Lecture 11 : Tools for Improving Logistics Efficiency (Contd.) — Transcript
Full transcript
- 0:01[Music]
- 0:22[Music]
- 0:26so welcome back to this nptl online
- 0:28course on Logistics and supply chain
- 0:30management I'm Dr vikas takur from IIT
- 0:32kakur so uh in the last session we were
- 0:35discussing about the tools for improving
- 0:38the logistics efficiency and uh in that
- 0:40we discussed the very first tool is plan
- 0:43do check act cycle uh given by Professor
- 0:46uh Edwards Deming and now we'll continue
- 0:50with the seven QC tools uh in this
- 0:53session and we'll discuss about the
- 0:55quality Circle 5S approach and
- 0:57benchmarking how these Concepts can be
- 0:59used used to improve the overall
- 1:01Logistics
- 1:03performance so these are the seven
- 1:05quality tools uh given by Professor K
- 1:08ishik Kaba and uh you can see uh we have
- 1:12uh the cause effect diagram then we we
- 1:16we can use flow chart we can use check
- 1:19sheets then par charts histograms
- 1:22control charts and Scatter diagram so
- 1:26this is the complete set of tools which
- 1:28can be uh used just starting with the
- 1:34diagnosing the problem and reaching to
- 1:37the end solution how we can Implement
- 1:40that uh solution and that problem can be
- 1:42solved even you can track the
- 1:44performance as well after implementing
- 1:47that solution you can track the
- 1:49performance so these seven QC tools will
- 1:52just go through how these can be used in
- 1:55a sequence so that we can analyze our
- 1:58complete problem so very first is
- 2:01flowchart right in the last session as I
- 2:05talked about uh a Control process where
- 2:08we we talked about some process and then
- 2:11we we saw that this process is giving
- 2:15some output we are processing and then
- 2:18this output is being compared with some
- 2:20standards and if de any deviation is
- 2:24there yes so then we are taking the
- 2:27corrective and preventive action and
- 2:29again going with the change in process
- 2:32change in raw material change in output
- 2:34all technology if it is no we will
- 2:37continue with the same process this is
- 2:39again a kind of flow chart I'm just
- 2:41giving you all the steps right so this
- 2:45is a kind of decision making stage I can
- 2:47highlight this decision making like this
- 2:49if any process I'm doing I can highlight
- 2:51like this if this is the start uh this
- 2:54is how it is highlighted the end is
- 2:57highlighted like this right so the I
- 3:01means different uh shapes we are using
- 3:04just to uh represent different stages in
- 3:07that flowchart now why flowchart is used
- 3:10just to you know have the quick
- 3:12understanding of the uh any process okay
- 3:16how it is happening so it will give you
- 3:18the better Clarity visibility instead of
- 3:20Reading Writing the long paragraphs
- 3:23right so this is one example you can see
- 3:26here on your screen how the
- 3:27manufacturing company of electronic
- 3:30gadgets they are doing with assembly is
- 3:32starting here so step one component they
- 3:34are checking second stage maybe assembly
- 3:37line is there there are so many
- 3:38different stages they are doing assembly
- 3:41on those stages then decision point is
- 3:44whether quality check is needed or it is
- 3:46error free right or uh 100% inspection
- 3:50or maybe uh the quality uh inspection is
- 3:53not required right if it is required
- 3:55we'll go for check sheet we'll do the
- 3:57sampling we'll pick some samples out of
- 3:59the product and then we'll check whether
- 4:02any defect is
- 4:03identified if it is identified then
- 4:06again we need
- 4:08to we need to go for the assembly we
- 4:11need to check the component whether
- 4:13component is faulty or there is
- 4:15something wrong with the assembly line
- 4:17right so if no nothing is required test
- 4:20is required we'll continue with the
- 4:22final product and then final product
- 4:24testing happens so then again there is
- 4:27decision Point whether this final is
- 4:30okay or not then final assembly is
- 4:32happening production is complete and
- 4:33this is the complete end so see in the
- 4:36flowchart how easily you can understand
- 4:39how the things are flowing in the in the
- 4:41logistics Network also we need we have
- 4:43discussed this complete flow chart right
- 4:46from your first supplier how things are
- 4:49moving through your transportation
- 4:51Network reaching to your manufacturing
- 4:53facility then again through all the long
- 4:56chain of your sto uh stockholders
- 4:59forward agent wholesalers distributor
- 5:02retailers reaching to the End customer
- 5:05right so that also flowchart uh you can
- 5:08just draw the flowcharts right now what
- 5:10inferences we can make out of that so
- 5:13this is reveals bottlenecks and in
- 5:15efficiency so flowchart will help you to
- 5:18identify where is the problem so how
- 5:21bottlenecks you can identify I'll give
- 5:23you very small example let's say I have
- 5:26designed these five stages in the
- 5:28assembly so product is entering here
- 5:31leaving here this is finished good is
- 5:33leaving here raw material is entering
- 5:35here maybe on different stages we are
- 5:37using some more components on on that
- 5:40stage right so then in terms of that raw
- 5:43material will can enter any stage new
- 5:45raw material obviously sub assembly will
- 5:47move through this conveyor belt now
- 5:49let's say for processing this stage we
- 5:52are taking 5 seconds for this 6 seconds
- 5:544 seconds then maybe uh 8 seconds and
