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Krishnamurthy Rao

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Everything posted by Krishnamurthy Rao

  1. Point of use Inventory is the Inventory held at the location where it would be used/utilized. POUS is generally fixed as a minimum quantity that would be utilized and replenished at any point of time. Since the quantity is minimum, and is replenished only upon reaching a Re-order quantity, it helps to minimize the Inventory held in a location at any point in time..
  2. In case of this situation where the improvements are made at a later stage of manufacturing, the best way is to wait for the results based on the life of components and work on a sample to find the failures. Based on this result, it would be great to provide a replacement of part/component voluntarily instead of waiting for each of the customer to complain in future. This can be done to components only with high failure or high risk of failure. Meanwhile alternate testing methods like reliability testing can to be used to find out the results of improvements applied so that the manufacturer has enough inventory held while the actual failures occur in future. This would atleast minimize the damage of not having enough inventory available to meet the customer demand
  3. DPMO is used in cases where there is a scope of more than 1 defect happening in a sample case whereas PPM is used in cases where there is binary result of the output being defective or non-defective. Let us first see the formulae and then cases where each of it would be used. In every case where multiple pieces of input is required in making an output, when there is a chance of several inputs being defective, DPMO would be used. One of the examples could be filling up of the form at an Aadhar card centre to obtain a new Aadhar card. In case the government has plans to implement an e-form filling for obtaining Aadhar, then the govt. should initially measure DPMO and not PPM as by using DPMO, they can specifically understand total defects that could occur in a million opportunities and try to insert validation in the fields where there is a history of high error occurrence(while implementing online form). On the other hand, when analyzing the number of call drops which occurred in connection of voice calls from one network to another, the number of calls which could not be connected because of unavailability of access points would be measured using PPM.
  4. No, it does not solve the purpose. Internal quality score represents a standard that needs to be followed by any organization to meet the bare minimum quality requirement by the customers. In case if this does not have a strong positive correlation with the VOC of majority of the customers, then there is a need to update the internal quality standard to meet the expectation of customers in terms of quality. If not, the service/product provider is working on a quality standard that does not meet the requirement of the customers which would eventually lead to the customer losing confidence in the quality of services provided which would finally lead to fall in sales. So having an internal quality which is positively correlated to the VOC is very important.
  5. Based on the equations below, it is very clear that as the standard deviation increases, the UCL and LCL would shift widely(as the Variation is square of Std. deviation). So as the variation increases, the control limits also increase which would show that the process is in control despite the increase in variation. This can be addressed by making sure that the control limits are set based on the maximum allowable standard deviation and both the UCL & LCL to be made static and not variable based on the changing value of variation. UCL = Avg + 3*Sigma LCL = Avg - 3*Sigma where Avg = average of all the individual values Sigma = the standard deviation of the individual values.
  6. Long term performance is to be treated differently compared to short term performance as there is a scope of random variations that could be introduced in the process because of several changes which could be but not limited to new employees in the process, change in measuring standards and/or any abnormalities that could have run into the process. As the scope for this to happen in measuring short term performance is less, and as there would be more number of subsets in long term(of short term), the performance could most probably come down in long run. This is even supported with the calculations of Short and long term sigma where usually the long term sigma is a difference of short term sigma and 1.5(one point five sigma) to attain long term sigma value.
  7. Performance of After Sales On-Site Service for electronic goods 1) CES 2) C-SAT 3) NPS 4) Churn 5) CAC CES is the most important factor for any after sales service as the customer needs a resolution and details from the seller as to how this product would be serviced. The easier it is, the better for the customer. This would be the number 1 factor in assessing performance. For example, the seller sending a personnel to customers premises or arranging a reverse logistics for shipping back would be great performance levels. The C-SAT attained would be the 2nd most important thing since requirement of service is an additional burden on the customer to use that product further. Any feedback from the customer on any web portal or by any other means is something which can be placed as 3rd most important factor which leads to NPS which I would rate as 3. Though new customers from NPS is not a sign of great product but a sign of great after sales service. Number of customers not coming back with any feedback or further query is a matter of concern as the customer would have been quiet in 2 cases where he had shifted to someother brand product or even if hes happy with the product. Since we are not sure of this feedback unless provided by customer, the ones without a further complaint might be treated as Churn. As marketing expense has not much really to do with acquiring customers through better after sales service, I would place this at the end.
