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Management Techniques
By : Khawar Nehal
Muftasoft TM
and ATRC TM
4th
of August 2020
The objective of this presentation is to list
the management topics which are of
importance and known.
Most of the new comers do not know the
topics.
So this is to be taken as a list and a short
description. And you can get the details from
the internet for each topic.
Agenda
●
Hoshin Kanri
●
Kanban
●
Agile
●
Scrum
●
5S
●
Project Management
Agenda
●
Balanced Score Card
●
SMART
●
RACI
●
Lean
●
Kaizen
●
PDCA
Agenda
●
FMEA
●
Genchi Genbutsu
●
Gemba
●
Quality function deployment
●
Value engineering
●
Keiretsu
Agenda
●
Poka-yoke
●
Baka-yoke
●
Defensive design
●
Inherent safety
●
Idiot proof
●
Fail-safe
●
Interlock (engineering)
Agenda
●
Lockout-tagout
●
Murphy's law
●
Root cause analysis (RCA)
●
Five whys
●
A3 problem solving
●
Eight disciplines problem solving (8D)
Agenda
●
Fault tree analysis
●
Forensic engineering
●
Issue-based information system
●
Orthogonal Defect Classification
Agenda
●
Roy's safety-first criterion
●
The Art of War
●
Resource allocation
●
Economic Production
●
Planning
●
Quality assurance
Agenda
●
Management consulting
●
Applied mathematics
●
Operations research
●
Theory of constraints
●
Management by objectives
●
Business process re-engineering
●
Six Sigma
Agenda
●
Viable system model
●
Information technology
●
Cog's ladder
●
Agile software development
●
Philosophy of business
●
Cost–benefit analysis
Agenda
●
Ishikawa diagram
●
Control chart
●
Business process mapping
●
Check sheet
●
Run chart
●
CTQ tree
Agenda
●
Total quality management (TQM)
●
Total productive maintenance
●
Design of experiments
●
Stratified sampling
●
Histogram
●
Pareto analysis
●
Pareto chart
Agenda
●
Pick chart
●
Process capability
●
Capability Maturity Model
●
Rolled throughput yield
●
Quantitative marketing research
●
Enterprise feedback management
Agenda
●
Taguchi methods
●
Value-stream mapping (VSM)
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SIPOC
●
Muda (Japanese term)
●
Mura (Japanese term)
●
Muri (Japanese term)
Agenda
●
Kaikaku
●
Heijunka box
●
Andon (manufacturing)
●
Ho-Ren-So
Hoshin Kanri
Hoshin Kanri (also called Policy Deployment) is a method for
ensuring that the strategic goals of a company drive progress
and action at every level within that company. This eliminates
the waste that comes from inconsistent direction and poor
communication.
Hoshin Kanri strives to get every employee pulling in the same
direction at the same time. It achieves this by aligning the goals
of the company (Strategy) with the plans of middle management
(Tactics) and the work performed by all employees (Operations).
Kanban
Kanban is a popular framework used to implement agile
software development. It requires real-time communication of
capacity and full transparency of work.
Work items are represented visually on a kanban board,
allowing team members to see the state of every piece of work
at any time.
Agile
Agile software development refers to software development
methodologies centered round the idea of iterative development,
where requirements and solutions evolve through collaboration
between self-organizing cross-functional teams.
The ultimate value in Agile development is that it enables teams
to deliver value faster, with greater quality and predictability, and
greater aptitude to respond to change.
Scrum and Kanban are two of the most widely used Agile
methodologies.
Scrum
Scrum is a framework within which people can address complex
adaptive problems, while productively and creatively delivering
products of the highest possible value.
Scrum itself is a simple framework for effective team
collaboration on complex products. Scrum co-creators Ken
Schwaber and Jeff Sutherland have written The Scrum Guide to
explain Scrum clearly and succinctly. This Guide contains the
definition of Scrum.
5S
5S is a systematic form of visual management utilizing
everything from floor tape to operations manuals. It is not just
about cleanliness or organization; it is also about maximizing
efficiency and profit.
5S is a framework that emphasizes the use of a specific mindset
and tools to create efficiency and value.
It involves observing, analyzing, collaborating, and searching for
waste and also involves the practice of removing waste.
Project Management
Project management is the application of processes, methods,
skills, knowledge and experience to achieve specific project
objectives according to the project acceptance criteria within
agreed parameters. Project management has final deliverables
that are constrained to a finite timescale and budget.
A key factor that distinguishes project management from just
'management' is that it has this final deliverable and a finite
timespan, unlike management which is an ongoing process.
Because of this a project professional needs a wide range of
skills; often technical skills, and certainly people management
skills and good business awareness.
Balanced Score Card
The balanced scorecard (BSC) is a strategic planning and
management system that organizations use to:
Communicate what they are trying to accomplish
Align the day-to-day work that everyone is doing with strategy
Prioritize projects, products, and services
Measure and monitor progress towards strategic targets
SMART
SMART is an acronym that you can use to guide your goal
setting.
Its criteria are commonly attributed to Peter Drucker's
Management by Objectives concept.
To make sure your goals are clear and reachable, each one
should be:
Specific (simple, sensible, significant).
Measurable (meaningful, motivating).
Achievable (agreed, attainable).
Relevant (reasonable, realistic and resourced, results-based).
Time bound (time-based, time limited, time/cost limited,
timely, time-sensitive).
RACI
What is a RACI chart?
A RACI chart is a simple matrix used to assign roles and
responsibilities for each task, milestone, or decision on a
project. By clearly mapping out which roles are involved in each
project task and at which level, you can eliminate confusion and
answer the age-old project question, Who’s doing what?
What does RACI stand for?
RACI stands for Responsible, Accountable, Consulted,
Informed. Each letter in the acronym represents a level of task
responsibility.
Lean
You can apply the concept of Lean in any business or
production process, from manufacturing to marketing and
software development.
The Lean methodology relies on 3 very simple ideas:
deliver value from your customer’s perspective
eliminate waste (things that don’t bring value to the end
product)
continuous improvement
Lean
Kaizen
Kaizen (Continuous Improvement) is a strategy where
employees at all levels of a company work together proactively
to achieve regular, incremental improvements to the
manufacturing process.
In a sense, it combines the collective talents within a company
to create a powerful engine for improvement.
PDCA
The Plan-do-check-act cycle (Figure 1) is a four-step model for
carrying out change. Just as a circle has no end, the PDCA
cycle should be repeated again and again for continuous
improvement. The PDCA cycle is considered a project planning
tool.
FMEA
Failure Mode and Effects Analysis (FMEA)
Also called: potential failure modes and effects analysis; failure
modes, effects and criticality analysis (FMECA)
Failure Modes and effects analysis (FMEA) is a step-by-step
approach for identifying all possible failures in a design, a
manufacturing or assembly process, or a product or service. It is
a common process analysis tool.
Genchi Genbutsu
The literal translation of Genchi Genbutsu is close to “actual
place, actual thing”. Yet, it’s more enriching to read Toyota’s own
definition, as expressed in the Toyota Way 2001 internal
pamphlet: “we practice genchi genbutsu… go to the source to
find the facts to make correct decisions, build consensus and
achieve goals at our best speed.“
Gemba
'Going to Gemba' is the act of visiting the shop floor in Lean and
Kaizen. Literally translated as 'The Real Place', it pushes the
importance of leadership understanding what is happening at
every level.
Gemba (現場, also spelt less commonly as genba) is a japanese
term meaning "the real place." Japanese police could refer to a
crime scene as gemba, and TV reporters often refer to
themselves as reporting live from gemba.
In business, however, gemba refers to the place where value is
created. The most common use of the term is in manufacturing,
where the gemba is the factory floor. Beyond this, gemba can
really be any "site", such as a building site in construction, the
sales floor in retail, or somewhere the service provider interacts
directly with the customer e.g. a car dealership showroom.
Quality Function Deployment
Quality Function Deployment (QFD) is a process and set of
tools used to effectively define customer requirements and
convert them into detailed engineering specifications and plans
to produce the products that fulfill those requirements. QFD is
used to translate customer requirements (or VOC) into
measureable design targets and drive them from the assembly
level down through the sub-assembly, component and
production process levels. QFD methodology provides a defined
set of matrices utilized to facilitate this progression.
Value Engineering
Value engineering is a systematic, organized approach to
providing necessary functions in a project at the lowest cost.
