Rajesh Chakrabarty

Quality Costs, in general, are costs that are not expended if quality of the product or Service as an output of any process , were perfect as per the specification of the customer. The overall cost of quality include: i) Prevention of non – conformance to specification ii) Failure to meet the specifications iii) Appraising a product or service for conformance to specification or requirements Wherein, the costs caused due to providing poor quality of product or service have four categories- Prevention Costs( Costs incurred to keep defects at the lowest the process at “0 Defect”),Internal failure costs (Cost associated with defects that are found before the customer experience), External Failure costs (Cost associated with defects found after the customer experiences the defects) and Appraisal costs(costa incurred to determine the degree of conformance to specifications- given that the specifications may change as the need & expectation of the customers keeps changing) It is but obvious that getting it right the first time itself will save many costs - For sure ,The internal failure costs and external failure costs will be at lowest possible and enrich the bottom line. Cost of Quality is a methodology that helps an organization to determine the extent of usage of it’s resources to prevent poor quality or reduce the cost of poor quality. Having this information helps to control and regulate the potential savings to be derived through process enhancement activities. Simultaneously, the organization can also take a call on how to use the derived benefits through options like passing part of the benefit to the customers (offers and promotions) or using the same in the process / service/ product enhancement programmes. Though, the best option for most is to retain the profits as it is the best proof of business excellence for the investors and internal stakeholders. Most of the organizations will have quality related costs as high as 30% of sales- most of it goes unnoticed as it is hidden. Some organizations cease to exercise any effort on the same as they are unable to execute proper Quality cost management and thus get less optimal results on their investment. They loose confidence in their own quality cost reduction efforts. They then claim the cost from the Customer with higher selling price- Big mistake!! Quality Cost Management helps organizations to prioritize their corrective measures and helps them to allocate their resources effectively to minimise undue costs. Effective quality management programs can reduce the cost of quality substantially and thus contribute to the profits. As a strategy, 10 to 15% of operational cost should be allocated as a general thumb rule towards costs of poor quality. The equilibrium or balance has to be maintained within the 4 types of costs that constitute towards the quality costs. As mentioned earlier in this note, Keeping the defects lowest during the production or executing the service process is the best option to keep the other related costs down. So majority of the budget allocated ,should be used towards Prevention costs which are associated with design, implementation and maintenance (both planned and spontaneous) of the quality management system. The spend should be planned and incurred before actual production or operation through: - Determination of specifications for raw materials, processes based on need of customer, quality standards of products/ services - Documented plan for quality, reliable check points, control charts - Quality assurance through a effective quality management system - Training- Most important – the best things happen when you have the best trained person at the right places- “Aces at Places” An judicious effort on preventive measures helps to reduce the internal and external failure costs. Appraisal costs which are associated with the suppliers and customer’s perception of value of spend on products or services is necessary and hence quality audits at relevant process steps and VOC to assess scope for improvement or scope for cost control are of great importance- Thus the balance is very simple – The higher focus on control of Preventive and Appraisal costs reduces other costs of poor quality and once such quality cost system is established and becomes dynamic , it will provides the avenue for the organization to achieve better profit margins. This is pertinently the best scenario.

The Eight Disciplines (8D) model is an approach towards solving problems in existing processes, through identification, Correction, Elimination of recurrent problems. Thus like DMAIC, the 8D model is useful in product and process improvement. The 8D model helps to establish a permanent corrective action based on statistical analysis of the root causes. The 8 Disciplines are: D1- Use a Team- Define team with people who have knowledge of the process / Product to be improved. D2- Define the problem- elaborate on the problem in quantifiable terms like what, where, when, why, who, How and How many (5W2H) D3- develop interim Containment plan; Implement and verify the interim Actions- The objective is to ensure that the customers do not experience the impact of the problem, till the permanent solution is not defined. D4- Determine , Identify and verify Root Causes and escape points- deduce the root cause for the problem and identify how the problem was not detected earlier – Usage of 5 Whys and Cause and Effect diagrams are used in common. D5- Choose and verify permanent corrections (PCs) for the problem- Quantitative confirmation that the problems will not recur needs to be done through preproduction programmes or checkpoints in a process. D6- Implement and Validate the Corrective actions that have evolved from earlier disciplines- select and implement the best action. D7- Take Preventive measures – make changes to the process/ operational flowif required to prevent the occurrence of the problem in concern or any related problems D8- Congratulate your team- Recognize and reward the efforts of the team- Incentivise them or make them famous in the organization More or less, the D8 problem solving approach is similar to the DMAIC methodology as both have the Define, Analyse and Improve Stage. However there are differences when we look at both the approaches subjectively, as per the requirement and ability of the organisation- The 2 most obvious difference is that; 1) Six Sigma DMAIC uses a circular strategy (PDSA) whereas 8Ds follows a linear approach for a detected problem- with a defined beginning and ending. 2) Most Six sigma programs do not have defined logic in the beginning- Organizations use the six sigma methodology to reduce or eliminate defects that is outside of customer specification in any process. Six sigma training programs cover tests of hypothesis and there is always a focus on enumerative statistics. 8D method does not require this as it is more focussed on addressing specific failures that allowed any problem to occur in the first place. Thus, 8D is a “Structured” problem fixing technique, whereas 6Sigma is an analytical and data driven approach to improve process capability and focusses on minimising variation in a process to reduce or eliminate the defects per million opportunities. Consequently, many of the six sigma practitioners will agree to use 8D over DMAIC in the following situation: - Keeping in mind that 8D is a specific problem solving methodology whereas six sigma uses various problem solving approaches to improve process capability, 8D can be a part of the DMAIC approach as it can be used as a tool to improve output of a process. - It will make sense to use the 8D when improving the process is of high priority and there is lack of substantial time as is required by DMAIC process. - The above is pragmatically correct all the more when the existing process is not matured at level 04. - Training Requirements for Six sigma project is high, at times the training for stakeholders and implementers, in traditional six sigma implementations can take many weeks – this is not feasible in most of the organisations. - Primarily, six sigma is an option for larger corporate organisations as most of the training and information available is geared towards that sector. Also, given the overwhelming focus on statistics and big data, which is very difficult for smaller organizations or start-ups to assimilate, It becomes a painstaking exercise. Hence, the 8D seems to be the appropriate approach for immediate problems in the process that are of utmost importance to these small enterprises- Eventually which can look at the bigger picture and evolve into a 6 Sigma organizational program. Otherwise, The 6 Sigma option is preferred over the 8D approach wherever the environment is conducive to the approach , as mentioned in the note above, with total involvement of the top management of the organization. The advantage of 6Sigma over 8D is that 6 Sigma has been rolled out in many large companies like Motorola and has driven positive change where the customers have benefited along with the employees and other stakeholders- Thus it is a PROVEN SUCCESS And most importantly ,for any organisation, DMAIC and DMADV processes are specifically designed for SUSTAINABLE solutions- Which visionary would choose anything else???

Process Sigma is the measure of variation in a process which is relative to customer requirement and or process output. Defects in a process are measured on a scale of Defects Per Million Opportunities(DPMO). So any chance or scope to fail in meeting the customer’s requirement or desired process output is a defect, so a high DPMO is detrimental to the process. It is easier to calculate the sigma level in a production related process, as the steps become as simple as: - Define the number of units produced - Define the number of defect opportunities per unit - Count the number of defects in actual - Calculate DPMO using the formula. Sigma is a statistical term that measures to what extent a process varies from the desired output from the process, based on the number of defects per million units. Sigma Level allows to understand at what level of accuracy the output of the process is. Thus the performance of processes can be assessed across the organization. Level of Sigma Defects per million Units One Sigma Level 6,90,000 Two Sigma Level 3,08,000 Three Sigma Level 66,800 Four Sigma Level 6,210 Five Sigma Level 230 Six Sigma level 3.4 In a process Improvement or sigma level improvement effort, there is a general rule that that Six Sigma performance is a long term process and as mentioned above, there are only 3.4 defects per million units. A short term(within)sample of a process i.e. as it is now – let’s say a counter service at a QSR, will be free from assignable or special causes which means it will represent random causes only. It normally constitutes a group of similar things which are collected across a narrow inference space , maybe many orders from a single cash register/ Till Machine and it’s operater. A long term(Overall) sample of the same process as mentioned above will have random and assignable causes and is collected across a broad inference spaces with data across many different day parts and many different cash registers and operators. Sigma levels can be calculated individually in both the above data sets. In a classic process as mentioned above(Service time) in which "time" is the measure for performance, it is established that the process will shift in it’s average performance of up to +/- 1.5 sigma over the long term. A long term six sigma process that is rated at 4.5 sigma is generally considered to have a short term six sigma score of 6 sigma currently and the combination of all the short term samples that make up the long term performances will give an output of not more than 3.4 DPMO. Though it is not necessary that the long term performance has to be 1.5 sigma lower that the short term performance, but studies show that commonly that is the case. Hence, even if both sigma levels can be computed independently, it is acceptable to derive one type of the sigma level from the other using the 1.5 sigma shift as it gives almost a near accurate feel of the overall process performance when the short term performance is measured and gives a near accurate performance baseline for a short term process performance study / review when the overall process performance is already defined.