- 5:58then maybe you are taking again 6
- 6:01seconds this is how you have designed
- 6:04now through this flow chart you can
- 6:06easily identified that this can be your
- 6:10bottleneck because it is taking 8
- 6:12seconds almost double of the last stage
- 6:16this also taking 6 seconds again 2
- 6:19seconds more than that so if I'll take
- 6:21this stage only between this and this
- 6:24this person will process two products at
- 6:27that time but this will pass only one
- 6:29prodct product right so that means in
- 6:33the end only 50% semi products semi
- 6:37finished products he is able to pass who
- 6:40is sitting on this fourth number stage
- 6:43and rest 50% will be the uh pending you
- 6:47can say pending stock is there on his
- 6:50stage so that means this is the
- 6:52bottleneck and restricting your
- 6:55efficiency how we can do improve that we
- 6:58can we need to think whether we can go
- 7:00for parallel stage the person is also
- 7:03sitting there so that half of the 50% of
- 7:05the product he will process 50% of the
- 7:08product he will process right and if
- 7:11dedicated two workstations are not
- 7:13required maybe temporarily we can
- 7:16assign uh the other workstation and then
- 7:19we can go so this is how the process
- 7:21flow chart will help you to streamline
- 7:23the uh things throughout your
- 7:26distribution Network throughout your
- 7:27packaging if some big pack packets are
- 7:29taking time small packets or delicate
- 7:31items are taking time and then because
- 7:34you are shipping all the products
- 7:36related to one pin code and then all
- 7:38those different types of products are
- 7:40there so how you can be more efficient
- 7:43Saving Time right so this will help you
- 7:45to understand that and then you can
- 7:47obviously uh the process which is taking
- 7:50longer you can uh make decision on that
- 7:52so more informed decision will be there
- 7:55so action taken you can reduce the
- 7:57bottlenecks you can opt op imiz time
- 8:00consuming process right and then
- 8:02additional training is provided to the
- 8:04line worker to be more efficient maybe
- 8:07we will stretch these workers who are
- 8:10taking five or six seconds to be more
- 8:12efficient maybe in that way or maybe we
- 8:14can change some technology also in that
- 8:17way so that the it can be comparable to
- 8:20somewhere 4 to 4.5 seconds so that all
- 8:24the stages are uniformly designed so
- 8:26that there should not be any pending
- 8:28work on any stage right then it will
- 8:30help you to check the quality also
- 8:33because let's say on this stage
- 8:36particular two stage very critical stage
- 8:38and most of the complaints let's say
- 8:40like we talked about the packaging
- 8:41related complaints are coming from this
- 8:44stage so then we need to increase the
- 8:49inspection here see the very this is uh
- 8:54uh misconception that quality
- 8:57means checking no quality we should
- 9:02Target in such a way that quality should
- 9:04be seized after some time quality team
- 9:07should work towards that after some
- 9:10duration there should not be any
- 9:12requirement of the inspection right so
- 9:15we should build the quality in the
- 9:17design of the product we should build
- 9:18the quality in the design of the
- 9:20packaging we should build the quality in
- 9:22the process where we are doing the
- 9:23packaging where we are transporting
- 9:25where we are keeping in the warehouses
- 9:28why the inventory is outdated why it is
- 9:30expired in the warehouse why our system
- 9:33did not give the alarming uh situation
- 9:36that now only few days are left few
- 9:38weeks are left and you need to rotate
- 9:41the stock right so that indication our
- 9:44warehouse automatically should be it
- 9:46should be circulated to all the
- 9:48stakeholder so that that inventory can
- 9:50be consumed first in the market second
- 9:53point is the second tool is check sheets
- 9:56so usually check sheet uh you might have
- 9:59seen check sheets in day routine life if
- 10:01you are traveling through maybe train
- 10:05through air so after completing your uh
- 10:08Journey they are sending you one kind of
- 10:10feedback form check sheet so you can
- 10:13evaluate as per how the staff was
- 10:16dealing with you the clean lless the
- 10:19services provided on on the plane and
- 10:22then all those things right so so that
- 10:25it will give them you know uh kind of
- 10:27direct touch that uh you are inter in
- 10:29with the customer and in that way you
- 10:31can somewhere you can also get a chance
- 10:33to improve your services right so check
- 10:35sheet is a kind of thing Dr isikawa has
- 10:38given this concept of collect this is a
- 10:40way of collecting the data right so
- 10:42through your check sheeet you can
- 10:43collect the data where the Falls are
- 10:45happening check sheet is also uh like we
- 10:48designed that most of the complaints are
- 10:50coming from packaging so you can see
- 10:53number of occurrences if Monday we see
- 10:56bottle brokens two right cap loose
- 11:01Monday nothing Tuesday two in that way
- 11:04we can see missing label also we have so
- 11:07this is a kind of check sheet so in the
- 11:09end we can analyze why this is happening
- 11:12if on one stage consistently something
- 11:14is happening wrong order that means who
- 11:17is the operator where is the location
- 11:20date section everything we so that we
- 11:22can identify the problem where the
- 11:25problem is like we identified initially
- 11:27now I have given you that image you can
- 11:29just relate with that example very basic