Value engineering promotes the substitution of materials and
methods with less expensive alternatives, without sacrificing
functionality. It is focused solely on the functions of various
components and materials, rather than their physical attributes.
Value engineering is also called value analysis.
Keiretsu
Keiretsu is a Japanese term referring to a business network
made up of different companies, including manufacturers,
supply chain partners, distributors, and occasionally financers.
They work together, have close relationships and sometimes
take small equity stakes in each other, all the while remaining
operationally independent. Translated literally, keiretsu means
“headless combine."
Poka Yoke
The term Poka Yoke (poh-kah yoh-keh) was coined in Japan
during the 1960s by Shigeo Shingo, an industrial engineer at
Toyota. Shingo also created and formalized Zero Quality Control
– a combination of Poka Yoke techniques to correct possible
defects and source inspection to prevent defects.
Baka Yoke
Baka yoke is the Japanese term for “fool proofing” or “idiot
proofing”. Needless to say, it is not the most politically correct of
terms, and has been replaced in common use by poka yoke, or
“mistake proofing”.
The principle is the same for both terms. Prevent mistakes
rather than correct defects. The subtle difference between baka
yoke and poka yoke is that the focus changes from the person
(fool or idiot) to the process or action (mistake).
Defensive design
Inherent safety
An inherently safe plant relies on chemistry and physics to
prevent accidents rather than on control systems, interlocks,
redundancy, and special operating procedures to prevent
accidents. Inherently safer plants are tolerant of errors and are
often the most cost effective. A process that does not require
complex safety interlocks and elaborate procedures is simpler,
easier to operate, and more reliable. Smaller equipment,
operated at less severe temperatures and pressures, has lower
capital and operating costs.
Idiot Proof
"Programming today is a race between software engineers
striving to build bigger and better idiot-proof programs, and the
Universe trying to produce bigger and better idiots. So far, the
Universe is winning." Rick Cook
Idiot Proofing just means making sure the user can't break a
piece of software even if he tried. For instance, if a value is read
from a text box, and is converted to a double, if the underlying
software is idiot proof, it won't break if the user types in a non-
double value.
Fail Safe
If something is fail-safe, it has been designed so that if one part
of it does not work, the whole thing does not become
dangerous.
Interlock
A device, esp one operated electromechanically, used in a logic
circuit or electrical safety system to prevent an activity being
initiated unless preceded by certain events.
A set of methods and facilities that ensure holding the operating
parts (components) of an apparatus, machine, or circuit
(electrical) in a definite state which is maintained regardless of
whether the interlocking action ceases. Interlocking increases
the safety of service and the operating reliability of equipment,
ensures the required operational sequence for mechanisms and
components, and restricts the motions of mechanisms to the
limits of the operating zone.
Lockout - tagout
Proper lockout/tagout (LOTO) practices and procedures
safeguard workers from hazardous energy releases. OSHA's
Lockout/Tagout Fact Sheet describes the practices and
procedures necessary to disable machinery or equipment to
prevent hazardous energy release. The OSHA standard for The
Control of Hazardous Energy (Lockout/Tagout) (29 CFR
1910.147) for general industry outlines measures for controlling
different types of hazardous energy. The LOTO standard
establishes the employer's responsibility to protect workers from
hazardous energy. Employers are also required to train each
worker to ensure that they know, understand, and are able to
follow the applicable provisions of the hazardous energy control
procedures:
Murphy's Law
In its simplest form, Murphy's Law states: If anything can go
wrong, it will. However, as with many successful business
theories, the original law has been extended over time to cover
specialist areas, several of which are given below:
Project Planning: If anything can go wrong, it will. Usually at
the most inopportune time.
Performance Management: If someone can get it wrong, they
will.
Risk Assessment: If several things can go wrong, the one you
would LEAST like to happen will occur.
Practical creativity: If you can think of four ways that
something can go wrong, it will go wrong in a fifth way.
Root cause analysis (RCA)
Root cause analysis (RCA) is a systematic process for
identifying “root causes” of problems or events and an approach
for responding to them. RCA is based on the basic idea that
effective management requires more than merely “putting out
fires” for problems that develop, but finding a way to prevent
them.
Five Whys
The 5 Whys technique is true to this tradition, and it is most
effective when the answers come from people who have hands-
on experience of the process or problem in question.
The method is remarkably simple: when a problem occurs, you
drill down to its root cause by asking "Why?" five times. Then,
when a counter-measure becomes apparent, you follow it
through to prevent the issue from recurring.
A3 Problem Solving
A3 refers to a European paper size that is roughly equivalent to an American
11-inch by 17-inch tabloid-sized paper. The A3 format is used by Toyota as
the template for three different types of reports:
Proposals
Status
Problem solving
There is no “magic” in the steps through which the structured A3 Problem
Solving template takes a team. These steps are basically:
Identify the problem or need
Understand the current situation/state
Develop the goal statement – develop the target state
Perform root cause analysis
Brainstorm/determine countermeasures
Create a countermeasures implementation plan
Check results – confirm the effect
Update standard work
Eight disciplines problem solving (8D)
The eight disciplines (8D) model is a problem solving approach
typically employed by quality engineers or other professionals,
and is most commonly used by the automotive industry but has
also been successfully applied in healthcare, retail, finance,
government, and manufacturing. The purpose of the 8D
methodology is to identify, correct, and eliminate recurring
problems, making it useful in product and process improvement.
The 8D problem solving model establishes a permanent
corrective action based on statistical analysis of the problem
and focuses on the origin of the problem by determining its root
causes. Although it originally comprised eight stages, or
disciplines, the eight disciplines system was later augmented by
an initial planning stage.
Fault tree analysis (FTA)
Fault tree analysis (FTA) is a graphical tool to explore the
causes of system level failures. It uses boolean logic to combine
a series of lower level events and it is basically a top-down
approach to identify the component level failures (basic event)
that cause the system level failure (top event) to occur. Fault
tree analysis consists of two elements “events” and “logic gates”
which connect the events to identify the cause of the top
undesired event.
Forensic engineering
Forensic engineering is the application of engineering
knowledge to determine why a structure or machine failed. It
also tries to determine why there was damage to a structure or
machine. Forensic engineering involves using reverse
engineering to find out why a component, structure, or machine
failed to perform properly.
In other words, forensic engineering is all about trying to find out
what went wrong.
Forensic experts may then use their findings as evidence in
court. Specifically, they use their evidence in court if the failure
caused human injury or damage to property.
Issue-based information system
Issue Based Information Systems (IBIS) help members of a
project team discuss issues related to a problem and come to a
consensus on a solution.
The graphical Issue Based Information System (gIBIS) from
MCC is one such system which was built to capture the design
rationale for software projects. Software design is a
collaborative process in which various team members contribute
their expertise and viewpoints to discuss the design.
In gIBIS, participants in the online discussion argue about
design issues by taking positions and making arguments for and
against those positions. These position arguments are
represented in a hypertext structure with three types of nodes:
issues, positions, and arguments.
Orthogonal Defect Classification
ODC is a scheme to capture the semantics of each software
defect quickly. It is the definition and capture of defect attributes
that make mathematical analysis and modeling possible.
Analysis of ODC data provides a valuable diagnostics method
for evaluating the various phases of the software life cycle
(design, development, test and service) and the maturity of the
product. This is much like the diagnostics done in medicine
using the blood sample from a patient to understand the existing
health conditions and arrive at corrective actions. ODC makes it
possible to push the understanding and use of defects well
beyond quality.
Roy’s Safety-first Criterion
Roy’s safety-first criterion is a risk management technique used
by investors to compare and choose a portfolio based on the
criterion that the probability of a portfolio’s return dropping below
a threshold level return is reduced.
In Roy’s safety-first criterion, the optimal portfolio is one that
minimizes the probability of the portfolio’s return falling below a
threshold return level. The portfolio with the highest Roy’s
safety-first criterion has the lowest probability of a portfolio
generating a return lower than the threshold level return.
The Art of War
Twenty-Five Hundred years ago, Sun Tzu wrote this classic
book of military strategy based on Chinese warfare and military
thought. Since that time, all levels of military have used the
teaching on Sun Tzu to warfare and civilization have adapted
these teachings for use in politics, business and everyday life.
The Art of War is a book which should be used to gain
advantage of opponents in the boardroom and battlefield alike.
Resource allocation
Resource allocation is the process of assigning and managing
assets in a manner that supports an organization's strategic
goals.