  8. My ranking of the metrics for a classroom training provider would be 1) Churn 2) CES 3) C-SAT 4) NPS & 5) CAC Churn would hold the first place to measure the performance as when a customer wants to close a credit card with a bank or any company, there would usually be a call from the service provider trying to convince the customer to hold on to the card. Here if the customer states a bad feedback, this directly points the level of service provided by the call center. CES would hold the second place in credit card support services offline because the customer retention and usage on the credit card is directly proportional to the service provided to him as and when required. Only when the customer service is able to provide his required service, would the usage go up which is a result of service. The effort put in by the customer is to be minimum for him to be loyal. The next would be the C-SAT which he receives upon the service provided by the call center which is a result of this effort put to resolve his issue/query. The next would be NPS as Word of mouth or any positive feedback written in any web portal which is a sign of Performance of call center. Although the feedback on service on portals would not directly imply new customers, but has slight correlation with an existing customer suggesting his friend about the service provided. The final metric would be CAC as acquiring more customer based on the previously mentioned four factors which would only be a small part of the new customers acquired because of performance of call center.
  9. My ranking of the metrics for a classroom training provider would be 1) C-SAT 2) CES 3) NPS 4) CAC & 5) Churn From a classroom training provider point of view C-SAT comes first as if the trained working professionals are satisfied, there is a higher chance of them coming back for some other course. The second most important metric would be CES which is very important as some support is required to the working professionals on the training received to carry out the learning in actual work atmosphere. The support provided in execution of learning by the training provider. The third most important function to measure the performance of classroom training by measuring the referral joiners as there is a scope that one satisfied customer could refer multiple joiners which proves the performance of classroom training provider which is NPS. CAC would be the next metric in which new customers acquired is to happen based on the results produced by any training provider which he could market for acquiring new customers. The last metric would be customer churn which could be voluntary or involuntary (voluntary churn being working professionals not coming back because of getting a better training provider and involuntary churn being these professionals being retired or moving out of that function or having no time to attend etc). As involuntary churn depends on several factors including availability of their required courses, this would be in the last place.
  10. My ranking of the metrics for credit card sales process would be 1) CAC 2) NPS 3) C-SAT 4) CES & 5) Churn In the On-Field sales process for Credit Cards, the major objective would be to on-board new customers for which any company providing credit-cards should hold some number of sales staff to meet new customers and spend of telephone, meeting etc. The second most important metric would be to track the customer loyalty and referral check which helps us to understand how many new customers can we on-board based on the positive feedback spread by existing happy customers. Customer Satisfaction Index comes third as a few of happy customer might share his feedback which translates into referral again. In simple words a major part of NPS is from C-SAT. Customer Effort score comes the fourth as any dispute of help that a customer needs is to be addressed with priority and importance. If this doesn’t happen, would affect NPS & C-SAT. The least weightage I rate is to customer churn in Credit card sales as the process of selling is though dependent on the overall performance but the sales in particular doesn’t depend much on performance of the whole company(C-SAT, NPS & CES comes only after on-boarding the customer) which is why I have given the last preference
  11. In the below cases of industries, I have explained where does Inventory get accumulated as a waste in each of the scenarios Any flight on land for cleaning or for the clearance from Airport authorities to takeoff is a kind of waiting waste in aerospace industry The agricultural produce being transported to storage is Transport waste. Agricultural produce being stored in cold storage or any storage is an Inventory waste. Excess of cash lying with the banks beyond cash reserve ratio with any bank waiting waste in banking industry Several residential units of buildings built but not sold is Overproduction waste Large arms and ammunition produced and bought by armies which are not used is Inventory waste in Defense industry Over qualified professional applying for jobs with less requirement of qualification is an Over-production waste in educational sector where their qualification will be inventory which cannot be utilized completely. Crude oil being transported in tankers is an example of Waiting waste in Oil Industry. Charged solar panels is an example of Overproduction waste Web-series(serials) being filmed in advance of telecast is an example of Over-processing waste in Motion-picture industry Usage of same type of utensils to serve all the customers or using the same equipment to prepare food items is an example of Over- processing waste in Food & Beverage industry which is stored in more than required qty. Having more number of work-force or sq-foot of residential area to service the customers is an Waiting waste in Hospitality industry Having more workforce than required in IT industry is an example of Over-production waste. Employees not assigned to any project are an example of Waiting waste. Having software Products developed without having enough market to sell is an example of Over-processing waste. Holding the data of the company in more than 1 server as a back-up is an example of Inventory waste. Transferring the data from Local PC of employees to server for backup is a Motion waste. Bugs leading to halting the software development is an inventory in workforce due to defects and Testing team awaiting the code for Testing is a Waiting waste. Unsold automotives in warehouse are Over-production waste and raw material to be processed in both Waiting & Inventory waste. Unsold/vacant seats in any mode of transport is Over-production waste in transportation industry Unutilized phone lines and over buffering of data is an example of Over-processing waste