- 11:32example why we need to find out that the
- 11:36B very basic root cause right and damage
- 11:39while packaging how many times we did
- 11:41that and what are the reasons maybe in
- 11:44the weekend the uh defects are more
- 11:47maybe people are in uh rush to you know
- 11:50leave the workstation to go for their
- 11:52weekend plans and all that that can be
- 11:54one of the reason maybe Monday um uh
- 11:57more faults are coming complaints are
- 11:59coming because uh just they are coming
- 12:01after enjoying their weekend so it is
- 12:03little difficult to concentrate back on
- 12:05the workstation and all those things
- 12:07maybe right so this is a way how you
- 12:10this is just one tool to collect the
- 12:12data so first your flow chart you can
- 12:15understand the complete process second
- 12:17just check sheet is required to just
- 12:19record the data where the faults are
- 12:22happening and what is the frequency of
- 12:24those faults right and simple one case
- 12:27is there you can just see a man
- 12:29manfacturing company produces electronic
- 12:30components and they are tracking where
- 12:33the problem is so date of production you
- 12:36can find out when exactly that complaint
- 12:38happened type of defect is there any
- 12:41defect with the manufacturing process
- 12:43soldiering issue or maybe component
- 12:45misaligned or maybe damaged component
- 12:48faulty your packaging or maybe faulty
- 12:52process so location of defect like I
- 12:55told you it was done in a shift B shift
- 12:58dshift or or at what which workstation
- 13:01workstation fifth or 10th or 12th or
- 13:03which one is responsible so that we can
- 13:05increase the sampling or inspection rate
- 13:07at that particular stage or we can think
- 13:10of giving the training to that person
- 13:12who is working on that stage where those
- 13:14faults are occurring right we can find
- 13:17out the shift then operator we can find
- 13:19out specifically so that if special
- 13:21attention is required and if this is
- 13:24somewhere around the industry average we
- 13:27need not to bother much about that but
- 13:29still we should go for the regular
- 13:30training then of all the staff obviously
- 13:33or if it is something out of the box
- 13:36things are happening and many faults are
- 13:38coming so then we need to identify the
- 13:41particular person so that we can go with
- 13:43the things with that particular person
- 13:45only so what actions we can take we can
- 13:47identify the root cause of the defects
- 13:49and if it is happening somewhere in the
- 13:51manufacturing in the uh loading of the
- 13:54truck in unloading in storing in the
- 13:57cold storage or while packaging the
- 13:59product then then those stages you can
- 14:02Define and specific quality check sheet
- 14:04you can prepare related to those right
- 14:07so then targeted training program like I
- 14:10told you if this is the problem with
- 14:11some particular operator you can do this
- 14:14is not only the only the person can be
- 14:16at fault let's say you have completely
- 14:18automated Warehouse so robots are
- 14:20working so even then if it is The Fault
- 14:22With the machine so sometimes that can
- 14:24also happen continuously working
- 14:27continuously machine is working bear and
- 14:29can happen so then you need to check for
- 14:31that also right so results will be you
- 14:34can see the Improvement in quality when
- 14:36you will be implementing uh uh the
- 14:38identified root cause right so common
- 14:41type of defects you can find out so in
- 14:44that way you can build a sustainable
- 14:47environment of quality management
- 14:49through your Logistics distribution so
- 14:51in the end this is one acknowledgement
- 14:54you will get from the end stakeholder of
- 14:57that uh distribution Network if you are
- 15:00doing all the you are ticking all the
- 15:02points in the check sheets now third
- 15:05tool is histogram now we recorded the
- 15:09data now histogram will give you the
- 15:11pictorial representation that this is
- 15:13Fault one this is Fault 2 this is Fault
- 15:17three so this is like what is the
- 15:19frequency of these faults 5 10 15 20
- 15:23like this quick view I can get
- 15:26right and let's say uh you can compare
- 15:29month-wise as well January we have three
- 15:32faults let's say for January month so
- 15:36let's say we have
- 15:39uh like this so fault one fault two
- 15:44fault three February
- 15:51again so this one 2 3 like likewise you
- 15:55can continue so I can just see uh in any
- 15:59month this fault two is very high and
- 16:02next is Fault three so first I should
- 16:05prioritize fault two then I should pay
- 16:07attention to fault three then I should
- 16:09move to fault one so this will give you
- 16:11quick indication where you should go so
- 16:14histogram will help you to in that way
- 16:16so this is one case restaurant chain
- 16:19they want to enhance the both food
- 16:21quality and customer satisfaction
- 16:23obviously then you need to talk about
- 16:26the delivery time how they can do that
- 16:28right so they have collected some data
- 16:31and uh they have organized this data how
- 16:34many times they are making the delivery
- 16:37between 10 to 15 minutes how many times
- 16:39between 15 to 20 minutes 20 to 25
- 16:41minutes so these many times you are
- 16:42making the delivery so this is a quick
- 16:45review that you can analyze that you are
- 16:48taking the maximum time here and here so
- 16:51somewhere here normal distribution curve
