Using Six Sigma to improve office processes may be a relatively new phenomenon, but since the success rate of such quality improvement initiatives is high enough, it will not be wrong to proclaim that the future is certainly bright for such implementations.
Here, we look at how Six Sigma helping businesses to improve their office processes.
Defining Quality and Efficiency Standards
Six Sigma has made it a lot easier for business to define quality and efficiency standards as applicable to office processes, something that is a prerequisite for achieving the desired results. What Six Sigma does is that it converts vague quality and efficiency orders such as "reduce errors", "work fast" etc. into more definitive terms such as "reduce errors by 15 percent in three months", "process 20 files per hour" etc.
Now, all this new definitions may seem to be increasing the workload of employees, but that is certainly not true, because Six Sigma relies on time-tested tools and techniques that generate the most appropriate and realistic estimates of employee performance. In fact, employees stand to gain from such definitions because then they will know exactly what the company expects from them.
Additionally, since Six Sigma stresses replacing old inefficient systems with new newer, more efficient technologies, it is highly unlikely that the employees will have to do anything more that what they already might be doing. Businesses also stand to gain because then they can make accurate and timely predictions about human resource requirements.
This allows them to make the best possible use of existing resources, something that consequently results in huge cost savings.
Streamlining Existing Office Processes
Since office processes are quite different from manufacturing processes and since the human aspect needs to be given special consideration while initiating improvement measures in office processes, Six Sigma focuses on gathering input and feedback from employees before starting the tweaking process. Such input and feedback is gathered both at the time when the implementation team is in the process of selecting the right improvement methodology and when a methodology is finally short-listed for final implementation.
Getting such input and feedback is vital because it is the only way a business can possibly devise an improvement initiative that finds favor with the employees as well as gauge their initial reaction to a proposed improvement initiative. Since the success of such projects depends a lot on employee cooperation and support, it makes sense to take them into confidence right from the start. It is only then will the business be able to streamline its existing office processes without causing unnecessary employee disgruntlement or distrust, factors that are not conducive for the future growth prospects of any given business enterprise.
As we can see, Six Sigma does help a lot in improving the quality and efficiency of existing office processes, but what businesses should never forget is that employees are not machines that can be set to perform at specified levels of efficiency, all the time. As such, businesses need to adopt a more tolerant approach while using Six Sigma for improving their office processes.
About the Author
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.
Thursday, March 27, 2008
Wednesday, March 5, 2008
Maximizing Rice Production Through Robotic Technology
The National Agricultural Research Center (NARC) of Japan has engaged in a robotic project that fully mechanized rice production with a global positioning system (GPS) capability that can painstakingly transplant rice using sensors and computers which can be independent from human activities or the use of human labor. The transplanting machine can make an accurate plan and direction on where to transplant around a six inch long rice seedlings. The rice seedlings are grown over two weeks on a long mat, using hydro-phonics culture system.
The long mat containing the seedlings is unrolled from the machine, and each seedling is sown into the soil, six in a row each time. Twenty rolls of mats weighing a total of two hundred eighty kilograms (280 kgs.) are needed to cover a one hectare area. The transplant robotic machine is estimated to cost a farmer for acquisition cost around sixty thousand US dollars (US$ 60,000).
However, the technology is still under evaluation at present. But once proven ready for commercialization, price of the equipment may decrease to accommodate especially the farmers in developing nations where the traditional old methods of rice production are still prevalent.
Mass production of the same can lower the price or cost of the technology. A Controller Area Network (CAN) bus is set up to oversea the activities of the rice transplanter through its Equipment Control Unit (ECU), where all the sensors, motors and a main computer are all connected.
Prior to the transplanting operation of the machine, the four corners of the field and the travel path have to be plotted. During transplanting, the main computer controls actions to minimize the deviation from the desired travel path in accordance to position and direction data. The travel speed of the transplant robotic machine can be revised from the main computer in order to make any adjustments from the deviations of transplanter's path. The main computer commands the robotic to stop at the end o a field, lifts and turns it to the next path. As observed, deviations from the planned path is at ten centimeters.
To measure direction and inclination of the machine, an Inertia Measuring Unit (IMU) that has fiber optic gyro sensors and accelerator is used. The NARC is actually on a six row transplanter that already exists in Japan. Ninety nine percent of rice farms in Japan are already mechanized and even rice transplanting is reportedly in practice by one hundred percent of Japanese farms.
