SWOT Analysis helps to understand the internal and external factors associated with organisation. Strategic Planning for the development of the organisation are build with the help of SWOT Analysis.
SWOT stands for Strength, Weakness, Opportunities and Threat. For any improvement of an organisation and to move towards the achievement of vision, mission, goals SWOT helps to frame the strategy for the development.
Strength describes the positive factors the company in which it excels and also it shows the where we stand separate from our competitors. Some factors like assets, technologies, process, skills, knowledge, equipment’s, etc are identified and show our uniqueness from competitors. Strength is an internal factor.
Weakness describes the negative factors which stops the company in performing at its best. It should be written honestly so that we can take necessary actions to improve on those weakness. Some of the factors like debts, improvement required process, gaps in the team, less capital, old equipment’s etc. Why there is a lack in those factors will be examined and minimised. Weakness is an internal factor
Opportunities are the possible external factors and chances that contribute for the success of the organisation. Any changes in the government policies related to tax and any policies which brings positive changes in organisation. Possibilities of increasing trends in the market for our product. Any nearby events where the organisation can take advantage to receive benefit.
Threats are the external factor in the environment which have dangerous outcome to the organisation. The negative affect to the organisation from outside. Some of the factors includes competitors, increased money demand from suppliers, new technologies evolving, market trends, etc.
Once an organisation determines SWOT, they should develop strategies to overcome the negatives and benefits from the positives.
The meaning of Gemba in Japanese is “the real place” which is the place where the real work happens, where one can observe and analyse it.
It is developed by Taiichi Ohno. This concept allows executives to interact with the employees on the shop floor to build relationships upon mutual trust.
The three main important tools of Gemba are:
- Go and see: The leaders and managers at all levels to walk around the shop floor regularly to identify the waste in a process.
- Ask why: The objective of the Gemba walk is to understand the process in detail and identify the key problematic areas through effective communication. You can use 5 why technique to identify the root causes.
- Respect the people: Avoid blaming the people or pointing fingers. Coordinate with the employees find the problems and understand them deeply.
Seven steps to follow during the Gemba plan before you go to the shop floor to achieve your goals and objectives.
- Pick a theme and this will help in focussing on efforts to yield good results.
Ex: Productivity improvement, reduction of rework percentage, enhancing safety..etc.
- The team should be aware that the Gemba walk is a continuous improvement process, creating a comfort zone for the employees to collaborate easily.
- Focus on Processes: The purpose of Gemba is to observe, understand and improve process but not to blame others.
- With the value stream you will be able to identify the areas of potential improvements by eliminating the waste in the process.
- During a Gemba walk record all the observations & do not make instant suggestions. Once you collect all the information & analyse using PDCA cycle will help us in giving the better solutions to the problems.
- Involve one or two employees from different departments who are less familiar with the process under study that will have a different point of view and can identify the problems and can suggest solutions from out of the box thinking.
- Whenever there is no significant findings during the Gemba walk, share all your observations & learnings, keep the team informed about the changes and need for the change.
Prepare a checklist before entering the shop floor focussing on objectives & goals. The checklist should include questions to better understand the process.
- Builds better relationship with all the employees in the shop floor who create value.
- Enhances continuous improvement by identifying problems & taking actions on time.
- Improved communication across the organization about the long-term goals & Target’s
Quality improvement is a proactive way of modifying the process or designing the process in order to deliver the product or service with efficiency. It is structured approach by accessing the functional and operational areas. Understanding the requirement of customer and the process actual performance we measure our key performance indicator.
Still there will be random and non-random variations in the process which makes the process to attain new average. Hence it is very important to check for the chronic common cause variation in order to improve the process.
Edward Deming – the great quality guru said that “right data with right person in right format at right time “which implies that quality improvement I completely data driven Quality Improvement focusses toward the process and not on the people.