- 16:53also you can draw on that right
- 16:56so uh this will help you to understand
- 16:59understand where you need to fasten up
- 17:00the things where you need to go for
- 17:03maybe half cook item you can keep with
- 17:05you so that order if those kind of
- 17:07products are there which are in
- 17:08continuous supply and demand so then you
- 17:11can manage in that way and you can
- 17:13minimize the time right so your
- 17:15histogram will help you to understand
- 17:17that so realtime performance monitoring
- 17:20system can be implemented by tracking
- 17:23the delivery
- 17:24times so once you will Implement that
- 17:27you can see now the delivery Peak if 25
- 17:32to 30 minutes you can further reduce it
- 17:34if you are finding out the bottleneck
- 17:37and you will be more consistent it will
- 17:39not be like this that sometimes you are
- 17:41here taking more time sometimes here so
- 17:43that you can be more consistent in that
- 17:46way right and when you are consistent so
- 17:48customer satisfaction see if one day I'm
- 17:51providing services within 5 minutes and
- 17:54next day I'm providing services in two
- 17:56uh 25 minutes so see same customer if
- 17:59coming to you so obviously if I got
- 18:01first day 5 minute Services anywhere you
- 18:04are taking 25 minutes I will be highly
- 18:07dissatisfied right if on an average
- 18:10continuously consistently you are taking
- 18:1215 to 20 minutes maybe whenever I'm
- 18:14coming to your store I know that this
- 18:17person will take average this much time
- 18:19so mentally I'm prepared that way right
- 18:21so that is also kind of thing that you
- 18:24know customer mind and psychology it's
- 18:27very difficult so the same situation
- 18:30sometime customer may take as a positive
- 18:32sometimes may take as negative so again
- 18:35I told you as per month Jan Feb March
- 18:39you can uh Analyze This there is another
- 18:42way these are the
- 18:44defects right and when these defects
- 18:47happen that also this is day shift one
- 18:50shift two shift three so all the time
- 18:53you can see that reasonably shift one
- 18:56defects are very high right and then
- 18:59shift two defects are also increasing
- 19:02okay so what are those defects this is
- 19:05wrong color doesn't light up when you
- 19:08turned on did not turn on right too
- 19:11small or maybe size not fitting right so
- 19:15put the wrong label on that or wrong
- 19:17size information so that way you can
- 19:20just find out you can this see how
- 19:23quickly you instead of going through the
- 19:25long tables and then information data
- 19:28you can just just uh get the picture in
- 19:31no time
- 19:32right now the now you collected
- 19:35information what is the frequency of
- 19:37occurring those faults now I need to
- 19:40prioritize which one is the Fault which
- 19:43is happening very frequently and this is
- 19:46parto principle 8020 rule which says
- 19:48that your 80% of the problems are
- 19:51because of 20% of the reasons and this
- 19:54is almost applicable in every phase
- 19:58everywhere
- 19:59maybe in your life as well you see
- 20:01majorly our life is affected by 20% of
- 20:04the
- 20:05decision uh your education which uh uh
- 20:09line you are into that will decide your
- 20:11total career business then uh whether
- 20:14you are going uh for your own venture or
- 20:17you are uh uh going to provide the
- 20:19services that is another decision second
- 20:22decision third who will be your life
- 20:24partner fourth after retirement what you
- 20:26will do four five decisions so that
- 20:29means these 20% decisions are affecting
- 20:31your and these are so big decisions if
- 20:34one goes wrong your whole life will be
- 20:37disturbed so that way 80% is their
- 20:40weightage right so same thing happens in
- 20:43almost every area if you talk about
- 20:46inventory I'm keeping inventory for any
- 20:48product let's say car so 20% item will
- 20:51be there components will be there who
- 20:53are carrying the maximum you know price
- 20:56cost and rest 80% items are are only
- 20:59contributing 20% so this is ABC analysis
- 21:02of inventory management we'll do in
- 21:04further sessions right so paratto
- 21:07diagram will histo diagram is just will
- 21:10arrange that these are the faults like
- 21:13this they will uh we can arrange in
- 21:15paror chart and then we can see these
- 21:1720% of those problems if these are the
- 21:21problems problem one problem two problem
- 21:23three problem four problem like this so
- 21:26these 20% of the problem which are
- 21:3080% customers are facing right so we can
- 21:34easily prioritize that now this tool is
- 21:36used to prioritize those issues whether
- 21:39the issues are mostly related with
- 21:40packaging or issues are mostly related
- 21:43with Transportation issues are mostly
- 21:45related with the outdated inventory
- 21:47because of warehouse management or maybe
- 21:50the outdated inventory in the warehouse
- 21:54right so you can just see scratched
- 21:58screen battery issues and missing
- 22:01components so if I'll just combine these
- 22:04three so you can see how much part these
- 22:07three are giving you somewhere here
- 22:1180% right so only these issues and uh if
- 22:15you'll solve these 20% issues your 80%
- 22:19problem will be solved right so parto
- 22:22chart is a very very beautiful tool to
- 22:25analyze the situation in that way right
- 22:28so others so many may be there so even
- 22:31if you'll try to address even then you
- 22:34cannot because obviously any process
