational learning from CI
programmes. This will review the scope for
transferring and accumulating experience from
within many small innovation projects, and
explore existing and potential mechanisms for
effecting this. It is unlikely that the fuIl scale of
this problem could be covered within the
timeframe of the CIRCA project presented here,
but the report will specify routes forward for
further research and tool development.
Dissemination. In addition to the above deliverables
from the research, the CIRCA project will engage in
a number of dissemination activities, including: the
preparation of user case studies of CI
implementation and application of the methodology;
the establishment of several demonstrator sites
available for visits by other UK firms to see CI in
action; the organization of workshops (some of
which wiIl be held at user sites and will present the

results of the CIRCA project and the relevant
deliverables); and the publication of research results
through trade, technical and academic media.
The network
In addition to the detailed action research proposed
in the above-mentioned companies, a wider network
of organizations, both industrial and academic,
interested and/or involved in CI is proposed. The
function of the network will be to share experience
and provide a forum for discussion. This will be
achieved through a combination of quarterly
workshops on CI topics, a regular CI Bulletin, site
visits to firms within the network to share
experiences of CI, presentation of interim research
results, etc. The network is currently being formed.
Benefits for participating network companies
include:
• Opportunities to share experience with other
companies (including visits to demonstrator
sites).
• Regular workshops and presentations on CI
topics and experiences.
• A regular newsletter and briefings on
developments in CI research.
• Access to the project database of published
experience on CI.
• Information about the 'toolbox' and
methodology developed in the project.
• Access to the researchers.
In addition, it is envisaged that a satellite project of
CIRCA will be launched under the MOPS initiative.
This project will be located in the north-west of the
UK and represents an attempt to take account of
cultural and other regional differences in
implementing CI, and to provide more local support
for northern companies interested in the area. The
INDUSTRY & HIGHER EDUCATION September 1992
Helping industry towards continuous improvement
structure of the north-west project will be similar to
that of CIRCA, and it will provide inputs to the
'toolbox' outlined above: the particular focus of
research within that consortium will be the
development of robust problem-solving tools and
approaches for shop-floor CI groups. Regular
meetings between the two projects and participation
in the network arrangements will ensure close
integration of research process and outputs.
Summary
Continuous improvement represents a major
opportunity for industry to harness its most precious
resource - the creativity and enthusiasm of its
employees. The potential of the concept is widely
recognized, but there is a clear need for research to
help manage the process effectively. From prior
research and from discussions at various workshops
and subsequently with partners within the core
group, it is clear that industry needs both a
framework for CI and tools to help support the
process.
To date this type of academic-industrial
collaboration is proving to be a successful recipe for
action research and organizational learning within
industry. Without such a collaborative project it is
unlikely that a suitable toolbox of the kind envisaged
could be developed. The associated risk to the users
within the consortium relates to the implementation
and testing out of tools and methodology, while for
the software vendors it lies in the fact that the
emerging products have long-term development
potential (rather than offering a short-term return).
The wider network provides a mechanism for
ensuring that what is developed is a generic solution,
and that all aspects of the CI problem are adequately
covered: it would be impossible to provide this kind
of testing from within the core group of companies.
189