An Outlier is an observation that lies at an abnormal distance from other values in a random sample from a population. Overtly, it is data that lies outside the other values in the set and the distance or range is far removed from the mass of data- Obviously they are not in the normal range of the data set. In the following set of numbers: 6 ,90, 94, 99, 106, 109, 211 The numbers 6 and 211 are the outliers as it is obvious that both the numbers fall outside the characteristically expected variation, when the other numbers in the set are considered together. On a scatter plot the outliers are easy to spot and in a set of data in general it is easy when the data is sorted in a descending or ascending order. In any logical data set , it is easy to simply view outliners as an “irritant” as they normally cause complications when one attempts to create a process model or visualise a the data . Having said that when we are looking at data points of real patterns like performance measures like service time in a QSR, Outliers can reveal useful insights- sometimes ones which were never imagined before. Let us take an example of a QSR which is situated in a Movie multiplex. We see many outliers when the order taking times is mapped, during a “Children’s Movie”break….. The reason is simple- Parents tend to take a little more time to decide on what they and the children will order and also the added time killer when the children tend to change their order a few times during the order taking period. Noted below are some other situations that show how outliers help to improve processes: - It helps to check for errors- When a proper fact finding is done , many a times mistakes in the records are detected with evidence that the information was logged or processed incorrectly- Thus a checkpoint to detect errors of measurement is created. - Helps to estimate occurrence of “special” situations in a live process- Outliers in real patterns like customer CSat scores on a standardised product are actually pointers for opportunities in the product, when scrutiny is done on what the outliers mean in context. - Helps to gather additional Information. Outliers are sometimes associated with any other unusual situation in the business environment and there is need to reconsider the operational targets and act upon various cascading impacts . for example a study of home delivery timing during monsoon compel us to look outside the data set – obviously heavy rains has impact on delivery timing and hence an additional step of calling up customers or updating the online systems about expected delivery time (ETA) becomes a mandate So, as the above examples indicate, if we can find the reasons for the outliers and relate to the betterment of the process, or at least make a cognisant guess- the chances of missing on noteworthy information or business intelligence is reduced. We tend to miss on these opportunities by simply focussing on the average and improving from there. Thus even the Outliers which seem like nuisances and stragglers which can throw off the stats, are in reality provider of scope for improvement in a process. The following are the popular or common methods to find an outlier- - A box and whiskers chart (Boxplot) often shows outliers, however access is not always available to a boxplot and then in some boxplots the whiskers tend to reach out to include the outliers and hence may not show the outliers. - The most effective way to find all outliers is by using the interquartile range(IQR). It contains the middle bulk of the data and hence the outliers can be easily found once you know the IQR. - The Tukey method for finding outliers uses the interquartile range to filter out very large or very small numbers- basically it uses the concept of “fences” where the formulae creates equations that give you 2 values or fences that cordonsn off the outliers from all the values that are a part of the bulk of the data. There are other advanced methods like the Grubbs’ Test, Dixon’s Q Test, Modified Thompson Tau Test and Pierce’s Criterion.

Process Maturity in an organisation means, all the processes or whatever the organisation does as business , is done in a documented way and everyone knows what is expected of them and performs accordingly. In such organisations, performance is not dependent on individuals or just by things falling in place without intension, but due to proper process flow. All decisions are made on proper situation analysis and documented decision logic. Once there is total confidence in the organisation that the above mentioned is true and not a mere desired concept, there will always be a scope for measurement & analysis of every process or cascading sub processes. The process maturity thus embodies the indication of how close a developing process is to completion and stable enough to capable for continual improvement- it goes without saying that qualitative measures and analysis need to be applied. It is noteworthy that for good level of Measurement and analysis , relevant data needs to be accessible as and when required. So, all processes which are complete in it’s purpose or usefulness to the big organisational needs and are automated as much as possible and are reliable in information with the scope for continuous improvement are Mature processes. Required data, which is relevant for measurement and analysis towards improvement is available from within a mature process. Thus , it may not be wrong to say that the prerequisite for a process to improve is that the process needs to be mature- at whatever level . Hence, the assessment for maturity of a process carries great significance. The substantial science behind the concept of process maturity is that there are 5 levels to define the maturity of the process- Level 1 is the least mature and the level 5 is the most mature. The processes at any level address the features of the lower levels – The ground level is level 0 where there is no defined process for the activity- Obviously it is not mature at all!! The 5 levels to define the maturity of the process: Level 0- Person dependent Practices- No Documentation With experience it is seen that all activities are adhoc , as there is no fixed documented process . There is no guarantee of achievement of purpose or of Turn around time(TAT). The communication between functions is minimal and is mostly with a directive approach. Because the activity is person dependent, If there is any change of person who owns the activity, knowledge transfer or handover of the method may not happen most of the times. Level 1- Documented process The sponsor, most of the times the CEO or COO of the company approves the documented processes , However the control on the process is not evident because of many reasons including process drift from what is documented or other changes that have occurred in the business environment since the document was drafted. Level 2- Partial Deployment Here the documented process is deployed, but inconsistently- many a times not in all intended locations/ sites or and not in all functions or and not by all the intended “doers”….etc. Thus the documented process has variations and hence there is inconsistency in results. Level 3- Full Deployment The deployed processes match the documentation and caters to all intended sites , doers and all functions are linked as is defined. The consistency of the process is better than ever before and the communication between functions are complete and closed. Level 4- Measured and Automated Noteworthy improvement is the adherence to timelines , better customer satisfaction, cost control with measurement for each matrix. The process is system driven such as ERPs, Csats, VOC and other custom made softwares. Level 5- Continuosly Improving- The process matrices af being analysed for positive changes & improvement . The targets and goals are also being set with due analysis of trends and possibilities through DOE and other techniques such as Six Sigma, Kaizen etc. The systems being used are also being regularly upgraded and scope for errors are also reduced with strategies like poka- yoke. The Table below summarises the Maturity levels- Maturity Level Person Dependent Documented Process Partial Deployment Full Deployment Measured & Automated Continuous Improvement Level 0 Yes - - - - - Level 1 - Yes - - - - Level 2 - Yes Yes - - - Level 3 - Yes - Yes - - Level 4 - yes - Yes Yes - Level 5 - Yes - Yes Yes Yes As aforementioned, The processes at any level address the features of the lower levels. The above table can be used as a checklist to definen the current status of the process being followed . This can be an effective tool before augmenting on the redesign or improvement of a process. Hence the concept of and assessment of the maturity of an existing process is very significant. As is always said the right place to start is “as is Now”!!

The first step would be to note down the definition and description of both VOC and VOB as a premise to the dissertation on the conflict between the two. VOC: A summary of customer’s expectation, preferences, comments on a product or service in discussion It is a statement made by a customer on a particular product or service. Example in a QSR: Customer needs high visibility, Easy access, Cleanliness, Quick & Friendly Service, Tasty Product, Discounts/ Offers, Value for money VOC data can be collected reactively or proactively through surveys or voluntary feedback systems- Tools like simple surveys, KANO analysis and critical to Quality(CTQ) are common. Measure metrics can be Csat reports, release analysis etc. VOB: A summary of all needs & expectations related to a business and its stakeholders ie. People who run the business itself (e.g. Shareholders, Investors, Employees & people involved in corporate governance) . VOB includes needs which are both spoken and or non-spoken. Voice of Business can be used to define Goals / Vision and define Success within a life cycle map. Example in a QSR: Sales, Profitability, Growth & Market Leadership. VOC data can be derived from available Financial & market data analysis, Employee surveys, Competition reviews etc. The measure Metrics for VOB can be ROI (Return on Investment), Shareholder equity , Sales growth etc. From the above it is obvious that just like customers have needs that are to be fulfilled for different level of Satisfaction, even the business has needs to sustain and grow. Both VOC and VOB can be used for assuring Business Health. So it is evident that there are needs and wants of 2 parties in a business relationship at far ends. The Organisation cannot prioritise profitability at the cost of the customer who wants the best service/ product at the lowest cost – big dilemma!! It is for the organisation to build and mould it’s culture and take up the challenge to find the synergy between the 2. Lets consider the common grounds for conflict between the VOC and VOB in a QSR- The Customer wants a clean surrounding and a comfortable temperature in the seating area, whenever he visits. However, at the same time the manager has to meet the VOB of profitability during the shift- He is responsible to ensure that Business costs are controlled. Hence; the People resource is to be used productively to reduce the cost of labor (variable cost) and also ensure that the utility cost (Electricity) is at lowest possible. It is very important for this manager to link both the concepts with the company strategy- The strategy is based on the some underlining factors like the mission of the company, customer profile, dissatisfying needs of customer. The set strategy helps to map the processes – The manager in the above mentioned situation will ensure that the outlet is staffed just adequately in different day parts to service (maintain Cleanliness and quick and friendly services) the differing customer volumes in different day parts. Some restaurants follow a matrix called Sales/Man-hour or order /Man-hour to balance both VOC and VOB. To Control the Electricity Bill the Manager keeps the dining area partially closed during slack dayparts and thus reduces the attached utility costs. The conclusion here is the basically to be able to find synergy between the 2 concepts and utilize both to ultimately drive towards better business health for all stakeholders including the Customer.