- 22:37cannot be 100% error free so in that way
- 22:41you should uh Focus first on those 20%
- 22:44which can be you know uh addressed so
- 22:47scratch screen or battery issues are
- 22:49very prominent so immediately you can
- 22:52where that scratches are happening maybe
- 22:55in the storage or maybe when you are
- 22:57packaging the screens where that or
- 23:00maybe when you are finally you are
- 23:01cleaning that or maybe when you are your
- 23:03engineer is installing at the uh site
- 23:07location right then scratches are where
- 23:09the scratches are happening so you need
- 23:11to find out the reasons again you need
- 23:13to do the root cause analysis and the
- 23:15next tool will be root cause analysis
- 23:17only right we'll see how we'll find out
- 23:18the root cause so once it is done we can
- 23:21fix these issues and you can reduce your
- 23:24defects by 80% just focusing on 20% of
- 23:27the problems and in terms of that you
- 23:30can improve the customer feedback and
- 23:33returns will be minimized obviously
- 23:35right so this is how it will work now
- 23:37this is the fifth tool which we'll use
- 23:39to you
- 23:41know uh to find out the root cost like
- 23:45this is decreased customer satisfaction
- 23:49and maybe this is happening because of
- 23:51uh the scratches are happening on the
- 23:53screen during
- 23:56packaging right now now what can be the
- 23:59reasons let us forget this this this is
- 24:01fishborn diagram given by Professor
- 24:03Ishikawa and this is head of the fish
- 24:06and these are different branches you can
- 24:08just see like a fish it is this diagram
- 24:11is there so why uh like the first
- 24:16example if I'll go to that very basic
- 24:17example that problem is with packaging
- 24:20right this is the problem now we
- 24:22identified this problem can be because
- 24:24of the Manpower working on the
- 24:26workstation because of the technology we
- 24:28we are using on that workstation because
- 24:30the because of the equipment we are
- 24:33using to packet that because of the
- 24:35working conditions are not
- 24:40good because of the fault in the raw
- 24:42material because of so many other issues
- 24:45like so these issues we will list now if
- 24:48the problem is mostly happening because
- 24:50of Manpower we'll ask again why Manpower
- 24:54problem is there
- 24:56maybe did not undergo
- 24:58the proper training maybe not happy with
- 25:02the work environment maybe Disturbed
- 25:05with personal life maybe not the right
- 25:09skills at that job maybe related to
- 25:12salary maybe related to health issues so
- 25:16many things can be there this related to
- 25:19Manpower only so we identified the first
- 25:22reason then substages we'll find out the
- 25:25next stage reason then training if if he
- 25:29is not trained properly why that person
- 25:32is placed at that situation again we'll
- 25:34find out the reasons who can be at fault
- 25:37so HR team as fault maybe the placement
- 25:40team at fault maybe the induction people
- 25:43who did induction for that maybe at
- 25:46fault right so if it is the problem of
- 25:49HR how we can why that happened so HR
- 25:53need to change the policy so this is
- 25:55fishborn diagram where we'll try to find
- 25:57out the reasons on the further stages so
- 26:00that we can find out the main problem
- 26:03and this is also known as cause effect
- 26:05diagram so once you will identify the
- 26:07problem major categories under people
- 26:10problem with the process or equipment
- 26:12like I discussed or environment is not
- 26:15right then you can find out the
- 26:16subcategories also right and then you
- 26:19need to do the brainstorming session you
- 26:22need to ask by we usually call it fivey
- 26:26analysis or 3 y analysis or 7 y analysis
- 26:31means we'll ask why this happened seven
- 26:33times first we'll find out the answer
- 26:36then why that happened second will find
- 26:38out the answer then why that thing
- 26:39happened so we'll keep on asking the
- 26:42buys until until we are reaching at the
- 26:45root cause right so the potential causes
- 26:48we can identify with the help of this
- 26:51fish one diagram and then we need to
- 26:54take the corrective action additional
- 26:56staff we need to optimize the workflow
- 26:58or we need special training so obviously
- 27:01when we will find out the root cause so
- 27:04now the employe will feel motivated he
- 27:07will feel connected to the organization
- 27:09and then in that way the overall
- 27:11performance complaints will reduce
- 27:14performance will increase and in that
- 27:16way customer satisfaction which was the
- 27:18initial problem can be increased and in
- 27:21which will result in the ultimate
- 27:24customer loyality right so this is how
- 27:26fish diagram can help us scatter diagram
- 27:30again now maybe we
- 27:33identified uh three solutions to one
- 27:36problem that first I need to revise the
- 27:39compensation of that
- 27:41person then I need to provide him health
- 27:45insurance kind of thing I need to
- 27:47provide him the maybe the other housing
- 27:50facilities or uh maybe the education
- 27:54facility to the children maybe I need to
- 27:57uh enrich his job or enlarge his job
- 28:01whatever these are the three solutions
- 28:03you suggested to your management right
- 28:06now I want to track whether if I
- 28:08increase the compensation from point A
- 28:11to point B what is the
- 28:14performance whether the performance has
- 28:16increased like this like this like this
- 28:19or still the performance is like this