Apparently, Japan's average rice yield is six metric tons per hectare compared to the developing countries of three and a half metric tons only per hectare. Transplanting maximizes land use and cuts weed presence. Japan has its own mechanized rice planter since 1966 yet, but it was dependent with human labor pushing the transplanter while the farm worker's feet are on knee deep on the ground.
With the present GPS system, Japan's rice production may be fully mechanized from land preparation to harvest time. The NARC has proposed that in order to be cost efficient in producing this farm equipment technology, it has to compact the system by combining the sensors and computer segments on a rice transplanter, combine harvester, fertilizer and a tractor segments are shared as the first stage of their plan.
In the next stage, they are planning to develop an autonomous combine harvester using the Controller Area Network (CAN) bus to share with GPS receiver, IMU and a main computer attached to the rice planter.
About the Author
Arnold Cafe is the author of Ideas Galore, http://affleap.com/blog and an active internet marketer.
The long mat containing the seedlings is unrolled from the machine, and each seedling is sown into the soil, six in a row each time. Twenty rolls of mats weighing a total of two hundred eighty kilograms (280 kgs.) are needed to cover a one hectare area. The transplant robotic machine is estimated to cost a farmer for acquisition cost around sixty thousand US dollars (US$ 60,000).
However, the technology is still under evaluation at present. But once proven ready for commercialization, price of the equipment may decrease to accommodate especially the farmers in developing nations where the traditional old methods of rice production are still prevalent.
Mass production of the same can lower the price or cost of the technology. A Controller Area Network (CAN) bus is set up to oversea the activities of the rice transplanter through its Equipment Control Unit (ECU), where all the sensors, motors and a main computer are all connected.
Prior to the transplanting operation of the machine, the four corners of the field and the travel path have to be plotted. During transplanting, the main computer controls actions to minimize the deviation from the desired travel path in accordance to position and direction data. The travel speed of the transplant robotic machine can be revised from the main computer in order to make any adjustments from the deviations of transplanter's path. The main computer commands the robotic to stop at the end o a field, lifts and turns it to the next path. As observed, deviations from the planned path is at ten centimeters.
To measure direction and inclination of the machine, an Inertia Measuring Unit (IMU) that has fiber optic gyro sensors and accelerator is used. The NARC is actually on a six row transplanter that already exists in Japan. Ninety nine percent of rice farms in Japan are already mechanized and even rice transplanting is reportedly in practice by one hundred percent of Japanese farms.
Apparently, Japan's average rice yield is six metric tons per hectare compared to the developing countries of three and a half metric tons only per hectare. Transplanting maximizes land use and cuts weed presence. Japan has its own mechanized rice planter since 1966 yet, but it was dependent with human labor pushing the transplanter while the farm worker's feet are on knee deep on the ground.
With the present GPS system, Japan's rice production may be fully mechanized from land preparation to harvest time. The NARC has proposed that in order to be cost efficient in producing this farm equipment technology, it has to compact the system by combining the sensors and computer segments on a rice transplanter, combine harvester, fertilizer and a tractor segments are shared as the first stage of their plan.
In the next stage, they are planning to develop an autonomous combine harvester using the Controller Area Network (CAN) bus to share with GPS receiver, IMU and a main computer attached to the rice planter.
About the Author
Arnold Cafe is the author of Ideas Galore, http://affleap.com/blog and an active internet marketer.
Wednesday, May 16, 2007
COST REDUCTION ACTIVITY
Cost reduction activity
Cost reduction activity will be implemented from the outcomes of brain storming session. The rational of outcomes was filtered and evaluate by every Unit during data gathering activity. The shortlist and relevant of activity will be proposed to proceed immediately. The activity which incurred high investment or critical decision making items which is required high level management approval will be implemented base on priority basis.
Cost reduction activity will be implemented from the outcomes of brain storming session. The rational of outcomes was filtered and evaluate by every Unit during data gathering activity. The shortlist and relevant of activity will be proposed to proceed immediately. The activity which incurred high investment or critical decision making items which is required high level management approval will be implemented base on priority basis.
Quality improvement at Production line can be defined as essential element to the Cost Reduction Activity.
Tuesday, May 15, 2007
ENTERPRISE IMPROVEMENT PROCESS
What is it?
A structured, team based problem solving approach with defined the Activities, End products, Time table, Roles and Responsibilities & Accountabilities.
Focused on delivering a giant step change in operating performance against cost, quality and performance and thus building a platform for sustainable and continuous improvement through excellence of process and people.