At the onset I will appreciate the fact that the management acknowledges the concept of the 7 wastages!! This is the best place to start- The beginning!! This needs to be a mission in the company and the management needs to nominate a “Sponsor” for this programme- The Champion for this mission. The next steps of actions are as follows: - Identify the opportunities of wastages in the organisation- Wastages would be contributing negatively at different levels in different types processes Along with the seven wastages which includes Transportation, Defects/ Mistakes, Waiting, Motion, Overproduction, Over processing and Inventory, one must not undermine , probably, the most common and utmost damaging type of waste – Human Potential- Where, employees are not used to potential or / and spend time on tasks that are NVA. We must also consider it a waste of human potential when the management is not able to tap unexplored ideas of employees which can add to business excellence in the organisation- it could be because of ignorance or because of inability to harness talent.- This is a very significant step as identifying the waste will bring forth opportunities for improvement for the organisation and thus drive the organisation closer to becoming an efficient and cost effective organization. - Capture / Document the Opportunities to control Waste- It would be prudent to encourage an open culture in the organisation where cascading groups- i.e groups at different levels of hierarchy in the organisation, are formed and brainstorming sessions are held for education on waste – types of waste and waste management. These session swill keep the employees motivated and involved in the “programme”. The forums will help to jot down / document the various wastages. Of late, there are various softwares available in the market which makes it easy to document wastages immediately on sight-.they are compatible to mobile devices also….handy when on the move or on the floor. Saves on lot of time by itself. - Enable and encourage crossfunctional collaborations- It is very common in many organisations that most of the waste occurs in processes where different departments/ functions interconnect. Process linkages or handovers or task exchanges between functions leads to breakdown in process that lead to waiting, wasted motion and unnecessary movement. That is why alignment of all departments on the programme to reduce on the wastages is essential. The sponsor plays a major role here. He is the person who will collaborate all stakeholdesr , so that all speak the same improvement language and follow a standard procedure for planning, implementing / executing and then measuring the improvements. - Onus on ensuring Forward progress- There should always be an lookout to make even the process of waste management efficient enough to avoid any scope of wastage that lies within- I would always tell the management/ sponsor to work on technology and effective ways to move on and develop the culture I the company. Though there can always be spreadsheets for managing efforts to reduce the “8 Wastages”, it is but known that spreadsheets are passive- They need to be referred to multiple time s by a person and thus dependency on “person” many a times leads to insignificant results. Hence, a Software can be used which will provide alerts and notifications that will keep people on their toes. It will also ensure that the managers / leads have access to reports/ MIS and thus have visibility into the progress of all projects and can remove the roadblocks , if any. - Measure Results This is the step that will help to understand the impact of efforts- measurement matrices can be Costs, Service time, Impact on Customer and profitability. Methods to calculate the improvement from the baseline needs to be planned. - Share Results and Recognise and reward efforts- It goes without saying that a motivated workforce will only expedite and enhance the process My closing note to the management would be to be observant and patient. It requires a lot of hard work and commitment to eliminate wastes, as most of the times wastages are caused by bad habits in the working style – It takes time for change to happen. I would advise for as much technology as is possible to be used in the process as a worthwhile software will make it easier than otherwise. In today’s competitive market, given the less scope of profit margins in the QSR Industry, If the Goals is to improve the services/ products and to improve the margins of profitability, then the effort towards reduction of waste is imminent and investing in technology is a justified call.

It is very important to understand the concept of the 2 measures: A Measure of Central Tendency is a single value which describes the way in which a group of data cluster around a central value. It is a method to describe the center of a data set. It is to be noted that There are three measures of central tendency- Mean, Median and the mode. The central tendency can be calculated for a finite set of values or for a theoretical distribution, such as the normal distribution and is used to identify the location of the center of various distributions. Whereas a measure of spread or measure of dispersion is used to describe the variability in a sample or population. It is mostly used in conjunction with a measure of central tendency, like mean or median, to provide an overall description of a set of data. There are many situations when the measure of spread data values serve better purpose than the measure of central tendency. It gives us an idea of how well the mean represents the data. If the spread of values in a given data set is large, the mean cannot be as representative of the data as it would be if the spread of the data is small, because there would probably be large difference between individual datapoints. Measure of spread is relevant in an unstable process where the data points are scattered from the mean or normal distribution. As aforementioned, the relevance of the mean is understood through this method. Example: In a QSR, with a VOC process in place, if a range of scores from a customer satisfaction report is to be considered with varying scores from a large database- and the range of data points or variation between the scores is very high and spatial. The mean of the same will not be relevant as the median will also be very distant from the mean. The measure of central tendency then becomes irrelevant and the measure of spread becomes more potent.

This will indeed be of great help!!

When there are multiple variables with continuous data , It becomes difficult to map the data. The impact on the visualisation of such data mapping is drastic and the charts/ graphs become very cluttered and confusing. The numbers / labels in such graphs often do not make sense . There is a need to assign meaning to these numbers. Hence, it is always advisable to collect the numbers in groups or categories and representing the categories as discreet data and thus make the mapping more structured and presentable.

Tribal Knowledge, in short, is the knowledge which is “known” yet undocumented- This is seen in many unorganised businesses, like family run businesses. In most of these business houses , business information and knowledge has been passed down from generation to generation with no documentation. So, the knowledge content in the current generation is assumed to be factual by conviction but there is no documented reference material or any analysis to verify that the available knowledge is factual. The disadvantage here is that most of the core knowledge base is diluted and there is a scope for variation as it exchanges from one “head” to another- like in a game of Chinese whisper. It is very important to stress on business excellence to sustain a large organisation. The idea should be to develop and implement a comprehensive business management system which assimilates the culture of Quality, Customer orientation, harmony and incorporate Lean & six sigma to reduce waste and variation. In the above context, the tribal knowledge that is not universally known by others in the company is retained by only a few who have run through the grind for more than the other naive around. The said knowledge/ information may be key to quality performance and may need to be known by others in order to produce quality service or product. One must also reckon that the mentioned tribal knowledge can also be incorrect because of far too much dilution and also can be redundant due to change in time and business patterns or market trends. Having said that scattered, unravelled knowledge can be unlocked and captured and harnessed and collected in a treasure trove – A “Knowledge Box”, within the organisation for ready reference. A prudent and explicit training program can be prepared to sustain and improve the knowledge within the company. Simultaneous enrichment of the knowledge box also can happen- A company Property. It will more often act as a good source of test of factors during improvement efforts:- Example 1:- In a QSR, An old time favourite product was not tasting as it used to- Obviously the recipe was varying; probably the ingredient measures was out of control and the production managers began to debate and contest over what each felt was the correct proportion. Further investigation showed that the source of spices was different from normal – one aspect of process failure was evident; there was a severe mismatch in the knowledge to correct any defect in the product as there was no documented or concrete source of referral – The lack of communication between procurement and production is another matter Example 2: A popular seasonal product is re- launched during the festive season after a gap of almost a year, but the original cook had to be rehired in order to produce a product that had worked wonders earlier- The process was dependant on the cook. As there was no downward training and no material for referral. So how do we unlock, capture and harness this tribal knowledge , rather than being dependant on people ?? I personally feel that the first step is to - Visualise and jot down the company vision and mission. Next is - Align the business structure to the vision and mission - Structure the team and internal hierarchy- Align the Scope of work and the people required for the work at each level of execution of company business. - Identify and Recognize the knowledge required at every level of work. - Recognize how much of the knowledge is already existing within the organisation – obviously there will always be a scope for transferable knowledge. But internal wisdom is always more manageable. Relevant and success oriented information that have worked before, which is already existing within the team, will be invaluable in operations and the drafting of operation manuals as well as training programs for years to come. - Identify the Knowledge carters- There will always be those few who will have considerable knowledge on most of the business aspects , but have all in their “head”- These are the ones who are indispensable. - Commit to the Time- The transferring of information and development of a documented knowledge box and a training manual is like an apprentice programme and will lead to journeymen. It should be accepted by the management that knowledge transfer is a long term programme and a level of stability will take half a decade at least. - Keep Succession plan running- As soon as possible, it is necessary to develop and appoint people who are likely to replace the “Senior” mentors to both learn from them and document the tribal information. - Encourage the “share to care” culture- develop the culture in the company to share knowledge through forums, inhouse newsletters, interdepartmental process improvement projects. - Retain good Knowledge Banks- Determine how many employees have valuable tribal knowledge or skills that are difficult to replace. Retain them to share knowledge, experience and skill with next generations- maybe as consultants. - Create an open culture in the company to share ideas, thoughts also allow the freedom to challenge ideas, even if they are tribal ideas- but the goal should always towards business excellence. This way, not only will we be able to unlock ,capture and harness tribal knowledge in the organisation but also evolve the same along with change in business trend and market requirement. This is one of the most important steps towards business excellence and growing company focusses on this- The best examples are the MNC who expand beyond continental boundaries , but use their existing knowledge and merge with the new knowledge to create great business opportunities in new lands- Tribal knowledge across many lands are documented and referred to at every given opportunity- This is often termed as “Continuous growth through continuous learning!!”