- 28:21right so if it is not how I can find out
- 28:24with the help of scatter diagram so
- 28:27let's go if if the problem is like this
- 28:29this is the solution let's say this is
- 28:30the solution I am implementing and this
- 28:33is the
- 28:34result I am increasing the compensation
- 28:39here and I'm looking for the result
- 28:41result in terms of number of
- 28:43complaints reduced number of complaints
- 28:46or you can say because this is
- 28:48positively increasing we cannot say in
- 28:49that way here we can say when there is
- 28:51negative uh correlation in this case we
- 28:55can say the result in terms of
- 28:57productivity
- 28:59so if I increase the compensation
- 29:02productivity is
- 29:04increased if I increase the compensation
- 29:07your number of complaints coming from
- 29:09the
- 29:11markets decreased so that means this
- 29:14component solution is working
- 29:17fantastically on that particular
- 29:19situation if the points are like
- 29:21staggered like this so that means there
- 29:23is no relationship even if you are
- 29:25increasing the compensation the employee
- 29:28is not motivated enough that he is
- 29:31somewhere performing of the average or
- 29:34whatever he was doing earlier right so
- 29:36this is the scatter diagram you can see
- 29:38number of training programs you did and
- 29:41job performance you can see still uh
- 29:44there is uh increasing Trend so that
- 29:46means you can suggest that training
- 29:49programs will help you to increase the
- 29:51overall
- 29:53performance so you can just see uh xaxis
- 29:58your independent variable byx is your
- 30:00dependent variable and regular checks
- 30:02you can track and you can improve the
- 30:04overall
- 30:06performance the last tool is control
- 30:08chart now control chart is that you are
- 30:11doing your process let's say at this
- 30:13mean this is the middle line
- 30:16right so you are
- 30:18recording your uh process at this level
- 30:22and how your process is moving like this
- 30:24so you will Define your upper limit as
- 30:26well upper control limit and lower
- 30:28control limit as long as your process is
- 30:32within this range right so you will say
- 30:35this is controlled but if it'll go
- 30:38beyond this range we need to stop and we
- 30:40need to take the corrective action right
- 30:43so this is control chart statistically
- 30:46we are this tool was given by Professor
- 30:49shot and uh here we are statistically
- 30:51controlling the quality right so how
- 30:53many times we are breaking the packaging
- 30:57how many times product wrong product
- 30:59delivered right so if there are this is
- 31:02the average and because we are allowing
- 31:04some defects up to some level plus minus
- 31:08let's say to be very specific sometime
- 31:10we are saying three sigma right so upper
- 31:13control limit lower control limit as
- 31:15long as you are within that range you
- 31:17are okay so in in when we'll discuss
- 31:20about the manufacturing unit
- 31:21specifically we'll talk about how we'll
- 31:24we are setting these plusus 3 uh Sigma
- 31:27for
- 31:28differentiating the assignable cause and
- 31:30common cause of variation right so here
- 31:32only as long as we are within the set
- 31:34limits we are okay with the quality
- 31:36right so we need to find out whether the
- 31:38common cause of variation or special
- 31:40cause if it is common cause we cannot
- 31:42remove that common cause there will be
- 31:45small variation right so that we cannot
- 31:48that is sometimes uh because of
- 31:51environmental condition sometimes
- 31:52because human intervention is there
- 31:54human it's not completely automated
- 31:56right even automation is there after
- 31:58some time maybe be and tear so we are
- 32:00not getting the exactly same parameters
- 32:03so parameters keep on changing so this
- 32:06we cannot remove but special cause if
- 32:09something the big problem is happening
- 32:12then we need to take the corrective
- 32:13action right so we need to identify
- 32:16whether the cause is special cause or
- 32:18common
- 32:20cause so you can see once we'll
- 32:23Implement these control charts we can
- 32:26reduce the variation in the quality of
- 32:29the products delivered this is how the
- 32:31complete all the tools can be identified
- 32:34I have discussed flow chart then you
- 32:37want to see the big picture how things
- 32:38are happening check sheets are used for
- 32:40data collection these all tools are used
- 32:42for data analysis here you will record
- 32:44the errors how frequently they are
- 32:46happening scatter diagram how uh results
- 32:50if you'll Implement some solutions how
- 32:52the results are improving you can use
- 32:54control charts to be within the range
- 32:57then problem identification you can do
- 33:00fish one analysis cause and effect
- 33:02diagram and in the end you can
- 33:03prioritize the solution as well for the
- 33:05same problem if you are finding two
- 33:07three solutions so that those Solutions
- 33:09also you can prioritize so another
- 33:11approach is quality Circle this is
- 33:13voluntarily group and not very formal
- 33:16right so maybe 8 to 10 peoples are part
- 33:19of that voluntarily group and they are
- 33:22discussing on some issue let's say the
- 33:24issue like we talked about related to
- 33:27Packaging
- 33:28so they will maybe voluntarily people
- 33:30one or two person will come from
- 33:32production Department one or two people
- 33:34will come from quality Department
- 33:36voluntarily one or two people will come
