Monday, 31 December 2018

How to Optimize Supply Chain Management for the Company?

      Supply Chain is the philosophy. It is a way of understanding how a company creates value and how it connects to the world.  Supply Chains are getting the right thing to right place at right time. Humans have always done some sort of procurement, operations, and logistics. But over the time, as communities developed and population grew, transportation and storage options improved, the business community developed and then it expanded around the globe.
        Modern Supply Chain management beyond purchasing, operations, and logistics. Marketing and IT helps to get the data needed to those integrated plans. Engineers and Designers tell how to make the products customer want. Accounting helps to discover the opportunities to cut costs. Finance helps the need for money to buy materials, build plants and hire workers. Supply Chain Management is all about lower costs, improve service, reduce risks, and increase your profits.
SCM Goals:
      Successful businesses can't operate in a silo. They need to collaborate with their customers and suppliers and coordinate their internal functions. Each business has at least one link in the supply chain process. Modern companies understand the supply chains help to drive revenue by making great products. The primary goal of the organization is to produce a profit. The profit equals revenue minus costs. These 3 goals connect the organization strategies and desires to what happens in the supply chain every day.
  * First, modern supply chains are dual contributors to profit. Drive revenue by making great products or services that get to the right place at the right time and control costs by eliminating waste.
  * Secondly, the best companies understand these 4 categories: Cost, quality, speed, and flexibility. Modern Supply chain must able to define what the customer desires in terms of cost, quality, speed, and flexibility. It is to understand what the consumer find valuable.
   * The 3rd set of the goal is to create value for the customer but eliminate waste so you can simultaneously drive productivity.

Supply Chain Inventory:  For the company, stuff means inventory and the key to happiness are having enough inventory but not too much. The most common definition of inventory is any company asset that is held for future use or for future sale. To be a good inventory manager, you need strong skills in 3 distinct areas.
    * First, you must be a good planner. Having the right inventory in the right place at the right time that involves some global partnership and strong management skills.
    * Second, you must be a good coordinator to manage inventory effectively. You must work with purchasing, operations, and transportations in a timely manner.
    * And third, you must be a good controller. It is important to maintain the right amount of inventory that allows you to satisfy the customer.

    Supply Chain Manager responsible for inventory needs to make the customer and marketing department happy, by always having products in stock. Managing inventory is a big responsibility. Having inventory available is what sets you apart from your competitor. It is just like a city must be ready to satisfy the water needs of population or supply chain ready to satisfy the demand of its customers. Does your supply chain have enough inventory to satisfy demand today, tomorrow and next week?

Manufacturing &Operations: Developing a new Product can be very difficult when you think what the customer wants. So, your task is to develop a paper plane that must fly well and looks good based on what the customer thinks. It's interesting to watch the different development methods the team use. Some try lots of design until they find one they like. When they manufacture the plane, they often forget about consistent quality. Often, they will reject the planes, if they aren't up to the prototype standards. So, it is to think about what our company makes, the performance, aesthetic elements of your product or service, and design of the item and required skill and training of employees.
Supply Chain FrameWork: Supply Chain Operations Reference(SCOR) model breaks supply chain processes into 6 main groups. Plan, the processes where you map out how everything in the supply chain is supposed to work. Source where you build a relationship with the supplier and buy your
materials. Make which includes all the processes for assembly or manufacturing. Deliver the processes for getting your products or services into the hands of the customer. Return those often overlooked processes for taking back products that your customer don't need. Finally, Enable makes all of the other processes that you need to keep supply chain working smoothly. A good framework is an essential part of aligning the organization around the common set of goals and successfully implementing the supply chain.

Supply Chain Challenges: Supply Chain Management is making about the
trade-off. You have to maintain the balance to meet the multiple goals such as keeping cost low, providing a high level of service and earning a profit for your business. Using the balanced scorecard to track the performance along different dimensions so that you can keep supply chain running smoothly. Managers often focus on a single number as the best way to measure success. An Inventory manager might focus on managing high service level. An operations manager focus on maximizing capacity utilization. And the CEO might focus on maximizing the company's profitability. By using the balanced scorecard, you can track multiple key performance indicators for this business.

         Supply Chain Managers have to make a lot of tough choices between competing goals. Let's look at two conflicts that occur in every supply Chain. The first conflict is Sales and Operations. Salespeople tend to be optimistic about how much customers will buy and it's harder to make a sale when you don't have a product available. Operations and logistics managers want to maximize the capacity utilization while avoiding waste, shutdowns and over time. So production plans are constrained by time and capacity limitations, and the operations department shrink inventories in order to save money. The result of OverProduction, which creates an unnecessary inventory or Under Production which leads to lost sales. We can resolve this conflict by using the process called sales and operations planning or S&OP.  The second conflict is between the customer and suppliers.  The customer wants the product when and where they need, but the supplier doesn't want to have more inventory. Collaborative Planning, forecasting, and replenishment or CPFR is a process where customer and supplier share information which helps to prevent stockout in the supply chain while reducing inventories.

Supply Chain Trends: One of the biggest challenges in SCM is that customer expectation that change quickly. Social media amplifies customer behavior by making it easy to share customer reviews, recommendations, and endorsements. When influencer recommends a product, the result can be huge in sales. So tracking influencers can help you understand historical trends and generate forecasts. This process of tracking online discussions is called social listening. Companies often listen to several social media platforms like Facebook, Twitter, Instagram, and Linkedin. It is an ongoing process and should be interactive. If someone provides recommendations for your product, you may want to thank him. Similarly, Someone criticizes the product, you should be ready to engage that person, to address the issue before it has a chance to spread. Another trend in the supply chain is eCommerce or Amazon effect. The amplification effect of social media combined with amazon effect of online ordering and fulfillment are big changes in the supply chain.

          The five important information technology capabilities supercharging supply chains. Those are an Internet of Things(IOT), customer proofing, big data, cloud computing, and analytics. The equipment like conveyors, pallets, semi-trailers are outfitted with devices that connect them to the internet. Connecting these things to the internet gives more control over what is happening in the supply chain. Also, we are able to learn a lot about the customers. By using the internet to collect data about their behavior and use this data to build a customer profile or persona. While collecting tons of data about your supply chain and the customer can be useful. It is often better to use servers that you access remotely over the internet. This is called cloud computing or cloud storage. Analytics involves using your data to gain insights about what is happening in your supply chain.

