Bandam Srinivas Reddy

I would like to call out the definitions with related example scenarios first. False Alarm (also known as False Positive): Where you receive a positive result for a test when you should have received negative results. Some examples of false alarms: A cancer screening test comes back positive, but you don’t have the disease. Anti-Virus software on your computer incorrectly identifies a harmless program as a malicious one. Effects of False alarms: Agony, Apprehensions, re-tests, Increased costs. Missed alerts ( also known as False Negative): You may miss the alert completely of the potential effect. In other words in case of a test, get a negative test result, but you should have got a positive test result. Example scenarios: Quality control in manufacturing; missed alert means that a defective item passes through the cracks. In IT security, it would mean that a test/ product designed to catch something (i.e. a virus or potential intrusion attack) has failed. In the Justice System, when a guilty suspect is found Not Guilty and allowed to walk free. Missed alerts create a false sense of security and potentially dangerous situations. For example, a crippling computer virus can wreak havoc if not detected, or an individual with cancer may not receive timely treatment. From the above example scenarios, it is clear that given a choice businesses would prefer False alarms over Missed alerts. As the last example, I would like to quote many Tsunami Warning systems that have been built globally with state-of-the-art systems, end up providing False alarms (which is based on surrounding facts). We all know the peril of having missed alert in case of Tsunami.

Truly the most value adding concept in Business Excellence is Value-adding-activity and Non-Value-Adding activity concept. While the three checks for value addition covers most of the Commercial industries involved in products and services business, it is always recommended to do value-add check based on the industry/process/situation. Few examples pertinent to the same are enumerated below : 1. Public sector/Govt. Services: Governments frequently produce or fund products/services that are highly valued by some and harshly criticized by others. Environmental regulations, birth control programs come to mind. Most of such programs do not have direct commercial value. Key check for Value add for such need to be in line of : Public value is created when government agencies meet the expectations of citizens and elected officials, that these agencies be accountable for the way they operate; that is, that they be efficient, fair, open, and accountable. 2. Software development : As per the Value add definition, software testing is Non value added. But, and this a big BUT, as nowhere in the industry Software can be produced without defects and hence testing and inspection cannot become Non value-add. Also, in many organisations transformational in nature is more arrived by optimum utilisation of internal resources. Like Airline creating hubs to optimise the resources etc. Another example in Heath care industry, where in Emotional quotient of the patient needs to be valued (even if Doctor or nurse need to spend more time) and Value add activity to be determined accordingly. So, would like to suggest a modification to Criterion # 2 by calling out meeting explicit customer requirement. A value adding activity is transformation by nature and meets an explicit customer requirement. Also, business organsiations in the fields of compliance and regulatory framework need different view of Value add. I look forward to learning more scenarios from experiences of BE Ambassadors in the forum on this subject.

5S is the name of a workplace organization method that uses a list of five Japanese words: Seiri, Seiton, Seiso, Seiketsu, and Shitsuke. 5S is a simple tool rather a process for organizing the workplace in a clean, efficient and safe manner to enhance productivity, visual management and to ensure the introduction of standardized working. The real aim of 5S is the need to introduce Standard Operational Practices ( SOPs) to ensure efficient, repeatable, safe ways of working which makes problems immediately obvious. 5S traditionally known to be successful in manufacturing companies, where direct benefits in shop-floor are realized and appreciated. In services companies, it could be difficult to engage white-collared workers who are made to believe that 5S is a merely a house-keeping tool so it should be done by the house-keeping staff. Whereas implementing 5S within a service business could potential deliver the following benefits: Reduces process lead times Facilitates workplace organization Standardizes operating procedures Improves customer response times Contributes to cost efficiency Helps to identify wastes Builds a culture of continual improvement With the above benefits, services sectors like Information Technology, Investment banking, Healthcare, Hospitality, Government, Retail banking or Education can gain such great benefits with 5S.

An interesting and challenging question indeed… There are two, rather three parts in this Question. Is a process as a significant roadblock in the effort towards creative design work? There are many innovations that happened purely by accident !!! Is there any value in the use of Lean Six Sigma in the world of product innovation? To answer the second one first: I tend to agree that there are/were many innovations that happened purely by accident. Sometimes genius arrives by chance and not by choice. Examples are many including Coco-cola, Cornflakes, Microwave Oven, X-rays, Pacemaker and the list would go on. Another example close to my family, redbus.com, online bus ticketing portal, when the founder Phani missed a bus seat on a festive day and thought of starting first ever bus ticketing portal in the country. All of these have been discovered purely by accident and the inventors have not started it as a process to discover any of these. Answering 1st and 3rd parts : While there are innovations that happened by accident, NOT ALL the innovations in the world are the result of purely such accidents. Also, would like to call out two words INVENTION and INNOVATION. An invention may at times come by accident and Innovation is difficult, as it is in most cases a combination of the invention, along with use, behavior, and business models, through a rigorous process. A relevant example, i-phone that has been one of the greatest innovations in the technology. Inventions like touch screens, mobile communications for voice and data and many features of this gizmo were there for some time, but this innovation of i-phone is a result of a well-designed process making use of several inventions that were already made. Ideation and groupthink are key components to innovation. Innovation is a journey. Creating a corporate culture where the goals are measured in simplified KPIs and easily measured metrics might actually stifle innovation in many ways. Identification and improvements in these processes so that they fuel innovation can be achieved through Lean Six Sigma. Hence, I strongly feel a process is NOT AT ALL a roadblock in the effort towards creative design work and I see a tremendous value in the use of Lean Six Sigma in the world of product innovation.

Kaizen ….Continuous improvement c using small incremental changes. Kai means change, Zen means better. Kaikaku……a change to the existing situation. Kakushin…... Some change will form a complete departure from the current situation. Example : For a business Organisation from IT perspective , someone using Oracle ERP 11g who has undergone through the above three stages means…… In Kaizen they would update to Oracle 11.2 ( providing technical advantages) and in Kaikaku they would move to Oracle R12 ( giving major functional and technical benefits) and in Kakushin they would replace with complete SAAS cloud based ERP could be Oracle fusion or SAP cloud product, providing distinct benefits of operational expenses and unique user experience. So, for a business organisation to be successful at different stages all of these are important Kaizen, Kaikaku and Kakushin. Case in point , camera and film famed company KODAK… was into Kaizen and kaikaku and changed film technology and got into new digital cameras ( Kaizen and Kaikaku) and forgot Kakushin of revolutionary innovation and forgot departure from current situation and had to declare bankruptcy in 2013. In Summary, for organizations to stay competitive in today’s economy, it is essential for them to adopt all these three concepts of Kaizen (Change for Better), Kaikaku (Revolutionary Change), and Kakushin (Innovation)

Agree, few numbers (may be important ones too) are unknown and unknowable. Business Excellence is to minimise this Unknowable factor. Hence measurement and management key to success. Dashboards, metrics would keep evolving and dynamic in nature.