Deming believed that most of the problems happening in an organisation are due to process and systems and not fault of the employees. Correct the process so that the new person will not commit the same mistake. Nowadays all the organizations are focusses towards the quality improvement to save time, money, resource and mainly minimize the defects in the product or service.
Process improvement is continuous approach. Many quality improvement methodologies are available like Six sigma, PDCA, PDSA, Lean, etc.
Business process mapping
could be a thanks to visualize the business process and better understand how it works. A typical map outlines the roles, responsibilities, and standards involved within the process. It presents this data during a structured way that shows the steps of the method together with who is responsible, what the inputs and outputs are, and other information relevant to the method
Business process mapping could be a great aid in problem-solving. It visualizes the whole process, making it easier to determine what’s wrong and acquire straight to the basis cause. It also helps to visualise the roles of the people within the method and ensure everyone knows what to try to to. additionally thereto, business process mapping is great for locating the potential risks the method creates. Constructing a map causes you to rethink each step of the method and see if there are any liabilities hidden within.
Types of Process Maps
Whether you utilize business process mapping to determine the massive picture or to think about the small print, you'll choose a map that works best for your goal.
• Flowchart is that the most typical kind of a process map. While this process map is a smaller amount flexible, you'll easily draw it by hand or in software like MS Office. Flowcharts are often used for the creation of workflow diagrams.
• Swimlane diagram is analogous to generic flowcharts, except it's better structured in terms of who does what.
• Value stream map could be a more in-depth alternative to the flowchart. it's common for lean six sigma operations, and you will find it harder to research at a look.
• SIPOC Diagram (Supplier Inputs Processes Outputs Customer) is that the most visually simplified map. It focuses on the essentials of the method and therefore the people involved. By stripping all extra information, it defines a fancy project better in terms of its basic elements.
Steps to Successful Business Process Mapping
Step #1: Identify the method To Be Mapped
While it’s good to plan all of your processes, you've got to begin from somewhere. So, the primary step is to select the method you’d want to begin working with.
You probably want to begin with the method that’s critical to your business, the development of which may easily be tracked with numbers.
Generally, however, there are 3 ways to travel about selecting the process:
1. Reactive – this can be where a process has failed or is majorly underperforming, thanks to some kind of a bottleneck. You’d want to hold out mapping here as a way of identifying and fixing the difficulty.
2. Strategic – this can be when the mapping is being done as a part of a high-level strategic overhaul, within which case the method chosen are going to be one that's considered integral thereto strategy and therefore the organization’s goals.
3. Customer-Focused – and eventually, this can be when the method is chosen for mapping because it's key to making sure that customer satisfaction is improved and fixing problems or inefficiencies within that process will deliver a visual boost for purchasers.
Step #2: collect (The Right) Project Team
Even if you recognize the ins-and-outs of your business, you’ll still want to cooperate with the world employees who work with the strategy. Their input is also priceless on this, as they will have already got some ideas on the way to enhance the processes.
In addition, they’ll also act as evangelists for the initiative. Change tends to be scary for everyone – and a process mapping initiative may appear threatening to variety of the world employees. Who knows, maybe someone’s position will must be move increase efficiency? Involving them within the initiative will confirm that their voices are heard, putting the fear of being missed to rest.
You might also want to induce someone from the senior management on the team. Without one, you will must fire management approval on even the smallest changed you’d want to carry out.
Step #3: Gather Information
Once you’ve discovered what you'd wish to realize and which process you're visiting map, you'd wish to start out gathering the desired information. All of the steps must be identified and recorded, capturing who does what, when and therefore the way, gathering the utmost amount detail as is required to possess a comprehensive process map.
At this first stage, it is best to err on the side of getting an excessive amount of knowledge and filtering it down as you're employed through it, rather than end up with not enough and want to revisit the strategy.
Step #4: Interview Key Figures
As a component of the knowledge gathering, you'd wish to speak to the people involved to hunt out out what their understanding of their process is and to use what you revisit from them to identify the problems and thus the opportunities to boost.