BlockChains: It is a new technology that becomes important for supply chain professionals. Supply chain describes a network of companies that buy and sell things one another. And these transactions are recorded in the ledger. The blockchain is the way to keep a list of information and the transactions that occur between people or companies, but the way that blockchains stores these transactions are unique. Once the transaction is added to the blockchain, it can never be changed or removed. Blockchains are shared and copied into many different computers are called nodes. When one node wants to add a new block to the chain, they need to get the other nodes to agree. This process is called consensus.
          Block Chains has the potential to address 3 common problems that we face in the supply chain. First, it acts as a universal connector for information from different systems. In other words, it could increase supply chain visibility and operability. Second, it can help with data reliability. The third issue is the trust between trading partners. Blockchains make it easier to hold everyone accountable to the agreements they make. Some Block Chains will allow you to build smart contracts that execute when the conditions are met.

Saturday, 15 December 2018

What are the Basics of eCommerce Supply Chain Management?

     The supply chain is the process of making and delivering the products to the customer. In the technical perspective, the supply chain can be understood as a system of organizations, people, activities, information and various resources involved moving a product or service from supplier to customer. The supply chain activities involve the transformation of natural resources, raw materials, and controllers into the finished product delivered to the end user.
      The supply chain is the heart of company operations. In order to make the best decision, managers need access to real-time data through the new technologies that have the potential to take over supply chain management entirely disrupting traditional ways of working. With a digital foundation in place, companies can capture, analyze and interpret high-quality real-time data. The data fuels the process automation, predictive analytics, AI and the technology will take over the supply chain management.
        Leading companies have used robotics, AI to digitize and automate labor-intensive, repetitive tasks and processes such as purchasing, invoicing, account payable and parts of customer service. Predictive analytics helps the companies to improve demand forecasting so that to reduce the volatility, increase asset utilization, and provide customer convenience at optimized cost. Sensor data helps the manufactures to better estimate when the machines break down so that they can minimize the downtime. Block-chains helps to transfer the title, record permissions, and activity logs so as to track the flow of goods and services between businesses across borders. Robots are improving productivity and margins in retail warehouses and fulfillment centers.

Linking & Applications are facilitating the Block Chain: The technologies by which the physical goods and materials are identified and linked with their digital representation on the blockchain( e.g barcodes, serial numbers, digital tags like RFID and NFC, genetic tags)  in uniquely identifying a physical good with its digital counterpart.
    By design, every transaction in a supply chain is fully auditable. Smartphone applications can aggregate and display information to customers in a real-time manner. Also, the strong integrity properties of the blockchain are genuinely trusted. A thoughtful user interface can empower better purchases and giving the user a true choice that they can exercise.
       Let's take an example and analyze for the supply chain perspective. In order to prepare a cup of tea, you need
the following ingredients like water, milk, sugar, tea leaves, and Ginger. The journey of the supply chain starts with purchasing the ingredients or raw materials and this process of purchasing are called Procurement. The next stage of supply chain management is called manufacturing and operations. In this part, you are moving all the ingredients to make a cup of tea. It includes boiling the water to constrain in the cup or container. This process of making a cup of tea can be described as a company. The 3rd stage of supply chain management is logistics and transportation. Suppose, you want to carry your homemade tea to your office with proper packaging is the transportation stage. Every product has the supply chain process cycle and the supply chain manager is responsible for successfully managing that cycle.

Supply Chain Professionals: When planning, purchasing, manufacturing, order fulfillment, and logistics are largely automated, the supply chain executive will need to shift their focus from managing people doing repetitive and transactional tasks to designing and managing information and material flows with a limited set of specialized workers. The supply chain analyst who can analyze the data, structure and validate data sets and forecast effectively will be high in demand. So a handful of specialists will be needed to design a technology-driven supply chain engine that seamlessly supports the ever-changing strategy, requirements and priorities of the businesses.

Global Supply Chain Management: The global supply chain is the one that is not contained within the country boundaries and it extends to all the possible foreign countries whether they are vendors or manufacturers or customers. The need for the global supply chain can be understood the following points,
  1. The concept of economics tells us that the main reason for the business to exist is to lower the costs while simultaneously increasing sales and profits. So when the business goes global, the likelihood of sales also goes up because business opens up the global market have consumers all around the world.
 2. The global supply chain allows businesses to reduce dependencies on the local and national economies because they have business in different nations that will help their economy to sustain even the economy of that nation falls down.
3. The global businesses considering all hours of the day with consumers from every point on the globe. The businesses can go for 24 hours a day, 7 days a week. 365 days a year with the number of internet users in the right way.
4. Good businesses are always directed in the motive of reaching as many customers as possible. The global supply chain allows the scope of expansion and reaches more customers as they enter into the market.

Elements of Supply Chain Mangement: Business experts narrowed down the elements of SCM into four categories. Those are Demand Management, Effective communication, Process Integration, and Collaboration.

  Demand Management: Demand management is a planning methodology used to forecast, plan for and manage the customer demand for product and services. Every aspect of the business should be focused on your customer. The success of demand management is all about pulling the supply and resources through the supply chain system in the same manner in which they are needed to meet the actual customer demand.
             The supply and demand of the product and services should always go hand in hand. In the competitive market, multiple companies have the capability of satisfying the customer. The supplier will create enough product to meet the demand of a certain price. So, when the supply exceeds the demand the price will go down, On the other hand, when the demand exceeds the supply, the price will go up. It is clear that consumers react to the price of the available supply.

Effective Communication: Effective communications are important in Businesses and Supply Chain. When the organization identifies the sources of demand, then the operational information will be disseminated to all the members, especially who are involved in the supply chain. Effective communication will help to remain their duties and responsibilities in the supply chain network so that they can deliver what is expected of them,

Process Integration:
SCM involves the integration of business processes in order to facilitate the continuous flow or movement of resources. In other words, SCM entitled collaboration and partnership between the players of business processes. It covers the relationship between the suppliers, buyers, product developers, and end users so that the information being shared or exchanged among them.
  It has the following processes,
  1. Customer Management: It involves customer relationship management and customer service management. The organization has to provide real-time information about its products and services such as availability, logistics and other information that customers may be interested in.
 2. Manufacturing Flow Management: The predictive value of the demand management process enables the organization to produce and supply products and services more reliably and in a more flexible manner. Depending on the demand, the organization can make a better decision related to the manufacturing processes such as scheduling, batches, lot sizes, and work intervals.
3. Procurement Management: It is more than a simple act of purchasing. There are a lot of details to pay attention to obtaining raw materials and products from suppliers outside the organization. It includes sourcing for suppliers, resource planning, assessing the need for supplies of the organization, order placement, transport, storage and warehousing of the purchased supplies. The important steps in procurement processes are to discover and select potential suppliers and develop & manage the supplier relationships.
4. Product Development:  SCM helps to shorten the product life cycles and decrease the time to market the products. Thus product development can easily be integrated with customer service and customer relationship management.
5. Inventory Management: Businesses has to maintain an inventory of their supplier or raw materials. Companies maintain the inventory or stock of the materials until it will be needed in the manufacturing process. The inventory management process covers to keep track finished goods that came out of the production process and awaiting delivery to the customers. Also, it will be conducted to keep the amount of wastage low, as well as the cost of storing inventory.
6. Supplier Relationship Management: It is related to the procurement process. The companies conduct procurement process smoothly and more efficiently that relies on the relationship of organization with suppliers or providers of the materials that are being procured.

