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Johanan Collins

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    Johanan Collins
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  1. Difference between Agile and Lean While Agile and Lean are sometimes thought of to be similar, they are different in their very approach. Agile had got more to do with Project Management in an environment of quick change and technology. It is generally used in software development, due to the quick improvement in hardware technology such as processor speeds, storage, etc, the software improvements automatically piggyback on this change. Due to this change, the End Users' requirements and expectations change. Using erstwhile methods of project management have failed in this fast-changing environment. The Agile methodology of project management is better suited for quick change, chaos, and uncertainty. Agile is developed using frameworks like Scrum or Kanban. Lean has got more to do with a process that may either be in the field of manufacturing or service. Lean looks at the removal of waste in the process and delivers increased value. Use of management principles and processes are used in Lean. Lean is used to improve the quality or the speed of delivery of the product. It has seven principles and aims at changing the flow of the process from batch to flow or also reducing the size of the batch.
  2. Forward Vs Backward Integration Every company forms part of a value chain that is established from the source of supply to the end customer in order to deliver a product or a service to the end-user. Vertical Integration. This is a form of business strategy when a company integrates with other companies either up or down the value chain in order to take advantage of either economy of scale, reduce risk, optimize the output or reduce cost. Forward integration would be manufactures merging or acquiring distributors or retailers whereas backward integration would be for a manufacturer merging or acquiring its supplier. Vertical integration is not suitable in cases where the up-chain supplier or down-chain distributer is already operating at economies of scale. Examples A good example of Forward integration is Disney acquired over 300 retail stores that market products based on Disney movies and characters. Amazon, Ford Motors are good examples of Backward Integration. The companies acquired the affiliates of their key supply input. For example, Ford Motors acquired the supplier of glass, metal, and rubber to increase efficiency, reduce cost, and to reduce the supply chain risk. Apple is a good example of both forward and backward integration in that Apple has not only integrated with the manufactures of the components that go into the Apple products but has also integrated with the retailers through the exclusive Apple Retail Stores. Advantages. Some of the advantages of integration are to secure the value chain and minimize disruption to the supply chain. Besides this, integration enables unifying culture, uniform norms of quality, communication, objectives, better planning, taking advantage of economies of scale, etc. Overall vertical integration leads to higher productivity, efficiency, and lower costs. Disadvantages. The disadvantages of Vertical integration are that it kills competition, leads to oligarchic or monopolistic companies thereby increasing the price. At times it may kill flexibility, creativity, and innovation as it loses its ability to be agile and flexible. Antitrust Laws. Some countries have Antitrust laws that aim to prevent vertical integration. Antitrust laws are in place to protect customers from businesses whose practices are predatory in nature and aim to kill the competition with the aim to increase the price. References https://www.differencebetween.com/difference-between-forward-and-vs-backward-integration/ https://www.investopedia.com/ask/answers/09/antitrust-law.asp#:~:text=Antitrust%20laws%20are%20statutes%20developed%20by%20governments%20to,market%20allocation%2C%20bid%20rigging%2C%20price%20fixing%2C%20and%20monopolies.