Resource allocation includes managing tangible assets such as
hardware to make the best use of softer assets such as human
capital. Resource allocation involves balancing competing
needs and priorities and determining the most effective course
of action in order to maximize the effective use of limited
resources and gain the best return on investment.
In practicing resource allocation, organizations must first
establish their desired end goal, such as increased revenue,
improved productivity or better brand recognition.
Economic production
Economic production is an activity carried out under the control
and responsibility of an institutional unit that uses inputs of
labour, capital, and goods and services to produce outputs of
goods or services.
Planning
Planning is the fundamental management function, which
involves deciding beforehand, what is to be done, when is it to
be done, how it is to be done and who is going to do it. It is an
intellectual process which lays down an organisation’s
objectives and develops various courses of action, by which the
organisation can achieve those objectives. It chalks out exactly,
how to attain a specific goal.
Planning is nothing but thinking before the action takes place. It
helps us to take a peep into the future and decide in advance
the way to deal with the situations, which we are going to
encounter in future. It involves logical thinking and rational
decision making.
Quality Assurance
Quality Assurance (QA) is defined as an activity to ensure that
an organization is providing the best possible product or service
to customers. QA focuses on improving the processes to deliver
Quality Products to the customer. An organization has to
ensure, that processes are efficient and effective as per the
quality standards defined for software products. Quality
Assurance is popularly known as QA Testing
Management Consulting
Management consulting is a popular destination for bright
students after graduating university. With good salaries,
specialist training and opportunities to progress quickly, it’s easy
to see why. If you’re unsure what it is or how to get into this
sector, our quick guide gives you everything you need to know.
Management consultants work with businesses to improve their
performance by providing expert advice to solve problems and
encourage growth. They work with businesses across a wide
range of sectors, including business strategy, finance, HR and
marketing. It’s not just private firms - many public institutions
use management consulting to improve their practices and
efficiency.
Applied mathematics
Applied mathematics involves the application of mathematics to
problems which arise in various areas, e.g., science,
engineering or other diverse areas, and/or the development of
new or improved methods to meet the challenges of new
problems.
We view applied math as the application of mathematics to real-
world problems with the dual goal of explaining observed
phenomena and predicting new, as yet unobserved,
phenomena. Therefore, the emphasis is on both the
mathematics, e.g. the development of new methods to meet the
challenges of new problems, and the real world.
Operations research
Operations Research, also called Decision Science or
Operations Analysis, is the study of applying mathematics to
business questions. As a sub-field of Applied Mathematics, it
has a very interesting position alongside other fields as Data
Science and Machine Learning.
Which Questions does Operations Research answer?
Before getting into the real definition of Operations Research,
let’s have a look at a few example applications. As you will see,
they all have a few points in common: we will get to that just
after.
Theory of constraints
The Theory of Constraints is an organizational change method
that is focussed on profit improvement. The essential concept of
TOC is that every organization must have at least one
constraint.
A constraint is any factor that limits the organization from getting
more of whatever it strives for, which is usually profit.
The Goal focuses on constraints as bottleneck processes in a
job-shop manufacturing organization.
However, many non-manufacturing constraints exist, such as
market demand, or a sales department’s ability to translate
market demand into orders.
Management by objectives
Management by objectives (MBO) is a strategic management
model that aims to improve the performance of an organization
by clearly defining objectives that are agreed to by both
management and employees.
According to the theory, having a say in goal setting and action
plans encourages participation and commitment among
employees, as well as aligning objectives across the
organization.
Business process reengineering
Business process reengineering is the act of recreating a core
business process with the goal of improving product output,
quality, or reducing costs.
Typically, it involves the analysis of company workflows, finding
processes that are sub-par or inefficient, and figuring out ways
to get rid of them or change them.
Six Sigma
Six Sigma is a method that provides organizations tools to
improve the capability of their business processes. This
increase in performance and decrease in process variation
helps lead to defect reduction and improvement in profits,
employee morale, and quality of products or services.
"Six Sigma quality" is a term generally used to indicate a
process is well controlled (within process limits ±3s from the
center line in a control chart, and requirements/tolerance limits
±6s from the center line).
Viable system model
The British psychologist Anthony Stafford Beer is the founder of
the Viable System Model (VSM). He describes this model in his
1972 book ‘Brain of the Firm’, which is a management tool to
determine the viability of an organisation. With this model, it
becomes clear whether an organisation has a chance of survival
in a rapidly changing market and environment. It is also
applicable to every healthy and viable organisation, and relevant
to both individuals and teams. With the Viable System Model, it
is possible to look at the internal and external balance of an
organisation and bring the smallest detail to light. Different
subsystems are scrutinised and improvements are applied
where necessary. As a result, an organisation will be profitable
(viable) again.
Cog's ladder
Cog’s ladder model is a group development tool that can be
used to identify to what extent group members have reached
their maternity in group work. The model was created in 1979 by
George Charrier, and it was first used to help P&G executives
improve operational efficiency.
The model looks like Tuckman stages of group development,
which is another group development model that argues that a
group cannot perform well unless it has experienced conflicts
and has set behavioral standards.
Agile software development
Agile is the ability to create and respond to change. It is a way
of dealing with, and ultimately succeeding in, an uncertain and
turbulent environment.
The authors of the Agile Manifesto chose “Agile” as the label for
this whole idea because that word represented the adaptiveness
and response to change which was so important to their
approach.
It’s really about thinking through how you can understand what’s
going on in the environment that you’re in today, identify what
uncertainty you’re facing, and figure out how you can adapt to
that as you go along.
Philosophy of business
A business is a productive organization—an organization whose
purpose is to create goods and services for sale, usually at a
profit. Business is also an activity. One entity (e.g., a person, an
organization) “does business” with another when it exchanges a
good or service for valuable consideration.
Business ethics can thus be understood as the study of the
ethical dimensions of productive organizations and commercial
activities. This includes ethical analyses of the production,
distribution, marketing, sale, and consumption of goods and
services.
Cost–benefit analysis
A cost-benefit analysis is a process businesses use to analyze
decisions. The business or analyst sums the benefits of a
situation or action and then subtracts the costs associated with
taking that action.
Some consultants or analysts also build models to assign a
dollar value on intangible items, such as the benefits and costs
associated with living in a certain town.
Ishikawa diagram
An Ishikawa diagram is a diagram that shows the causes of an
event and is often used in manufacturing and product
development to outline the different steps in a process,
demonstrate where quality control issues might arise and
determine which resources are required at specific times.
The Ishikawa diagram was developed by Kaoru Ishikawa during
the 1960s as a way of measuring quality control processes in
the shipbuilding industry.
Control chart
Control charts are used to routinely monitor quality. Depending
on the number of process characteristics to be monitored, there
are two basic types of control charts. The first, referred to as a
univariate control chart, is a graphical display (chart) of one
quality characteristic. The second, referred to as a multivariate
control chart, is a graphical display of a statistic that
summarizes or represents more than one quality characteristic.
Business process mapping
Business Process Mapping is the visualization of business
processes, allowing for a more top-down view on how the
business works.
On its own, the main benefit of business process mapping is the
introspection – you get a better understanding of how your
business works.
Check Sheet
The Check Sheet is a simple document that is used for
collecting data in real time and at the location where the data is
generated. The document is typically a blank form that is
designed for the quick, easy, and efficient recording of the
desired information, which can be either quantitative or
qualitative. When the information is quantitative, the check
sheet is sometimes called a tally sheet. The check sheet is one
of the seven basic tools of quality control made popular by Dr.
Kaoru Ishikawa.
Run Chart
A run chart is a line graph of data plotted over time. By
collecting and charting data over time, you can find trends or
patterns in the process. Because they do not use control limits,
run charts cannot tell you if a process is stable. However, they
can show you how the process is running. The run chart can be
a valuable tool at the beginning of a project, as it reveals
important information about a process before you have collected
enough data to create reliable control limits.
CTQ Tree
A Critical to Quality Tree (also known as a CTQ Tree) is a Six
Sigma tool used to identify the needs of the customer and
translate that information into measurable product and process
requirements. It allows organizations to understand the
characteristics of a product or service that most drives quality
for customers.
Before initiating any process improvement project, it’s important
for a business to determine the characteristics of the product or
service that are critical to quality as judged by customers – this
is known as CTQ.
Creating a CTQ Tree determines the drivers behind those
characteristics and helps companies find ways to meet them.