It is a “bottom up” managements effort where the entire workforce participates in providing ideas for the improvement of their work areas or cost reduction opportunities for the operating unit as a whole.
Open minded, willing to challenge
Ideally & is hungry for change
Hardworking
Good interpersonal & leadership skills
Good analytical skills
Appropriate mix experience
Units & Leaders
Unit for the process was identified base on functional basis comprise of direct functional basis comprise of direct functional and supporting units. Units can be divided as follows;
Unit 1 – Production
Unit 2 – Engineering and Maintenance
Unit 3 – Purchasing and Progress Control
Unit 4 – Management Support
These unit leaders ideally should be the person responsible for the area of the area of the Company/business. Careful selection of strong Unit Leader is important to the success of the EIP process, and they should posses some of the following qualities:
Knowledgeable
Energetic
Open Minded
Fairly comfortable with carrying out detail analysis
Strong character, able to deal with significant pressure & multiple demands
Resources person in operation, organization and technology.
Data Gathering & Target Setting
This initial stage of the process is to determine the improvement target and assess from where the improvements could come from. The data gathering aims to collect all relevant costs and performance data of the operating unit for a particular base year. It will be detailed exercise to determine the various cost drivers and the individual cost components as a through understanding needs to be made as to “where every cent was spend”.
A comprehensive data base that includes all costs and drivers of quality, service and uptime is created. The data is combined and structured in new ways to Identify inter-relationships- e.g using activity –based costs to analyze the budget. There might be a possibility that, at this stage not all the necessary data is available, and where necessary the EIP team will estimate through sampling or through the judgment of shop floor operators or Manager or Supervisors etc.
The data gathering & target setting normally comprise of the following:
The current organization chart and total number of permanent unit equivalent ( PUE)
Process flow chart
Mission, activity and End Products (MAE) analysis
Current Quality & Performance data with theoretic/capability limit
KPI tree
Current cost drivers of the unit with analysis of controllable, non-controllable & partially controllable cost base
A structured, team based problem solving approach with defined the Activities, End products, Time table, Roles and Responsibilities & Accountabilities.
Focused on delivering a giant step change in operating performance against cost, quality and performance and thus building a platform for sustainable and continuous improvement through excellence of process and people.
It is a “bottom up” managements effort where the entire workforce participates in providing ideas for the improvement of their work areas or cost reduction opportunities for the operating unit as a whole.
Preparation towards Enterprise Improvement
Communications
Before commencing the program on site, there is an extensive communication process. Because in this cost reduction program, all cost are examined and if its to succeed, the active participation and commitment of majority of the employees is essential.
And the plan consist of:
Communication announcements tailored to the operating unit
Face to face briefing
Distribution of communication material
Walking the talk
Coaches
A key element to the success of the program is the use of Coaches. These are resource people “ outside “ the operating unit where the program is to be implemented, but who are knowledgeable about some aspects of the overall business and fully trained in the execution of the EIP structured program.
Criteria of Coaches selection are:
Open minded, willing to challenge
Ideally & is hungry for change
Hardworking
Good interpersonal & leadership skills
Good analytical skills
Appropriate mix experience
Units & Leaders
Unit for the process was identified base on functional basis comprise of direct functional basis comprise of direct functional and supporting units. Units can be divided as follows;
Unit 1 – Production
Unit 2 – Engineering and Maintenance
Unit 3 – Purchasing and Progress Control
Unit 4 – Management Support
These unit leaders ideally should be the person responsible for the area of the area of the Company/business. Careful selection of strong Unit Leader is important to the success of the EIP process, and they should posses some of the following qualities:
Knowledgeable
Energetic
Open Minded
Fairly comfortable with carrying out detail analysis
Strong character, able to deal with significant pressure & multiple demands
Resources person in operation, organization and technology.
Data Gathering & Target Setting
This initial stage of the process is to determine the improvement target and assess from where the improvements could come from. The data gathering aims to collect all relevant costs and performance data of the operating unit for a particular base year. It will be detailed exercise to determine the various cost drivers and the individual cost components as a through understanding needs to be made as to “where every cent was spend”.
A comprehensive data base that includes all costs and drivers of quality, service and uptime is created. The data is combined and structured in new ways to Identify inter-relationships- e.g using activity –based costs to analyze the budget. There might be a possibility that, at this stage not all the necessary data is available, and where necessary the EIP team will estimate through sampling or through the judgment of shop floor operators or Manager or Supervisors etc.