  3. Introduction. Shigeo Shingo contributed to tools such as Total Quality Management, Just in Time, Flow, SMED, Quality at Source, Genchi Genbutsu, and Lean. He along with Taiichi Ohno applied his concepts to the real world in Toyota. Over the years, management gave a greater emphasis to these tools, i.e the “How” losing out on the important “Why”. The Shingo Model has been put together to link the “How” to the “Why”. It gives the relationship between principles, systems, tools, and results. The Shingo Model is a step towards a culture of operational excellence. It helps an organization to imbibe a culture of operational excellence by aligning its systems with principles rather than focussing on the tools. The model has guiding principles and the transformational process. The Shingo Model validates the teaching of Stephen R. Covey who said that values govern our actions but principles govern the consequence of our actions. It validates the fact that principles predict outcomes. Rather than focusing on the tools, it focuses on the underlying principles that operate behind them. It requires the leaders to anchor the mission, vision, and values of the organization to the principle of operational excellence and then for the entire organization to do so. Dimensions of Operational Excellence The Shingo Model has four dimensions viz. Cultural enablers, Continuous process improvement, Enterprise alignment, and Results. In order to see the potential of these principles and the business outcomes, all these four dimensions are important and require focus. These four dimensions cover five business areas, viz customer relations, product or service development, operations, supply, and admin. Each of these dimensions has some guiding principles and supporting concepts. Supporting concepts are important but not universal as the principles. Culture. Sustainable results require keeping the culture as central to the guiding principles, systems, and tools. It does not come through the “know-how”, just the use of tools and techniques but through the “know-why”, the principles behind their use. The leader needs to first experiment and imbibe the principle and then teach the principle to their team. This would empower the team to be take initiative and be creative and move in the right direction. Aligning the Systems with Principles. A bad system will have a large variation in behavior, leading to a variation in outcomes. The Shingo Model helps an organization to align every system with the principles. By doing this, the behavior of their staff is influenced towards the ideal. Tools. Since the guiding principles which form the culture of the organization are aligned with the systems, the staff will be able to better understand the why behind the use of the tools. Reference The Shingo Model for Operational Excellence, Jon M Huntsman School of Business , Utah State University.
  4. OTED as defined in the portal termwiki.com is “a setup reduction goal that reduces the process to a single step or one touch.” OTED is defined in the Encyclopaedia of Production and Manufacturing Management as “Setup times are non-value-adding activities. Lean manufacturing attacks setup times until they are reduced to zero or near zero. OTED refers to setup or changeover accomplished by the operator in one quick handling of the dies or tooling, usually in 10-15 seconds.” OTED, as defined in the portal leansixsigmadefnition.com, is “an exchange done with a single motion, rather than multiple steps and a changeover that takes less than 100 seconds and other references mention it is as being less than one minute.” The principle behind OTED and SMED is the idea that the set-up time in a process is a Non-Value-Added step and leads to waste. It is based on the principle in the Economic Order Quantity and Economic Production Run models. In the Economic Ordering Quantity model, the Ordering Cost and the Inventory Holding Cost are balanced, whereas, in the Economic Production Run Model, the Set-up Costs and the Inventory Holding Cost are balanced. The main idea that comes out from both these models, is the smaller the Ordering Cost/Set-up Cost the lower will the Order size/ Production Run. An important principle in Lean is the concept of moving from Batch Flow to Continuous Flow with the idea that moving from batch flow to single part flow to continuous flow reduces waste. Gradually reducing set-up times would gradually lead to smaller production runs which naturally lead to moving to smaller batch sizes and finally to a continuous flow. Once this principle has been identified, it is the endeavor to reduce the set-up times in a process. At times continuous improvement kaizen steps are taken to reduce the set-up time and at times, entire DMAIC projects are dedicated to the reduction of the set-up time. This technique is used in conjunction with Theory of Constraints and Value Stream Mapping with the identification of the bottleneck in the process, reducing the set-up time in the process