Blueprinting method: Analyze your services and optimize them

Blueprinting is a methodology that is based on analyzing, visualizing and presenting a map of services. It serves to see the evolution of a process or the provision of services through a flow chart.

As a final result we will obtain a diagram where the activities of the process are chronologically represented on a horizontal axis. Depending on the proximity to the client these processes or activities will be at one level or another level within a vertical axis.

 

What do we get with Blueprinting?

We achieve two points of view, within the company (processes) and outside the company (customer experience). Blueprinting focuses on detailing the configuration of a service-based process to achieve an optimal result both inside and outside the company. The philosophy of work is to dismantle the conceptual map of services to achieve continuous improvement through customer satisfaction, as well as increasing the effectiveness and efficiency of processes (associated cost reduction, process waste, etc.).

To achieve success within companies, it is necessary to work under three pillars: developing alternative strategies, focusing on clear objectives and making decisions based on concise data.

From the analysis of the results we develop options to mark a strategy and a posterior evaluation. Always setting some guidelines for action in the face of problems and new challenges, applying competently improvement actions and focusing / sizing efforts.

 

How do you start working with Blueprinting?

1- First, we have to establish the limits of the system, in this case, we are talking about our services and products. In this way we will be able to visualize a dimension of our study, we refer to the E2E (End to End) of the system. Therefore it is important to reflect the essence of the system in sight, then we have to identify what are the key points of this system, these points are our activities or processes.

This first step will unfold all those processes that have an impact both on the operations of our organization and, on the face of the customer, to know what factors are those aspects that will influence the decision of our brand for another one of the competition.

2- All this we have to take it to a graphic representation, for the representation of this process, we will work on a diagram that marks the interactions with the client, with the company, zones of perception, etc. All this we are going to carry out Through the use of a symbology by all recognizable.

In this representation it is necessary to begin to identify in a clear way that internal processes are intimately related to client experience. We must identify how these two routes, one internal and one external, mark the roadmap to generate the start-up of a service with the maximum possible potential.

Obviously to develop this mapping diagram of both processes and client is necessary to set time guidelines, it seems totally obvious but has a non-trivial character that will define the vision of the E2E process and analyze how they impact the processes inside and outside the Organization through the Customer Journey you achieve to reach how much of good or bad is the customer experience. Mides KPIs on both sides and paramétrizas how to improve internally so that it impacts on customer and vice versa.

This methodology may be accompanied by others such as the Servqual Technique or a DMAIC. With this we will uncover “moments of truth“.

3- When deploying our Process diagram and Customer Journey, we have a general life cycle of our system that makes it easier to identify faults. A widely used practice is to identify faults as potential risk areas for customers, these areas must also have a special attention on our part. The areas where failures occur is where we have to start working, it is very important to define in our protocol of action that is important and critical, we should not direct our actions to something that can “wait” to start with actions that have greater priority.

With this we will avoid the occurrence of these failures and even anticipate future failures that may be blocking our services.

4- Once we have identified the failures and we have set a priority or criticality in front of each of them, whether with affection to our clients or in the internal operative, we have to establish a battery of actions in front of these problems. To the extent possible we will work to minimize current errors and prevent futures to reduce impact.

Let’s see them on a real case, to analyze all the steps we have seen. And pursue those aspects that can generate more impact within the organization.

Of course, from this mapping we can integrate KPIs and customer satisfaction indicators that delimit improvement actions on a specific focus to optimize processes and generate value actions towards our final client.

To gain the trust of the client is to offer a service that meets the needs of this and do not have any fuss, we do not like to be surprised with unwanted bills, services or products that do not meet our needs because we feel cheated and will be very difficult That the customer re-believe in us, that is why he marks the end of the process with a face of ambiguity. Since we must remain alert and give a successful service. In the complicated moments we must get our arsenal and get the customer to move as far as possible from that yellow face to pass to a green of satisfaction.

How to implement a Map of the Value Chain or Value Stream Mapping in our organizations

Today we will try to give a small guide to the development of Value Chain Mapping, Value Stream Mapping or VSM within our organizations. The philosophy of this technique is to analyze the process in detail to reach the maximum knowledge of it and to see where our process is failing or can simply improve, with this we will achieve that the performance and efficiency of our processes also help save costs .