Collaboration: It is the relationship between top management and its people, between members of the organization and partners in the supply chain. Maintaining a good relationship with suppliers will increase the likelihood of reducing the costs as well as they provide the quality of materials or product that they supply will be high. You might be seen the companies had partnered with certain suppliers for years or decades even. This is because of the excellent SCM, with a focus on collaboration and partnership.

Friday, 30 November 2018

12 Best Lean and Six Sigma Tools to Improve Businesses

      Lean and Six Sigma are used by many organizations within a variety of industries which combine mindset and methods adopted from each approach. Tools and methodologies make up a management system to scientifically solve the business problems. These tools can be used to great effect by all kinds of organizations. Lean tools can be a methodology, mindset or practice that helps to apply lean principles to your work. There are many tools that help team practice the lean business effectively and each has its own value.

Value Stream Mapping - It is designed to ensure that each part of the business process offers tangible value to the customer. Value can be defined as the something the customer willing to pay for. When carrying out the value stream mapping, the current processes are examined and documented. Any step, task or expenditure on resources that do not produce value will be eliminated or improved.

Standard Work - If predictable and consistent results are to be achieved by business, it is important that every process is carried out in the same way irrespective of the tasks associated with the process. It can be achieved by developing. documenting and enforcing standard work. Standard work is the representation of the organizations current best practices for performance of different parts of its process. This tool creates a standard expectation day after day to make sure everything is taken care of and within a certain time period.

Mistake Proofing(Poka-Yoke) -  Poka-Yoke is the concept of error proofing to prevent some calamity. It is an improvement in the form of a jig or fixture that helps to achieve 100% acceptable product by preventing the occurrence of defects like gas nozzle built to prevent you putting the wrong gas in your tank. It has a number of examples in the real world,
   1. In buildings, the elevator doors won't close if someone is in between the doors, won't open when the elevator is moving or the elevator won't move if the weight of the individuals within the elevator exceeds the safe limit.
  2. In manufacturing plants, where device prevents employees from reaching into machines and harming themselves or stop the workers from selecting the wrong part or attaching the part in the wrong location or manner.

5S Visual Management - 5S is one of the first tools to be applied in a company for the continuous improvement culture. 5S implementation helps to define the first rules to eliminate waste, efficient, safe and clean work environment. It is actually an innovative management system that helps people think lean, paving the way for adoption of lean principles in the organization. 5S tools are really useful and effective in the following situations,
* People in your workplace struggle to locate documents or files whether a digital or physical document
 * Are there loose electrical cables in the workplace?
 * Are there files, drawers, and cabinets that are unlabeled or they contain unmarked content that is hard to identify?
 * Is the valuable spaces taken by useless items?
 * Are there papers in the workplace that are not used and gathering dust?
 * Does everybody know how to keep the workplace organized and are fully aware of their roles and responsibility?

5S refers to the set of five terms represent the five steps toward operational and process excellence. Those are,
Sort: Separate required tools, materials, and instructions from those that are not needed. Remove everything that is not necessary from the work area.
Store: Sort and organize all tools and equipment, files, data, resources for easy location and use Label all storage locations, tools, and equipment.
Shine:. Set new standards for cleanliness. Clean and remove all trash, grease, and dirt. Cleanliness provides a safe workplace and makes a potential problem noticeable.
Standardize: Engage the workforce to systematically perform steps 1,2 and 3 above daily. Establish a schedule and set expectations for adherence.
Sustain: Make 5S as part of your culture and incorporate into the corporate philosophy. Build organizational commitment so that 5S becomes one of your organizational values.

Continuous Improvement - It is a method of continuously identifying opportunities for streamlining work and reducing waste. It can be implemented as a formal practice or an informal set of guidelines. It has four general steps,
* Identify: Analyzes where your process needs improvement
* Plan: Determine how those areas in your process can be improved
* Execute: Implement your process improvement Plan
* Review:  After a set of time, evaluate how the changes are working for your team
Continuous Improvement relies on open, clear communication and a data-driven mindset across the organization. It requires team members to open about success and failures so that they pinpoint where their processes and products need to improve and deliver value to the customer faster.

Six Thinking Hats - It is an exercise in parallel thinking and it is a way of approaching the problem from different points of view at the same time. Even everyone came from the same process area and shared the same point of view, the conversation can be disjointed. One person explains the facts, another person is thinking about the benefits and 3rd person thinking about negative aspects. The six thinking method tries to solve this by making the whole group think of the same part of the problem at the same time using colored hats as a physical, visual cue. Each hat represents the distinct direction of challenging problem like,
   * White Hat - Information - During the white hat discussion, Only the facts are represented
   * Red Hat - Emotions -  In the Red Hat, everyone shares the gut feelings without any justification for them
   * Black Hat - Discernment - Cautious thinking, what could go wrong?
   * Yellow Hat - Optimism - Discuss the benefits
   * Green Hat - Creativity - It is to represent the oddball ideas, with little criticism
    * Blue Hat - Direction - The chairperson wears the blue hat and can direct the discussion into a different mode.
The Six Thinking Hat is a formalized approach to problem-solving. By forcing everyone to focus on one aspect at a time, the group is not moving the different directions or ignoring specific issues.

Heijunka Production Leveling - It is a technique for reducing the Mura(unevenness) which in turn reduces Muda(waste). It is vital to the development of production efficiency in lean manufacturing. The goal is to produce intermediate goods at a constant rate so that further processing can be carried out at a constant and predictable rate. When customer demand fluctuates two approaches have been adopted, 1. Demand Leveling and 2. Production Leveling through flexible production. It is important to minimize fluctuation in the final assembly line.

Theory of Constraints(TOC) - It is a method of increasing throughput by managing constraints or bottlenecks. It explains the impact of profitability from decision making by a supply chain in terms of time. This concept serves as the base of supply chain management and a model that explains the relationship of variables in business as to how cash flow based profitability is affected by decision making.