till the time its cycle-time is less than the takt-time and moving on to the next bottleneck. In this iterative process, at first, there will be a need to use the SMED principles to release the bottleneck, however, after a few iterations further improvement of the process will only be possible through the application of OTED principles. The Single Minute Exchange of Die is a changeover in a single digit, i.e less than 10 minutes, however, the One Touch Exchange of Die is a near-instantaneous changeover. This one-touch implies that the change can be done with a single motion rather than multiple steps. Implementing OTED is challenging and takes a process to the best-in-class process. It is however important to realize making just one step in the process as OTED may not necessarily optimize the entire process. At times a balance between a single machine with OTED capability and high operating and maintaining cost need to be considered as against dedicated, low-tech machines in a work cell layout. References https://www.velaction.com/one-touch-exchange-of-die-oted/ https://en.termwiki.com/EN/one-touch_exchange_of_die_(OTED) (2000) ONE TOUCH EXCHANGE OF DIES (OTED). In: Swamidass P.M. (eds) Encyclopedia of Production and Manufacturing Management. Springer, Boston, MA . https://doi.org/10.1007/1-4020-0612-8_644 https://www.leansixsigmadefinition.com/glossary/oted/
  5. Iceberg Theory The Iceberg Theory is also called the theory of Omission. It is a writing theory that was made popular by journalist and writer Ernest Hemingway. He used his style of writing as a journalist in the writing of his short stories. In doing so, he focused more on the immediate events which were evident on the surface and less on their context. His writing style caused the reader to understand the context of the story in an implicit manner. His minimalistic style of writing caused each reader to contextualize the story within the readers' framework. Quoting from Oliver, Charles M “If a writer of prose knows enough of what he is writing about he may omit things that he knows and the reader, if the writer is writing truly enough, will have a feeling of those things as strongly as though the writer had stated them. The dignity of movement of an iceberg is due to only one-eighth of it being above water. A writer who omits things because he does not know them only makes hollow places in his writing.” The key to the quote by Oliver Charles M is that when the writer omits what he knows the reader is likely to strongly pick up the things omitted by the writer. This adds to the authenticity of the writer. However, when a writer omits things that he does not know, the reader is naturally unable to pick up the things omitted by the writer and it leads to a hollowness and in his writing. Application of the Iceberg Theory Leadership/Management. Questions such as “Are leaders born or made” or “Is Management an art or science” have been asked through the ages. Advancement of knowledge and technology has shown that through training, patience, and discipline leaders are made and management is more of a science than an art. Leadership qualities span a vast array of attributes such as professional knowledge, integrity, empathy, etc. This inward focus of character and knowledge and an outward focus on people takes time and effort to build making a leader authentic. Consultants. Successful consultants are those who have a wide range of knowledge and experience spanning various fields including understanding human behavior. With processes crossing numerous functions, consultants who are experts in a very specific area are unable to optimize solutions. Actors. Great Actors spend months or years researching their part. Good examples of this are Tom Hanks who plays the life of a physically disabled and low intelligence man in the movie “Forrest Gump”, Freddie Highmore who plays the part of a young autistic savant surgical resident in the series and Darsheel Safary who plays the part of a dyslexic child in “Taare Jameen Par”. Teachers, Professors. Similarly, teachers and professors with a deep knowledge of not only their subject but related subjects are generally more successful and popular. Doctors. With the human body being a diverse spectrum of various systems that interact with each other and with the external environment, a doctor with a deeper knowledge of not only the human body but other external factors is more likely to be successful. Conclusion. The Iceberg Theory brings out the fact that when a person with in-depth knowledge over a wide array of subjects speaks, the information appears to be authentic. On the contrary, when a person with superficial knowledge speaks, his lack of in-depth knowledge, of confidence, of authenticity, etc. will betray him and he will be easily found out. References https://en.wikipedia.org/wiki/Iceberg_theory Oliver, Charles M. (1999). Ernest Hemingway A to Z: The Essential Reference to the Life and Work. New York: Checkmark. ISBN 0-8160-3467-2.