You have to stay aware that staff will bring their own feelings and agendas into their descriptions of the way things work, but it’s still important to concentrate to them to induce a more robust understanding of the strategy that you simply just wouldn’t be able to get the opposite way.
Step #5: Produce The Baseline Business Process Map
With all of the mandatory data, it’s time to draw up the baseline map, one that shows how the tactic is currently operating, flaws and every one. this might demonstrate the way the tactic works before any improvements are made, so will act as both the evidence for what must change and might even be accustomed compare and contrast after a fresh process map has designed and implemented and as a tenet for mapping further processes within the future.
Utilizing Business Process Mapping software is that the simplest, more consistent, efficient and scalable thanks to draw up the map, because it'll have the tools to assist you analyze the findings. If you're not using software, here are style of the basic components of any Business Process Map that you simply just just will likely must include:
• Process – this might be the ultimate workflow
• Tasks – Each step of the workflow, usually something that has to be actioned by a member of staff or a system
• Flows – These are the connecting lines and arrows that describe how the work flows from task to task
• Events – These are the triggers or gateways that begin, redirect or end a process
• Participants – because the name suggests, these are the people or systems involved within the strategy
Step #6: Analyze & Identify Areas For Improvement
Even though you've your process map in hand, your work isn’t really done. What’s the aim of the map, after all, unless you really learn something from it & make some improvements. From your previous investigations, you’ve probably already identified a flow or two within the tactic as-is. With the map, however, you'll find lots more.
From then on, you’d want to hold out BPI or BPR, finding other ways to spice up the tactic (or maybe completely restructure it). Once you've an idea or two on how which may work, you’d want to implement the new processes on a smaller scale, and if it works better than the old, apply it to the remainder of the organization. If your employees are having difficulties adapting to the new process, you'll give them atiny low nudge by creating and communicating a fresh process map.
Step #7: Monitoring Improvements
Whether the Business Process Mapping is being done as a part of a way bigger overhaul of processes within your organization or not, you would like to start out proper monitoring of how your improved process is functioning.
Only through constant monitoring and optimization are you able to expect your processes to still be refined and improved, Business Process Mapping can not be a one-time thing which will be expected to mend all of your problems.
One Piece Flow
It is a method in which parts are moved through a sequence of operations from one step to another without work in progress by either one piece at a time or a small batch of parts at a time. This method is best applicable in a cellular layout where in all the required equipment’s are located in a confined location in order of parts moment.
If Parts are processed traditionally in batches it may result in
- Large volume of parts to be scrapped when a defect is identified as the WIP batches are larger in size.
- The lead time for manufacturing is high
- On time delivery is affected
- Results in high WIP
There is always a relationship for the flow of parts which can be a pull system, can be FIFO or one piece flow. The one piece flow meets the customer demands just in time (JIT).
The one piece flow best fits when we have the following conditions:
- The quality output of the processes should be consistent
- The variation among the processes should be minimal
- High equipment availability is mandatory
- Processes must be scalable to rate of demand from the customer
Advantages of One Piece Flow:
Following are the advantages of the one piece flow
- The work is completed at a faster rate than the traditional method
- Results in improved on time delivery with flexible product ranges
- The final quality of the product is enhanced when handled as one piece than in bulk
- Defects can be minimized as they are spotted partway during the process
Disadvantages of One Piece Flow:
- When you want to process different products the changeovers are difficult to suit every order.
- Though one piece flow enhances the speed of operation and cheaper to operate there is a chance that it may lead to demotivation of the employees for doing the same monotonous task
Leader: A leader is a person who get the things done.
Leadership is an observable set of skills and abilities and the ability to influence an individual or a group towards achieving goals and determining the right direction and path.
Management is doing the correct thing to stay on path.
Autocratic: It is a leadership style where leader is directive and makes decisions independently and announce to group.
Bureaucratic: Leader follows the organization rules exactly and expects everyone else to do so.