Little's Law -  It shows that how to do more, doing less by picking the priority project to work on first before moving onto the one of next importance. It helps you to reach your deadline comfortably and efficiently. It can be defined as,   
            Average Lead Time =    Work In Progress / Average Throughput
This lean approach is useful in the marketing department to priority project, while the lower priority has more time to develop and for any requirements to be finalized before to get started.

Single Minute Exchange of Die(SMED) Quick Changeover - The popular approach to battle the waste is to streamline changeovers. Changing machines from one setup to another is often time-consuming exercise. Hence the lean manufacturing reducing the changeover times is a well-known method for improving the efficiency.
    For any improvement project, the first question to ask yourself is " Is this the biggest problem right now?" when you have decided to which problem to address, then you should look for the solutions. After finding the problems, prioritizing them, and looks for possible solutions then you should do the SMED workshop. There are six fundamental steps to SMED,
1. Measure the Changeover Time - Depending on the duration and changeovers, you may able to watch different number.
2. Identify the Internal and External Elements - Check the changeover steps have to be done while the machine is stopped and what can be done while the machine is still running.
3. Move as many Elements as possible to External - It means converting internal steps to external and ensuring the external steps to be done before or after the process interruption.
4. Shorten Internal Elements - After moving the external steps, then shorten the internal steps. Also, check the procedure can be simplified and better tools are available.
5. Shorten External Elements - Check if we can shorten the external elements. This will not reduce the stoppage of the process, but it will reduce the overall time of the changeover.
6. Standardize and Maintain New Procedures - The last step is to do the changeover quickly every time. So, you need to define the new standard, document it and train the workers and do the process confirmation.

Failure Mode and Effect Analysis (FMEA) - It is a risk management tool that identifies and quantifies the influence of potential failures in a process. It analyses the potential failure in 3 criteria,
 1. Occurrence(Failure cause & frequency)
 2. Severity (Impact of the failure)
 3. Detection (likelihood of failure detection)
Once assessed and prioritized the failures that can be addressed with mistake proofing for preventable failures and contingency plan for unpreventable risks.

DMAIC -  It is an abbreviation of Define, Measure, Analyze, Improve and Control. People consider the DMAIC to be the most important tool in six sigma methodology. It is an Improvement cycle that helps the organization to improve, optimize and stabilizes their processes that roadmap the resolution of business problems.

Thursday, 15 November 2018

What are the Basics of Lean Six Sigma?


    Lean Six Sigma is the powerful combination of Lean and Six Sigma process improvements. Lean is popular to streamline both manufacturing and service processes by eliminating waste and continue to deliver value to the customer. Six Sigma is a method that efficiently solving the problem and reduces the number of defective products manufactured or services, resulting to increase revenue and customer satisfaction.
     Lean six sigma works well for small, medium and large businesses. The success that can be achieved in large businesses can achieve in small and medium businesses. It has the number of benefits like frees up resources that can be utilized toward any endeavor your organization wishes to pursue and for,
   * A new product or service
   * Improvement in Projects
   * Expanding the Salesforce etc.,
It not only increase revenue and reduces costs, but, it positively affects the people by engaging them and improving the way they work. The employees are closest to the work in a production of product or delivery of service in any organization become the best resources to understand to improve the efficiency and effectiveness of the business process. By participating in successful lean six sigma projects, employees can able to build confidence and develop the capability to become business's most important assets.

 Lean Six Sigma Roles: 

1. Champion -  Executive leader drives the initiative that helps to select the projects and remove the barriers for project teams.  He also supports change and develops lean six sigma culture.
2. Master Black Belt - This person works with leaders to identify gaps and select projects. He coaches, mentor, monitors and leads the projects. Responsible for lean six sigma implementation and culture change.
3. Black Belt - He can report to a master black belt and has advanced lean six sigma expertise. Also, he functions as a coach, mentor, teacher, and project leader for project teams.
4. Green Belt - This person starts and manages lean six sigma projects. He has lean six sigma expertise but in less detail than black belts and provides just in time training to others.
5. Yellow Belt - He understands the basic lean six sigma concepts and reports process issues to Green Belts and Black belts. Participates on project teams receives just in time training.
6. White Belt - He understands the structure and goals of lean six sigma and uses basic lean six sigma vocabulary terms. He reports process issues to green and black belts.

There are 5 Phases of Lean Six Sigma - DMAIC( Define, Measure, Analyzes and Improve and Control) is the problem-solving methodology behind Lean Six Sigma.

Select Right Projects: Before beginning any process improvement, it is vital to choose projects that are good candidates for improvement. It will help you for the project success. A good project for improvement,
    * Has an obvious problem within an existing process
    * Has the potential to reduce lead time or defects while resulting in cost savings or improved productivity
    * Is measurable and results in a quantifiable improvements

Once projects are selected, you and your team can use DMAIC to further refine the projects and deliver quantifiable and sustainable results.

Define Phase - How to define the Problem?: What problem you would like to fix? In this phase, the project team creates the project charter, a high-level map of the process and begins to understand the needs of the customers of the process. This is a critical phase in which the team outlines the project focus for themselves and the leadership of the organization. The main tasks in the define phase are,
* Define the Goal by Developing the Goal Statement - The goal statement should be a reflection of a problem statement.
* Define the Process by Developing the Process Maps - The team begins with bird's eye view of the process, also known as a high-level process map. One high-level map is called SIPOC which stands for Supplier, Inputs, Process, Outputs, and Customers. Another high-level map more closely aligned with cycle time reduction projects is a Value Stream Map.
* Define the Customer and their Requirements - The customer is defined as the individuals or groups who receive the goods or services of the process. Customers can be external or internal to the organization. In the define phase, the team understands the customers and requirements. After interviewing or surveying the customer, the team translates into measurable requirements that provide with insight on how to improve the process or solve the problem.

Measure Phase - How to Measure the Current Process? : How does the process currently performs? It means what is the magnitude of the problem? As the team starts collecting data they focus on both the process as well as measuring what customers care about. There are two focuses: reducing lead time or improving the quality. In the Measure phase, the team determines the current performance or the baseline of the process. The baseline becomes the standard against which the team measures their improvement. This is the key step as the data collected during the Measure phase against the data collected in the improve phase to confirm the improvement. The tasks in the Measure phase are,
Create a Plan to Collect the Data: It must consider where to get the data, how much to collect, who will get it and how. A well thought out data collection plan is critical since the accurate and reliable data are the key to good decision making.
Ensure the data is Reliable: Defining and refining the process measurements leads to collecting the sound information and enables the team to make good project decisions. It ensures future corrective action based on facts and data rather than assumptions and opinions. The team creates check sheets for the manual data and continue until they have a reliable measure of the project baseline.
Update the Project Charter:  Once the team conducted the initial data collection they will have more details around process performance and potential goals. The team updates the project charter that describes the problem and goal with the collected data.