  6. Shadow Boards The idea of Shadow Boards is an off-shoot of the 5S Lean Manufacturing Methodology. The implementation of 5S is generally the first step to reduce waste since it can be taken as independent, localized continuous improvements projects. Approvals for 5S Projects are at the lower level and even the individual level, hence they can be quickly implemented. ASQ defines the 5S process as follows • Seiri: To separate needed tools, parts, and instructions from unneeded materials and to remove the unneeded ones. • Seiton: To neatly arrange and identify parts and tools for ease of use. • Seiso: To conduct a cleanup campaign. • Seiketsu: To conduct seiri, seiton, and seiso daily to maintain a workplace in perfect condition. • Shitsuke: To form the habit of always following the first four S’s. Shadow Boards are applicable to the Second S of the 5S process. The Second S is to neatly arrange and identify parts and tools for ease of use. Shadow Boards are Boards that have either an outline, indentation, or painting of the tool or part that has to occupy that place. Some organizations may even use a wall as a shadow board. It is based on the concept, a place for everything, everything in its place. Shadow boards would not only save the time of retrieval, but it's location would also ensure ease of retrieval. New staff would find it easy to settle down into offices where shadow boards are used. Most importantly shadow boards would help the organization and individual to imbibe a culture of safety in the working environment. Shadow boards can be used at home, in offices, in factories, and various other workplaces. I have seen musicians using shadow boards to keep their musical instruments. References https://asq.org/quality-resources/lean/five-s-tutorial https://toolkeepers.com/portfolio-item/foam-shadow-board-honsa-tools/ https://www.national-engravers.co.uk/shadow-boards/mobile-shadow-board-5s/ https://www.pinterest.com/pin/333055334929155513/ https://www.pinterest.co.kr/pin/10766486586046608/
  7. Heinrich's triangle Heinrich Triangle or Bird Triangle is also called the Accident Triangle. It is used in the prevention of industrial accidents and shows the relationships between near misses at the bottom of the triangle, minor accidents in the middle, and more serious/fatal accidents at the top of the triangle. The theory is that if the number of near misses is reduced, the proportional minor accidents and serious/fatal accidents will reduce. In the Swiss Cheese analogy, the increase in the number of slices will lead to the reduction of direct holes passing right through the block of cheese leading to a reduction in the number of accidents. This theory was first proposed by Herbert William Heinrich (1931). He studied about 75,000 accident reports that occurred at the industrial sites and from the insurance reports. The theory was fine-tuned by Frank E Bird by studying about 1.7 million industrial accidents. This is about 22 times the accidents studied by Heinrich. The resultant Accident Triangle from the study is widely used in Industrial Health and Safety programs. Who was Heinrich? Heinrich was an Assistant Superintendent working in an insurance company. His study was aimed at reducing the number of industrial accidents. He found that the ratio of the major injury accidents: minor injury accidents: no-injury accidents was 1:29:300. His logical conclusion was that the reduction of minor accidents will naturally lead to a reduction of major accidents. This ratio is depicted as the Heinrich Triangle. Heinrich’s Triangle in our Daily Life. Heinrich’s Triangle finds natural and logical use in our daily life. If we take concrete steps to make our living environment at home and office at office safe, it would naturally lead to the probability of major accidents reducing. For example, ensuring that the maintenance schedules of your car or other mechanical devices are carried out as per schedule, will lead to a reduction in accidents. One can say that following Heinrich’s Triangle in our personal lives would lead to a culture of safety in our near proximity. References https://en.wikipedia.org/wiki/Accident_triangle
  8. The Poisson Distribution is named after the French mathematician Simeon Denis Poisson. It is a discrete distribution that gives the probability of the number of events in a fixed interval of space, time, distance, volume, area, etc. These events should take place independent of each other and at a constant rate. The Poisson distribution is generally used where the number of events is very large and the occurrence of these events is rare. In simple terms it can be described as the average rate at which a specific event happens in a specific time frame, the event will follow a Poisson distribution. Assumptions k is the number of times the event can occur (k= 0,1,2,3,…..) The events are independent of each other The average rate at which events occur, are independent of the occurrences and may vary with time. Two events cannot occur at the same time. Examples The number of calls received in a Call Centre every hour. The number of decay events that occur from a radioactive source every day. No of Accidents