Total quality management (TQM)
Total quality management (TQM) is the continual process of
detecting and reducing or eliminating errors in manufacturing,
streamlining supply chain management, improving the customer
experience, and ensuring that employees are up to speed with
training. Total quality management aims to hold all parties
involved in the production process accountable for the overall
quality of the final product or service.
Total productive maintenance
Total productive maintenance (TPM) is a strategy that operates
according to the idea that everyone in a facility should
participate in maintenance, rather than just the maintenance
team.
This approach uses the skills of all employees and seeks to
incorporate maintenance into the everyday performance of a
facility.
Design of experiments
Design of experiments (DOE) is defined as a branch of applied
statistics that deals with planning, conducting, analyzing, and
interpreting controlled tests to evaluate the factors that control
the value of a parameter or group of parameters. DOE is a
powerful data collection and analysis tool that can be used in a
variety of experimental situations.
It allows for multiple input factors to be manipulated,
determining their effect on a desired output (response). By
manipulating multiple inputs at the same time, DOE can identify
important interactions that may be missed when experimenting
with one factor at a time. All possible combinations can be
investigated (full factorial) or only a portion of the possible
combinations (fractional factorial).
Stratified sampling
Stratified sampling is a type of sampling method in which the
total population is divided into smaller groups or strata to
complete the sampling process. The strata is formed based on
some common characteristics in the population data. After
dividing the population into strata, the researcher randomly
selects the sample proportionally.
Histogram
A histogram is a plot that lets you discover, and show, the
underlying frequency distribution (shape) of a set of continuous
data. This allows the inspection of the data for its underlying
distribution (e.g., normal distribution), outliers, skewness, etc.
An example of a histogram, and the raw data it was constructed
from, is shown below:
36 25 38 46 55 68 72 55 36 38
67 45 22 48 91 46 52 61 58 55
Pareto analysis
Pareto Analysis is a simple decision-making technique for
assessing competing problems and measuring the impact of
fixing them. This allows you to focus on solutions that will
provide the most benefit.
Pareto Analysis uses the Pareto Principle – also known as the
"80/20 Rule" – which was coined by Italian economist, Vilfredo
Pareto, in his 1896 book, "Cours d'économie politique."
The Pareto Principle states that 80 percent of a project's benefit
comes from 20 percent of the work. Or, conversely, that 80
percent of problems can be traced back to 20 percent of
causes. Pareto Analysis identifies the problem areas or tasks
that will have the biggest payoff.
Pareto chart
A Pareto chart is a bar graph. The lengths of the bars represent
frequency or cost (time or money), and are arranged with
longest bars on the left and the shortest to the right. In this way
the chart visually depicts which situations are more significant.
This cause analysis tool is considered one of the seven basic
quality tools.
Pick Chart
The PICK chart is a Lean Six Sigma tool that was first
developed by Lockheed Martin for lean production. Its original
purpose was for organizing ideas for process improvement and
categorizing them for easy review and analysis.
Your typical PICK chart is a 2×2 matrix, with the horizontal scale
measuring the benefits, and the vertical scale measuring the
difficulty. You evaluate a project or idea and place it in the most
appropriate of the four available squares. Each square will have
a corresponding action:
Possible – Low payoff, easy to do
Implement – High pay off, easy to do
Challenge – High payoff, hard to do
Kill – Low payoff, hard to do
Process capability
Process capability compares the output of an in-control process
to the specification limits by using capability indices. The
comparison is made by forming the ratio of the spread between
the process specifications (the specification "width") to the
spread of the process values, as measured by 6 process
standard deviation units (the process "width").
Capability Maturity Model
Capability Maturity Model is used as a benchmark to measure
the maturity of an organization's software process.
CMM was developed at the Software engineering institute in the
late 80's. It was developed as a result of a study financed by the
U.S Air Force as a way to evaluate the work of subcontractors.
Later based on the CMM-SW model created in 1991 to assess
the maturity of software development.
Rolled throughput yield
The probability that a single unit can pass through a series of
process steps free of defects.
Next we will turn our attention to a Rolled Throughput Yield
example. If you will remember, the First Time Yield calculation
we did (FTY) considered only what went into a process step and
what went out.
Rolled Throughput Yield adds the consideration of rework. Using
the previous example: Process A = 100 units in and 90 out
Process B = 90 in and 80 out Process C = 80 in and 75 out
Process D = 75 in and 70 out.
Quantitative marketing research
Quantitative Market Research is a technique to ask questions to
the target audience in an organized manner using surveys, polls
or questionnaires.
Received responses can be analyzed to make well-thought
decisions for improving products and services, that will in turn
help increase respondent satisfaction levels.
Well-founded results can be achieved in case a large sample
size that represents a population is surveyed.
Enterprise Feedback Management
Enterprise Feedback Management allows companies to
systematically collect and manage feedback and integrate their
results with various information systems.
This allows companies to have an actionable, comprehensive
and accurate enterprise-wide outlook.
Using Enterprise Feedback Management will increase efficiency
and reduce costs because it eradicates the use of several other
redundant and inconsistent survey tools.
Taguchi methods
The Taguchi method of quality control is an approach to
engineering that emphasizes the roles of research and
development (R&D), product design and development in
reducing the occurrence of defects and failures in manufactured
goods.
This method, developed by Japanese engineer and statistician
Genichi Taguchi, considers design to be more important than
the manufacturing process in quality control, aiming to eliminate
variances in production before they can occur.
Value stream mapping (VSM)
Value stream mapping (VSM) is defined as a lean tool that
employs a flowchart documenting every step in the process.
Many lean practitioners see VSM as a fundamental tool to
identify waste, reduce process cycle times, and implement
process improvement.
VSM is a workplace efficiency tool designed to combine material
processing steps with information flow, along with other
important related data. VSM is an essential lean tool for an
organization wanting to plan, implement, and improve while on
its lean journey. VSM helps users create a solid implementation
plan that will maximize their available resources and help
ensure that materials and time are used efficiently.
SIPOC
SIPOC is a tool that summarizes the inputs and outputs of one
or more processes in table form. It’s an acronym that stands for
Supplies, Inputs, Process, Outputs and Customers. Some
organizations use the opposite acronym COPIS, which puts the
customer first and illustrates the value of the customer to the
organization.
The term SIPOC originates from the 1980s and is part of the
total quality movement. Today you’ll find SIPOC as a part of the
Six Sigma, lean manufacturing and business process
management disciplines.
Muda (Japanese term)
Muda (無駄?) is a traditional Japanese term for an activity that is
wasteful and doesn't add value or is unproductive,
etymologically none (無)+ trivia or un-useful (駄) in practice or
others. It is also a key concept in the Toyota Production System
(TPS) and is one of the three types of waste (muda, mura, muri)
that it identifies. Waste reduction is an effective way to increase
profitability. Toyota merely picked up these three words
beginning with the prefix mu-, which in Japan are widely
recognized as a reference to a product improvement program or
campaign. A process adds value by producing goods or
providing a service that a customer will pay for.
Mura (Japanese term)
Mura (斑 or ムラ) is traditional general Japanese term for
unevenness, inconsistency in physical matter or human spiritual
condition. It is also a key concept in the Toyota Production
System and is one of the three types of waste (Muda, Mura,
Muri) it identifies.
Waste reduction is an effective way to increase profitability.
Toyota merely picked up these three words with prefix mu-,
which every Japanese know, as product improvement program
or campaign.
Muri (Japanese term)
A Japanese term (無理) meaning “unreasonableness;
impossible; beyond one's power; too difficult; by force; perforce;
forcibly; compulsorily; excessiveness; immoderation.” Muri is a
key removal-of-waste concept (along with Muda and Mura) in
lean manufacturing that focuses on reducing overburden. Muri
generates unnecessary stress to our employees and our
processes. Muri can be avoided through standardized work.
Kaikaku
Kaikaku is the Japanese word for "radical change." It is a lean
method used to make fundamental, significant, radical changes
in the workplace. Unlike Kaizen, which uses slow, continual,
small changes, Kaikaku involves making one-time, large, major
changes
Kaizen and Kaikaku are not mutually exclusive. They both have
their place in an organization's arsenal of lean tools. Kaikaku is
a tool that is used in addition to Kaizen, not instead of Kaizen.
In many cases Kaikaku is used initially, and the Kaizen provides
the long-term transformation.
In some respects Kaikaku is similar to a Kaizen blitz, but on an
even larger scale and making more fundamental changes.
Heijunka box
In the illustration of a typical heijunka box shown below, each
horizontal row is for one type of product (one part number).