To start with this type of techniques you have to start by making clear some concepts such as:

– Production lead time: is the time from the time the order is received until it is ready for packaging and shipping to the customer.

– Processing Time: is the time required to perform the tasks of manufacturing a product.

– Time of configuration, or change of tools: is the time it takes to move from one process to another.

– Number of Reprocessed: is the number of units that need to be reprocessed because of faults or defects.

– Batch Size: is the number of units of product that are realized in a determined time.

– Available Time of Equipment (Working Time Available or Uptime): it is the time that we dedicate, or the time of activity, in a determined period (h / day, h / week, h / month …), here we have to despise meetings, Breaks … everything that can disturb the working time, this data can be given in%.

– Waste (Scrap): are the unnecessary costs that are generated in each process. We can differentiate the following:

– Overproduction resulting in excess inventory (stocks of end products and products in progress),

– Unnecessary movements and transport.

– Waiting points and bottlenecks that slow down the process.

– Nonconforming products (manufacture defective products which must then be reprocessed to repair their faults).

– Other activities that generate inefficiencies or unnecessary costs.

– Demand: it is the number of product that we need to manufacture to cover the orders, or the needs of the market.

– Warehouse process: is the stock of products in progress, both in the process and in warehouses and transport.

Then the data to collect and mark in each of the processes are the following, I contribute the encoding of signs for each one.

Next I present a theoretical model of VSM of how the structure of a global map would be after performing the initial study of how we work within our organization, in this step it is important to devote time to it, because any details that can escape repercussion at the time Of the final results. It is necessary to give detail in the flow of the product, information flow, processes and re-processes that are realized, to control the quantity of all the materials with which it is working, times described above, etc.

When we have represented our process, and we have a global vision the next step is to move to the data. Here as well as before you have to carry out an exhaustive study of what data you have to put in each case and most importantly the type of metrics with which we are going to work, for this we must help from different supports in other areas.

In each process, we highlight as basic data to take into account: cycle time, task time,% activity in that process and Batch size or lot size. With the obtaining of all the data we will be able to complete the map and have a vision of how each of the processes and steps are being carried out within the process. With the next step we can carry out a separate study of each process, discovering in this way its capacity and seeing where there are bottlenecks that block the overall process.

Assembling all the mapping of our process, we can begin to analyze it and use the Lean philosophy, one of the first problems that we can encounter is the production in Batch push, each process produces at a different pace in such a way that there will be in areas that are Accumulate material and in others where there is not, therefore, it is sought that a process produces the necessary and fair amount for the next process, or move to a pull production where the next process demand is worked. Trying to perform a JIT process (just in time) from the client to the resources will help the overall process have shorter delivery times with better quality and lower cost. Techniques like FIFO, 5S, Ishikawa, AMFE, Poka Yoke … help to achieve the efficiency of the process, ultimately Kaizen and Kanban philosophy.

So you have to design a plan to reach an optimal performance model from the VSM. Once each technique is implanted in the process it is important to mark them on the map in such a way that we know about each one being executed. Without disregarding the maintenance work performed by the operator, this maintenance can be: corrective, preventive, predictive or total productive on this pillar is based on the philosophy Jidoka, where the operator takes a vital role in fault detection.

Canvas: project management framework

It emerges as a project management methodology, helping guide these and focusing on a creative design by creating a canvas project to work on. In this way Canvas allows us to draw as our project would be in a series of steps that define in an agile way through the intervention of all stakeholders involved, reducing the TTM and improving the penetration of our products.
We can simplify the realization of Canvas in 3 main blocks which in turn are subdivided:
The first of the blocks located in the center defines what would be the pillars of the project, in this case the final product, on the other hand the activities needed to get that product.

On the right side we will develop market components, product value proposition, broadcast channels, customer relationship and sources of revenue.
Finally the left block defines this methodology would be to identify what resources are going to be needed, use of technological platforms (ICT), relationship between them and what is needed by each in the different steps of the project and of course establish A cost structure.

What benefits does Canvas offer?