in a day on Highway No 4. The number of meteorites greater than 0.5-meter dia that strike Earth in a year. The number of customers arriving at a Mall between 8 and 9 am. Number of Tsunamis that hit the East Coast of India in a decade Number Goals in a match. Number of Injuries in a football match. Number of Hat tricks in a cricket match Examples that are not Poisson Distribution The arrival of students for a class The arrival of spectators for a match. These are not Poisson Distributions since the rate of arrival is not constant and the events are not independent of each other since students and spectators come in batches. Occurrences of earthquakes may not follow a Poisson distribution since the aftershocks may not be independent of each other. Formula The formula for Poisson distribution is Where k is the number of occurrences, e = 2.71828 (Euler’s Number) Lamda = E(X) [The mean] = Variance(X) Lamda can also be taken as the rate for the number of events. Poisson Distribution in Management Poisson Distribution is generally used to improve operational efficiency. Poisson Distribution is used in Queueing Theory as the arrival rate, whereas the Exponential Distribution is used in the Service times. Managing Demand. Study of the demand through the Poisson Distribution can help in developing complementary services, managing the reservation system and overbookings such as in hotels and airlines, segmenting demand, offering price incentives, or promoting off-peak demand. Managing Supply. Similarly, the study of the supply can help in sharing capacity, take decisions on cross-training of staff, using part-time employees, increasing customer participation, scheduling work shifts, or creating adjustable capacity. References https://en.wikipedia.org/wiki/Poisson_distribution
  9. Escape Point Escape Points is one of the eight steps of the “Eight Disciplines of Problem Solving” The 8D methodology was made popular by Ford Motors. The logic used in 8D is similar to the PDCA Cycle. The main goal of 8D is in the identification, correction, and elimination of problems that occur recurrently. It uses various analytical techniques including Statistical Analysis to determine the root cause of the problem. The eight steps of the 8D process are “Preparation and Emergency Response Actions”, “Use a Team”, “Describe the Problem”, “Develop Interim Containment Plan”, “Determine and Verify Root Causes and Escape Points”, “Verify Permanent Corrections for Problem that will resolve the problem for the customer”, “Define and Implement Corrective Actions”, “Prevent Recurrence / System Problems”, “Congratulate the Main Contributors to your Team”. Step 4 of the process “Determine and Verify Root Causes and Escape Points” involves identification of the root cause and taking steps to permanently eliminate it. During this step the Escape Point needs to be determined, i.e., the point closest in the process where the root cause could have been found but was not. Root Causes are generally grouped under Occurrence, Escape, and Systemic. The Occurrence Root Cause is the specific cause that resulted in the problem. It is the factor that brought about a change in the process. The escape root cause is the reason or cause as to why the problem escaped detection, the systematic root cause is the broader reason/cause that is responsible for the local cause or reason. It requires long-term corrective action. Escape points need to be identified during the Root Cause Analysis. The Escape Points can be controls that are currently in place in the process flow to detect the problem but have failed and allowed the problem to escape. Some examples of this can be audits, tests, sign-offs, etc. The Escape points in the process flow could also be blind spots. The points where the problem could have been detected but no controls were in place for its detection. https://en.wikipedia.org/wiki/Eight_disciplines_problem_solving https://quality-one.com/8d/
  10. RICE The Rice scoring system is a prioritization framework that uses four factors viz, Reach Impact, Confidence and Effort to arrive at a decision. Being a quantitative prioritization technique, it relies more on data and removes the subjective and feeling aspects of decision-making. Reach is the number of people the initiative will reach in a given time frame. It is a number that is estimated by the team. An example of reach is “our project is expected to bring in 250 customers in the next month” or “our initiative is expected to bring in 100 customers in the next quarter”. The Reach would be 250 in the first case and 100 in the second case. The Team decides the definition of Reach and the best time frame. For example, Reach could be a number of customer transactions, trial sign-ups, users. The reach should generally use real measurements for the products metrics rather than wild guesses. Impact is more difficult to measure since the project cannot be isolated, hence it would be difficult to ascertain the impact of the project among other reasons and determine the primary reason why a certain action was taken. Intercom had developed a five-tier system to measure impact with 3 being massive impact, 2 high impact, 