Democratic: Leader details the problem, define limits and ask group for decisions
Diplomatic: Leader present the decision to the group and ask for inputs and questions (original decision rarely changes)
Laissez Faire: Leader sets no limits and make no decisions, effective when the team is highly skilled and strongly motivated.
Participatory: Leader presents first draft to the group and then marks final decisions based on the inputs from individuals.
Empowering: Leader shares power and decision making with employees and enabling others by providing resources and support.
Transactional: Leader views the leader follower relationship as a process of exchange where performance achieved through rewards and punishment.
Transformational: Leader is able to inspire others to change expectations and motivations to work toward common goals.
Charismatic: Leader depends depend on personal charm to influence people.
The five practices of exemplary leadership model continues to prove its effectiveness as a clear evidence based path to achieving the extraordinary for individuals, teams, organizations and communities.
Inspired a shared vision: leaders passionately believe that they can truly make a difference.
Challenge the system: leaders search for opportunities to change. They look for innovative ways to improve the organization. In doing so they take risks and because they know that risk taking involves mistakes and failures.
Enable others to act: they actively involve others, they strengthen others, making each person feel capable and powerful.
Model the way: leaders establish principles. They create standards, procedures and the set an example for others to follow.
Encourage the heart: Achieving extraordinary things in an organization is a hard work, to keep hope and determination alive, leaders recognize contributions that individuals make.
TYPES OF DATA
2 Types of Data for six Sigma
Discrete numeric data of Six Sigma
Let’s take a more in-depth take a look at what discrete data means for 6 Sigma measure phase. Discrete data is additionally called attribute data. Discrete numeric data is countable within the sense that you just can count what percentage of something there are. you'll be able to count items with a particular characteristic, otherwise you can count the quantity of occurrences of an occurrence or incident (Count Data). Discrete numeric data is measured by the presence or absence of a specific characteristic of every device that's being tested during Six Sigma measure phase.
Examples of discrete numeric data for 6 Sigma measure phase would be:
• Number of individuals who pass a test
• Count of errors or number of errors on a bill
• Software errors during a software program
• Number of defects during a sample
• Number of days during a week
• Number of dimples on a golf equipment
• Number of individuals during a stadium or arena
• Number of parts damaged in shipment
• Number of hours during a day
Discrete (attribute) data
Let us now study what discrete attribute data means for 6 Sigma measure phase. Discrete attribute data is qualitative in nature. consider attributes as some way of categorizing or bucketing things. Let take a straightforward example. Animals may be a Cat, Dog, Rabbit or a Gerbil. A product ordered may be a CD, MP3 file or DVD. Not only are you able to count what percentage items have a specific attribute but you'll be able to also count what percentage items don't have a specific attribute. this could even be converted into a percentage. Now, allow us to study the three sorts of Discrete Attribute Data of Six Sigma measure phase.
Discrete ordinal data
The first type is discrete ordinal data. a group of information is alleged to be ordinal if the values/observations belonging thereto are often ranked or put so as or have a rating scale attached. Note that ordinal data are often counted and set so as but it can not be measured. as an example, “The third tallest person within the class” (We don’t know the way tall, only that there are two others taller than this person).
Let’s have a glance at another example. Suppose a gaggle of individuals was asked to taste kinds of biscuits and classify each biscuit on a rating scale of 1 to five. The rating scale of 1 represents “Strongly Dislike,” the dimensions of two represents “Dislike,” the dimensions of three represents “Neutral,” the dimensions of 4 represents “Like, ” and therefore the rating of 5 represents “Strongly Like.” during this case, a rating of 5 indicates more liking or enjoyment than the rating of 4. Such data are ordinal.
Discrete nominal data
The second type is discrete nominal Data. this kind of information is descriptive, and not numeric, with over two categories, as an example; names, phone numbers, colors, sort of car, capital cities and states. during a more general form, the data, assigned with labels or names, are considered because the data in nominal scale. Since each label or name indicates a separate category of the info, this data is additionally called ‘Categorical Data.’
