Overcoming Resistance to Change – Isn’t It Obvious?
April 28, 2012 in Change Agents
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by trizsigma
by trizsigma
Transaction Intensity reduction vs Lean
April 17, 2012 in Best Practices, Business Process, Change Agents, Lean, Management, Quality, Six Sigma
I am working on transaction intensity reduction. It amused me as it is different from other quality methodologies. In six-sigma, we focus more on defect reduction. Lean focuses more on reduction of cycle time. In my current project, vendor keeps sending invoices against each transaction. Lean supports single peace flow. But, it is making transaction intensity very high and unmanageable at payable end.
Someone suggested single invoice single vendor per month. However, it will create batch processing. In all this, I feel it makes sense to have optimal batch sizes than single piece flow mindlessly. Overall cost and lead time implications should be seen.
In BPO, many calls may be automated or self-answered in FAQ format which may reduce transaction intensity. Sending bus for each passenger may not serve purpose. Batching has its own advantage. It reduces change over time in continuous process.
Six sigma experts may question need for multiple purchase order, invoices, HR training sessions, or any other voluminous activity and may plan strategy to reduce the transactions itself to make them more manageable.
Banks reduced transaction through diverting them from branch to ATM, internet or mobile. Ticket window in Indian rail has been diverted to internet, cash coupon, or monthly ticket etc.
by trizsigma
by trizsigma
Skeletonising the process
March 22, 2012 in Best Practices, Change Agents, Lean, Management, Quality
Lean method is about streamlining the process. Processes should run with minimum efficient resources. Many operation managers think it is job of quality person to streamlining the process. They are happy to do daily routine job. Conflicts between operations and quality functions are well known. Quality professionals work in extreme theoretical world (perception), while operation managers are in more realistic world. Solution lies somewhere in between. Both teams have to work for organization benefit.
Skeletonising may not be right word as we should plan for buffer for emergencies. However, it reflects the intention. Cutting down the legal waste is most painful job. In fact, it creates boundaries in mind of any change agent. These wastes are holy cow and should not be touched. Change managers feel restricted by some myth. Some changes can’t be done in all cases like
- No salary increment while improving employee motivation
- No cost increment while increasing customer satisfaction
- No tax benefit should go away while smoothening the process
- Bosses mandates
Rest they are supposed to do with minor additional cost. In result, they suggest mediocre solutions in many cases.
Change needs blood. It is as simple as that. If organization is ready to bear the pain, they will be successful. I have seen top managements frustrated with their top brass and again sitting with same in next morning. Life goes like that and change never happens.
Toyota did miracle with lean methodology. They commitment to lean methodology is remarkable. Subsequently, their processes are leaner.
Change management is very psychological process. Human resists changes. We want status quo which is against nature. Nature loves changes. Processes need to be flexible and efficient to bear economy shocks from external environment.
by trizsigma
Building capabilities for long term sustenance
March 21, 2012 in Best Practices, Change Agents, Management
Capability building is a consistent effort. It is needed in current competitive environment. Development should be on global standards. Just being best in business, country, and state can’t bring best out of the organizational system. World is like a global village. Technological revolutions have connected people upto last mile. We all have to compete globally someday. Unfortunately, many businesses are protected by legal boundaries like anti-dumping etc. Protectionism and licensing may take business to one or two generations. It won’t sustain in upcoming unification of the world.
Capabilities can be of many types like people or system. Employees are backbone to any organization. HR has many tools like continuous learning and development. Building them for strong growth is necessary. Organizations or countries can’t ignore development of resources and giving them healthy life. Giving them best training is the cost to the organization. Many organizations don’t give certificates of completion in fear that employees will fly away. In India, many organizations don’t give green belt/black belt certificate to employee as employee will go on higher salary to other organization.
Meantime, companies are also investing in system and analytics capabilities. SAP is hot cake in ERP. SAP along with third party software has developed some great integrated systems. However, it needs very systematic implementation. I have seen organizations where everything is going in but nothing is coming out from ERP system in terms of analytics. Standard SAP platform is too open.
Building supply chain capability is core for any FMCG/retail business. Keeping service or quality orientation is must for any customer centric business. Keep innovating and motivating people to development of better future.