1 medium impact, 0.5 low impact, and 0.25 minimum impact. Confidence is a balance between data and gut feeling. The team may have data on Reach and a gut feeling about Impact or vice-verse. It is the Confidence score that will draw a balance between the two. Intercom set up a tier set of percentages to mark confidence with 100 percent meaning high confidence, 80% medium, and 50 % low confidence. A confidence score of below 50% is considered bad. Effort in this framework is similar to scoring Reach. It looks at the qualifications and number of people required for the project and is measured by Intercom as Person Months. If a Project takes 5 Person Months, then the Effort score is 5. Intercom takes anything less than a month as 0.5. Say 1 Week of planning, 1-2 Weeks of design, and 2-4 weeks of engineering time will give an effort score of 2 person-months. Putting the four factors together, the RICE formula would be as follows: - RICE = (Reach x Impact x Confidence)/Effort The numerators of the RICE formula viz. Reach, Impact and Confidence are considered as the expected benefits and the denominator viz Effort as the potential Cost. It is hence very similar to a Cost Benefit Analysis. The RICE score is the total impact per time worked. The team needs to do it for each project and compare the numerical values, to prioritize the project. My Thoughts. In a setting similar to Intercom, it would be a consistent framework to help teams objectively evaluate the relative importance of their initiatives. While looking at the score as a whole, the Team would be advised to look at the Numerator (RIC) and the Denominator (E) as two different scores. This would prevent the team from overlooking a good project with high benefit (RIC) just because of the Effort being high. In doing so, the Team can take on projects with low Effort as Kaizen Projects and with low Effort as DMAIC Projects. https://www.productplan.com/glossary/rice-scoring-model/
  11. Time management is one of the essentials to stress-free living in modern times. Timeboxing is one of the several time management strategies in use to increase productivity such as Time blocking, Pomodoro method, Eat the Frog, Pareto principle, Getting Things Done (GTD). All of these primarily are tools to make the most of available time and achieve the set goals be they organizational or even individual goals. Timeboxing, creates a visual and realistic deadline to ensure that work gets completed. In Pomodoro, work is addressed within short time frames with breaks between working sessions, Timeboxing only allots the time and the work to a unit. However, one can move a step up from Timeboxing to Promodora. An “Eisenhower Matrix” may be performed to distinguish between tasks that are most urgent, not urgent, most important, and not important. The Pickle Jar Theory serves as a visual to set priorities by determining what is important and what is not important. From here one may move on to attacking the important and onerous jobs before settling down to less complex and easy ones as is done in” Eat the Frog” strategy. Often Timeboxing may not necessarily specify the types of tasks to time frame, they do provide the initial impetus and one may do a Pareto and get the easy ones out of the way. This is a great booster and it gives a feeling of accomplishment but one may not feel so, unless the timeboxing initiates the Pareto. Timeboxing does not however do not block-off related work from the set periods in the calendar this is done in Time blocking. Timeboxing is performed before employing Parkinson’s law. After allotting a time box for a particular task, divide them up by the amount of time it takes to complete them. Thereafter allot only half that time to complete each task ensuring it is completed within the deadline. Timeboxing also the is the first step before implementing Tony Robbins' Rapid Planning Method (RPM), which is a way of conditioning the brain to stay focused on the goal set. Benefits of using Timeboxing It helps the team to know how much time is left for a task's completion and clearly displays progress to the entire team throughout the life of the task. It gives a bird’ eye view of work on a calendar in relation to other tasks and objectives as it takes into consideration the amount of time needed to complete all steps for a particular work item. As the tasks are broken down into chewable bites it gives a feeling of manageability, keeping teams focused on the right priorities. Its visual nature tells the team their respective tasks, any potential delays or barriers that must be tackled. An overabundance of review meetings are avoided as it proves stakeholders and executive sponsors up to date on project status without the need to schedule. Disadvantages of Timeboxing Quality may sometimes be sacrificed due to the high priority placed on reaching deadlines. It is time-consuming to make lists and plans and is not flexible. It can be stressful when deadlines set are not met and it may be difficult to stick to plans needing a steep learning curve. References https://projectlifemastery.com/plan-your-day/ https://www.lifehack.org/articles/featured/how-to-use-parkinsons-law-to-your-advantage.html https://slab.com/blog/eisenhower-matrix/ https://upraise.io/blog/timeboxing-increases-productivity/