- 33:39from R&D Department from maintenance
- 33:42department from training and development
- 33:45department like this right so who are
- 33:48directly indirectly are linked with that
- 33:50particular problem now they will meet
- 33:53regularly okay this is a kind of quality
- 33:55Circle they will meet regularly they
- 33:58will find out the solution do the
- 34:00brainstorming sessions we'll come up
- 34:02with the results right so uh and then
- 34:05we'll suggest those results to the uh
- 34:08higher management now if it is related
- 34:10to packaging let's say packaging we need
- 34:13to change the raw material right so this
- 34:16can be one of the suggestion so R&D
- 34:18people will also say about raw material
- 34:20how we can improve in a better B right
- 34:23then quality people will also say
- 34:25whether the quality will be improved or
- 34:27if you are changing changing the raw
- 34:28material it will degrade the quality
- 34:30further right then so all will check the
- 34:33feasibility even accounting department
- 34:35will be there with their accounts that
- 34:37this will add the cost further we cannot
- 34:39afford that like these many arguments
- 34:42can be there so in the end you all the
- 34:45members uh what are the members there is
- 34:48top management their role is to support
- 34:51the QC right whatever suggestion they
- 34:54are giving they need to sanction the
- 34:56budget to implement those Solutions so
- 34:58that they can feel uh you know motivated
- 35:02they should provide the award kind of
- 35:03system and uh there if their uh
- 35:07suggestions are being implemented so
- 35:09next time they will also be willing to
- 35:11you know meet on these kind of informal
- 35:14teams as a informal teams and then they
- 35:16will try to solve so many in in
- 35:18manufacturing units these these kind of
- 35:20groups are very very common right then
- 35:23steer Committee of maybe senior people
- 35:25will be there who will be you know
- 35:27evaluating those quality Circle whe
- 35:29whether really that quality circle is
- 35:31required for that particular problem or
- 35:33not what are the objectives whether they
- 35:35are within the guidelines of broader
- 35:37guidelines of the organization or they
- 35:39are giving some out out of the box
- 35:41suggestion which suggestion is okay we
- 35:43can Implement can reduce the problem
- 35:46drastically but then what about the cost
- 35:49what about the other ethical constraints
- 35:51what about other legal constraints
- 35:53whether we can go for that or not right
- 35:55there is coordinator who who will will
- 35:57be coordinating between quality Circle
- 36:00higher management whatever suggestion
- 36:01they will give they will give that
- 36:03person is going to coordinate with them
- 36:05and will keep the track of activities
- 36:08whatever they are doing okay then there
- 36:10is
- 36:11facilitator the he will be the senior
- 36:14officer of the department and uh uh he
- 36:17will be uh arranging all the necessary
- 36:20you know training programs and uh he
- 36:22will develop the set up the links
- 36:24between the quality circles and my
- 36:26management and will ensure the
- 36:27participative culture so this is the
- 36:29main role of facil facilitator leader
- 36:33obviously uh will be one person who will
- 36:35be leading that team will be defining
- 36:37the problem various aspects of that uh
- 36:40that problem what can be you know the
- 36:43redressal schemes so in that way he's
- 36:46going to elaborate with the team and
- 36:48obviously with the team members who are
- 36:50the ultimate stakeholders coming up with
- 36:53the suggestions brainstorming sessions
- 36:55giving up their feedbacks and then the
- 36:57leader will combine that and obviously
- 36:59that cross questioning and all those
- 37:02things will be there so that we can
- 37:03validate the solution in the end whether
- 37:05we can really go for those Solutions or
- 37:08not so the fourth tool is 5S philosophy
- 37:12which is Japanese ter Ser C cisu and we
- 37:16can Implement for housekeeping so that
- 37:20uh the inventory can be managed within
- 37:22the warehouse in a proper way and we can
- 37:25sustain that proper way the first first
- 37:27is sorting you should sort your material
- 37:30because sorting is very much required in
- 37:32Warehouse where you need to sometimes
- 37:34you are sorting pin code buys sometimes
- 37:36you are sorting product wise sometimes
- 37:38you are sorting as per the requirements
- 37:40of the product right Cold Storage
- 37:42products will be stored in that area and
- 37:45rest of the products will be stored
- 37:46delicate items how you should handle
- 37:48where you should store those items right
- 37:50so how you are designing the Shelf space
- 37:52and all that set in order you need to uh
- 37:56set in order all the it Ms as per size
- 37:58as per uses or as per product nature
- 38:01shine you need to maintain uh the
- 38:04cleanliness of the workplace so that uh
- 38:07smooth function can be ensured and
- 38:09accidents can be reduced standardize
- 38:12once it is done you need to standardize
- 38:14the process so that repetitively you
- 38:17should be able to do that it's not one
- 38:19day you are setting in order and next
- 38:21day everything is again on the back
- 38:24track Q are so sustaining once the
- 38:26system is standardized you need to
- 38:28sustain that for forever right so this
- 38:31is how this approach of housekeeping can
- 38:33be very helpful when we are managing our
- 38:36inventory within the