Rational Subgrouping is the process to organise data into groups of items that were produced under similar Conditions in order to measure variation between the subgroups instead of between individual data Points. It is used in Process sampling situations where real time data is collected during live operations. The conditions are kept constant (Controlled). The idea is to create sets of observation in a moderately stable process with controlled variations. These sets of observation are considered as sub groups and then plotted as a single point on a control chart. For Example ,At a The service counter in a QSR, we might choose to group the service time readings taken at different day parts in to subgroups , where operational conditions/ factors are kept as close to similar as can be, with the LSL and USL for Service time defined. The said subgroups are then plotted as a single point on the control chart. The Control charts help the excellence practitioner to monitor the stability of the process and helps to turn this data into a picture that indicates when there are points out of control or if there is an abnormal shift in the process. Thus the non random sources of variation can be detected. Simplistically , it means that it helps to separate or distinguish between variation caused due to common causes or special causes. Where, Common Cause Variation is naturally inherent in the process and always present – Like in the above example – A Trainee on one of the service Counter Tills. And, Special Cause Variation are the ones which are not a regular part of the process- Like in the above example- repeated Bulk Orders(High number of orders)- Or Orders with Promotional Offer, Less number of customer due to traffic outside the restaurant etc. It is noteworthy that special causes can be either unfavourable or favourable to the process flow. The Control limits on the control chart are calculated using the variability “within” the subgroups. Hence, it is imminent that the subgroup is selected so that only common cause variation in the process is represented. In the example mentioned above, The objective is to improve the service time at the counter, by eliminating between various subgroup variation and reducing within each subgroup variation. Thus, the base for creation of control charts is to have the right subgroups of the available data. A Practitioner who does not use the concept of sub grouping will not be able to create worthwhile control charts and thus will not be able to measure the impact of actions taken to improve process- It is noteworthy that even control charts created on Minitab are useless if right subgroups are not used from the available data.

Business Excellence is a Team effort!! A Sponsor is the individual who funds Business excellence in an organisation. Here, funds should not be taken as monetary input only at all times, but also investment of time, effort and expertise. When the sponsor is an Investor of money only ,his prime focus would be on the Return on Invested Monies. The Business Excellence sponsor is primarily accountable for overall excellence in business in the Organisation. He is concerned with ensuring that the business excellence program that he is sponsoring, delivers the desired Business Vision or Business Goal of the organisation. He represents the organization, playing a vital leadership role through a series of areas: - He is the provider of the business perspective and expertise to guide the Management. - He prescribes the culture for “Business excellence” by propagating the concept throughout the organisation to ensure funding, capacity and priority. - He is the Catalyst for decisions and issues which are beyond the authority of the business managers. - He is the face of the organisation for the investors and external stakeholders- A link between the organisation and the business community and other business minds and the Market’s Strategy Leader groups. In today’s era of entrepreneurial start up, the sponsor of Business excellence is normally the CEO or Promoter of the Business. The Qualities that the Sponsor needs to possess to ensure that Business Excellence is thriving in the organisation are inclusive of the following: - Vision oriented with strategic intelligence to render the vision into reality. Needs to visualize a road-map for the team , keeping the end in mind. - Process Oriented, to be able to lay down a structure to the method - Needs to have focus on orgnisational Culture Building by laying examples through directives and action. - Needs to have the ability to align the business with the community culture and interests- constructing a cultural stand - Needs to be able to make Decisions and train / coach the second in commands to develop leadership skills- Must believe that though he is the Lion, his roar is the team below him. - Needs the ability to bring about bonding within the team and align them to the vision for business excellence.- yet again he needs to raise above delegation and believe in empowerment. - Needs to create a partnership with the suppliers/ vendors and instill a sense of involvement wherein the suppliers / vendors work with the interest that drives the business excellence As he owns a stellar role in the scheme of business excellence he must posses diplomatic skills with proficiency in: - Business operations - People Management - Project Management - Pace Mediation - Change management - Conflict management - Risk Management - Result implementation - DMAIC & DMADV Methodology The Sponsor is looked upon as the person who will “Rock the Boat” i.e. the person who will drive the organisation to the next level of Business Excellence.

Definition of Rework as understood generally: To make change to “something”, especially to make it more up to date. Definition of Rework as per Six Sigma: Is a Quality assurance method that focusses on improving rejects at the end of a process (Inspection) with the goal of delivering only acceptable products and Service to the customer. The first though that comes to mind, with the word “rework” , associates with “Waste” as rework is extra <effort, time, cost> and hence Rework is taken as an unwanted evil and not acceptable at all. However, what can be taken from the above two definitions is that, rework is the activity to correct any product or service, which is not up to the intended standard, before it is delivered to the end customer. There are some processes in which zero rework is not practical and also not desirable. Let us take the example of a Burger outlet in the Modern QSR industry. The production area is a line assembly unit, where the Patties are kept in frozen state, the Buns are kept ambient temperature and the Sauces & Salads are kept in Chillers in conducive temperature to retain their “freshness index”. The said items are the basic build-up of a burger. All the said items are highly sensitive to their storage temperature and hence are volatile. As a normal process the order for a burger or different varieties of burgers are passed on to the kitchen multiple action takes place simultaneously to assemble the final product in a defined structure / alignment of the said items. - - The Buns are toasted, - The bun is dressed with the sauce, then , - The chilled Salads and then the Fried Patty which is Hot. The purpose of this order also systematic- >The Bun is toasted, so that the caramalized surface becomes more or less non-porous > The Sauce is dispensed on the toasted surface to ensure that the sauce does not seep into the Bun > The salad Chilled salad is placed on the sauce to ensure that the Hot patty does not directly touch the Sauce, which can melt it down to a thin consistency, > The salads also provide a crispy texture and enhances the body / bulk of the burger and also complements the taste of the final product . > The Patty is placed above the salads and is hot and is the main component of the burger. Patently, the process is simple and the training for storage, alignment and dressing and assembly of the burger is extensive. However, Given the Volatility of the products & the chances of incorrect order of assembling & error in fulfilling “special” order requests ( like No chilli sauce, Less onion, More lettuce etc) , there are so many aspects that can generate a defect in the product. The product can have a quality issue or an arrangement issue or a out of spec issue as well. So, Zero defect is almost impossible. Though following the DMAIC methodology can reduce such defects expecting zero defect is not practical. In this case, a level of inspection becomes a necessity. There is normally a person who is assigned the responsibility of checking the product “Feel” before passing it on to the service counter for final service to the customer. Any defect that is visible or felt by this seasoned person, in quality or product build up, is corrected and Wrapped in a Butter paper sheet at this station itself for final presentation to the customer. This way the restaurant avoids not only raw wastes , as all the raw products are used effectively and not wasted, but also complete waste, which would have happened if the customer had to spot a defect and return it, ensuing a replacement which is an additional cost. In the food business Food cost control is a revenue driver and this final step in the process is of great importance and value add, though it is technically a rework. This then becomes an integral part of the process – A Rework Loop . It is a situation , as is above ,where a step in a process is repeated in order to correct a defect- also known as backtracking. Rework lopps are work that needs to be done repeatedly. This is more often seen in processes where large amount of work move back in the process to be fixed- It is better to fixed station instead- Like in the case above. Here Zero rework is not desirable at All!! When the above is applied as an analogy to many “On The Floor” Production Processes, This can be a part of the quality control procedure as the problem detected was corrected. The Rework here , thus, avoided any “DEFECTIVE WORK” which could have come back from the customer, i.e. found to be defective AFTER it had left the production unit. In a warehousing process, this can be a part of the quality control procedure and the problem found can be fed back into the systems and the procedure and the person that did that work can be reviewed to detect & confirm what was the cause of the defect and what needs to be done for preventive action. Thus the business owner will not only review the existing work procedure but also the inspection procedures that allowed a defective item to be shipped. A complete layout for the improve state of DMAIC. Likewise, The Rework loop is also seen in critical processes like healthcare and space research. The result of the the rework loop is that Defectives are avoided. Defectives in Critical Processes can cause Great harm to the repute of the business and supervened cost of litigations, cost of brand rebuilding and Immediate loss of sales & business!!

