Gap Analysis


Gap analysis is a statistical technique with immense power under certain circumstances. Its maps of the market are used to determine how various products are perceived by how they are positioned on the market map. On any map the items plotted tend to cluster here and there, with open space between them. These open spaces are gaps, and a map that shows gaps is, not surprisingly, called a gap map.

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.

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Checklist for Processes Improvement


Improvement is made by:

  • Viewing all work as a process, whether it is associated with production or business activities.
  • Making all processes effective, efficient, and adaptable.
  • Anticipating changing customer needs.
  • Controlling in-process performance using  measures such as scrap reduction, cycle time, control charts, and so forth,
  • Maintaining constructive dissatisfaction with the present level of performance.
  • Eliminating waste and rework wherever it occurs.
  • Investigating activities that do not add value to the product or service, with the aim of eliminating those activities.
  • Eliminating nonconformities in all phases of everyone’s work, even if the increment of improvement is small.
  • Using benchmarking to improve competitive advantage.
  • Innovating to achieve breakthroughs.
  • Incorporating lessons learned into future activities.
  • Using technical tools such as statistical process control, experimental design, benchmarking, quality function deployment, and so forth.

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.

Good Maintenance


Good maintenance is fundamental to productive manufacturing system; try running a production line with faulty equipment. Total productive maintenance is keeping the current plant and equipment at its highest productive level through cooperation of all areas of the organization. Generally, the first task is to break down the traditional barriers between maintenance and production personnel so they are working together. Individuals working together without regard to organizational structure, using their skills and ingenuity, have common objective—peak performance or total productivity.

This approach does not mean that such basic techniques as predictive and preventive maintenance are not used; they are essential to building a foundation for successful total productive maintenance environment. Productive maintenance is the process of using data and statistical tools to determine when a piece of equipment will fail, and preventive maintenance is the process of periodically performing activities such as lubrication on the equipment to keep it running.

The total maintenance function should be directed towards the elimination of unplanned equipment and plant maintenance. The objective is to create a system in which all maintenance activities can be planned and not interfere with the production process. Surprise equipment breakdowns should not occur. Before the advent of computer-aided manufacturing, operators in some organizations were responsible for their machines and took a certain pride of ownership. With the help of maintenance technicians, operators spent part of their work time keeping their equipment in good running order. Recent technical advances have given us more tools to perform the maintenance function.

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.

 

Degrees of Uncertainty


Statistical decision theory is based on the idea that a manager may face three degrees of uncertainty in making a decision. Some decisions are made under conditions of certainty. Here, the manager knows in advance the outcome of decision. At the opposite extreme, some decisions are made under conditions of uncertainty. Here, the manager cannot even assign probabilities to the likelihood of the various outcomes. Conditions of complete uncertainty are also relatively infrequent. Most management decisions are made under conditions of risk. Under conditions of risk, the manager can at least assign probabilities to each outcome. In other words, the manager knows (either from past experience or by making an educated guess) the chance that each possible outcome will occur.

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.

 

Statistical Analyses


The role of database is to help select names for modeling, implement the results of the modeling process by scoring names and assigning them to the appropriate decile, and selecting names by decile and other criteria for marketing programs. Most companies use statistical analysis for two principal reasons: a) segmentation, and b) predictive modeling.

Segmentation techniques are used to identify and profile groups of customers whose characteristics are similar. If the objective is to segment customers based on their performance, then the procedure is to group people according to their performance characteristics and then develop profiles of each performance group. Typical segmentation variables are performance measures such as recency, frequency, and monetary value of purchases; types of products purchased; or types of promotions responded to.

By linking this data with customer performance data, marketers can analyze who buys what and use the profiles of customers in each segment as a means of finding other customers like them.

Once the segments have been created, individual customers will be assigned to segments and these assignments will be recorded in the database. This makes subsequent selection of individuals for promotion based on the segmentation criteria relatively simple.

Predictive Modeling, based on previous purchase history, based on recency, frequency, and monetary value, models can be developed to predict who is most likely and least likely to purchase at the next opportunity. This scoring model would be used to determine who should be promoted and what they should be promoted with.

Once scoring models have been executed and customers assigned to deciles, this information is recorded in the database so that subsequent selection of customers who have the highest probability of responding to a promotion is easily accomplished.

End users would use a selection menu in which they would indicate which scoring model they wish to use and either a specific cutoff score or a desired number of names to select. The database would then perform the selection and produce an output file to the specific medium. This would either be a file, a magnetic tape, or mailing labels. A file could either be used for further analysis, or in many cases, the file could be combined with a patterned letter file to produce personalized mailings.

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.

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

Knowledge about Markets


Within the vast, diverse, and changing market no product is consumed at the same rate everywhere. Therefore, every national advertiser—the one whose product is distributed throughout the country as well as the one whose product is confined to particular regions—must view the market as an aggregate of many individual market areas, each of which is different from the next. Some markets are fertile and can be cultivated profitably. Others are barren and should not be cultivated at all.

The purpose of market analysis is to locate the fertile markets and estimate their sales potential. With this information the advertiser can then distribute effort among various market areas in proportion to their relative sales potentially and thereby maximizes the return on advertising investment.

In analyzing markets and market potentials, great dependence is placed on statistical data collected by the government. It is important that such data be precisely defined so that users will know what they mean and can thus make reliable comparisons when data are applied to different markets.

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 contact www.asifjmir.com, Line of Sight