The data gathering & target setting normally comprise of the following:
The current organization chart and total number of permanent unit equivalent ( PUE)
Process flow chart
Mission, activity and End Products (MAE) analysis
Current Quality & Performance data with theoretic/capability limit
KPI tree
Current cost drivers of the unit with analysis of controllable, non-controllable & partially controllable cost base
Idea Generation, Consolidation & Evaluation
The aim here is to generate the best set off specific, actionable ideas to improve the unit’s performance by at least the targeted amounts. The process of generating and evaluating ideas in iterative, and relies on brainstorming as key techniques for idea generation. Idea generation session should rely on harvesting existing ideas and/or brainstorming new ones. The external coaches act as facilitators to make sure that everyone is involved and that ideas re not rejected out of hand. They have a responsibility to create a positive environment, and to involve as many knowledgeable people as possible. The focus is always on the performance improvement and cost reduction.
It also involves the input of specialist or technical advisors, who can be internal or external sources, who collect and present to the operating unit all the technical recommendations made in the past so that the effort is not wasted in “reinventing the wheel”. They also participate at later stage to review the ideas which get through the plant or operating unit’s screening process to ensure that these ideas are technically feasible and that any interaction between the ideas are fully understood by everyone.
The evaluation and agreement of which ideas to forward is the next step of the process These involve more than just picking on those actions that give the greatest cost savings. It is an opportunity to build commitment for executing the idea, and also by involving more people, its improves the idea.
Step that need to be taken to ensure that this happen included careful consideration of all parties that need to sign of an idea in the particular operating unit – and those who will be impacted by the idea must support the idea, or can offer an important perspective on the idea in question. There should be a face to face discussion with all parties signing off and suggestion from signatories to modify and improve ideas should be included where ever appropriate.
Some idea particularly those that involve headcount reductions, are obviously controversial, so these idea needs to be discussed over several meeting to gain acceptance.
As the idea generation, consolidation and evaluation cycle evolves, the Unit Leaders should assess the progress of the unit towards achieving the set target. Progress should be assessed by cost category, especially for the unit’s largest cost driver, by mission, activities & end products as well as by idea type. Once again , this process is iterative and assessments should be conducted every few days in order to determine progress and highlight remaining opportunities to pursue. There may be instances that repeated brainstorming session may be required to be executed to ensure that idea bank is not exhausted in trying to achieve the set targets in the EIP program.
Idea Sign-off:
When all the ideas from the operating unit have been evaluated , the prioritization process will reduce the number of ideas from the original list. At this stage it is important to start considering of the resources available in terms of capital and the people necessary to implement the idea. Given that the aim of the program is to deliver the benefits within 2 years timescale, there is no point in committing to implement all project/ideas at the same time when there is clearly inadequate resources available to execute them.
Having developed the final plan, there is a presentation to the Senior Managers of the operating unit who will provide the final sign-offs. Experiences have shown that approximately one Dollar of capital expenditure is needed for a saving of one Dollar, which demonstrates that overall, the process generates projects with a very high rate of return.
Implementation Plan
Having generated the prioritized list of projects, they now have to be put into an implementation plan. This plan has to include a timeline, an identified project manager, financial and technical resources requirements. As the intent is to generate rapid reductions in cost over a maximum two year period, success will only be assured if the projects are executed according to plan.
At the end of this 3rd Phase, the second and last presentation will be made to the Steering Committee members. This crucial presentation will include, firstly, the details of all projects/ideas that will be undertaken by the operating unit in ensuring that the set target will be met, and secondly, the implementation of the planning process for the execution. With all needed resources.
Also during presentation, The Steering Committee will approve, disapprove or designate a particular idea as “Further Study “ idea, if additional factors are needed to be considered in the analysis. The operating unit will then proceed to implement only those “GO” ideas and eliminate the “NO GO” ideas.
Implementation Phase
As it is critical that the anticipated results are achieved on schedule, a sophisticated project and result s tracking system will be put in place. Any slippage can be and will be quickly identified and the necessary resources targeted to get the project back on track will be deployed. It also provides a management reporting tools, so that the Senior Management can be assured that the process will deliver the stated profit improvement.
The Benefits
Profit enhancement
Cost reduction
Savings from Strategic Procurement
Personal skill development
Clear responsibilities and accountabilities
Transparent tracking and reporting
Transfer of best practice and benchmarking
Global language of enterprise performance improvement
Subscribe to:
Posts (Atom)