Business Analytics (BA) Present day Business is being driven by 3 D’s (Data, Dimensions and Discovery). In this highly competitive, customer dominating and cost sensitive market, success of an organization is becoming directly proportional to its ability to extract maximum information from the business data… bytes of complex Data on multiple Dimensions of customers/organizational processes for Discovering the unknown strategies of achieving Business Excellence. Business analytics can be efficiently executed by individuals trained in Statistical and Optimization Techniques for effectively handling Big Data. Though Traditional data analysis methods are required and effective most of the times when the data is reasonably small, they are not efficient for handing big data which is multidimensional for predictive analytics. Already trained Six Sigma practitioners are able to analyse Big and multidimensional complex data in the most efficient & effective manner and building predictive business models for developing business strategies. Six Sigma is not just a Quality/Productivity improvement methodology; it aims at achieving Business Excellence using Data as a primary driver and Statistics as a key technology. Six Sigma Practitioners possessing Business Analytics skills will be in a perfect position to understand business requirements, analyse the big data in a structured manner by associating the key issues of the customer & organization and finally deliver most efficient solutions. The strength of Six Sigma methodology (DMAIC/DFSS/Lean) comes from its focus on voice of customer and achieving breakthroughs by performing analytics on customer/organizational data in a structured manner using statistical thinking and optimization techniques. Six Sigma Experts install a new mind-set of driving business improvements through statistical thinking, building statistical skill sets, and a structured/disciplined project execution approach that helps an organization towards achieving Business Excellence. Whereas BA is a mix of skills, technologies and practices for continuous iterative exploration and investigation of past business performance to gain insight and drive business planning. Six Sigma provides a methodology based on statistically validated logic aimed at improving existing or New Business Processes. Business analysis can be accentuated through the DMAIC/ DMADV methodology. A Six Sigma Expert, for good Business Analytics, defines the goals using key parameters based on identified requirements in the first phase of Define. With approaches like SIPOC, Swimlane charts etc, this is a more systematic, and data oriented way of doing the BOSCARD in BA. Thus Six sigma Methodology helps as a catalyst for Descriptive analysis. As the relevant aspects of the current process are measured and Quantified- It helps the Business Analyst to do an in depth analysis of the Measured data to reveal the Cause and effect Relationships along with the impact through methods like Pareto, FMEA etc. . Thus when a cause is discovered, an Improvement is implemented to reduce variation and eliminate defects. The use Hypothesis checks and DOE helps to provide prescriptive and Predictive Analysis. Finally Six Sigma also helps to set up or design reliable control systems like control charts , check Sheets, Value Stream process charts etc to control the future performances of the process and to ensure that any deviation are corrected before they result in defects. Simultaneously, Six Sigma also advocates the optimum use of VOC, which keeps the business analyst updated of the customer’s needs and expectations- thereby always maintaining the scope for continuous improvement and better Business process Planning. Thus Six Sigma methodology is an enhancer of means for an Business analyst. With regards to the Question above, I personally cannot think of any Business analytical area that Six Sigma Has not explored or touched.

Once we understand the three levels of needs of a customer for a given product or service, it is the approach and action thereafter that implies the justification towards the findings from the Kano method. The 3 levels of needs of a customer as defined in the Kano model , gives a thorough clarity or understanding of the customers needs : Expected Needs: These are like the features that are the core requirements and is available as a MUST have . In other words, this is the entry level attribute that the product or service must have for the merchant/ service provider to come into the market- The vanilla requisite. Normal Needs: The next Level of needs wherein the features are wants of the customer, i.e. attributes that customer specifies as he has a checklist for the decision to purchase. These traits of the product/ service are also known as satisfiers as they can satisfy the customer if they are present and dissatisfy the customer if absent. Meeting these needs help the customer to exist/ sustain business in the market. Exciting Needs: as put forth by Kano, this is the highest level of the customer’s need- It is the need that the customer may ideally not be aware of but is delighted when met . the customer may not miss the absence of the meeting of these needs , but will definitely remember this as something beyond expectation- something that may not only influence an immediate purchase , but also ensue a return visit. The merchants who provide/ fulfil this level of need will be leaders- most favoured by the customer. It is important to ensure that the “on floor” study is continuously being made and the reaction and feedback of customers are observed and noted. This will help to keep the merchant abreast of the customer’s changing perception. It is but common experience that customer’s expectation is always changing – what may seem as an exciting need today may become a normal and then an expected need – A want. Every organisation must focus on constant cultural enticement towards providing a wow experience , thereby fulfilling the exciting needs of the customers . The following actions help to do so- - Training on Customer care with categorical situation based actions that will provide the “Sky” experience- something beyond expectation. - Sharing such incidents. Making the “done” & the “doer” famous in the organisation - Appreciating such actions on the floor. - Keeping the communication channel open and easily accessible for the customers to put forth their good experience – Yet again make the “Done” & “Doer” Famous in the organisation. Documenting any new situation that comes in as a learning , needs to be documented and incorporated into the training programme. - Learning can be from many avenues- Even from the competitors An example, from my personal experience, of the elevation of an Expected need to an Exciting need is when I had observed a middle aged lady, with a few handbags dropping a glass of cold beverage at the service counter at a QSR. The customer was upset as she felt the accident was because of bad queue management by the staff. The fact that the counter staff, with an apologetic gesture and smile, replaced the drink(Expected need) with an upsize of the customer’s choice(normal need), and simultaneously mopped the spillage to ensure cleanliness and safety of other customers, was meeting the expected and normal needs of the customer- The “Sky” experience was when another staff member came forward and held the food tray &handbags and walked along with the lady to a table and helped her to organize herself. I still remember that this lady was henceforth a regular customer and many a time would bring along her friends & family. Over the years this whole routine is what one expects and wants from a good restaurant. So, what was once a wow service is today but a expected need- A commodity!! Simultaneously, It is noteworthy that when an organisation is working to control what it needs to do to satisfy or delight customers, the tool to choose is QUALITY FUNCTION DEPLOYMENT (QFD). QFD is the methodology to listen and analyse the VOC and effectively responding to the needs and expectation. Professionals in Quality and Customer care / support refer to QFD by many other names like Decision Logics, decision Matrices and customer driven engineering etc.. Being a Structured Methodology, QFD uses the Seven Management and Planning Tools, to identify and prioritise the customer’s expectations quickly and effectively- Thus ensuring not only sustenance but also Leadership in the market !!

Statistical Significance is mostly,used in health research to examines the difference between two sample groups, to determine if it is statistically significant. The difference between two groups is statistically significant if it cannot be explained by chance alone. Statistical significance can be determined by arriving at the probability of error (p value) by the t ratio. The generally accepted rule is that the difference between two groups (such as an experiment vs. control group) is judged to be statistically significant when p = 0.05 or less. - A 5% probability of occurrence of difference between 2 groups is conceived when the p value = 0.05 or more. - Only a 1% probability of occurrence of difference between 2 groups is conceived when the p value = 0.01. The lesser the value of P below 0.05, the better the chances of the hypothesis not being null and hence the better option for the alternate hypothesis that can be pursued. The whole exercise helps to determine whether an alternate Hypothesis is worth pursuing by research. The best way to move to , or consider a follow up study is to determine the statistical significance difference between 2 groups through a pilot study and then design a larger study. This gives better confidence on the conclusions.