Analyze Phase - How to identify the cause of the problem?: It is about discussing what is causing this problem? When the team jumps to the solutions before knowing the root causes of the issues, there are waste of time, consume resources, create more variations and cause new problems. It is to develop a hypothesis as to why a problem exists and then work to prove or disprove their hypothesis. The verification of process analysis and data analysis has to be completed before implementing the solutions.
Examine the Process: After the process walk, by creating high level and detailed process maps and collecting process performance data, the team is able to analyze the process and list their concerns or pain points. The team can proceed with further process analysis by conducting any of the following,
  * Time Analysis: It focuses on actual time to work being done in the process versus the time spent on waiting. It is to discover that people are busy and things are idle.
  * Value Added Analysis: It is another dimension of discovery by looking at the process through the eyes of a customer to uncover the cost of doing business.
  * Value Stream Mapping: It combines the process data with a map of value adding steps to determine where waste can be removed.
Graphical Display of Data: The team displays data using charts and graphs( e.g Run charts, Histogram, Pareto charts, Box Plots) and providing visual indications of process problems. Selecting the right charts and graphs provides a team with valuable insights into the causes of process issues.
Look and Verify the Causes of Process: In an effort to the process analysis and data analysis helps to uncover the root causes of wastes or defects in the process. The tool knowns as cause&effect or fishbone diagram gather the wisdom of process participants. The tool 5whys guides team members for past symptoms to root causes. Before the move to improve phase, the team confirms the proposed root causes are true by using data analysis, process analysis, process observation, and comparative analysis.

Improve Phase - How to Implement and verify the solution?:  Once the project team has determined the root causes it's time to develop the solutions. This is where the team brainstorms the solutions, pilot process changes, implement solutions and collects data to confirm a measurable improvement. A structured improvement effort can lead to innovative and elegant solutions that improve the customer experience. It has the following tasks,
Find and Select the Solutions that Fix the Problem: It is to produce as many ideas as possible to address the root cause of the problem listed in the project charter. These ideas can come from process participants, colleagues, benchmarking, or from the classic solutions developed in the quality world. The project team can use Weighted Criteria Matrix to make the best decision and Impact Effort Matrix to provide the best impact for the least cost or effort.
Develop Maps of Processes Based on Different Solutions: In order to achieve the solution to reduce the issues like rework loops, waste, wait times, the team creates a new improved map of the process known as To-Be-Map. These new maps guide the team efforts towards the new processes and provide the reference tool for the employees to learn the new processes.
Implement the Solutions: Accomplishing the Successful implementation requires careful planning. It also to consider the logistics, documentation, communication plans and training. The more time spends on planning, the faster they achieve total adaptation to their improvements by their process participants. It is good practice to create an implementation plan for the large-scale implementation.
Measure to Ensure Improvement: Once the team implemented the solution they collect the data whether or not the process changes have improved the baseline. It can take from 1 to 4 weeks depends on the length of the process cycle.

Control Phase - How to maintain the Solution?: How do you sustain the improvement? The process problems are fixed and improvements are in place, the team must ensure that the process maintains the gains. It is to focus on creating and monitoring the plan to continue measuring the success of the updated process and developing the response plan if there is a dip in performance.
Ensure the Process is Properly Managed and Monitored - The monitoring plan accompanied by the Response Plan indicating the levels at which the process operates and things to do in case the process performance starts to decline. This leads to continuous process refinement.
Continuously Improve the Process Using Lean Principles: The four principles of Value, Flow, Pull, and Perfection should remain a constant focus for every organization. It can be defined as,
 Value: Determine what steps are required to the customer?
  Flow: Remove waste in the system to optimizing the process to achieve a smoother pace
  Pull: Ensure the process responds to customer demand
  Perfection: Continuously pursue perfection within the process.
These DMAIC Templates will help you to achieve the project goals as easily as possible.

Wednesday, 31 October 2018

How Lean Product Development help to build successful products and company?

       Lean startup is designed to get you to understand the risk in advance and de-risk those things by applying scientific methodology to building products. Lean Analytics is a way of measuring progress through that process. It is not for the sake of just doing Lean Start-Up, but to build something that the users or customers want. Build, Measure and Learn is at the core of the Lean Start-Up. It's an iterative cycle. In the Lean Startup parlance, that you're trying to iterate through the build, measure, learn as quickly as you possibly can, as frequency as you can get to ultimate success.
     As an entrepreneur, you are creating something that doesn't yet exist. Whether you're selling it or not, you have to convince others that your vision is real and important. It might be for the users or customers. In many ways, you're saying, I am going to create something to solve this problem or realize this vision. Let's all agree, that we don't know if the vision is true. Beyond creativity, every company needs a clear process for taking ideas from concept to profitable business model. One way to frame the conversation is to explore what can cause great ideas fail, then design the innovation frameworks to mitigate those challenges. There are several reasons the innovation fails(e.g, technology failure or team conflict). But, there are 3 main reasons the innovation can fail,

   1. Making stuff that nobody wants to Buy;  Innovators bringing their product ideas into life. They forget the reality that is raised by questions about customer need. All business models are rooted in great value propositions. In order to make the stuff that people want, you have to do the user research and develop empathy. What are they trying to accomplish? what would cause them to grab our product?  What are their jobs to be done? These questions are a foundation for making the stuff that everybody wants.
  2. Selling the Product without Profit: Innovation is not just about making products that will deliver value to the customers. It is also ensuring that we can deliver value in a sustainable way. Sustainable traction means that our products pay for their own existence. We have to ensure that customers are willing to pay a sufficient amount to cover the cost of value creation and delivery. It is important to find the price point that will cover the cost of customer acquisition and retention. Profits can define as how will pay our own bills and sustain the company. We may not need to answer the profit question in the innovation process, but this question we will eventually have to answer.
  3. Profits Without Scaling: It is important to find the growth engine to scale our product beyond the early adopters. This is often the first movers lose their advantage to fast followers. The first mover is the innovator and the fast followers become the masters of business model design and scaling. We have to work twice as hard to scale our products beyond early adopters. If we don't do this, you may lose share in the markets and this type of failure results from making profits without scaling.

