Focusing Process Improvement


Few customers like to have to wait because your system is obviously not functioning effectively or a breakdown has occurred. Rightfully so, they view their time as valuable. It is unfair to expect them to patiently wait,. Such defects should be handled when the customer is not present. Service to the customer should be seamless. They should get great service and never have to worry about your problems or breakdowns in your process. When breakdowns do occur, they should be fixed quickly and the customer relationship smoothed over. Additionally, it is important that customers will react differently in different situations.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Overproduction


Overproduction is regarded as the most serious waste as it discourages a smooth flow of goods or services and is likely to  inhibit  quality and productivity. Such overproduction also tends to lead to excessive lead and storage times. As a result defects may not be detected early, products may deteriorate and artificial pressures on work rate may be generated. In addition, overproduction leads to excessive work-in-progress stocks which result in the  physical dislocation of operations with consequent poorer communication. This state of affairs is often encouraged by bonus systems that encourage the push of unwanted goods. The pull or Kanban system was employed by Toyota as a way of overcoming this problem.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Cause Marketing


This is one category of nontraditional marketing. It refers to the identification and marketing of a social issue, cause, or idea to selected target markets. Cause marketing covers a wide range of issues, including literacy, physical fitness, gun control, family planning, prison reform, control of overeating, environmental protection, elimination of birth defects, child-abuse prevention, and punishment of drunk drivers. It is an increasingly common marketing practice that is for profit-seeking firms to link their products to social causes.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Post-sale Customer Loyalty


Maintaining the loyalty of major current customers can be crucial for improving a business’s profitability as its markets mature. Loyal customers become more profitable over time. The firm not only avoids the high costs associated with acquiring a new customer, but it typically  benefits because loyal customers a) tend to concentrate their purchases, thus leading to larger volumes and lower selling  and distribution costs, b) provide positive word-of-mouth and customer referrals, and c) may be willing to pay premium prices for the value they receive.

Periodic measurement of customer satisfaction is important, then, because a dissatisfied customer is unlikely to remain loyal to a company over time. Unfortunately, however, the corollary is not always true. Customers who describe themselves as satisfied are not necessarily loyal. Indeed, 60 to 80 percent of customer defectors in most businesses are “satisfied” or “very satisfied” before their defection. In the interim, perhaps, competitors improved their offerings, the customers requirements changed, or other environmental factors shifted. Businesses that measure customer satisfaction should be commended, but urged not to stop there. Satisfaction measures need to be supplemented with examinations of customer behavior, such as measures of the annual retention rate, frequency for purchases, and the percentage of a customer’s total purchases captured by the firm.

Defecting customers should be studied in detail to discover why the firm failed to provide sufficient value to retain their loyalty. Such failures often provide more valuable information than satisfaction measures because they stand out as a clear, understandable message  telling the organization exactly where improvements are needed..

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Crisis Communication


One of the most visible functions of the PR department is to help management plan for and respond to crisis. A good PR professional looks for potentil problems, constantly scans the business environment, then alerts management to the implications of such problems, and suggests the best course of action.

Disasters of earthquake proportions fall into the category of public relations nightmares created by sudden , violent accidents. Plane crashes, oil spills, chemical leaks, and product defects all belong to this group. The other type of crisis is the sort that builds slowly and occurs because of a company’s conscious, but ill-founded, decisions.

Whn disaster strikes , a defensive posture is generally counterproductive. The best course is to be proactive, admit your mistakes and apologize.

When disaster hits most companies respond, to some degree, through their public relations department, but they often ignore the audience that is likely to be hit hardest—employees. To minimize the impact of any crisis on employees, be sure to communicate honestly, openly, and often, actively encourage employees to share their concerns, and use caution when sharing personal opinions.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

Benchmarking


We cannot become what we want to be by remaining what we are. Shift from the original status is the key for success.

If a company is loosing the market (or) customers, the company has to realize that somebody is doing well ahead. So it is necessary to find out the ways to get their competitor’s level and have to beat them to retain the market and customers. An ideal tool to meet this level is benchmarking.