Each vertical column represents identical time intervals for
paced withdrawal of kanban. The shift starts at 7:00 a.m. and
the kanban withdrawal interval is every 20 minutes. This is the
frequency with which the material handler withdraws kanban
from the box and distributes them to production processes in the
facility.
Andon (manufacturing)
Much like the “check engine” light in a car, Andon in Lean
manufacturing is a system designed to alert operators and
managers of problems in real time so that corrective measures
can be taken immediately. It originates from the Jidoka
methodology used in the Toyota Production System, which
empowered operators to recognize issues and take the initiative
to stop work without waiting for management to make the
decision.
Ho-Ren-So
Ho-ren-so is based on the idea that work is something
collaborative done by supervisor and subordinate as a team.
While the subordinate takes the lead in doing the work, the
supervisor gives guidance on the work that is shown to him,
often in the form of suggestions for revision and improvement.
Tweaking something multiple times before it is just right is
common.
Thank You
Contact information :
Khawar Nehal
http://atrc.net.pk
+92 343 270 2932
+92 331 2036 422
khawar@atrc.net.pk

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Management techniques of the world by khawar nehal 4 august 2020-1

  • 1. Management Techniques By : Khawar Nehal Muftasoft TM and ATRC TM 4th of August 2020
  • 2. The objective of this presentation is to list the management topics which are of importance and known. Most of the new comers do not know the topics. So this is to be taken as a list and a short description. And you can get the details from the internet for each topic.
  • 5. Agenda ● FMEA ● Genchi Genbutsu ● Gemba ● Quality function deployment ● Value engineering ● Keiretsu
  • 7. Agenda ● Lockout-tagout ● Murphy's law ● Root cause analysis (RCA) ● Five whys ● A3 problem solving ● Eight disciplines problem solving (8D)
  • 8. Agenda ● Fault tree analysis ● Forensic engineering ● Issue-based information system ● Orthogonal Defect Classification
  • 9. Agenda ● Roy's safety-first criterion ● The Art of War ● Resource allocation ● Economic Production ● Planning ● Quality assurance
  • 10. Agenda ● Management consulting ● Applied mathematics ● Operations research ● Theory of constraints ● Management by objectives ● Business process re-engineering ● Six Sigma
  • 11. Agenda ● Viable system model ● Information technology ● Cog's ladder ● Agile software development ● Philosophy of business ● Cost–benefit analysis
  • 12. Agenda ● Ishikawa diagram ● Control chart ● Business process mapping ● Check sheet ● Run chart ● CTQ tree
  • 13. Agenda ● Total quality management (TQM) ● Total productive maintenance ● Design of experiments ● Stratified sampling ● Histogram ● Pareto analysis ● Pareto chart
  • 14. Agenda ● Pick chart ● Process capability ● Capability Maturity Model ● Rolled throughput yield ● Quantitative marketing research ● Enterprise feedback management
  • 15. Agenda ● Taguchi methods ● Value-stream mapping (VSM) ● SIPOC ● Muda (Japanese term) ● Mura (Japanese term) ● Muri (Japanese term)
  • 17. Hoshin Kanri Hoshin Kanri (also called Policy Deployment) is a method for ensuring that the strategic goals of a company drive progress and action at every level within that company. This eliminates the waste that comes from inconsistent direction and poor communication. Hoshin Kanri strives to get every employee pulling in the same direction at the same time. It achieves this by aligning the goals of the company (Strategy) with the plans of middle management (Tactics) and the work performed by all employees (Operations).
  • 18. Kanban Kanban is a popular framework used to implement agile software development. It requires real-time communication of capacity and full transparency of work. Work items are represented visually on a kanban board, allowing team members to see the state of every piece of work at any time.
  • 19. Agile Agile software development refers to software development methodologies centered round the idea of iterative development, where requirements and solutions evolve through collaboration between self-organizing cross-functional teams. The ultimate value in Agile development is that it enables teams to deliver value faster, with greater quality and predictability, and greater aptitude to respond to change. Scrum and Kanban are two of the most widely used Agile methodologies.
  • 20. Scrum Scrum is a framework within which people can address complex adaptive problems, while productively and creatively delivering products of the highest possible value. Scrum itself is a simple framework for effective team collaboration on complex products. Scrum co-creators Ken Schwaber and Jeff Sutherland have written The Scrum Guide to explain Scrum clearly and succinctly. This Guide contains the definition of Scrum.
  • 21. 5S 5S is a systematic form of visual management utilizing everything from floor tape to operations manuals. It is not just about cleanliness or organization; it is also about maximizing efficiency and profit. 5S is a framework that emphasizes the use of a specific mindset and tools to create efficiency and value. It involves observing, analyzing, collaborating, and searching for waste and also involves the practice of removing waste.
  • 22. Project Management Project management is the application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters. Project management has final deliverables that are constrained to a finite timescale and budget. A key factor that distinguishes project management from just 'management' is that it has this final deliverable and a finite timespan, unlike management which is an ongoing process. Because of this a project professional needs a wide range of skills; often technical skills, and certainly people management skills and good business awareness.
  • 23. Balanced Score Card The balanced scorecard (BSC) is a strategic planning and management system that organizations use to: Communicate what they are trying to accomplish Align the day-to-day work that everyone is doing with strategy Prioritize projects, products, and services Measure and monitor progress towards strategic targets
  • 24. SMART SMART is an acronym that you can use to guide your goal setting. Its criteria are commonly attributed to Peter Drucker's Management by Objectives concept. To make sure your goals are clear and reachable, each one should be: Specific (simple, sensible, significant). Measurable (meaningful, motivating). Achievable (agreed, attainable). Relevant (reasonable, realistic and resourced, results-based). Time bound (time-based, time limited, time/cost limited, timely, time-sensitive).
  • 25. RACI What is a RACI chart? A RACI chart is a simple matrix used to assign roles and responsibilities for each task, milestone, or decision on a project. By clearly mapping out which roles are involved in each project task and at which level, you can eliminate confusion and answer the age-old project question, Who’s doing what? What does RACI stand for? RACI stands for Responsible, Accountable, Consulted, Informed. Each letter in the acronym represents a level of task responsibility.
  • 26. Lean You can apply the concept of Lean in any business or production process, from manufacturing to marketing and software development. The Lean methodology relies on 3 very simple ideas: deliver value from your customer’s perspective eliminate waste (things that don’t bring value to the end product) continuous improvement
  • 27. Lean
  • 28. Kaizen Kaizen (Continuous Improvement) is a strategy where employees at all levels of a company work together proactively to achieve regular, incremental improvements to the manufacturing process. In a sense, it combines the collective talents within a company to create a powerful engine for improvement.
  • 29. PDCA The Plan-do-check-act cycle (Figure 1) is a four-step model for carrying out change. Just as a circle has no end, the PDCA cycle should be repeated again and again for continuous improvement. The PDCA cycle is considered a project planning tool.
  • 30. FMEA Failure Mode and Effects Analysis (FMEA) Also called: potential failure modes and effects analysis; failure modes, effects and criticality analysis (FMECA) Failure Modes and effects analysis (FMEA) is a step-by-step approach for identifying all possible failures in a design, a manufacturing or assembly process, or a product or service. It is a common process analysis tool.
  • 31. Genchi Genbutsu The literal translation of Genchi Genbutsu is close to “actual place, actual thing”. Yet, it’s more enriching to read Toyota’s own definition, as expressed in the Toyota Way 2001 internal pamphlet: “we practice genchi genbutsu… go to the source to find the facts to make correct decisions, build consensus and achieve goals at our best speed.“
  • 32. Gemba 'Going to Gemba' is the act of visiting the shop floor in Lean and Kaizen. Literally translated as 'The Real Place', it pushes the importance of leadership understanding what is happening at every level. Gemba (現場, also spelt less commonly as genba) is a japanese term meaning "the real place." Japanese police could refer to a crime scene as gemba, and TV reporters often refer to themselves as reporting live from gemba. In business, however, gemba refers to the place where value is created. The most common use of the term is in manufacturing, where the gemba is the factory floor. Beyond this, gemba can really be any "site", such as a building site in construction, the sales floor in retail, or somewhere the service provider interacts directly with the customer e.g. a car dealership showroom.
  • 33. Quality Function Deployment Quality Function Deployment (QFD) is a process and set of tools used to effectively define customer requirements and convert them into detailed engineering specifications and plans to produce the products that fulfill those requirements. QFD is used to translate customer requirements (or VOC) into measureable design targets and drive them from the assembly level down through the sub-assembly, component and production process levels. QFD methodology provides a defined set of matrices utilized to facilitate this progression.