Lean Product Development Framework:  The startup use Scrum as their product development methodology. It is iterative and incremental agile software development methodology for managing product development. Sprint is the basic unit of development, is a time-boxed effort( being two weeks in common). The goal of each Sprint is to complete a set of features and ship a working version of the product. Each sprint ends with sprint retrospective and sprint review, where the progress is reviewed and improvement for the next sprints identified.

The Core values of the Lean: Building lean product requires a broad perspective of product development. In order to ensure the convergence of business value, it is important to understand the core values of lean and acts of the following,
     * Create Value by helping clients from their perspective and then delivering high-quality solutions while eliminating waste and reducing cycle time. You can pinpoint the situation where waste is occurring,
     - Company Waste
           1. Waste from overambitious
           2. Waste from building wrong product
           3. Over-processing waste
     - Management Waste
          1. Too many sign-offs
     - Product Waste
           1. Building features in the wrong order
           2. Waste from poor quality
           3. Customers not benefited from completing the work
    - Team Waste
          1. Internal feature scope creep
          2. Waste of coordination
          3. Waste due to distributed teams
          4. Work overloading
          5. Talent waste
          6. Team imbalance
    - Automation Waste
          1. Waste of computing cycles
          2. Automate information distribution
     - Personal Productivity Waste
         1. Waste of focus(context shifting waste)
         2. Waste of knowledge
         3. Demotivational waste

    * Deliver More with Less that allows high-value deliveries at lower costs in a consistent and continuous flow.
   * Deliver Just In Time and Just Enough by creating only what adds value to your business at the right time. It involves being aware of market trends and make sure the product is launched quickly.
   * Empower People and Trust by forward-thinking as well as involving the client in the development of the product.
   * Measure everything by simple and reliable KPI, which increases your transparency and allows you to measure the effects of your actions.

  Requirements Discovery for Lean Product Development: To develop an effective application that optimally supports the business process, developers have to understand the business process thoroughly. Business process analysis identifies bottlenecks, inefficiencies, disconnects, and other problem areas. Developers need solutions as functional and non-functional requirements to develop or modify an application.
        User stories are great when you've got the users. Sometimes, the functionality being described when real users are nowhere to be found that feels artificial. In this situation, the Syntax of Feature-Driven-Development agile process plays a major role. Features are analogous to product backlog items for scrum project. FDD feature can be written in this format,
               (action) the (result) (by|for|of|to) (object)

For ex,
   * Generate unique number for the transaction
   * Estimate the closing price of the stock
   * Merge the data for a duplicate transaction

 In each case, the feature description starts with the action and ends with what would be an object within the system. This syntax works well for developing the back-end functionality and API.

The Stages of Product Development: It determines how much to focus on UX or lean design and which stage you are currently in the development cycle. Here are 3 market stages where your focus needs to be,
  1. The Technology Stage: Little UX, all Lean
           Objective: Assembling the plan together and figuring out what the market needs
           Key Points: Focus on MVP. You can't focus on UX because you don't have any users. Get a working prototype together and find out who needs it and how they are using it in the real world.
           Success Criteria: Consumers outside the beta test group needs it.
 2. Feature Stage: Limited UX, Less Lean
           Objective: It is to settle on most important features to develop based on user demand
           Key Points: Start molding the UX as part of the decision process to engender specific emotional responses from users. Keep a close eye on what features competitors offer but don't get to anything until the product works properly with the right UX.
           Success Criteria: User comment about how they are using and feel about it.
3. Experience Stage: All UX, no Lean
          Objective: Research on what users are doing with your product.
          Key Points; Don't add the features unless they are absolutely necessary. what are the biggest pain points customers have when using the product? It is to study the winning UX design around the world and figure out how to apply these insights to your product. Fix your broken UX at this point.
       Success Criteria: Customer Referrals and Viral Adoption

Adopting to Customer Demand:  In Lean, you need to talk a lot about meeting customer demand. The conversation turns to cycle time. What does customer actually want? Following the needs of the customer and testing ideas are the bread and butter of Lean Startups. The pace required for creative development seems to be reaching new heights all the time and emerging technology push this trend forward. The key point is that the pull system extends outside the organization with the customer as the ultimate destination of the value stream. But, what does a pull signal from a customer look like and how do you respond to it? This is a matter of engagement. So, you must constantly seek feedback when developing the product. This 5 step process that any business might find useful,
   1. Emphasize: Get to know your customer through direct interaction so that to understand the customer needs and experiences.
   2. Define: Define the problem of your customer is experiencing that your product could solve or define the unfulfilled need of your product could provide.
   3. Ideate: Explore a wide range of possible product ideas based on what you have learned about your customer. Get a wide range of insight and input from the team.
  4. Prototype: Select one idea from the previous step and turn it into a working prototype. It can be a physical activity or object that the customer can interact with the real world.
  5. Test: Evaluate your assumptions about the customer needs and wants by giving them a chance to interact with a prototype. You can continue development along the current course or change the idea depending on the results of customer interaction.

Stakeholder Mapping: Stakeholders are any group or organization or collection of individuals that have an interest in activities of a business or organizations that are affected by the actions. They have interests and concerns relating to the business. There are Internal and External stakeholders. The internal stakeholders are the employees and the owners. The external stakeholders are those who have contact with business but don't actually work in it(ex, customers, suppliers, government, and others). The stakeholder mapping is a visual way of showing in relation to their power and interest.

Monday, 15 October 2018

What is Scrum and Agile Project Management that works for the Business?

           Agile is a perfect fit for organizations looking to transform how they manage project and operate as a whole. Agile project management methodology that uses short development cycles called "Sprints" which are focusing on continuous improvement in the development of a product or service. Agile developed for the software industry to streamline and improve the development process in an effort to identify and adjust for issues and defects.
              Agile PM is a highly iterative process that allows for rapid adjustments throughout the project for better performance and agility by project teams.  It provides a way for developers and teams to deliver a better product, in a faster manner, through short, iterative and interactive sprints. Agile can help company-wide process and methodological alignment. There are various agile frameworks including scrum, lean, Extreme Programming and SAFe. It typically includes the tasks that are broken into small increments with minimal planning in order to allow for increased agility. Agile PM referred to the movement, development, method or more commonly used the methodology in the software industry.

     The most IT project managers and software developers are familiar with Agile Manifesto. The evolutionary model of software development methods outlines the history of IT development technique and includes these models,
   * Waterfall - Follows the sequential process and maintains the document trail
   * Rapid Prototyping - Creates a disposable prototype to establish customer preferences
   * Spiral - Serious of prototypes that incrementally incorporate user requirements
   * Incremental delivery - Delivers a system to the consumer in chunks of functional programs that are integrated incrementally to create a complete system.
   * Evolutionary Delivery - It is an iterative approach in which customers test an actual version of the software.