Benchmarking is a way to go backstage and watch another company’s performance from the wings where all the stage tricks and hurried re-alignments are visible. It is the practice of being humble enough to admit that someone else is better at something, and wise enough to learn to how to match and even surpass, them at it.

It is the process of identification, understanding and practicing the outstanding practices and processes from organizations anywhere in the world to help the organizations to improve its perfomance.

While benchmarking, it is not ethical to benchmark a product with another. This will give only the numerical values of weight, width, height, number of defects and number of rejections. But the objective is to benchmark a process with the best processes anywhere in the world having that best product as a target.

Benchmarking is not copying or imitating. This involves observing and learning from others. it is not a time-bound event. It is a continuous journey and an ongoing process without end, till the company is existing. The more we split the process into small segments the more will be the value added to each individual process. This is the key feature of benchmarking.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

Deming’s 14 Obligations


Many people helped develop quality management, and some of the early ones are called the ‘quality gurus.’ Perhaps Edwards Deming was one of the best known. He did a lot to publicize TQM. But was concerned that organizations did not get the benefits they expected. To help them on the way, he compiled a list of guidelines called his ’14 obligations.’ They are:

  1. Create constancy of purpose towards product quality.
  2. Adapt the new philosophy of higher quality, refusing to accept customary levels of defects and errors.
  3. Stop depending on mass inspection, build quality into your product.
  4. Don’t award business on the basis of price only – reduce the number of of suppliers and insist on meaningful measures of quality.
  5. Develop programs for continuous improvement of your products and processes.
  6. Train all your employees.
  7. Focus supervision on helping employees to do a better job.
  8. Drive out fear by encouraging two-way communication.
  9. Break down barriers between departments and encourage problem solving through teamwork.
  10. Don’t use posters and slogans that demand improvements without saying how to achieve them.
  11. Eliminate arbitrary quotes and targets that interfere with quality.
  12. Remove barriers that stop people having pride in their work.
  13. Have programs for lifelong education, training and self-improvement.
  14. Put everyone to work on implementing these 14 points.

Deming’s 14 points are not a program that has fixed duration, but the give a new way of thinking in your organization. They are certainly not the only possible view, but they do give some useful guidelines.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, www.youtube.com/asifjmir, Line of Sight

Inspect Products at the Right Time


Inspections used to be left until the later stages of the process – often just before the finished products were delivered to customers. As there was more chance of a product being faulty by the end of the process, all defects could be found in one big, final inspection. But the longer a unit is in a process, the more time and money is spent on it – so it makes sense to find faults as early as possible before any more money is wasted by working on a defective unit. It is better for a baker to find bad eggs when they arrive at the bakery, rather than use the eggs and then scrap the finished cakes.

Your first quality control inspections should come at the beginning of the process, testing materials as they arrive from suppliers – and there is a strong case for inspections within suppliers’ own operations. Then you should have inspections all the way through the process to the completion of the final product and its delivery to customers. Some particularly important places for insperctions are:

  • On raw materials when they arrive;
  • At regular intervals during the process;
  • Before high-cost operations;
  • Before irreversible operations, like firing pottery;
  • Before operations that might hide defects, like painting;
  • When production is complete;
  • Before shipping to customers.

This may seem like a lot of inspections, but remember that most of them are done by people working on the process. Quality at source means that the products are not taken away for testing in some remote laboratory, but are checked at each step before being passed on the next step.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Principles of Quality Management


Vision-based:

  • Vision will give a sense of direction.
  • Vision will motivate human resource.
  • Vision will help the organization to stay focused.
  • Without vision an organization will fail.
  • Absence of vision will lead to confusion.

 Customer-focused:

  • Open economy has given away monopoly. It is buyer’s market which is in existence now.
  • Without customers no business can exist.
  • Internal customer orientation will improve productivity.
  • One dissatisfied customer can create havoc by unprecedented actions.
  • Retention of customer is the key issue in business.

