Various ways to commence an improvement project

Pranay Kumar

May 6, 16

Various ways to commence an improvement project:
1.Voice of the customer.
2.Voice of internal customer
3. Voice of business/Voice of process
4.Cost of poor quality
5.Return rate
6.On time Delivery
7.Rolled throughput yield
8.First time right
9.Number of Complaints reports

Various ways to commence an improvement project

(1) VOC (Voice of Customer):- This usually happens when customer finds that they are not getting what they were promised for. Several eminent themes could be explored for the VOC

1.Customer Escalations or complaints,
2.Misses on Contractual Obligations
3.Lost Business Analysis
4.On a positive note – Customer Needs

(2) VOB/VOP (Voice of Business/ Process):- Some projects may be triggered by the need of business such as to increase the profit, increase the revenue, increase market share etc. Some eminent themes to be explored here could be

1.Any Critical Process Metrics designed to meet Customer Requirement
2.Organizational metrics like revenue, profitability, Resource Utilization, etc.
3.Repeat Business Scores
4.Need of process speed (Turn Around time of business processes)
5.Cycle time reduction
6.Efficiency or Productivity of company assets
7.Excess Rework
8.Repeated errors
9.Line Balancing /Process Bottleneck removal
10.Ops Lag
11.Ramp-up Time
12.Attrition
13.Absenteeism

(3) VOIC (Voice of Internal Customer):- With change of time and management philosophy, VOIC way of commencing project has also been getting popularity. Organizations are constantly rediscovering themselves to setup more ideas and involvement from their Employees (Internal Customers).

(4) COPQ (Cost of Poor Quality):- In this dynamic and highly competitive market COPQ has been getting more popularity.

1.Projects around impact reduction of poor accuracy
2.Reduction of First time not right
3.Reduction of Cost of rework

(5) RTY (Rolled Throughput yield):- In any organization, output of one process acts as input for another. If any of the process is not working up to the standard. The final output will be impacted. For example, Consider 3 interdependent sub-processes (A,B,C) under a vertical, which collectively produces the final product to be supplied to the client, all running at 85% quality. Output of Process A becomes input to Process B and output of Process B becomes input to Process C. That means quality of the final output will be 61.41%. You can also commence a project on RTY to get better final product.

(6) FTR /Y(First Time Right/Yield):- If instead of looking for a series of processes and their interaction if I am just concerned with the output(yield) of one process then I can commence project of FTR

(7) OTD (On- time Delivery):-OTD measures the timeliness of deliveries to customers. It is defined as the percentage of orders that are delivered at the customers’ sites according to the scheduling requirements of the customers per specified period of time. (Reference ISO 13053 1st edition)

(8) RR (Return Rate):-RR is defined as the number of returns – or request for returns – of a given product in a specified period, such as a month, divided by a measure of shipments. Shipments can be determined over the same specified period as the number of returns or can be a “normalized” measure of shipments such as a smoothed average over a year. (Reference ISO 13053 1st edition)

(9) NPR (Number of Problem Report):- NPR is defined as the number of customer-originated problem reports during a specified period such as a month, where the reports relate to the quality of a product. A product can either be a piece of hardware, a software release, a system installed at a customer site, or a service provided to a customer. (Reference ISO 13053-1 1st edition)

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