Nominal data may also be equated to discrete values, for example, to differentiate among people like sales representatives, marketing representatives, etc. However, to keep up some anonymity, they may be coded and named a discrete number whereby Sally = 1, John = 2, Michael = 3, and Ricky = 4. Moreover, the data, associated with gender, race, religious affiliation, political affiliation, etc., are nominal data.
Discrete binary data
The third type is discrete binary data. it's a qualitative or categorical sort of data made from two classifications. as an example, Yes/No, Pass/Fail, On/Off, Male/Female, Good/Bad, Agree/Disagree, etc.
Continuous data of Six Sigma measure phase is additionally called variable data. Common continuous measures are time, money and any physical measurement like weight, height, length or temperature. Continuous Data can tackle any value on an eternal scale like temperature, distance, cycle time, profit. this can be a kind of information that's usually related to some kind of physical measurement. Continuous data or measures are only those things that may be measured on an infinitely divisible continuum or scale.
The examples for continıus data of Six Sigma measure phase are as follows:
• Time (Hours, Minutes and Seconds)
• Height (Feet, Inches, Fractions of an in. then on)
• Sound Level (Decibels)
• Temperature (Degrees Celcius and Fahrenheit)
• Electrical resistance (Ohms)
• Money (Dollars, Yens, Euros, and fractions thereof)
let’s see how we are presupposed to read this table. take a look at the primary column titled ‘Measurement.’ within the first row, the target is to live the time of the day. The units of measurement are hours, minutes and seconds. it's a bit of continuous data. Moving on within the same row, ordinal data for measuring the time of the day has been noted as 1, 2, and three without indicating any order among them. we will count 1, 2, 3 as 1 hour, 2 hours, 3 hours, etc. it's a bit of discrete ordinal data. Nominal data isn't applicable to be measured against the time of the day. within the case of binary data, the time of the day are often measured as am/pm only. The time during the day are often expressed either as am or pm. It’s simply a close-ended answer.
Common Cause Variation and Special Cause Variation
Common cause variation which is also known as natural variation or expected variation or random variation in the process .This common cause variation occurs on day to day basis which occurs randomly. Presence of common causes helps to inform us that process behaves healthy. Common causes will occur inside the control limits of the process.Inorder to improve the process; one should focus on reducing the common cause’s occurrence as it acts as chronic.
Examples of common cause variation: Measurement errors, noise issues, wear and tear are common in manufacturing industries
Special Cause Variation which is also known as unusual or non-random variation or unexpected variation in the process. These causes occur in rare scenarios and also not welcome. Special cause variation occurs outside the control limits of the process. If not treated immediately, this will lead to the process failure. Special causes are quite commonly called as Outliers. Special cause variation makes process to take too larger variation or too smaller variation than the average variation.
Examples of Special Cause variation: Power cut, Machine failure, Poor Weather condition
Visual Management is a technique used to communicate effectively the requirements and standards which need very little time to understand. It can be used as in any domain.
It not only displays the information’s but also highlights the problems and prevents them from reoccurring.
Standardizing the work:
Visual management builds standard processes. All the processes are continually improved by standardizing them and new standards are evolved with the business changes.
Sharing the standard work:
The standardised work has to be shared across the organisation for effective implementation of visual management which enhances stability by eliminating the waste in the process.
Highlight the problem:
The main objective at this stage is to highlight the problems as & when they occur. The problems are highlighted on visual management boards on timely basis.
Solving the problems:
Once the problems are highlighted on the visual management boards it initiates the analysis of problems which accelerates the process of finding quick solutions to the problems.
Benefits of Visual Management
Visual management helps to communicate the information within 30 seconds.
Centralized visual information with all the latest updates on targets, problems, and solutions are kept readily available.
As the problems are highlighted and analysed by using the tools like root cause analysis & brainstorming quick solutions are feasible.
Each individual is directly/indirectly made accountable for the goals/targets & tasks on timely basis which enhances the team performance.