Definition of A Capable Process is a process that has achieved it's specified quality and product goals and objectives. Definition of A Stable process is a process that is operating within specified control limits and without excessive variation. There is no link between the two- They both attribute 2 different condition or status of a process. Both are very important aspects in the manufacturing processes. An example to elaborate on the difference between a capable process and a Stable process, that I can think of by experience is a Goods delivery Van that delivers raw food stuff to a QSR on a daily basis. The Process is Food Delivery. The Specification : The timing is specified as delivery touch at the outlet at 6 am in the morning. Process Flow: The Van follows the Google map to find the fastest route and the truck is loaded at 4 m every morning as the average driving time from the start point to the destination is 120 minutes. Actual scenario: For 2 years, the van driver has been taking multiple routes with different (Best) traffic times with the objective to reach by 6 am. Unfortunately, for some reason or the other he has not reached before 6 am. While the delivery process results has not been capable (The delivery time is always beyond spec- approximately in the range of 10- 15 minutes ), it has been pretty much consistent- consistently beyond Spec time. The outlet staff however always knew what to expect (approx.by 6:10- 6:15 am), so we could always consider that though not capable the process was at least stable and within a manageable delay time. So we can say that the delivery process is stable but not capable. Data Points : 730 Days with varying delivery times- as can be imagined the spread is big Day Spec Time(Hours) Arrival time Deviation 1 6:00:00 6:05:15 0:05:15 2 6:00:00 6:09:15 0:09:15 3 6:00:00 6:11:11 0:11:11 It is obvious that that process stability is supposed to be the prerequisite for all processes to predict it’s capability. To define or assess the process capability, we must know or assess the ability of the process to meet specifications. So, we cannot access the capability of the process if the process is not stable. There are several methods to measure Process capability – Indices such as Cp, CpK, Pp, Ppk are common. Trying to summarise the capability of a process through only one indice is not advisable, however, only to demonstrate that the assessment of the capability of a process needs to be done only when the stability of the process is confirmed, let us consider the example provided above In the above example : The process capability index Cp represents the acceptable tolerance interval spread in relation to the actual spread of the data when the data follows a normal distribution. The Formula is: Cp = USL-LSL 6s WHERE USL and LSL are the upper specification limit and lower specification limit, respectively, and 6s describes the range or spread of the process. The range or spread of an unstable process, , will not be conducive to calculate or arrive at a decisive Capability index. The estimate of process capability depends on how and where the process happens when we collect the data. So if the process average is shifting about over time, the measure of process capability will be invalid. The estimate of the Cp only reflective of where the process is at the point of time when the data is collected and not where it may go next. The above process is stable and hence the average of the data point spread is dependable. If the delivery timings had to be haphazard and the range of variations had to be big- the capability of the process would have been indecisive. Hence Process capability Assessment should only be done after the process is stable.

During the RCA process the original idea is to ensure that the correlation matrix acts as a subjective screening tool to filter out lesser important process inputs. However when there is a team session wherein there are participants who are from different departments or sections of the business (Cross functional participants), it is good to put in as many inputs as possible, even if the cause effect relationship between two variables is not evident, as it helps to create an non-threatening atmosphere and all participants are motivated. However, to ensure the success of the project, at the end of the exercise, all participants should be on the same page. The expertise of the Project manager and the process owner is of utmost importance here.The objectives and actionable become clearer from hereon. Thus ,though in a situation when correlation does not prove the cause- effect relationship between to variable inputs, it is prudent to use it in root cause analysis especially the Fish bone diagram, where the contribution of inputs is always high, to keep the morale high .

Definition of VOC: is the customer's voice, expectations, preferences, comments, of a product or service in discussion. It is the statement made by the customer on a particular product or service. In sixSigma VOC falls in the Define Phase in the DMAIC methodology. Hence , It is definitely the key starting point for successful business process. “Your most unhappy customers are your greatest source of learning” - Bill Gates, Microsoft “Spend a lot of time talking to customers face to face. You’d be amazed how many companies don’t listen to their customers” - Ross Perot, American businessman Thoughts coming from business tycoons like Bill gates and Ross Perot put forth that a negative feedback from a customer can actually provides a business the purpose for corrective and preventive activities that ensure that the Quality of product or service is at its best possible standards , and it is a best practice to be in touch with the customers to understand what is happening at the last mile of business – The moment of truth!! In today’s market where the pace of commoditization of products and services is only incremental , every other day, Customer good will is the best differentiator .Leading Business houses harness customer feedback data, from different sources and combine it with available text analytics Engines . The idea is to convert the VOC into intelligence for evidence-based actions to drive customer experience and strategic change in the business processes. However, it is also observed that may businesses are far too focussed on the VOC ,but fail to take appropriate action to resolve opportunities of concerns or evolve the actions that have been appreciated by customers. With experience in the QSR industry,I always forbid two activities – one is Marketing an offer promotion & the other is VOC, if there is a slightest doubt, in mind, about the operational capacity, preparedness or ability to handle the outcome or resultant of the activity. Marketing activity brings about increased footfalls which can lead to drop in operational levels if the readiness (internal communication, training, resource planning, promotional inventory etc.)is not worked upon. Thus we end up causing more inconvenience to customer than the value intended to be provided by marketing an offer promotion- resulting in bad customer experience and an ensuing hit to business. Similarly, in the case of VOC, we must remember that by human nature, people like to give feedback, when asked for. They like to be heard as it makes them feel important as individuals and they also feel that their feedback is valued. Post this, it is of utmost importance to demonstrate to the customer that the value they received is equally as critical as delivering that value, by showing the action on their feedback. Most organizations fail to do that, in spite of “overemphasis on VOC”. They thereby do injustice to the VOC process and to their own organization because of many reasons including: - Too Much focus on VOC ,but Improper approach of the VOC process- Not done effectively. - Unable to assess internal culture- inspite of the marketing rhetoric and the self-proclamation of being customer – centric, Fail to inculcate a customer centric culture and are not able to assess and correct that- They remain product centric as always. In a situation like this , though the VOC may put forth the opportunities, due to frequent failure to meet the expectation at the final service point, the customers are put off with the whole VOC programme and feel that the customer feedback programme is a farce. - No connect with the Top Management- The process of VOC remains a “for the sake of it” exercise- NVA. - Lack of proficiency in the VOC Lead- A resource with strong interdepartmental relationship and analytical skill is required as data resides in multiple systems in an organisation. - Business culture not linked with customer preference- The organisation is not able to compose the right mix of culture, people, processes and technology in a coordinated effort to consistently delight their customers - Gravely designed Processes- Which are unable to cope up with the flow of inputs from the VOC programme. - Unable to segment Customers- The data received from the VOC is not segmented properly on KPIs like RFM(Recency,Frequency,Monetory), Loyalty Programme, Social behaviours etc. - Too Many VOC tools - Just adds to Confusion and waste of labor and time on analysis, most of the time resulting in evasion of the process for other priorities. - Dependence on manual work to analyse data- Poorest approach- one must use as much technology as possible to analyse and measure impact. - Inability to engage customers and collate relevant data- not able to execute an engrossing touch point system(SMS, Emails, Comment cards, Social media etc) to gather feedback in a pattern that helps to collate a holistic view. - Inability to measure Results- There is absolute failure in showing payback to sustain the VOC programme. Hence the programme in the execution level gets diluted. - Inability to adapt to the market trends hence dilution of the process – some businesses have the tendency to stick to old methods/techniques/ approaches that are redundant – one has to keep in mind that customers/markets evolve, and customers choice and preference changes and the VOC is a journey. Thus, though the organisation “wants” to focus on VOC , due to nonconformities in approach as mentioned above there is an inverse effect as the whole exercise ends up as an NVA and adds to undue costs, which is unfavourable to business . Another reason that causes a detrimental impact on business is the inability to act on the information gathered through VOC. As aforementioned, It could be because of operational capacity or basic communication and /or training lapse at the last service point. Also there’s a definite correlation between how quickly the action is taken and how satisfied the customer is that the company is really listening. Failing to act on the customer’s input can cause real infuriation. The customer will resent that though their time was consumed while providing feedback, their feedback was not given the due importance. Thus a catalyst for bad mouthing the brand /service/ product is imminent, which is no good for business. There is nothing worse than asking for input and then seemingly ignoring it. Thus overemphasis on VOC and inefficiency in acting upon it can cause undue harm to business. Evidently, It is very important to close the loop by letting customers who have given feedback know what action has been taken , based on their feedback- If one does not have time or and resource to review and act on the feedback- DON’T ASK FOR IT!!!!! A Good example of “closing the loop” is the recent advertisement on Television by an MNC Pizza company. The company is known for it’s exiting customer engagement programmes and VOC processes. The ad campaign shows how the company has recently acted upon the generalized feedback on products Quality and variety, and thus gives due importance to the customer!!! A strategy to win over the customers who have given an opportunity to improve, by providing feedback, rather than just silently switching over to the competition!!!!!!