– The Canvas model allows rapid modifications on the progress of the project based on data analysis and testing the hypotheses that mark the guidelines of the success of the project, marking the viability of the business.
– Canvas allows the interaction of the different affected areas in a friendly and flexible way, in a very intuitive way and encouraging the interaction between people.
– Undoubtedly encourages teamwork, the way in which different workshops are held to work on the evolution of the product launch. Working with a canvas model allows to establish a better relationship between the people who are going to intervene. You can use methodologies like Scamper or brainstorming.
– Improves the overall visualization of the holistic of the project. Once the Canvas is made, it will be shown to all the people who have taken part in this activity and that will be part of the achievement of the launch of the product.
Now we will develop and define other aspects that we have seen that are necessary to successfully achieve the development of Canvas.

1- Customer Segmentation: The most important thing you have to ask is who is going to be directed to your product, what penetration is going to have and if you are going to have the buying power that you have planned on that niche market.
2- Proposal of value: that is, what you need to cover, the key is to know what problem you will be able to solve your group of customers.
3- Channels of diffusion: to generate a good market penetration it is very important to define through which channels you are going to spread your product on your target audience. At this point you have to be able to discern the audience to which the product is directed and it is based on this you have the possibility to choose the best channel. If it is a group of young customers, it encourages the digital channel while in other sectors, traditional channels may be more successful.
4- Customer Journey: In this process of launching products you have to stop and think about how the relationship with your customers will be. Set touchpoints within the customer and product lifecycle. Ways of contact and feelings that can lift these touchpoints.
5 – Obtaining income: always have to justify a department’s budget to start working on a project, then, let’s see what points are sensitive to the client: how much is the customer willing to pay, how does the payment, sale Direct, online sales … then you have to evaluate all the possibilities of earning money.

When we are clear in what environment the company will move on these new products or services, we will work the internal alliances. We will evaluate the internal part of the project that we need and what expenses we will support, the points to see at this time of project development are:

1- Internal resources: we must identify what people are going to need to achieve our goal, which departments are going to be involved and of those who are going to wear the “monkey” job.
2- Actions to be carried out: it is very important to define the concept of product as market, so, we must establish some lines of action in front of this new horizon. It is very important to know that you want to not waste your time in development.
3- Internal alliances: within this canvas our actors must maintain a good communication and clear lines of action. Based on these values, we must promote the accessibility and transparency of information. It is necessary to make a foment of companionship and to eliminate it with the resources of departments involved.
4- Cost structure: we have seen that we need to identify where our benefits come from, but we also have to have identified where our costs come from. It identifies these outbreaks and establishes a prioritization to reduce these costs.

Once we have all this identified, how do we move forward?
We have marked a starting point in the execution of our project, we must update our Canvas, we must continue to update the changes that happen in our product development and when we finally launch the product to the market we are able to analyze what strengths and weaknesses have influenced our. That helps us to mark a better route at the time of the execution of new projects Canvas or of the nature that is.

Once we have finalized the project we have to take the appropriate metrics to know how good the product we have launched to the market, in these cases it is very interesting to work with Analysis AB, where through the execution of drivers you have a sample of how they affect your products to your customers and can make comparisons between groups of customers without the need to launch the product to your entire portfolio. They are agile methodologies that help to obtain quick results on impact to clients.

Kanban Methodology: How to reduce delays and create an efficient production system

The word “Kanban” refers to the labels that are put in the products to identify them during the manufacturing processes and during their transportation; however Kanban metodology includes much more concepts that we are going to explain now.

Kanban methodology is focused on creating a production system more effective and efficient, focusing mainly in the production and logistic activities when there is a big amount of items to be processed.

 

What is Kanban?

Kanban systems include a group of ways to communicate and exchange information between the different operators of a production line, a company, or between supplier and customer. The purpose of Kanban Systems is to improve and simplify the communication, avoiding mistakes caused by lack of information.

The most common example of “Kanban” are the labels that are put in the products surface or in the packaging while they are being manufactured, so that they were identified with the information about where they have to be sent or what specifications they have to include.