  • 34. Value Engineering Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.
  • 35. Keiretsu Keiretsu is a Japanese term referring to a business network made up of different companies, including manufacturers, supply chain partners, distributors, and occasionally financers. They work together, have close relationships and sometimes take small equity stakes in each other, all the while remaining operationally independent. Translated literally, keiretsu means “headless combine."
  • 36. Poka Yoke The term Poka Yoke (poh-kah yoh-keh) was coined in Japan during the 1960s by Shigeo Shingo, an industrial engineer at Toyota. Shingo also created and formalized Zero Quality Control – a combination of Poka Yoke techniques to correct possible defects and source inspection to prevent defects.
  • 37. Baka Yoke Baka yoke is the Japanese term for “fool proofing” or “idiot proofing”. Needless to say, it is not the most politically correct of terms, and has been replaced in common use by poka yoke, or “mistake proofing”. The principle is the same for both terms. Prevent mistakes rather than correct defects. The subtle difference between baka yoke and poka yoke is that the focus changes from the person (fool or idiot) to the process or action (mistake).
  • 39. Inherent safety An inherently safe plant relies on chemistry and physics to prevent accidents rather than on control systems, interlocks, redundancy, and special operating procedures to prevent accidents. Inherently safer plants are tolerant of errors and are often the most cost effective. A process that does not require complex safety interlocks and elaborate procedures is simpler, easier to operate, and more reliable. Smaller equipment, operated at less severe temperatures and pressures, has lower capital and operating costs.
  • 40. Idiot Proof "Programming today is a race between software engineers striving to build bigger and better idiot-proof programs, and the Universe trying to produce bigger and better idiots. So far, the Universe is winning." Rick Cook Idiot Proofing just means making sure the user can't break a piece of software even if he tried. For instance, if a value is read from a text box, and is converted to a double, if the underlying software is idiot proof, it won't break if the user types in a non- double value.
  • 41. Fail Safe If something is fail-safe, it has been designed so that if one part of it does not work, the whole thing does not become dangerous.
  • 42. Interlock A device, esp one operated electromechanically, used in a logic circuit or electrical safety system to prevent an activity being initiated unless preceded by certain events. A set of methods and facilities that ensure holding the operating parts (components) of an apparatus, machine, or circuit (electrical) in a definite state which is maintained regardless of whether the interlocking action ceases. Interlocking increases the safety of service and the operating reliability of equipment, ensures the required operational sequence for mechanisms and components, and restricts the motions of mechanisms to the limits of the operating zone.
  • 43. Lockout - tagout Proper lockout/tagout (LOTO) practices and procedures safeguard workers from hazardous energy releases. OSHA's Lockout/Tagout Fact Sheet describes the practices and procedures necessary to disable machinery or equipment to prevent hazardous energy release. The OSHA standard for The Control of Hazardous Energy (Lockout/Tagout) (29 CFR 1910.147) for general industry outlines measures for controlling different types of hazardous energy. The LOTO standard establishes the employer's responsibility to protect workers from hazardous energy. Employers are also required to train each worker to ensure that they know, understand, and are able to follow the applicable provisions of the hazardous energy control procedures:
  • 44. Murphy's Law In its simplest form, Murphy's Law states: If anything can go wrong, it will. However, as with many successful business theories, the original law has been extended over time to cover specialist areas, several of which are given below: Project Planning: If anything can go wrong, it will. Usually at the most inopportune time. Performance Management: If someone can get it wrong, they will. Risk Assessment: If several things can go wrong, the one you would LEAST like to happen will occur. Practical creativity: If you can think of four ways that something can go wrong, it will go wrong in a fifth way.
  • 45. Root cause analysis (RCA) Root cause analysis (RCA) is a systematic process for identifying “root causes” of problems or events and an approach for responding to them. RCA is based on the basic idea that effective management requires more than merely “putting out fires” for problems that develop, but finding a way to prevent them.
  • 46. Five Whys The 5 Whys technique is true to this tradition, and it is most effective when the answers come from people who have hands- on experience of the process or problem in question. The method is remarkably simple: when a problem occurs, you drill down to its root cause by asking "Why?" five times. Then, when a counter-measure becomes apparent, you follow it through to prevent the issue from recurring.
  • 47. A3 Problem Solving A3 refers to a European paper size that is roughly equivalent to an American 11-inch by 17-inch tabloid-sized paper. The A3 format is used by Toyota as the template for three different types of reports: Proposals Status Problem solving There is no “magic” in the steps through which the structured A3 Problem Solving template takes a team. These steps are basically: Identify the problem or need Understand the current situation/state Develop the goal statement – develop the target state Perform root cause analysis Brainstorm/determine countermeasures Create a countermeasures implementation plan Check results – confirm the effect Update standard work
  • 48. Eight disciplines problem solving (8D) The eight disciplines (8D) model is a problem solving approach typically employed by quality engineers or other professionals, and is most commonly used by the automotive industry but has also been successfully applied in healthcare, retail, finance, government, and manufacturing. The purpose of the 8D methodology is to identify, correct, and eliminate recurring problems, making it useful in product and process improvement. The 8D problem solving model establishes a permanent corrective action based on statistical analysis of the problem and focuses on the origin of the problem by determining its root causes. Although it originally comprised eight stages, or disciplines, the eight disciplines system was later augmented by an initial planning stage.
  • 49. Fault tree analysis (FTA) Fault tree analysis (FTA) is a graphical tool to explore the causes of system level failures. It uses boolean logic to combine a series of lower level events and it is basically a top-down approach to identify the component level failures (basic event) that cause the system level failure (top event) to occur. Fault tree analysis consists of two elements “events” and “logic gates” which connect the events to identify the cause of the top undesired event.
  • 50. Forensic engineering Forensic engineering is the application of engineering knowledge to determine why a structure or machine failed. It also tries to determine why there was damage to a structure or machine. Forensic engineering involves using reverse engineering to find out why a component, structure, or machine failed to perform properly. In other words, forensic engineering is all about trying to find out what went wrong. Forensic experts may then use their findings as evidence in court. Specifically, they use their evidence in court if the failure caused human injury or damage to property.
  • 51. Issue-based information system Issue Based Information Systems (IBIS) help members of a project team discuss issues related to a problem and come to a consensus on a solution. The graphical Issue Based Information System (gIBIS) from MCC is one such system which was built to capture the design rationale for software projects. Software design is a collaborative process in which various team members contribute their expertise and viewpoints to discuss the design. In gIBIS, participants in the online discussion argue about design issues by taking positions and making arguments for and against those positions. These position arguments are represented in a hypertext structure with three types of nodes: issues, positions, and arguments.
  • 52. Orthogonal Defect Classification ODC is a scheme to capture the semantics of each software defect quickly. It is the definition and capture of defect attributes that make mathematical analysis and modeling possible. Analysis of ODC data provides a valuable diagnostics method for evaluating the various phases of the software life cycle (design, development, test and service) and the maturity of the product. This is much like the diagnostics done in medicine using the blood sample from a patient to understand the existing health conditions and arrive at corrective actions. ODC makes it possible to push the understanding and use of defects well beyond quality.
  • 53. Roy’s Safety-first Criterion Roy’s safety-first criterion is a risk management technique used by investors to compare and choose a portfolio based on the criterion that the probability of a portfolio’s return dropping below a threshold level return is reduced. In Roy’s safety-first criterion, the optimal portfolio is one that minimizes the probability of the portfolio’s return falling below a threshold return level. The portfolio with the highest Roy’s safety-first criterion has the lowest probability of a portfolio generating a return lower than the threshold level return.
  • 54. The Art of War Twenty-Five Hundred years ago, Sun Tzu wrote this classic book of military strategy based on Chinese warfare and military thought. Since that time, all levels of military have used the teaching on Sun Tzu to warfare and civilization have adapted these teachings for use in politics, business and everyday life. The Art of War is a book which should be used to gain advantage of opponents in the boardroom and battlefield alike.
  • 55. Resource allocation Resource allocation is the process of assigning and managing assets in a manner that supports an organization's strategic goals. Resource allocation includes managing tangible assets such as hardware to make the best use of softer assets such as human capital. Resource allocation involves balancing competing needs and priorities and determining the most effective course of action in order to maximize the effective use of limited resources and gain the best return on investment. In practicing resource allocation, organizations must first establish their desired end goal, such as increased revenue, improved productivity or better brand recognition.