 Prevention oriented:

  • Prevention is better than cure is a well acknowledged phrase.
  • Prevention orientation will take one nearer to ‘Zero Defects’ status.
  • Foolproof prevention techniques such as ‘Poka Yoka’ are available.
  • Corrective approach calls for costly monitoring mechanism.
  • Correction does not stop recurrence.

 Scientifically approached:

  • Scientific methods are based on fundamental or derived laws of mathematics and science and hence the foundation is strong.
  • Scientific methods are well proved over the years and hence chances of going wrong is remote.
  • Use of scientific methods gives a sense of pride and improves the self esteem of workers.
  • Unscientific methods make one ti depend on the previous experience, which may bot be appropriate.
  • Logical reasoning which may not always be appropriate is avoided in scientific methods.

 Process given more importance than end results:

  • End does not justify means.
  • Proper means will ensure quality result.
  • Zero defect is possible only if the processes are perfect.
  • Process orientation will make workers more responsible.
  • Result orientation will end up with huge los as all the defects are to be rejected.

 Data-based analysis:

  • Data-based approach will always give the best insight to the problem and solution.
  • Information-based or knowledge-based approach may mislead at all times.
  • Data collection is a strenous process; however the returns will be higher.
  • In many situations the raw data themselves will provide solutions to problems or at least provide useful clues.
  • Data collected and documented for one specific purpose, can well be used for some other purpose, thus providing a databank or multiple applications.

 Continuous improvement strategies

  • No one at any point of time can say that ‘Perfection’ has been achieved. Even six sigma companies talk about 3 ppm defects. Hence there is always scope for improvement in everything. Quality improvement is a never ending process.
  • The world has become so competitive that dynamism should reflect in every facet of business, even in product development.
  • Crativity and innovation are the order of the day in business circles.
  • Established tools such as ‘benchmarking’ are available for continuous improvement.
  • Improved products will have a cutting edge in the market.

 Cost conscious attempt:

  • ROI (Return on Investment) is the performance index for any business enterprise.
  • The visible quality costs are like the tip of the iceberg. There are plenty of hidden  costs that go unnoticed.
  • Quality is free, meaning poor quality costs can be offset by good quality profit margin.
  • Affordability is the key factor for customers and profit margin is the key factor for manufacturers.
  • Prevention which could be done with $1 is missed, the failure/defects due to that will cost the company $10. the cost ratios are so high.

 Documentation for traceability

  • Stakeholders ae assured of the quality through documentation.
  • Traceability is effective and easy with documented information.
  • Documentation will amount to standardization.
  • To err is human; documentation helps in curbing human errors.
  • Role clarity is ascertained which reduces workplace confusion.

 Reward/Recognition assured

  • Recognition is one thing that every human being long for.
  • Motivation is the key factor for sustaining quality initiatives.
  • Rewards may be helpful in motivating non-performers to join quality initiators.
  • Disinterest in the job being done is the main culprit for low productivity and poor quality.
  • Human component plays a major role as compared to system component in quality initiatives.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Six Sigma


Six Sigma is a statistical measure used to ensure quality of products and services. The six sigma academy has developed a break through strategy consisting of measure, analyze, improve and control, that allows companies to make exceptional bottom-line improvements. In addition to the material and labor savings, which flow directly to the bottom line, a company engaged in six sigma can expect to see:

a. Improved customer satisfaction

b. Reduced cycle time

c. Increased productivity, Reduction in total defect

d. Improved process flow.

Implementing, six sigma program in manufacturing means more than delivering defect-free product after final test or inspection. It also entails concurrently maintaining in process yields around 99.9999998 percent, defective rates below 0.002 parts per million and virtually eradicating defects, rework and scrap. Other six sigma characteristics include operating processes under statistical control, controlling input process variables, rather than the usual output product variables, maximizing equipment uptime and optimizing cycle time. In a six sigma organization, employees assess their job functions with respect to how they improve the organization. They define their goals and quantify where they are currently, their status quo. Then they work to minimize the gap and achieve six sigma by a certain date.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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