  12. My view on complaint handling would be partially on similar lines of Ocado but with these additional aspects Method of Complaint: - There has to be more channels to complain apart from Twitter which could be Facebook, Web portal chat, Messaging, Toll free phone(instead of going on a paid call), Mobile phone application via which the complaint can be made. Keeping in view the customers from all around the world, the supermarket could ask for the batch number of product on which the complaint is made. The Mobile phone application in particular should have features which should load the purchase of the customer based on the date & time of purchase from which the customer can chose to complain on a particular item or on a purchase as a whole Acknowledgement: - In these channels, except for the messaging feedback/complaint, acknowledgement can be immediately provided. Response: - A message from a human requesting for an option of delivering replacement product or with refund of purchase (either to the bank account of purchase or as wallet credit in the app for next purchase) amount within 24hours would be an ideal case instead of just refund option. The replacement option with a small gift (apology card or something) would take the customer service to the next level On top of all this, a telephone call to the customer apart from the message/mail to your e-mail, Mobile App or Char portal would show the seriousness with which they treat the customers. Of course, replacement or refund of a faulty/defective/bad product is the right of the customer for which a process and timeline has to be followed within which the resolution would be provided. But exceptional customer service is when the supermarket incentivizes the customer for a complaint non-monetarily. This could be in the form of a better product replacement or an assurance showing what action they have taken to minimize the faulty/bad products coming from their supplier and a mail/call/message of appreciation to the customer. They could further explain their action and express gratitude to the customer for taking time in complaining which not only helps the customer but the supermarket in improving the service level. Well, coming to the article of the author in which he/she has in-brief explained one of the processes with which the complaint is made and handled both in terms of quality and number(time taken for resolution), could have elaborated about the other channels of complaint too. This would help in understanding how the dynamics of complaint management works in each country. Also regarding the hassle of providing the supermarket with just a photograph, it would be great to collect the batch number in case of a phone call/message/chat(excluding app) so that even the supermarket can verify this bad product(in case of complaints from several other customers) and make sure that they don’t let this happen in future
  13. 3D Printing used in Dentistry and making of Prosthetic limbs are major examples where the process handoffs have been reduced multiple-fold. The process of making artificial tooth had taking the impression and making a cast, filling it with resin, Heat treating, cooling and finally testing it. Now this process has been reduced to taking a 3D image of the jaw/tooth, 3D Printing it with appropriate resin & fixing it. This 8 step process has been reduced to 3 steps which has made reduced the cycle time from days to hours.
  14. Agreeing with Venugopal that an implementation manager not only needs the experience of PI/Lean principles, but also needs the traits of initiating and implementing Process change initiatives that would sometimes face resistance. Having some past experience in implementing or atleast working on a successful/even failed projects would help the manager to not only evaluate a project before initiating it but also to do some ground work on FMEA which would be very much needed in case of any setbacks that he/she might face. Having experience in the same industry would be of good help to efficiently take the project forward but not necessarily complete it in a most effective way whereas cross-industry experience would help the otherway around. I support my argument with Toyota's example where the idea of using Kanban was advocated into Toyota by Kiichiri Toyoda who felt implementing the supermarket way of replenishment would reduce the inventory on shop floor where the learning/experience in observing a service industry had helped improve the process of automobile industry.
  15. Yes, for the role of an Improvement manager, a full-fledged project experience would be absolutely necessary. An improvement manager would be responsible for the successfully executing multiple projects which needs to show significant improvement in savings. An improvement manager will also have to guide the members of the team which would need practical on hands experience for a manager. Also on-hands experience would be necessary to carefully understand and work on the minor integrities which might not be acquired only with theoretical experience for a manager to successfully run & complete projects.
  16. In case of a company not allowing such projects, the person can simulate the scenario for a few weeks/months to show savings to his company. At this point if the company allows to do a project but doesn't allow to document the activities, sample data can be used to show an improvement with a proof from the company stating the savings In any case if the company doesn't allow to do the project even after simulating the result it would be better to take up a freelancing consulting project on a voluntary basis with any other company
  17. Effective is doing the correct thing to produce the desired result whereas Efficient is doing the thing in a most productive manner. Effectiveness is a measure of getting the result correctly in a certain number of events whereas Efficiency is a percentage figure which is measured as the ratio of work/power/time utilized in producing an output to that of the total work/power/time taken Example of Highly Effective but not efficient process A sales person distributing a sample of any product (say chocolates) to the customers with a stall in any super/hyper market is a very effective but highly inefficient way as the customer comes to know about the product by consuming/using it but very less customers would be actually buying it. Similar example would be transmission of electricity in high voltage lines where the effectiveness is very high as fewer lines are used but the efficiency of power transmitted to the end transformer would be much lower than that produced at the power station. Example of Highly Efficient but not Effective process Online teaching or teaching to masses is a highly efficient process where several 100’s or even 1000’s of students can be trained at the same time but the effectiveness is very less as the instructor/professor cannot put in adequate time to each trainee to make sure that the trainee has absorbed the concept well.
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