Business improvement tools


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Basics of Business Improvement Tools by Nav Kukadia

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Business improvement tools

  1. 1. Business Improvement Tools Introduction • Nav Kukadia – Auditing & Consulting – 300+ Companies – Dyson, Panasonic, Sony • – – – – Since2007 Process Improvements Management Systems ISO Standards
  2. 2. Business Improvement Tools Introduction • Every business today is subjected to environmental pressures; legislation, competition, consumer demands etc. • Innovation and change are dynamic in today’s environment for customer and technology edge. • Most companies will apply improvement tools for cost reduction, especially large corporations to SMEs, especially in manufacturing sectors.
  3. 3. Business Improvement Tools Objective Today our objectives are for business improvement tools is drive for new business opportunities. How these improvement tools can be adopted for customer loyalty, innovate new products or services to drive in revenue based objectives.
  4. 4. Business Improvement Tools Overview 1.A number of tools are available. 2. Select one that fits company culture and needs. 3. Applied to reduce costs and increase efficiency.
  5. 5. Business Improvement Tools • • • • • Basic Types 5S 7 Waste Voice of Customer 80:20 Lean Sigma (DMAIC,SIPOC)
  6. 6. Business Improvement Tools 5S Japanese Term English Term Meaning Seiri SORT Throw away all rubbish and unrelated materials in the workplace Seiton SIMPLIFY Set everything in proper place for quick retrieval and storage Seiso SWEEP Clean the workplace; everyone should clean/tidy up at end of day Seiketsu STANDARDISE Standardize the way of maintaining cleanliness Shitsuke SUSTAIN Practice 'Five S' daily - make it a way of life; this also means 'commitment'
  7. 7. Business Improvement Tools 7 Wastes 1. DELAY – Waiting for service, delivery, response. 2. DUPLICATION – Re-enter data, repeat details on forms, copying information etc. 3. INVENTORY – Incorrect, out of stock etc. 4. OVER PROCESSING – Out of date standard, not focusing on customer needs. 5. UNCLEAR COMMUNICATION – need for clarification, confusion caused due to incorrect information. 6. ERRORS – In service transaction, faults etc. 7. UNNESSERY MOTION - Poorly designed work space, lack of training.
  8. 8. Business Improvement Tools 1. 2. 3. 4. Voice of Customer Resolving complaints Re-orders Referrals Feedback (Voluntary) Reference : -Kenneth A. Crow
  9. 9. Business Improvement Tools • • • • • 80:20 Rule The distribution shows up in several different aspects relevant to entrepreneurs and business managers. For example: 80% of your profits come from 20% of your customers 80% of your complaints come from 20% of your customers 80% of your profits come from 20% of the time you spend 80% of your sales come from 20% of your products 80% of your sales are made by 20% of your sales staff
  10. 10. Business Improvement Tools
  11. 11. Business Improvement Tools Define LEAN SIGMA (DMAIC) Measure • • • • • DEFINE MEASURE ANALYSE IMPROVE CONTROL Analyse Improve Control Project Focus Current State Data Future State & Benefits Actions to Fix
  12. 12. Business Improvement Tools LEAN SIGMA (SIPOC) Example for Salford Innovation Centre, • University • Council • Students • Tutors • NRDA • SMEs • Trainers • Admin • Marketing • Sales • Organising CUSTOMERS Performance Measurements PROCESSES OUTPUTS Variation Source SUPPLIERS INPUTS • SMEs • Tenants • Training • Conference FEED BACK
  13. 13. Business Improvement Tools Summary APPLICATIONS - Reduce Complaints - Improve Customer perception - Improve product or service - Make processes better BENEFITS - Efficiency Customer loyalty Cost improvements Saving
  14. 14. Business Improvement Tools Thank You Q&A Extra BUSINESS INNOVATION THROUGH ADAPABILITY &CHANGE