By effectively utilising the resources & completing the processes on time significantly impacts on the waste reduction by using visual management.
What is control Chart?
As a matter of fact, we've variations everywhere, no process is without variation. this implies that there is no common cause variation or special cause variation. within the control charts, we see how these variations impact our process over a period of your time, whether our process are going to be up to the mark or will cross the method boundaries. Control charts help us in visualizing this variation. Control charts have one central line or mean line (average), and so we've the Upper Control Limit (UCL) and Lower Control Limit (LCL). The upper control limit and lower control limit are three variance distance from the middle line in each side. we will have the upper warning line and lower warning limit also. Now the question is which is that the two variance in distance from the central line? The one which alarms us if data points crossing this limit, this will make the method unstable.
How to create and use an control Chart?
We can create an control chart while using the Minitab, we want to enter the information in Minitab and use the control chart as per data types.
If we don't have a Minitab, we will make it in Excel. In Excel, we want to enter all the information points and cast off the common of information points, then determine the quality deviation with variance formula. We last till we reach 3rd variance and so use the graph.
The above example is for a straightforward I-MR chart, which we will make and use it for continuous data types.
When to use an control Chart?
• We can use an control Chart, at the starting of a project or whenever we wish to determine the VoP. While seeing the VoP we will even find the rationale for running the project.
• We can see process improvement too by employing a Control Chart towards the top of the project. this is able to also help in determining whether the project is successful or not.
• A Control Chart also helps in checking the method stability and verifying whether the method is stable enough to boost and make necessary improvements within the process wherever required.
Four Process States in a Control Chart
The 4 process states in a very Control Chart are discussed below:
1. the best state: this is often where the method is up to the mark and every one the information points represent the control limits. there's no non-conformance.
2. the brink state: Although data points are up to the mark, or the method is stable, however, some non-conformance happen over a period of your time.
3. The Brink of Chaos state: during this, the method is in control; however, it's on the sting of committing errors.
4. and also the fourth stage is when the method is Out of Control and that we have unpredictable non-conformance.
Types of Control Charts
Control Charts are basically of seven types, because it all depends upon the information type. If we've a continual data type, then we will use 3 styles of Control Charts i.e. I-MR Chart, X Bar R Chart, and X Bar S Chart.
If we've a discrete data type, then we use the 4 styles of Control Charts: P, Np, C, and U Charts. of these types are described as below:
• I – MR Chart
We use the I-MR charts once we cannot do the subgrouping of the information, thanks to not much data points, or even the merchandise takes long cycle time to provide, then we will use the I-MR chart, which implies Individual Moving Range Chart. Here, initially we see the information points within the Control Chart and so their difference within the chart.
• X-Bar R Chart
When we have 2 or over 2 subgroup size then, this is often getting used for continuous data. the quality chart for variables data, X-bar and R charts help to see if a process is stable and predictable. within the X bar graph, X indicates the mean of all the subgroups within the chart, whereas R indicates the range of all subgroups within the chart.
• X Bar S Chart
In the X Bar S chart, we use it to test the mean of the subgroups and also the variation of the method. it's getting used for over 2 subgroups size and might even be used for over 10 subgroups.
The above-mentioned charts are getting used for continuous data. Let’s now march on to discrete data. For discrete data, we've 4 styles of charts, since discrete data is segregated into two parts, (i) defects and (ii) defective and it varies depending upon the constant subgroup size.
• P and Np Control Charts
The P and Np charts are used for defective data to test the method stability while seeing the defective data points. the most difference between the P and Np is P chart is employed when sample size varies, whereas Np chart is employed when the sample is constant.
• C and U Control Charts
The C and U charts help to test the soundness in a very single unit, which could have over one defect. for instance, the quantity of defects in one pen. Here also, we will see the defects on the identical size of the sample or it can vary on other samples.
C Control Chart is employed when there's over one defect and also the sample size is fixed. While U Control Chart is employed for over one defect and if the sample size isn't fixed.