Process Mapping is the mandatory first step for every team that wants to embark on a new Process / Activity or Redefine/ Correct a current ongoing Process/ Activity. Mapping a Process at the beginning of the project by itself is Value add activity that helps to: - Define the process- provides an end to end visibility of the process- The objective is the driver - Team Building and Bonding- A job done together with sincere involvement from the beginning, receives wholehearted input and support from all participants of the group.- Well organised mapping sessions can put forth worthwhile recommendations that would not have been evident otherwise. - Responsibility and accountability is defined – Thus catalysing the success of the project - Highlight compliance and scope for improvement- especially when the project is to enhance an ongoing process. - Identification and mitigation of possible risks. - Support Operational Excellence, as well planned process maps helps to identify and negate most of the operational hazards during the mapping stage – Training need, Automation need , Data formatting, MIS, etc id derived with every step that is mapped towards the process objective. Thus process mapping can conserve time, help to standardise processes and control costs in the organisation, thus adding value!! In the QSR industry, which is close to the retail segment, “Detailing” is of great importance. “Productivity and efficiency can be achieved only step by step with sustained hard work, relentless attention to details and insistence on the highest standards of quality and performance.”- JRD Tata As aptly put in by Sir JRD Tata- It is important to be attentive to details that will deliver impetus to high quality and performance with standardisation. Having said that we must keep in mind that a step by step approach helps to augment the process in a better way as the value stream can be designed better by supplementing each new step with a tried and tested previous step. With experience, I have learnt that the most common error that happens during a process mapping session is that people dive into improving the process before even completion of mapping- It is a natural tendency to try to correct a process just after detecting a defect. However, it is practical to define a Macro level representation of the “As is” status or the desired process, before trying to get it 100% accurate. “Seeing” the whole picture helps to make informed decisions about what you want to change or do. Hence,Whenever I am starting a new project, I always keep in mind that the best place to start is NOW and capturing the current “as is picture” – always, keeping the objective in sight. I always start with the SIPOC diagram to ensure that the project team relates itself with the process outputs and it’s customers. It is very important to consider the voice of the customer to be successful in business. SIPOC give a macro level perspective for a new process to be mapped or an existing process deemed for enhancement. During the making of the SIPOC, especially in an existing process, it is best to capture all obtainable information, without directly relating to any part of the process through brainstorming and tabulate in the vertical format (unrelated method) to be able to get an overall scope for defining or redesigning the process. To make lower level detailed mapping a horizontal table (Swim Lane method) needs to be drafted to accommodate information directly related to the process. This helps to evaluate the outcome and the requirement of resource etc. and helps to estimate the scope of ROI in value and time. So the SIPOC acts as a dynamic tool to create a script of the “As is stage” and an accepted new approach to change wherever viable. Once the activities (Boxes) are planned for the process - It is best to follow the value stream method as: - Being a group exercise, the involvement is high - It is easy to learn and follow up as it portrays the process from the start of the activity to the end with visual representations. - It helps to identify bottlenecks ,and wastes within the process - Easy to document the transitional changes and thus analyse impact - Not expensive, as it can be done on paper- However, it is worth investing in technology. It is always convenient to use mapping tools like Microsoft Visio. There are other software / layout engines also with more functions, which are compatible with Excel for uploads and download of formats. Thus making it user friendly at all cadres of workforce. - Responsibility and accountability is defined at every process step – Thus catalysing the success of the project - Using software is also beneficial as only with a little bit of training on Value stream mapping Icons- Maps are easy to understand , PRINT and convey the process to all levels of workforce in pictorial fashion / Flowcharts through posters or wall hanging process charts. Wall hung placards with Process charts are very common in modern QSRs and called as station guides. The Value stream mapping should be done downstream during planning phase and should be evaluated upstream, to ensure that the customer gets value for money. Providing value for money is the key way to provide customer satisfaction- roadway to successful Business!!

Correction Corrective Action Preventive Action Action to eliminate a detected nonconformity or other undesirable situation. Action to eliminate the cause of a detected nonconformity or other undesirable situation. Action to eliminate the cause of a potential nonconformity or other undesirable situation. A correction can be made in conjunction to a corrective action There can be more than one cause for nonconformity There can be more than one cause for nonconformity Correction is like first-aid, its the instant action that is taken to correct the nonconformity or to reduce the impact nonconformity that has occurred. Corrective action will target the root cause so that the non-conformity or undesirable situation do not re-occur. Corrective Action can be considered as a ‘Problem Solving’. Preventive action is like Failure Mode Effect Analysis (FMEA) or risk management. Where the non-conformity or undesirable situation have not actually occurred. We need to anticipate the risks or un-desirable situation that may occur and than think of actions that shall eliminate the cause of non-conformity. Situation in a Quick Service Restaurant: At Peak rush hour it is realised , because of a customer complaint that the Chocolate Milkshake dispensed from the shake machine is not flavourful enough- It is obvious that the Chocolate syrup, that provides flavor, is less in the shake mix (Condensed & Chilled Milk). The cause is that the tube that pushes the calibrated amount of Chocolate, in the mixing chamber, is bent. Hence, the flow is disrupted. It is obvious that the tube is more than due for replacement. But there is no tube available for replacement. Correction: - Apologise and Request the customer to opt for some other flavor - Dispense the syrup manually and mix the shake again and give to the customer, if the product quality standard can be maintained. - Try to straighten the tube and place it correctly in the prescribed alignment Corrective Action: - Ensure that extra tubes are maintained in the restaurant Preventive Action : - Ensure that Preventive Maintenance is followed diligently – and there is a Calendar that is maintained and verified by the manager. Given the same situation as mentioned above, There is a possibility that the cause for the tube was because of it getting caught between the door gasket of the mixing chamber and is a once in a blue moon incident(Just by chance). The bent tube would straighten on it’s own in few minutes, once it would get free from the clasp of the gasket. The whole effort to arrange for replacements and then plan an extra step in the PM would be an absolute waste due to the false alarm during peak period rush. Both the actions to prevent the cause or presumed cause is not required in this situation. Let us also keep in mind that for Corrective action and Preventive action, we need to invest time and effort on RCA or / and FMEA . There is also a need to document and maintain the details of the action and measure and analyse the impact. We must also keep in mind that ,there is also a scope of risking the process effectiveness or causing variations in the process while implementing the CAPA. There is a risk of detrimental impact also- for example the quality of the tubes that are used as replacement in the above scenario, may not be conducive for cleaning process and may cause bacterial infestation – this can cause a major health hazard. It is hence important to remember that Implementation of corrective and preventive actions is the path towards improvement and effectiveness of Quality Management Systems. Many a times Investigations to root cause may conclude that no corrective or preventive actions are required, and additionally may suggest simple corrections to a problem with no identified systemic root cause. When multiple investigations end in no corrective action, and the occurrence of a defect/ nonconformity becomes repetitive ,a new problem statement with expanded scope may be generated, and a more thorough investigation to root cause performed. Thus it is not necessary to always go ahead with a CAPA without assessing the attached effort and risk.