- 38:38warehouses so the last one is
- 38:40benchmarking like I told you
- 38:43so you decided your kpis then these kpis
- 38:49you will find out uh the kpi of the best
- 38:54player in the market and find out the
- 38:58gaps between you there is one approach
- 39:00of balance scorecard we'll try to cover
- 39:03that as well with the respect to I'll
- 39:06try to design with respect to the supply
- 39:08chain Logistics management so this is
- 39:11one approach how you can uh you know uh
- 39:14identify the gaps and uh this is one
- 39:18concept of House of
- 39:21quality these two things we will go
- 39:25for right house of quality where you
- 39:27will identify your present situation
- 39:30where the best player Benchmark is so
- 39:33that you can find out the gaps right and
- 39:35best practices so that it will provide
- 39:37you the opportunities right so where you
- 39:40are lagging how you can improve your
- 39:42performance Matrix how why you are late
- 39:45than others right so your delivery is
- 39:47delayed why wrong product are shipped so
- 39:50frequently on your uh platform why that
- 39:54is happening why you are always shortage
- 39:56of inventory why there is defected
- 39:59product is uh shipped to the customer so
- 40:01there is something wrong with the career
- 40:03partner right so to define the
- 40:05benchmarking we have six steps first of
- 40:08all you need to define the objective so
- 40:11what are the area where you want to
- 40:14improve you will keep those as objective
- 40:16then you will identify those kpis let's
- 40:19first uh improve our uh uh
- 40:22Transportation sector so because
- 40:25transportation is uh cont contributing
- 40:2760 to 70% of the cost let's say so we
- 40:30need to improve that part right then
- 40:33gathered data what are Transportation
- 40:35related kpis what are our
- 40:39situation and what is the situation of
- 40:42the leader in that industry if DHL you
- 40:45are comparing delivery you are comparing
- 40:48so what is the situation of those player
- 40:50right as far as those kpis are concerned
- 40:54then you need to select the partner
- 40:56right so you need to exchange the
- 40:58information with your career Partners
- 41:00where we can work Logistics partner or
- 41:03Transportation Partners where we can
- 41:05improve and then again after Improvement
- 41:07you will analyze the data compare the
- 41:09data whether you have made the sign
- 41:11significant Improvement is there or not
- 41:14right so that you need to see again you
- 41:16will identify the opportunity that you
- 41:18have addressed the problem up to 30% but
- 41:21still you need to go further let's say
- 41:23take the next step which will maybe will
- 41:26uh again improve the situation by 50%
- 41:28and we can cut down the complaints by
- 41:30another 50% so these all are the uh uh
- 41:35tools we can use uh obviously uh we'll
- 41:38discuss some tools in uh Supply Chain
- 41:40management as well so there we will be
- 41:42covering the broader perspective so we
- 41:45can conclude that as customer focus so
- 41:49goal is to provide the best quality
- 41:51product delivered at at best experience
- 41:54that will only happen when we'll set up
- 41:56all of C these kpis in order right and
- 41:59we need to shine these kpis every day so
- 42:02that we can sustain these for a longer
- 42:04period there should be environment of
- 42:06continuous Improvement that plan do
- 42:08check act cycle should be continuous
- 42:11right employee
- 42:12empowerment QC circles employees should
- 42:16be part of that and if I'm addressing
- 42:18some problem of maybe my organization
- 42:20and I'm acknowledge in that way I'll
- 42:22feel motivated always people will come
- 42:25with their suggestions how they can and
- 42:26you be believe me in manufacturing
- 42:28industry major major problems are solved
- 42:31by those illiterate people who are
- 42:32working on the production line because
- 42:34they are continuously day and night
- 42:36doing the same repetitive action no one
- 42:39can understand better than them because
- 42:41they are continuously if you are
- 42:43producing daily 10,000 di times 10,000
- 42:46time they are doing the same operation
- 42:48so you can just imagine how efficient
- 42:50and in that way they can be
- 42:52knowledgeable in that way use of quality
- 42:55tools so you need to overnight you
- 42:58cannot use these tools you need to
- 43:00prepare your team who who can be very
- 43:03good in collecting data analyzing the
- 43:05problem and coming up with the solutions
- 43:08and then also prioritizing the solution
- 43:10which solution we can go for uh you know
- 43:12first phase second phase third phase
- 43:14product design within the product we
- 43:16should meet the customer expectation and
- 43:19you should design your process like that
- 43:22your process is not damaging the
- 43:26packaging
- 43:27right your process is not uh doing all
- 43:30the that uh screen scratches right so
- 43:33your process is should be your process
- 43:36should be defect free and then obviously
- 43:39supplier role is important how you can
- 43:42control the quality at the supplier end
- 43:44so you need to align all these players
- 43:47everywhere you need to go for the
- 43:49quality
- 43:51tools whatever we discussed and only
- 43:53then you can improve the overall
- 43:55performance so this these all are the
- 43:59references other than the books referred
- 44:01in first few sessions so that's all from
- 44:04my side thank you very much
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