Currently, in most companies that use a Kanban System, they have automated its methods using computers, so that for example, labels (QR or barcodes) are put in each item and they are read automatically by computer devices while they are passing for each control point. In that moment, the system automatically locates them and gives the orders to the next machines to manage each item properly according its specifications and destine.

 

Types of Kanban

These are some of the ways to implement a Kanban system:

– Transport labels with information about each package and its destination.

– Manufacturing labels with information about the product specifications.

– Tags with any other relevant information about the product, or about the activities that there have to be done.

These tags can be in a traditional format (handwritten or typed), they can include the information encoded in numerical codes, or using barcodes / QR codes to be read using an optical reader attached to a computer.

 

 

Advantages of using a Kanban system

Advantages in production processes:

1 – More flexibility in the production processes and transportation.

2 – If using a computerized system, it will give you information about the status of all items in real time, so you will be able to take decisions more accurately.

3 – It prevents wasting work, raw material and the use of unnecessary paperwork.

 

Advantages in logistics:

1 – Belter stock control.

2 – Ability to prioritize production: the type of product with more importance or urgency can be manufactured before than the rest of items.

3 – More information about the location of each item (products, packages, warehouses…).

 

How to implement a Kanban system

This methodology has to be implemented in four steps:

Step 1: Design the Kanban system that will be used and train staff in the principles of Kanban, and the benefits of using it.

Step 2: Implement Kanban in the busiest production lines and in the ones which generate more problems or where it is more important to avoid mistakes and delays.

Step 3: Follow and improve the system: Is it working as expected? May we do any change to adapt it? You should take into account the suggestions of the workers.

Step 4: In the last step you should obtain conclusions, improve the system, and implement it in the rest of the activities and processes.

 

Kanban methodology is based on some rules and tips that should be taken into account in order to implement it correctly:

– The first rule talk about not sending defectives products to the subsequent processes: when you detect a defective item you have to repair or remove it immediately. That is because producing defective products involves a waste of money in materials, equipment and labor that we will not be able to sell.

– The second rule says that subsequent processes require only what is necessary. This means that you have to calculate what amount of material and time need each activity, and then you have to give it only that, and no more.

– The third rule tells us that we should produce only the amount of product required by the process. For example, if we are manufacturing cars and each car need four wheels, we have to provide four wheels for each one, and no more. Therefore we shouldn’t produce more wheels than the exact number of them which are going to be used.

– In the next rule wants to prevent speculation: We shouldn’t speculate about if the processes are going to need more material or require more time than the needed the next time. It is very important to have a well balanced production.

– The final rule talks about standardize the processes. We have to be able to predict everything in each activity in order to program the times, materials, etc. correctly. We also have to know the potential mistakes and problems to minimize them and to repairs them as soon as possible when they occurs.

 

Original post (in Spanish): https://pdcahome.blogspot.com/p/metodo-kanban-como-disminuir-retrasos-y.html

Checklists: What is a checklist and how to use it?

What is a checklist?

Checklists, Control Lists or Verification Lists are formats designed to perform repetitive activities, to verify a list of requirements or to collect data in an orderly and systematic manner. They are used to make systematic checks of activities or products ensuring that the worker or inspector does not forget anything important.

The main uses of checklists are:

– Verification of the activities development in which it is important not to forget any step, or where the tasks have to be done with an established order.

– Doing inspections and record the points which have been inspected.

– Check the correct implementation of standards or procedures.

– Obtain information to analyze where the incidences and non-conformities happen. Help to check the causes of defects.

– Verification of the product specifications.

– Collect data for further analysis.

In short, these lists are usually used to perform routine checks and inspections, and to ensure that the worker doesn’t forget anything during his daily tasks.

The advantage of using checklists is that it enables you to systematize the repetitive activities and controls that we have to do, and later it can be used as a register of the tasks that we have done each day.

 

How to use a checklist?

It is important that your checklists were clearly written, and it may include all information that you can need during the development of you tasks.

Here you have a list with the things that a checklist should include:

– Things that have to be controlled, measured or verified.

– Conformity criteria and potential nonconformities (what is right and what is wrong).

– How often it has to be inspected: frequency of the checking.

– Who does the tasks or the verifications.

– Procedures, specifications and rules that apply in the checked activities.