  • 56. Economic production Economic production is an activity carried out under the control and responsibility of an institutional unit that uses inputs of labour, capital, and goods and services to produce outputs of goods or services.
  • 57. Planning Planning is the fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done, how it is to be done and who is going to do it. It is an intellectual process which lays down an organisation’s objectives and develops various courses of action, by which the organisation can achieve those objectives. It chalks out exactly, how to attain a specific goal. Planning is nothing but thinking before the action takes place. It helps us to take a peep into the future and decide in advance the way to deal with the situations, which we are going to encounter in future. It involves logical thinking and rational decision making.
  • 58. Quality Assurance Quality Assurance (QA) is defined as an activity to ensure that an organization is providing the best possible product or service to customers. QA focuses on improving the processes to deliver Quality Products to the customer. An organization has to ensure, that processes are efficient and effective as per the quality standards defined for software products. Quality Assurance is popularly known as QA Testing
  • 59. Management Consulting Management consulting is a popular destination for bright students after graduating university. With good salaries, specialist training and opportunities to progress quickly, it’s easy to see why. If you’re unsure what it is or how to get into this sector, our quick guide gives you everything you need to know. Management consultants work with businesses to improve their performance by providing expert advice to solve problems and encourage growth. They work with businesses across a wide range of sectors, including business strategy, finance, HR and marketing. It’s not just private firms - many public institutions use management consulting to improve their practices and efficiency.
  • 60. Applied mathematics Applied mathematics involves the application of mathematics to problems which arise in various areas, e.g., science, engineering or other diverse areas, and/or the development of new or improved methods to meet the challenges of new problems. We view applied math as the application of mathematics to real- world problems with the dual goal of explaining observed phenomena and predicting new, as yet unobserved, phenomena. Therefore, the emphasis is on both the mathematics, e.g. the development of new methods to meet the challenges of new problems, and the real world.
  • 61. Operations research Operations Research, also called Decision Science or Operations Analysis, is the study of applying mathematics to business questions. As a sub-field of Applied Mathematics, it has a very interesting position alongside other fields as Data Science and Machine Learning. Which Questions does Operations Research answer? Before getting into the real definition of Operations Research, let’s have a look at a few example applications. As you will see, they all have a few points in common: we will get to that just after.
  • 62. Theory of constraints The Theory of Constraints is an organizational change method that is focussed on profit improvement. The essential concept of TOC is that every organization must have at least one constraint. A constraint is any factor that limits the organization from getting more of whatever it strives for, which is usually profit. The Goal focuses on constraints as bottleneck processes in a job-shop manufacturing organization. However, many non-manufacturing constraints exist, such as market demand, or a sales department’s ability to translate market demand into orders.
  • 63. Management by objectives Management by objectives (MBO) is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization.
  • 64. Business process reengineering Business process reengineering is the act of recreating a core business process with the goal of improving product output, quality, or reducing costs. Typically, it involves the analysis of company workflows, finding processes that are sub-par or inefficient, and figuring out ways to get rid of them or change them.
  • 65. Six Sigma Six Sigma is a method that provides organizations tools to improve the capability of their business processes. This increase in performance and decrease in process variation helps lead to defect reduction and improvement in profits, employee morale, and quality of products or services. "Six Sigma quality" is a term generally used to indicate a process is well controlled (within process limits ±3s from the center line in a control chart, and requirements/tolerance limits ±6s from the center line).
  • 66. Viable system model The British psychologist Anthony Stafford Beer is the founder of the Viable System Model (VSM). He describes this model in his 1972 book ‘Brain of the Firm’, which is a management tool to determine the viability of an organisation. With this model, it becomes clear whether an organisation has a chance of survival in a rapidly changing market and environment. It is also applicable to every healthy and viable organisation, and relevant to both individuals and teams. With the Viable System Model, it is possible to look at the internal and external balance of an organisation and bring the smallest detail to light. Different subsystems are scrutinised and improvements are applied where necessary. As a result, an organisation will be profitable (viable) again.
  • 67. Cog's ladder Cog’s ladder model is a group development tool that can be used to identify to what extent group members have reached their maternity in group work. The model was created in 1979 by George Charrier, and it was first used to help P&G executives improve operational efficiency. The model looks like Tuckman stages of group development, which is another group development model that argues that a group cannot perform well unless it has experienced conflicts and has set behavioral standards.
  • 68. Agile software development Agile is the ability to create and respond to change. It is a way of dealing with, and ultimately succeeding in, an uncertain and turbulent environment. The authors of the Agile Manifesto chose “Agile” as the label for this whole idea because that word represented the adaptiveness and response to change which was so important to their approach. It’s really about thinking through how you can understand what’s going on in the environment that you’re in today, identify what uncertainty you’re facing, and figure out how you can adapt to that as you go along.
  • 69. Philosophy of business A business is a productive organization—an organization whose purpose is to create goods and services for sale, usually at a profit. Business is also an activity. One entity (e.g., a person, an organization) “does business” with another when it exchanges a good or service for valuable consideration. Business ethics can thus be understood as the study of the ethical dimensions of productive organizations and commercial activities. This includes ethical analyses of the production, distribution, marketing, sale, and consumption of goods and services.
  • 70. Cost–benefit analysis A cost-benefit analysis is a process businesses use to analyze decisions. The business or analyst sums the benefits of a situation or action and then subtracts the costs associated with taking that action. Some consultants or analysts also build models to assign a dollar value on intangible items, such as the benefits and costs associated with living in a certain town.
  • 71. Ishikawa diagram An Ishikawa diagram is a diagram that shows the causes of an event and is often used in manufacturing and product development to outline the different steps in a process, demonstrate where quality control issues might arise and determine which resources are required at specific times. The Ishikawa diagram was developed by Kaoru Ishikawa during the 1960s as a way of measuring quality control processes in the shipbuilding industry.
  • 72. Control chart Control charts are used to routinely monitor quality. Depending on the number of process characteristics to be monitored, there are two basic types of control charts. The first, referred to as a univariate control chart, is a graphical display (chart) of one quality characteristic. The second, referred to as a multivariate control chart, is a graphical display of a statistic that summarizes or represents more than one quality characteristic.
  • 73. Business process mapping Business Process Mapping is the visualization of business processes, allowing for a more top-down view on how the business works. On its own, the main benefit of business process mapping is the introspection – you get a better understanding of how your business works.
  • 74. Check Sheet The Check Sheet is a simple document that is used for collecting data in real time and at the location where the data is generated. The document is typically a blank form that is designed for the quick, easy, and efficient recording of the desired information, which can be either quantitative or qualitative. When the information is quantitative, the check sheet is sometimes called a tally sheet. The check sheet is one of the seven basic tools of quality control made popular by Dr. Kaoru Ishikawa.
  • 75. Run Chart A run chart is a line graph of data plotted over time. By collecting and charting data over time, you can find trends or patterns in the process. Because they do not use control limits, run charts cannot tell you if a process is stable. However, they can show you how the process is running. The run chart can be a valuable tool at the beginning of a project, as it reveals important information about a process before you have collected enough data to create reliable control limits.
  • 76. CTQ Tree A Critical to Quality Tree (also known as a CTQ Tree) is a Six Sigma tool used to identify the needs of the customer and translate that information into measurable product and process requirements. It allows organizations to understand the characteristics of a product or service that most drives quality for customers. Before initiating any process improvement project, it’s important for a business to determine the characteristics of the product or service that are critical to quality as judged by customers – this is known as CTQ. Creating a CTQ Tree determines the drivers behind those characteristics and helps companies find ways to meet them.
  • 77. Total quality management (TQM) Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training. Total quality management aims to hold all parties involved in the production process accountable for the overall quality of the final product or service.
  • 78. Total productive maintenance Total productive maintenance (TPM) is a strategy that operates according to the idea that everyone in a facility should participate in maintenance, rather than just the maintenance team. This approach uses the skills of all employees and seeks to incorporate maintenance into the everyday performance of a facility.
  • 79. Design of experiments Design of experiments (DOE) is defined as a branch of applied statistics that deals with planning, conducting, analyzing, and interpreting controlled tests to evaluate the factors that control the value of a parameter or group of parameters. DOE is a powerful data collection and analysis tool that can be used in a variety of experimental situations. It allows for multiple input factors to be manipulated, determining their effect on a desired output (response). By manipulating multiple inputs at the same time, DOE can identify important interactions that may be missed when experimenting with one factor at a time. All possible combinations can be investigated (full factorial) or only a portion of the possible combinations (fractional factorial).