Scrum and Agile: Agile is a a set of methods and practices based on the values and principles expressed in the agile manifesto which includes things like collaboration, self-organization, and cross-functionality of teams.  To understand the scrum, you have to know the people and parts of the framework and need a place to organize your thoughts or your backlog that could be the software like Trello or whiteboard. Also, you need the roles like Product Owner and Scrum Master. These are the essential parts that make the scrum happen,
    * Scrum starts with a Product Owner. This person represents the user's interest and authority to say what goes into the final product.
    * The Product Owner is in charge of making the Backlog, a list of tasks and requirements the final product needs. The backlog must be prioritized. For ex, If you use scrum to design a car, items like " must have an engine" would be the top of the priority list because a car can not run without it. "Must be painted red" would be low priority list. Because it is not much important to run the car.
  * Next is Sprint. Sprint is the predetermined time frame within which the team completes set of the task from the Backlog.
   * Every day, the team meets to give progress updates in the Daily Scrum. It is also called as "Daily Stand-ups".
   * Each team ends with review or Retrospective, where the team reviews their work and discuss a way to improve the next Sprint.

Here are the steps to get started, 
       Step1: Pick your Roles - Product Owner who is responsible for the project need of the user. Scrum Master who helps the team move along based on the principles of the scrum. Scrum runs on a Servant-Leader model.
       Step2: Create Product Backlog - The backlog is where you list out everything the project needs and prioritized. The backlog is never complete. As the project takes shape and new needs emerge, you will need to add. The product owner responsible for this work.
      Step3: Plan Sprint - It is to pick the tasks from the backlog to completed Sprint. Sprints are time-limited. Decide on the time length that works for you, but they are always less than a month.
     Step4: Get to Work - Start to work on the Sprint. Team members work on the tasks and everybody checks in on their progress at the Daily Scrum Meeting. The meeting lasts no more than 15 minutes and answers 3 questions like what did you work on yesterday? what will you work today? Is there anything blocking your work today that need the help?
    Step5: Review the Work - At the end of the Sprint, the team reviews the work accomplished and presents their completed tasks.
     Step6: Review your Process - In the retrospective meeting, you'll need to review how the actual work process went and plan ways to improve and work efficiently next time.
    Step7: Repeat -  With the first Sprint Complete, it is time to start over again. Pick the tasks from the backlog and repeat the process.

Software Costs and Pricing: Cost is the Product of time and Peoples. It depends on the stakeholder confidence for the fixed cost or variable cost. The following steps are taken into consideration for an estimate and fixed price project,
 1. Initial High-Level Scope - At the beginning of the project, it is important to know about its eventual outcome and to know exactly what features our customers and users need. So, it can break down the tasks as,
  a. Project Vision and Objective Setting: It is to decide on what are the business objective and what you need to achieve and build? Understanding these questions allow you to scale the project. Do you need a prototype to test the idea or concept? Have you Identified the clear Value Proposition that has been tested with your market and ready to build your Minimum Viable Product(MVP)? Are you scaling your existing product or business to take it to the next level?
 b. Epic Features: Define the features that the projects need to fulfill the customer needs. It is called user stories that are the backbone of the product.
c. Analysis of Product:  The Maslow analysis technique helps to identify what is really necessary to make the product viable. The items that are identified as "Must" satisfy what will encourage users to engage and adopt your product. The features that are identified as "Should" will delight the customer but could be built later. The "could" items can add significant value to the business, may not increase the return and lowest priority. The feature identified as "Won't" are out of scope for the project iteration.
2. Creating the Proposals: The proposals provide information to create the product you want?  Does this align with the business strategy and finance? When will we launch the project?  With this information, We can derive one technical solution that delivers the known scope and estimated cost to complete the project. At the outset of the project, we know what will be delivered.

3. Release Planning: The next level of estimation is a release plan that will deliver the range of features in a given timeframe. The release plan has the list of features, size of the project, how quickly the team can develop the software that meets customer expectations and techniques for managing the risk of uncertainty. It has the following information,
   a. Product Backlog: It is simply an ordered list of "user stories" or "epics" that represents the features required for the product. The epics can break down into meaningful items. Each item represents a portion of the business value to the customer.
  b. Estimation: There are agile estimation techniques like Ideal Days, Planning Poker. The Planning Poker technique ensures quick, reliable results based on expert opinions and analogous sizing. It assigns an agreed number to each item representing size and complexity. This is called a story point.
The Story Point is the unit of measure that expresses the overall size of the user story. The size of the story includes all aspects of design, engineering, testing, code review, and integration etc., Each size of the story relative to another story. For ex, Story A may be sized as one point. Here, the story C is three times the size of story A. And, the total size of the project is 15 story points.

     Ideal Days is a measure of size expressed on days. It removes the overhead such as interruptions, agile planning activities, reading emails, and other non-project related activities. It concentrates on how long it would take if you were to work on something continuously without interruption rather than the elapsed time from start to finish.
 c. Prioritization: This is really about what is being most valuable to the customer in order to achieve the desired results. The item at the top of the list considered the most important, the second item is less important than the first and so on to the list.
     The Release Planning can define as how long it will take to deliver a releasable product to the customer and the team including the designers, engineers, testers, project manager, scrum master work together to identify what can be achieved and how quickly work can be done to create a release plan. The release plan gives the insight into how the project will align with the customer strategic plan. It ensures the project team has a guiding light that leads the way and defines the logical endpoint to development. It is important to ensure the agreed definition of "done". These are the given set of criterias that a customer will accept as complete and also meets all of the engineering requirements to be considered releasable.

Sunday, 30 September 2018

The Entrepreneurship: What is Lean Startup?

           Lean IT is the extension of Lean Manufacturing and Lean Services principles to the development and management of information technology(IT) products and services. In the context of Lean IT is the elimination of waste, where waste is work that adds no value to a product or service. Lean thinking spreads and using in all industries like logistics, distribution, retail, healthcare, construction, maintenance, IT etc., The traditional IT organizations still build the wrong products that customers do not like and after they release them too late, infrequently, with too many errors, time-consuming causes to costly process and accrues high amount of technical debt. The Dev's job is to add features and Ops job is to keep the site stable and fast. The conflicts generate lots of waste like organizational silos, different implementation, and mindset etc., So, every organization should assess its own downtime costs based on its own business model and architecture.