  12. Jishu-Hozen means autonomous maintenance in Japanese. Jishu is translated into ‘independence or autonomy’ and Hozen is translated into ‘integrity, conversation or preservation’. It removes the concept of division of labor between the operator and maintainer. It may however require some multi-skilling and more skilled operators. Jishu-Hozen and TPM. It is one amongst the eight pillars of TPM, the others being Planned Maintenance, Quality Maintenance, Early Management, Safety, Health & Environment, Focussed Improvement, Training & Education, TPM in the Office. Objectives. The main objective is to train the employee to maintain the performance of his equipment. It is based on the operator-maintainer concept and prevents the operator from passing the buck for poor quality onto the maintainer. Jishu-Hozen takes advantage of the fact that generally the operator knows more about his equipment than the maintainer and can do the basic, daily and routine maintenance tasks such as tuning, inspection, cleaning, lubrication, etc. Benefits. This daily maintenance not only increases the machine life but also improves its performance thereby reducing variability in the process and defects. Jishu-Hozen could thus help in improving quality, improving profitability, reducing defects, reducing Mean Time to Repair, Increasing Mean Time Between Failures, increase ownership and skill level among operators, check for deterioration of the equipment, keep machines in optimal working condition, reduction of minor stoppages, eliminates failures, and develop personnel. TPM and Indian Navy. The Indian Navy uses the system of Planned Preventive Maintenance. This maintenance is either done by the operator on a periodic basis. This is followed by some maintenance schedules being carried out by the onboard technical staff. These tasks are generally carried out when the ship is at sea. After a certain period of time, the ship is given a Self-Maintenance Period. During this time the ship staff consisting of the operator and maintainer do maintenance of the equipment. Every third Self-Maintenance Period is an Assisted-Maintenance Period wherein the ship staff and the Fleet Maintenance Unit Staff carry our more major maintenance routines. Modular Design. The modular design of weapons and sensors on the ships enables ease in the implementation of the operator-maintainer concept. This is similar to the Design for Six Sigma.
  13. Why Because Analysis Why Because Analysis is used for analysis of Accidents in various scenarios such as marine, rail, road, air etc. The advantage of WBA is that it can be used independent of the domain. It is a posteriori analysis method. WBA analysis increases the objectivity, reproducibility and reduces the falsification of the results. WB Graph. The results are depicted in a Why Because Graph which shows the causal relationship between the factors of the accident, with the nodes being the factors. The cause-and-effect relations are depicted by the directed edge. Process. It starts with the question – what is/are the accident/accidents? The causes of the accidents are then determined in an iterative process. Formal tests are then examined with respect to all potential cause and effect relationships. This iterative process continues till the time a result has been determined. The contributing cause i.e the related factor at each node i.e. the factor must be necessary to cause the accident and putting all the causes together should have caused the accident. Formal Test. There are two Formal Test viz the Counter Factual Test (Counter to the Fact) and the Causal Sufficiency Test. Counterfactual Test. The Counter Factual test asks the question; would the effect have happened without this cause or in other words does the cause actually contribute to the effect. Hence A is a cause for B if, and only if, had A not happened B could not have happened. A is the Necessary Causal Factor for B. The Counterfactual test does not answer is A is the only cause of B. A alone may not be sufficient and other causes may be required for B to occur. Causal Sufficiency Test. The Causal Sufficiency Test asks the question; are the listed causes sufficient for the effect to take place. This helps in identifying other causes. A correct WBG would require a positive CT and positive CST. This means the listed causes are sufficient, i.e. nothing is omitted (CST) and every cause is necessary (CT). Causal Chains and Sufficiency of Cause A Simple Causal Chain A More Complex Causal Chain Examples Fukushima Dia-Ichi runaway nucelar Reaction. Factors – Tsunami, Tohoku Earthquake. Collision of the Titanic. Factors – Excessive speed, Night, Life Boat Capacity, thought that the ship was unsinkable, unable to evade the iceberg. Car Safety System. Factors - Anti-Skid, Anti-Lock Brakes, Air Bags etc. In order for a fatal crash, a number of these systems have to fail. References https://en.wikipedia.org/wiki/Why%E2%80%93because_analysis Introduction to Why-Because Analysis Dipl.-Inform. Jan Sanders Computer Networks and Distributed Systems Group Technical Faculty, Bielefeld University mail: jsanders@TechFak.Uni-Bielefeld.DE web: www.rvs.uni-bielefeld.de in Association with Causalis Limited mail: sanders@causalis.com web: www.causalis.com February 1, 2012