  • 80. Stratified sampling Stratified sampling is a type of sampling method in which the total population is divided into smaller groups or strata to complete the sampling process. The strata is formed based on some common characteristics in the population data. After dividing the population into strata, the researcher randomly selects the sample proportionally.
  • 81. Histogram A histogram is a plot that lets you discover, and show, the underlying frequency distribution (shape) of a set of continuous data. This allows the inspection of the data for its underlying distribution (e.g., normal distribution), outliers, skewness, etc. An example of a histogram, and the raw data it was constructed from, is shown below: 36 25 38 46 55 68 72 55 36 38 67 45 22 48 91 46 52 61 58 55
  • 82. Pareto analysis Pareto Analysis is a simple decision-making technique for assessing competing problems and measuring the impact of fixing them. This allows you to focus on solutions that will provide the most benefit. Pareto Analysis uses the Pareto Principle – also known as the "80/20 Rule" – which was coined by Italian economist, Vilfredo Pareto, in his 1896 book, "Cours d'économie politique." The Pareto Principle states that 80 percent of a project's benefit comes from 20 percent of the work. Or, conversely, that 80 percent of problems can be traced back to 20 percent of causes. Pareto Analysis identifies the problem areas or tasks that will have the biggest payoff.
  • 83. Pareto chart A Pareto chart is a bar graph. The lengths of the bars represent frequency or cost (time or money), and are arranged with longest bars on the left and the shortest to the right. In this way the chart visually depicts which situations are more significant. This cause analysis tool is considered one of the seven basic quality tools.
  • 84. Pick Chart The PICK chart is a Lean Six Sigma tool that was first developed by Lockheed Martin for lean production. Its original purpose was for organizing ideas for process improvement and categorizing them for easy review and analysis. Your typical PICK chart is a 2×2 matrix, with the horizontal scale measuring the benefits, and the vertical scale measuring the difficulty. You evaluate a project or idea and place it in the most appropriate of the four available squares. Each square will have a corresponding action: Possible – Low payoff, easy to do Implement – High pay off, easy to do Challenge – High payoff, hard to do Kill – Low payoff, hard to do
  • 85. Process capability Process capability compares the output of an in-control process to the specification limits by using capability indices. The comparison is made by forming the ratio of the spread between the process specifications (the specification "width") to the spread of the process values, as measured by 6 process standard deviation units (the process "width").
  • 86. Capability Maturity Model Capability Maturity Model is used as a benchmark to measure the maturity of an organization's software process. CMM was developed at the Software engineering institute in the late 80's. It was developed as a result of a study financed by the U.S Air Force as a way to evaluate the work of subcontractors. Later based on the CMM-SW model created in 1991 to assess the maturity of software development.
  • 87. Rolled throughput yield The probability that a single unit can pass through a series of process steps free of defects. Next we will turn our attention to a Rolled Throughput Yield example. If you will remember, the First Time Yield calculation we did (FTY) considered only what went into a process step and what went out. Rolled Throughput Yield adds the consideration of rework. Using the previous example: Process A = 100 units in and 90 out Process B = 90 in and 80 out Process C = 80 in and 75 out Process D = 75 in and 70 out.
  • 88. Quantitative marketing research Quantitative Market Research is a technique to ask questions to the target audience in an organized manner using surveys, polls or questionnaires. Received responses can be analyzed to make well-thought decisions for improving products and services, that will in turn help increase respondent satisfaction levels. Well-founded results can be achieved in case a large sample size that represents a population is surveyed.
  • 89. Enterprise Feedback Management Enterprise Feedback Management allows companies to systematically collect and manage feedback and integrate their results with various information systems. This allows companies to have an actionable, comprehensive and accurate enterprise-wide outlook. Using Enterprise Feedback Management will increase efficiency and reduce costs because it eradicates the use of several other redundant and inconsistent survey tools.
  • 90. Taguchi methods The Taguchi method of quality control is an approach to engineering that emphasizes the roles of research and development (R&D), product design and development in reducing the occurrence of defects and failures in manufactured goods. This method, developed by Japanese engineer and statistician Genichi Taguchi, considers design to be more important than the manufacturing process in quality control, aiming to eliminate variances in production before they can occur.
  • 91. Value stream mapping (VSM) Value stream mapping (VSM) is defined as a lean tool that employs a flowchart documenting every step in the process. Many lean practitioners see VSM as a fundamental tool to identify waste, reduce process cycle times, and implement process improvement. VSM is a workplace efficiency tool designed to combine material processing steps with information flow, along with other important related data. VSM is an essential lean tool for an organization wanting to plan, implement, and improve while on its lean journey. VSM helps users create a solid implementation plan that will maximize their available resources and help ensure that materials and time are used efficiently.
  • 92. SIPOC SIPOC is a tool that summarizes the inputs and outputs of one or more processes in table form. It’s an acronym that stands for Supplies, Inputs, Process, Outputs and Customers. Some organizations use the opposite acronym COPIS, which puts the customer first and illustrates the value of the customer to the organization. The term SIPOC originates from the 1980s and is part of the total quality movement. Today you’ll find SIPOC as a part of the Six Sigma, lean manufacturing and business process management disciplines.
  • 93. Muda (Japanese term) Muda (無駄?) is a traditional Japanese term for an activity that is wasteful and doesn't add value or is unproductive, etymologically none (無)+ trivia or un-useful (駄) in practice or others. It is also a key concept in the Toyota Production System (TPS) and is one of the three types of waste (muda, mura, muri) that it identifies. Waste reduction is an effective way to increase profitability. Toyota merely picked up these three words beginning with the prefix mu-, which in Japan are widely recognized as a reference to a product improvement program or campaign. A process adds value by producing goods or providing a service that a customer will pay for.
  • 94. Mura (Japanese term) Mura (斑 or ムラ) is traditional general Japanese term for unevenness, inconsistency in physical matter or human spiritual condition. It is also a key concept in the Toyota Production System and is one of the three types of waste (Muda, Mura, Muri) it identifies. Waste reduction is an effective way to increase profitability. Toyota merely picked up these three words with prefix mu-, which every Japanese know, as product improvement program or campaign.
  • 95. Muri (Japanese term) A Japanese term (無理) meaning “unreasonableness; impossible; beyond one's power; too difficult; by force; perforce; forcibly; compulsorily; excessiveness; immoderation.” Muri is a key removal-of-waste concept (along with Muda and Mura) in lean manufacturing that focuses on reducing overburden. Muri generates unnecessary stress to our employees and our processes. Muri can be avoided through standardized work.
  • 96. Kaikaku Kaikaku is the Japanese word for "radical change." It is a lean method used to make fundamental, significant, radical changes in the workplace. Unlike Kaizen, which uses slow, continual, small changes, Kaikaku involves making one-time, large, major changes Kaizen and Kaikaku are not mutually exclusive. They both have their place in an organization's arsenal of lean tools. Kaikaku is a tool that is used in addition to Kaizen, not instead of Kaizen. In many cases Kaikaku is used initially, and the Kaizen provides the long-term transformation. In some respects Kaikaku is similar to a Kaizen blitz, but on an even larger scale and making more fundamental changes.
  • 97. Heijunka box In the illustration of a typical heijunka box shown below, each horizontal row is for one type of product (one part number). Each vertical column represents identical time intervals for paced withdrawal of kanban. The shift starts at 7:00 a.m. and the kanban withdrawal interval is every 20 minutes. This is the frequency with which the material handler withdraws kanban from the box and distributes them to production processes in the facility.
  • 98. Andon (manufacturing) Much like the “check engine” light in a car, Andon in Lean manufacturing is a system designed to alert operators and managers of problems in real time so that corrective measures can be taken immediately. It originates from the Jidoka methodology used in the Toyota Production System, which empowered operators to recognize issues and take the initiative to stop work without waiting for management to make the decision.
  • 99. Ho-Ren-So Ho-ren-so is based on the idea that work is something collaborative done by supervisor and subordinate as a team. While the subordinate takes the lead in doing the work, the supervisor gives guidance on the work that is shown to him, often in the form of suggestions for revision and improvement. Tweaking something multiple times before it is just right is common.
  • 100. Thank You Contact information : Khawar Nehal http://atrc.net.pk +92 343 270 2932 +92 331 2036 422 khawar@atrc.net.pk