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  1. Management by Objectives – MBO. How does Lean six sigma principles integrate with the MBO framework. Right from our schools we know the word objective. Before doing any practical / demonstration for science we had to write objective of that exercise. Objective specifies the purpose, expectations, and need of that exercise. In corporate this word has a great meaning as it defines the direction for the organization for growth. It defines the specific goals to be achieved by the organization to fulfill short term (annual) and long term (as per vision of the organization) goals. In all this process the word – GOAL – is having complete emphasize and it is at the driving seat of the organization. It further percolates to the senior leadership – middle management and upto the last associate of the organization working on shop floor. Simply the senior leadership has a vision for its organization for may be next 5 years. This is split into annual target. Accordingly different areas, departments are assigned the targets. Here comes the RACI matrix of lean. To fulfil the sales target, production has to manufacture the required volume and quality has to ensure that the product meets customer satisfaction. Purchases need to maintain the required inventory along with stores and so on for other functions. One thing to be noted- The goals are SMART. As an organization visualizes its specific growth (e.g. achieving preferred partnership status with customers) in numbers (increase in volume sold) according to its strength, capabilities, skill sets available within specific time duration of one year. The goals set are- S – Specific for CEO, every head of function/ dept, manager, engineers and shop floor associates. M- Measurable – Every aspect of his role and responsibilities, accountabilities are figured in numbers. E.g. per day production, number stoppages of machine, number of new customers brought in for business, volume sold per quarter, cost reduction in %, projects completion within specific time etc. A-Assignable – Clearly mentioned who will do what. R- Realistic – Goals are close to reality of market scenario, available funds, resources etc. T – Time bound – there should be a time limit to achieve every goal to fulfill all short term projections. Thus, by setting SMART goals for every individual, every organization starts its financial year. Employees are provided all required resources. The goals are reviewed at defined frequency and there can be small corrections as per reality. Finally, the performance of every individual right from CEO, COO, CHRO, Senior management, middle management, engineers and shop floor associates is measured compared to initial targets given in goal sheet at the start of financial year. Every individual is given a performance rating and accordingly his next year salary hike and bonus is decided. This system was first popularized by Peter Drucker in his book in 1954. Hewlett-Packard, Xerox, DuPont, intel were the few companies implemented these practices many years ago. Presently there many companies following these practices and getting the required productivity, profitability and growth by systematic tracking this process. In ACG Associated capsule it is a well-documented process and completely digital. Every year from December the strategic meetings are started to finalize Business score cards, to fix Functional score cards. They are split according to different functions and further it is divided into all managers, engineers and shop floor associates. This process is completed in the month of March. From April everybody works for his goals in complete collaboration with all CFT to achieve daily, monthly targets for the organization. In the month of October, the mid-term progress is reviewed and work is done on the gaps. Finally next year’s June annual appraisals are done, and a performance rating is given. There are four categories for performance rating – Basic, good, excellent and outstanding. Previous year’s performance becomes basic for next year’s performance, Naturally excellent and outstanding performance levels are higher than previous year. To achieve excellent and outstanding performance, every individual has to think out of box, stretch his physical and mental muscles. Every organization need growth without expanding every year, without adding substantial manpower and funds every year. Then, how come growth comes? Here Lean six sigma integration supports- Voice of customer – The objectives for the organization are mostly driven by the voice of the customer. What quality (specifications) exactly he wants, how much volume at what time he needs are the key factors to set the goals. What delights him is the hygiene factor. It largely helps to define FSC (Functional score card) and BSC (Business score card) Value stream mapping / Pareto charts – We always keep track of the flow of materials, process to see the wastages and opportunities to optimize resources. Pareto helps us to focus on specific areas to improve upon. Control charts – They are the mirror of our regular production, indicating what is going correct and where need correction to produce continuous quality product to delight the customer. It helps to monitor critical quality parameters to keep them on target. Five why – It helps us to get the root cause of any quality defect or breakdown of machine. With the help of Poka Yoke, Error proofing, OPL we avoid it and sustain the manufacturing of quality and volume to meet the productivity. This is part of weekly review for continual improvement of machine continuity and product quality. DMAIC approach – The essential tool for six sigma projects, emphasizes the major improvements in the system and gives multifold benefits with respect to cost reduction. It involves lots of Data collection plans – it is essential for the accurate analysis of the process. Project charter – guiding what to achieve from current situation within what time and with which team. Fishbone diagram helps to identify different elements of the process and find where to focus. These are the vital tools in this approach. We improve the productivity by reducing losses by 2 to 3%. Kaizen – Personally I have made few modifications in the process, methods, spares or developing altogether new components to achieve better quality of product. To get better continuity of machines for on time delivery to the customer. Brainstorming is key to getting valuable insights from all stakeholders. By modifying or introducing new components we improve the continuity of our machines by 1.2 to 1.6%. Conclusion:- The vision and mission of the organization is systematically achieved by dividing it in the annual mission. These are the objectives for the entire team in the form of goal sheet. They are SMART and reviewed by the immediate superior for keeping the employees aligned to the goal of the organization. The performance rating at the end of year is the reward for the employee and achievement for the organization. The lean concept helps to achieve more, better productivity within same resources with the help of improvements in the system, methods, processes, components, machines. Most of the tools of lean sigma can be integrated to achieve the mission and vision of the organization.
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  2. Predictive Modelling: It is the most prevalent statistical technique used to predict future behaviour.Predictive Modelling also contemplated as a mathematical process used to forecast future outcomes and events by analysing the pattern in a data set.It works by analysing past data,current data and projecting the leanings on the result which has been generated to forecast the outcomes. Predictive Modelling can be taken as assumptions which relies on what is happening currently and what has happened in the past. Here are the 5 models of Predictive Modelling: Forecast model: Its a very common model and it works on the values which based on numbers got from the learning of historical data. Time series model: This works on sequence of points in the data given based on time. Classification Model: This model merely works on classification of data into different types of categories from the past and current data and analyses the future outcome from it.It is the most simplest model of predictive Modelling. Clustering Model: This model works on common attributes on the same data.Like grouping the smaller things,people with same behaviour will be considered as a sub group from a large scale data. Outliers model: This works on outlying data or analysing abnormal data points.This technique can be used to predict the process behaviour as short term predictions, medium term predictions and long term predictions. Example for short term prediction: prediction of traffic on websites for the next hours so that it helps in utilisation of server resources. Medium term prediction: Predicting monthly power consumption on a building to optimize HVAC systems. Long term prediction: Predicting occurrence of natural disasters like earthquakes, hurricanes floods and droughts. Example for predicting models: Fraud detection in banks, insurance companies: Predictive Modelling helps to detect fraudulent activities,transactions like insurance or credit card fraud
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