Also we should include space to write appreciations, in order to let the worker write any observation and to obtain preliminary information about possible reasons that have caused any disagreement.

On the other hand, we also can use the check lists for obtaining data, we can use it to build graphs, histograms or diagrams to control the evolution of a feature or activity. They can be are also used to report daily the status of the operations.

 

Example: How to create a checklist

Here is a sample of checklist:

This checklist example can be used in a production plant to control the components of the product, the defects, incidences and the delays in the production line. Thus, all points would be checked in each inspected product, identifying the product code and serving also as a register, which would be kept and may provide in the future information about what products have been inspected each day and its results.

Original post (in Spanish):  https://pdcahome.blogspot.com/p/check-list-listas-de-chequeo-que-es-un.html

Quality loss function (Taguchi): How to control the lack of quality in a product

The role of quality loss function, commonly called Taguchi loss function (by its creator Genichi Taguchi, in the second half of the twentieth century), is a calculation tool used in engineering and quality control. This tool is used to evaluate the “quality loss” on a project, product or service with respect to its optimal quality level.

The main goal of ​​ Taguchi’s methodologies are that they are focused on designing and manufacturing products in few time with high quality, avoiding having to use the common “try and fail” method, which is more expensive and slower.

To achieve these improvements, we will have to optimize the product design and the manufacturing processes using engineering quality and statistics.

 

The loss function of Taguchi quality

The loss function gives us a way to calculate the “quality loss” which suffers an analyzed characteristic of our product with respect to the quality goal (the target) that we want to obtain.

 

The loss function is like this:

L = K * (Y – M) ^ 2

L is the result value of the function, generally measured in monetary units.

Y is the target, or ideal value of the analyzed characteristic.

M is the mean of the obtained values ​​ of the analyzed characteristic in the real production.

K is a constant that is responsible for converting (Y – M) ^ 2 into monetary units.

 

Therefore, if for our analyzed characteristic in the product, the value L is zero, this means that the value obtained is our target. If L is greater than zero, then it means that we are moving away from the target.

For example, if the analyzed characteristic (production time, delivery time, cost …) has to be Y = 30unids., but in practice we are measuring that on average it is M = 35unids., and this deviation cost K = 5 $/unit. ^ 2, then the result is L = 5 * (35-30) ^ 2  =>  L = 125 €. It should be noted that the value of L is always greater than or equal to zero, and Y-M grow quadratically, so K must be expressed in the correct units.

 

How to use the loss function in quality control

During the designing and manufacturing of a product all the parameters and the manufacturing process have to be properly controlled. A deviation in some parameters can produce lack of quality, so we have to control them to be in a range where the product is inside the specifications. To have success in this task, is important to define what are the key characteristics, which can produce more lost of quality in the final product, and therefore, they have to be more controlled.

Once identified the key parameters, we proceed to determine their current status, (to analyze if L = K * (Y – M) 2 is zero or is a high value), and later we have to study what are the causes of the quality lack to solve the problems. The next step is to make an interpretation of the results, thus we can make an overall assessment of the quality losses in economic units and implement solutions to minimize these losses as much as possible.

Original post (in Spanish):  https://pdcahome.blogspot.com/p/funcion-de-perdida-taguchi-como-evaluar.html

ABC Analysis – How to optimize warehouses and inventory

ABC Analysis is a simple way to classify items (products, files, folders or anything) used when we want to optimize the layout of our inventory or warehouse. This methodology is generally used in logistic companies and stores to classify any kind of stock. Its purpose is to organize the stock products to reduce the time that the workers are going to need to manage this stuff (the time to keep, search, obtain or move items in the warehouse or shelves).

 

How to do an ABC Analysis?

To organize our stock according to the rules of the ABC Analysis, firstly we have to identify the most important items that we have in our catalogue. Therefore, we are going to classify our items in 3 groups:

– Group A: Here we put the most important item (the most used, the best sellers or the most urgent to obtain in case of necessity). In a store, these items are usually the ones which give to the company the most amounts of profits.

– Group B: These are items less used, or which have a secondary importance.

– Group C: These are those items which are nearly irrelevant. Many times to have them in the store costs more money than the profit they bring.