The check sheet is a form (document) used to collect data in real time at the location where the data is generated. The data it captures can be quantitative or qualitative. Today, a Strong Food Safety Management System is essential in the food industry. Hence processes and procedures are documented, monitored and recorded to provide evidence of compliance with the highest standards. It goes without saying that The potential cost of food safety breaches to restaurants is enormous. Not only do they face prosecution if standards are not met, but the reputational damage can mean that even when any problems are solved, customers won’t return, hitting revenues and putting the entire future of the business at risk. For larger restaurant groups outbreaks of food poisoning caused by poor safety can cause share prices to plunge, never to recover. Most of the Quick Service Restaurants rely on paper based checklists/ Checksheets, which brings the following major issues/ Disadvantages: 1) Best Practices are not enforced- The staff just follows the checkpoint son what needs to be done and many times do not understand the standard of expectation and takes multiple followups to enforce best practices. 2) Productivity is not hampered- Inspecting and analysing completed checklists takes valuable management time and lot of space is occupied with paper files- bad utilization of expensive real estate 3) Not dependable many a times- This is a common experience that due to common “Human” traits, In a busy kitchen, tasks/checks which are considered “not important” may be forgotten or left until later, and paperwork can be doctored to cover up slips in food safety management processes. Occasionally records are not even completed until just before the environmental health inspector calls – hardly enforcing best practice. 4) No live update of situation- No real time alert: An problem may occur during the checksheet The time taken to analyse and conclude on the Checklist by itself may supersede the real time of the problem that may have occurred- If there is a problem managers may not know until much later, leading to issues worsening in the interim. 5) Data is not utilized to fullest- This is particularly an issue for larger chains with multiple branches – regional managers have no way of knowing what is happening on the ground, in real-time. It takes lot of time to take decisions that could have made a lot of difference if made in real time. The answer is to digitise these paper-based checklists and use technology to make the whole food safety management process simpler, more efficient and linked more closely to the needs of the business. By using a combination of handheld devices, sensors and temperature probes all readings can be automatically timestamped so you can see when they were taken, and by whom. More importantly digital checklists can be made interactive, guiding staff through the process of taking a measurement, and most importantly what steps to take if an issue arises. This ensures compliance and provides businesses with an automatic set of digital records that can be easily shared with environmental health officers. As all this data is collected and shared in real-time, issues are spotted early and can be dealt with before they potentially escalate into something worse. ADVANTAGES of Digitization Digital Checksheets delivers five main benefits for food businesses, especially Quick Service restaurants, wherever they are in the supply chain: 1. Ensures compliance Digitising HACCP checks means that there is a time stamped, tamper-proof record of who carried out the check, and when it was done, helping to inculcate responsibility and accountability in the people to reassure that the highest standards of quality are being met. 2. Increases productivity As the range and frequency of checks increase, the amount of time spent taking readings manually and then entering them into computers grows exponentially. While this is necessary, it is time that could otherwise be used for food production or serving customers, so impacts productivity. Managers need to review reams of paperwork, again adding to their workloads. Digitising the process frees time across the board. Also there is lesser inventory of papaers and files- Everything on the cloud. 3. Gives early warning of potential issues (Kanban & Paka Yoke) Digitising checksheets, particularly when using automated monitoring sensors, can also give vital early warnings of problems – before they turn into major issues. For example, if you manually take temperature readings on a production line at the beginning and end of the shift, you have no guarantee that it remains within the correct parameters for the majority of the shift. Taking real-time readings that are continually updated can show when temperatures are moving up (or down) towards dangerous levels, alerting staff and allowing corrective action to be taken before quality or compliance is affected. 4. Real-time access and control Food companies can be large and spread across more than one site. This makes managing multiple production lines difficult, as you have to be on the ground to see what is happening. Digitising HACCP readings, and sharing the results securely in the cloud means that they can be easily accessed by Regional / Cluster/ site managers, wherever they are. This provides them with a complete picture of what is going on, and allows them to monitor activities and take corrective action without needing to visit a site. 5. Easy access to records and analysis Paper-based records pile up quickly, requiring plenty of space for storage. They can also easily be lost, damaged or simply be illegible when you come to review them. Putting them into the cloud removes all of these issues. Data for specific shifts and production lines can be accessed at the touch of a button, giving greater control and making it easy to demonstrate compliance to customers and regulators. Most of the BPMs available in the market helps with data analytics also. Good record-keeping is a crucial part of successful QSRs, especially large chains. By moving to digital technology, companies can ensure they improve HACCP compliance, QC, increase productivity and take back real-time control, across all their operations. In the coming times, the shift from Paper work and manual check sheets in its original form to a modified version on a technological platform is inevitable.

Pull System: Manufacturing/ Assembling process or system in which production is based on actual demand (sales), and where information flows upstream in the Value stream. Example- Just In Time (JIT) System Push System: Manufacturing / Assembling process or System in which production is based on a projected production plan and where information flows downstream in the value stream. Example:- Material Requirement Planning (MRP) Advantages: Pull System Push System Limited Inventory- as it is only on demand High Inventory- unprocessed Planned inventory will always be there Customer Centric- As it is based on demand from Customer- Upstream flow Producer Centric- as it is based on the projection and the production is planned and the flow is downsstream Improve Cash Flow- as there is less wastage and higher productivity can be brought about Make to Stock- As theer is always a “burden” of stock based on projections for trends or a foreseen event Make to Order Forecasting Demand Disadvantages Pull System Push System Balanced System must be in Place Can generate large quantity of scrap(defectives) before errors/ defects are are discovered. Setup times will greatly impact throughput Requires maintenance of large and complex databases Every job is a high stress rush order Requires diligence to maintain effective product flow The basic difference between pull and push is that a pull system initiates production as a reaction to present demand, while push initiates production in anticipation of future demand. It is evident in practice that both the systems are beneficial or disadvantageous, depending on the type of business process. Thus a fast food restaurant / QSR , where the orders a are placed by the customer in random discretion, with the process of assembling burgers / Pizza out of frozen ingredients ,runs on a pull system, while a catering service, which receives a fixed advance order for a specific number of people, operates a push system. In a continuous-flow process, ongoing materials planning is not essential and Pull system work well. Order releases do not change frequently, so a rate-based approach can be used. For example At the shop floor level / QSR, JIT materials-flow discipline combined with pull release is effective as providing the customer the final product within the defined delivery time is of prime importance. However, In complex environments , where there is a possibility of variation in lead time for inwards as against demands, Pull techniques cannot cope up. Also, It becomes difficult to provide JIT as material flow becomes too complex if shop floor control requires higher levels of tracking and scheduling. For example, A QSR that assembles a burger(Pull System), may have no means of lot tracking—pegging lots to specific customers. But there may be a special regulatory or quality control reasons for identifying a lot’s identity, when there is customer complaint about a single product with different ingredients from different lots. – This is when the Push system becomes more relevant as the final product is planned from a well projected and planned inventory flow. It is however necessary to mention here that, even in the above mentioned example, the floor manager is eventually able to find the source of defect , as the a good QSR management understands that both the systems are not mutually exclusive, and each has its pros and cons. The best solution is often a hybrid that uses the strengths of both approaches. And hence the Push system is used up to the Shop floor, so that, as much as possible the there is no variation or lapse in lead time for inwards of material required to run the production for a defined period. The said raw products or primary products are frozen and kept in prescribed temperatures in the shop floor or production area, in batches, to be used as and when required. Thus the raw product can be tracked to the batch which was used when the final product was served. The Pull System which saves on wastages is applied from the juncture where it suits the business best!!

Cost of poor quality (COPQ) or poor quality costs (PQC), are costs that will appear if systems, processes, and products are not in control. Cost of quality is a methodology that allows a business to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the products or services , and that result from internal and external failures. The Cost Of Good Quality is for quality related efforts (Prevention/+Appraisal) The Cost of Poor Quality is for Internal Failures(Deficiencies)/External Failures(Deficiencies In the Food Industry, in modern times, given the plethora of options that the customer hasin the market ,the core fundamental of the business is to satisfy the customer 100% - This is the best way to main a sustained business. The quest is to provide maximum value to the customer and save costs at all possible steps in a value stream, and have a worthwhile bottom line.. Thus the controllable costs is the point of focus. Costs incurred due to poor quality are mostly wastes that create a negative impact on the profit margins. The COPQ benefits the business through : - Direct flow to the bottom line - Indentifying quality improvement candidates: · Identify all failures cost · Detect root causes and eliminate them - Promotes the effective use of resources - Measure of the Success of the Business process - Provides for incentive budgets, for doing the job first time right. What is mentioned above by itself the motivation to do the detailed analysis of COPQ, though it is a metric that needs to be done meticulously with lot of patience and focus. The best way to go forward is to do an FMEA or FTA , depending on the process of activities that have the scope to be resolved with maximum ease and best results. The Pareto Diagram will help in prioritising the activities. - Select a Pilot Project - Formation of a COPQ team(Preferably QA & QC + Planning) - Give a mandate to the COPQ team (For accurate Measurement) - Regular periodical (Fixed) reporting from the COPQ team(Areas of Improvement) Once the COPQ team identifies the areas for correction/ Improvement: - Perform RCA - Take corrective actions Results do not happen immediately- It is very important to be patient and Top management Sponsorship is required across the project. However we have seen many successful COPQ projects, where the bottom line was impacted positively .- “Money is the language of the Management, You need to show them the numbers- Crosby. Quality by itself is a profit Center: Decreases Increases Defects Sales Overall Costs Profit Returned Good Capacity Customer complaints Customer Satisfaction Management Stress Market Share Legal Cost Competitive Edge Employee turnover Employee Satisfaction The QSR industry focuses a lot on the following to have control on Quality- Training, Portion standardisation, Raw waste Control(Unprepared food Stuff), Complete waste control (Completely ready food),Periodical Maintenance, labor cost, Utility cost, property maintenance cost etc, through stringent control charts and periodical audits. Thus the COPQ is kept under as much control and there is always a strive to improve to the most favourable COPQ – Ideally "NO COPQ" wherever possible, every step every day- Kaizen fits in the best here!!