  14. ABC Analysis is used for Inventory Control. There are other Inventory Control models such as FSO (Fast, Slow, Occasional) which is based on the demand or usage of the item, VED (Vital, Essential, Desirable) which is based on the criticality/risk/strategic importance of the item. Inventory Decisions. Inventory policies such as safety stocks, inventory levels, audit, checks, level of control, number of suppliers, Review Policy, etc, are decided based on the category an item is placed into. How to do an ABC Analysis. A Spreadsheet of the Item Code, Cost of Purchase and Issue details (consumption) of the item is available. The consumption value for each line is obtained by multiplying the Purchase Cost with the Issue Details. These are then grouped by the Item Code to get the Annual Usage Value per Item Code. Since the procurement cost of an item may vary throughout the year, this is one of the methods that could be used. An alternate method would be to multiply the Average Procurement Cost with the Annual Usage. The data is then sorted on Annual Consumption Value in descending order. Finally, Pareto’s Principle is used to divide the items into the A, B and C Categories. The A category would generally contain 10 – 20% of the items which would generally account for 70 – 80% of the Annual Consumption Value. The C Category items would generally contain about 50 to 60% of the items and would account for about 5 to 10% of the Annual Consumption items. The B Category items would constitute the remaining items that fall in between the A and C categories and would constitute about 15 – 25% of the value. Since the A items are of high value and a few items, the control of these items are generally done at a higher Management level, whereas the C items being of lower value and in a large number, the control of these items are done by the clerical staff. Problem with ABC Analysis. ABC Model of Inventory Management is based on the Annual Consumption Value of the items. This only takes into account the cost and the consumption of the item. A critical item with low consumption would be classified as a C category item and not get the required priority in its management. Similarly, an item that has a low consumption and is of strategic importance to the company may land up in the C Category. Furthermore, there is a risk of items which affect the profit of the company, or items with less no of suppliers or items which are complex in nature to land up in the C Category. Leverage items and not-critical which are cheap, have a large number of suppliers and easier to manage. These items generally get classified as A Category items due to high consumption levels. These items could be easily managed at lower levels having controls in place to ensure their management. How to Overcome the Problems with ABC Analysis. ABC Analysis used independent of other systems would have the inherent problems elucidated above. ABC and VED. Combining it with the VED Analysis would avert the problem of classifying critical items as C Category and giving priority to the Vital and Essential Items. Also, the management could have a relook of the Desirable items that fall into the A Category. These expensive or high consumption items in the Desirable Category could be reassessed for their requirement. ABC and Kraljic Matrix. Combining the ABC analysis with the Kraljic Matrix would focus attention not only based on the Annual Consumption Value but also asking questions such as – Are these items of strategic importance, are these items Bottleneck items or Leverage items or non-Critical items?
  15. PEST Analysis is a tool used to analyze the Political, Economic, Socio-Cultural and Technological environment that an organization operates in. It can also be used before a company enters a new geographical market. Political · Elections: When are the next elections, which parties are likely to win. What are the different political party’s stances? · Is the country politically stable? · Is the judicial system fair? · What are the laws in regard to copyright, property rights? · What new laws are on the books? · What are Business Regulations? Economic · Is the economy stable and growing? · What is the average disposable income in the country? · Is the unemployment rate at a manageable level? · Is the country part of an economic block? Socio-Cultural · What is the age profile of the company? · What is the population growth rate? · What is the average education level in the country? · What are the religious beliefs of the population? · What are the taboos and social attitudes? Technology · What are the new technologies that your company can use? · Are there any technological breakthroughs that will affect your business? · Are there infrastructure changes that will change how work is done? · What is the technological level of the competitors? Sources: https://www.mindtools.com/pages/article/newTMC_09.htm
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