 

Once the classification have been done, we have to place the Group A items in the most accessible zone of the Warehouse (eg. in the warehouse entrance, in the front of the shelves, in the more visited areas of the stores). Then, the Group B items have to be placed and finally, Group C items will be placed in the remaining space, because the need to dispose of them is less urgent.

The ABC method is used to increase the efficiency of the stores and to save time for managers when they have to pick up and leave items.

Original post:  https://pdcahome.blogspot.com/p/analisis-abc-optimizar-la-distribucion.html

POKA YOKE - A method to create a Safe Design

What is Poka Yoke?

Poka-Yoke is a methodology created in Japan which means “fool-proof”. Its purpose is to prevent or avoid mistakes that can be caused by humans or by machines during their activities. Poka Yoke can be also implemented to facilitate errors detection.

If we focus in manufacturing operations, which can be assemblies or other simple but repetitive activities, the risk of error can be very high regardless the complexity of the tasks. PokaYoke System helps to minimize that risk with simple measures like create an easier design or paint the different pieces to make the activities easier.

Poka-Yoke can be designed to handle errors (control function) or to warn them (warning function):

1 – Control function:

In this case, Poka-Yoke is designed to prevent potential mistakes. To do this, it uses different shapes or colours to differentiate the correct assembling of each piece of our product.

2 – Warning function:

In this case, we assume that an error could happen. We have to design a system which reacts when an error happens, therefore it would warn the operator about the failure. For example, you can use light or pressure sensors, alarms, etc.

 

How to implement a Pokayoke system:

Some types of design methods can be…

– A design that permits plug the pieces only in the correct way: If you try to fit the pieces in a wrong way, it won’t fit.

– Color codes: For example in the computers jacks/plugs, each jack has a different colour.

– Arrows and other indications such as “A-> <-A” to indicate where each piece have to be fitted and what is its orientation.

The advantages of using a Poka Yoke system are the followings:

– It minimizes or avoids the risk of errors and nonconformities.

– The operator can focus on the operations that add more value, rather than wasting his time to prevent errors, to check or to correct them.

– Implement a Poka-Yoke system means improving the quality acting on the errors source, rather than on doing quality controls after finishing the product, which are more expensive and inefficient.

– It’s easy to implement and cheap.

Poka-Yoke’s mission is to support the workers during their activities. In the case when the device is part of the operation of a machine, we will be talking about another similar concept: “jidoka”.

Original post (in Spanish):  https://pdcahome.blogspot.com/p/poka-yoke-diseno-prueba-de-errores.html

Gantt Chart - How to plan and track a project development

The Gantt Chart is the most widely method used in business planning of activities on all kinds of projects, besides it can also be used to plan any type of activity over time.

The method consists in a horizontal time shaft, and under it you have to put the activities that you want to track. A project is a group of linked activities, so you have to separate each activity and organize them under the time shaft. Each activity is linked with the others and you can select different kinds of links to mark this (for example, the link “end-start” means that when the activity N is finished, then automatically starts the activity N +1). Thus, using this methodology you can find the project’s critical path, which determines the minimum time to complete the whole project. Additionally, you can add to each activity its number of resources needed (workers ) to control costs and the workload of the involved people.

Also, during the development of the project, if you add the progress of each activity (0% = not started yet, 100% = already finished), you will be able to calculate the delays and the cost of your project, and reschedule the activities to end as soon as possible.

The Gantt Chart methodology is usually applied using software applications. The most used is Microsoft Project, but you also have many others programs, as Gantt Project (http://www.ganttproject.biz/) which is free and it works on Windows, Linux and Mac. Gantt Project also include a portable version which does not need installation (very useful if you’re on a company and your computer doesn’t have administrator access).

Below this, you have an example: A “website designing and development ” project, where they have established different tasks, with its duration, dates of meetings. Once introduced the inputs, the software has calculated the exact dates of each activity and the finish date, taking into account the holidays and the relations between the different tasks:

Here you have an example of the relations between activities and the tracking of a a project using a Gantt Chart:

 

Original post (in spanish):  https://pdcahome.blogspot.com/p/diagrama-de-gantt-planificacion-y.html