    Definition of Startup: The startup is the human institution designed to create something new under extreme uncertainty. Therefore, it is a management challenge. We don't know what the product and the customer at the initial stage. If you were in the situation of high uncertainty, find out what you don't know as quickly as possible. So, the learning helps you identify what is unknown and allows you to make progress with the product.
          In Lean Startup, there is a concept called Validated Learning. It is the process of using the quantitative methods to modify the end product in a way that becomes more successful. It is a proven method to yourself, your investors, and stakeholders that are getting better the product.  Metrics that provide useful information for the entrepreneur to modify the end product is called Actionable Metrics. On the other hand, Metrics that look very good but essentially useless to portray your success is called Vanity Metrics. Make predictions on metrics that are supposed to happen by avoiding the vanity metrics. When you go product iterations from pivot to pivot quantitatively, not only you learn from abstract, you can apply that learning to change the customer behavior. It is fundamentally the product is a tool for changing the customer behavior and changing the way the world works. In that way, you have the sustainable business.

     If you have the vision and innovative business idea to work on the project. Here are the steps to validate your idea without wasting time, budget, and building something that nobody wants,

Step 1: Write the User Experience Vision - It is the description of the initial setup with ending of High-Level Plan.
Step 2: Identify the Critical Assumptions - It will save a large amount of time waste and ensure that the target customer will actually buy the product. It is actually gathering the behavior of the audience, not the opinion.
Step 3: Build an Early Version to Validate a Critical Assumption: It can be done by Concierge MVP and Smoke Screen MVP. The Concierge MVP is a manual method to test the automated process and Smoke Screen MVP is marketing with a finished product. This helps you to measure the actual customer behavior.
Step 4: Release and Measure: Once the product is released, it is time to measure the number of pre-orders received, average watching time of your product ad on the social media etc.,
Step 5: Pivot or Persevere: If your ad gets trends or more people watching the video, you have the bit more time to tweak the product. The sign of the successful pivot is that this engine-tuning are more productive after the pivot than before.

Continuous Process Improvement: Continuous Improvement or "Lean" is a systematic approach to business management which uses universal principles and tools that are logic based and relatively simple to implement, The key to a Toyota way and what makes Toyota stand out is not only of individual elements. But what is important is having all the elements together as a system and must be practiced in a very consistent manner.

       Lean Startup is a field-tested philosophy that provides you the toolset to minimize the failures and increases your chances of success. Being Lean is the practice that considers any goal other than creating value for the consumer to be wasteful. Just having that plan is enough to the success. The business plan is serious of assumptions and guesses what might be happening in the future? The lean startup aims to quickly and quantitatively identify great hypotheses and the bad ones.
 TPS helps you answer these questions,
 * What do customers truly want?
 * When they want?
 * In the quantity they require without defects?
 * What is the path to the sustainable business?
 * How can you waste less time building a new startup?
The entrepreneur always has the vision. The vision is where you want to go but doesn't have to tell you how to get that. If you have an idea or strategy for the new product, the first step is to create a Minimum Viable Product(MVP). It is the smallest possible product we can possibly imagine. This helps you to figure out the right track or not. It could be a simple prototype or mere elements of the business and it is enough to learn on the right track. Learning is the most vital function of any startup.

What are Lean Principles: The important Lean Principle is that you are always moving from doubt to certainty. It specifies the value from the perspective of the customer. It does not focus on organizational and functional boundaries. It can define as,
    * Looks across the Value Stream and determining customer needs and ensure to make the value flow. Whatever the customer needs every day is most important in value flow without interruption making the customer happy and satisfied.
   * Pull of the customer that do only what the customer wants when they want it. It strives for perfection by continuously removing the successive layers of waste as they were uncovered.

     The Value Stream Mapping technique helps visualize customer value, differentiate value from the waste, and eliminate the sources of waste. Takt Time is the value stream metrics which is the heartbeat of the process. It is the meantime between the request. The pace of the process keeps in order to keep up the pace with demand. If the pace too fast, then the Resource remain idle. If the pace too slow then the work in progress(WIP) builds up. There are 3 types of wastes identified in lean that are Mudi, Mura, Muri ( in Japanese terms ) means as,

Mudi refers to Unnecessary Activities and NonValue
Mura refers to Variation, Variance in the process
Muri refers to Inflexible, Overburdening on the process.

        So, how the lean maximizes customer value by minimizing the waste. Determine the activities by removing those things which are non-value, the one that is necessary but not delivering value, and the one that is really value added. It can describe as,

        The value of the customer can be identified in the products and services. In the product, the factors to be considered are performance, features, timeliness, reliability, aspects, reputation, and completeness etc., The factors in the service to the customer value are competence, reliability, accuracy, responsiveness, courtesy, communication, credibility, understanding etc.,

Why Lean? How do we make sure that we are successful working in the right direction, satisfying the customer requirement, and providing outstanding flow?  By using the Continuous Improvement Methodology, you can reach those goals. Continuous Improvement measures waste in following types,

   * OverProduction - It is a production of what they need and when they need it and not underproduce. Also, it is very costly.
   * Inventory Waste - It is a material or information  that are not required for customer demands
   * Waiting - We experience waiting in a laboratory environment for the next business cycle before the process to be completed. Make sure that the information flow in and out as per the customer need.
  * Motion - It is the necessary movement of people and process. Every movement should add value to the customer and movement should not be impeded.
 * Transportation - An unnecessary movement of people between processes and internal links. Are you using the best value of the product distribution or material?
  * Defects - Anything that has to be redone are considered defects
  * Extra Processing - Process in the environment does not have any value or any extra operations are considered extra processing. The material should be delivered and consumed just in time and no stopping or stagging or inspection.
  * Unused Creativity -The goal is to eliminate waste and allow to think and improve the business.
        With the strategy in mind, the features and functions can be implemented in quick, good and useful to the customer. Here is an example of IT service Management Value Creation,

DBS Management System: It is a standard systematic way to manage the Continuous Improvement in Corporate Culture.  It works on all internet operating company and it has 3 critical components
  1. Daily Management(KPI) - How we serve the customer TODAY and meet current expectations. KPI involves delivering quality, inventory, and productivity. When you enter the new market, we have to think again the breakthrough or redesign through strategy. You need to go through the advance methodology for action planning
  2. Policy Deployment - What are the strategies or goals up to 3 or 5 years in advance and make sure working in the direction satisfied to the customer or business. It is also how we create a sustainable competitive advantage by striving for world-class performance.
 3. Problem Solving - It is everybody's daily work and really looking at improving the KPI. It is the iterative process to bridge the gap of performance which often exists between where we are and where we want to go.
    DBS System increases the productivity without compromising the quality. The Method in Lean is to simply identify the process or product to work online.