Toyota Production System Learning Hub

Credits: Igor Buinevici This business analysis tool can save you millions: It is simple yet extremely efficient. I am talking about the Value Chain Analysis. It is a strategic tool that examines the activities a company performs to create and deliver a product or service. By analyzing these activities, a company can identify areas for improvement, cost reduction, and competitive advantage. The key components of Value Chain Analysis are: 1. Primary Activities: These are the core activities directly involved in transforming inputs into outputs and delivering the product or service to customers. Examples include operations, logistics, marketing, and service. 2. Support Activities: These activities support the primary activities and each other. They include firm infrastructure, human resource management, technology development, procurement and other similar areas. To conduct Value Chain Analysis: 1. Identify primary and support activities. 2. Analyze cost and benefit of each activity. 3. Examine how improvements in one area can impact others. 4. Compare the company's activities to industry best practices. 5. Identify opportunities for cost reduction, quality improvement, and competitive advantage. The key is to boost your margins by improving either the revenue or cost side of the business. Take advantage of the Value Chain Analysis: Make sure your margins are maximized!

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Credits: Mark DeLuzio STRATEGY DEPLOYMENT* IS NOT A FORM-FILLING EXERCISE! When facilitating an SD Workshop, I never use the X-Matrix for the following reasons: - Task-oriented executives view the completion of the form as the objective. - The X-Matrix is confusing for those who have not used it before. - Participants in an SD workshop tend to jump around the matrix and not stay focused on a line of thought. - Filling out the X-Matrix in a workshop uses valuable workshop time while the participants sit idle as the form is populated. Please understand that I am not suggesting that we eliminate the X-Matrix. It is a critical component of the Strategy Deployment Architecture (a subject I will address at a later date). Do not lead with this form—plain white flip charts will facilitate a more open dialogue. The form, albeit useful, will constrict thinking when developing your Strategy Deployment. Strategy Deployment is a THINKING exercise, where participants play CATCHBALL and present their ideas and thoughts on how best to enact a STRATEGIC PLAN. I cringe when I hear executives say they will deploy the X-Matrix. The X-Martix tool will help you facilitate and organize your deployment, but it does not provide magic on its own. THINKING IS REQUIRED - otherwise, you will create a lot of cool-looking wallpaper that will give the illusion that you know what you are doing. But this charade will not last for long. FINAL THOUGHTS: - If your organization does not have a strong PROBLEM-SOLVING culture and process, DO NOT ATTEMPT STRATEGY DEPLOYMENT until you have achieved a level of competence in this regard. - Do not become enamored with the tools - in this case, the X-Matrix. - There are no silver bullets! * Also known as Policy Deployment, Hoshin Planning, Hoshin Kanri, Goal Deployment (I detest this name) and Strategic Deployment.

Credits: Govind Tiwari,PhD 𝟳 𝗦𝗶𝗺𝗽𝗹𝗲 𝘀𝘁𝗲𝗽𝘀 𝗼𝗳 𝗥𝗖𝗔 𝗳𝗼𝗿 𝗽𝗿𝗼𝗯𝗹𝗲𝗺 𝘀𝗼𝗹𝘃𝗶𝗻𝗴 🎯 Root cause analysis (RCA) is method of problem solving used for identifying the root causes of faults or problems. Below are 7 simple steps of RCA, 1. 𝘿𝙚𝙛𝙞𝙣𝙚 𝙩𝙝𝙚 𝙥𝙧𝙤𝙗𝙡𝙚𝙢: ➤Clearly define the issue, you are trying to solve. ➤Be specific and avoid ambiguity. ➤Gather all relevant information about the problem, such as when it started, how it manifests, and its impact. 2. 𝙂𝙖𝙩𝙝𝙚𝙧 𝙄𝙣𝙛𝙤𝙧𝙢𝙖𝙩𝙞𝙤𝙣 𝙖𝙣𝙙 𝙙𝙖𝙩𝙖: ➤Collect data and information related to the problem. ➤This may include witness statements, log files, performance metrics or physical evidence. ➤The more data you have, the better equipped you will be to identify the root cause. 3. 𝙄𝙙𝙚𝙣𝙩𝙞𝙛𝙮 𝙥𝙤𝙩𝙚𝙣𝙩𝙞𝙖𝙡 𝙘𝙖𝙪𝙨𝙚𝙨: ➤Brainstorm all possible factors that might have contributed to the problem. ➤Don’t rule anything out this stage. ➤Use techniques like-Brainstorming, fishborne diagram to cause and effect analysis to generate a comprehensive list of potential causes. 4. 𝘼𝙣𝙖𝙡𝙮𝙯𝙚 𝙖𝙣𝙙 𝙥𝙧𝙞𝙤𝙧𝙞𝙩𝙞𝙯𝙚 𝙥𝙤𝙩𝙚𝙣𝙩𝙞𝙖𝙡 𝙘𝙖𝙪𝙨𝙚𝙨: ➤Evaluate each potential cause and assess its likelihood of being the root cause. ➤Use tools like 5 Whys technique to ask a series of why questions to drill down to root cause. ➤Consider factors like the severity of cause, the frequency of the problem, and the timeline of events. 5. 𝘿𝙚𝙫𝙚𝙡𝙤𝙥 𝙖𝙣𝙙 𝙞𝙢𝙥𝙡𝙚𝙢𝙚𝙣𝙩 𝙘𝙤𝙧𝙧𝙚𝙘𝙩𝙞𝙫𝙚 𝙖𝙘𝙩𝙞𝙤𝙣𝙨: ➤Based on the identified root cause, develop a plan to address t and prevent the problem from recurring. ➤The Corrective action should be specific, measurable, achievable, relevant and time bound (SMART). ➤Implement the corrective action and monitor effectiveness. 6. 𝙑𝙚𝙧𝙞𝙛𝙮 𝙚𝙛𝙛𝙚𝙘𝙩𝙞𝙫𝙚𝙣𝙚𝙨𝙨 𝙤𝙛 𝙘𝙤𝙧𝙧𝙚𝙘𝙩𝙞𝙫𝙚 𝙖𝙘𝙩𝙞𝙤𝙣𝙨: ➤Once the corrective action is implemented, monitor the situation to see if the problem has been resolved. ➤If the problem persists, you may need to repeat the RCA Process or refine your corrective action. 7. 𝙋𝙧𝙚𝙫𝙚𝙣𝙩 𝙧𝙚𝙘𝙪𝙧𝙧𝙚𝙣𝙘𝙚: ➤Take steps to prevent the root cause from recurring in the future. ➤This may involve updating procedures, implementing new controls, or improving communication channels.

Credits: Lean Enterprise Institute Lean Thinking and Practice is a five-step thought process that guides managers through a lean transformation. Here's an example of how these steps can be implemented: 1. The coffee shop identifies that the value for its customers is a quick, high-quality cup of coffee made to order. 2. The coffee shop maps out its value stream: Customer order → Making the coffee → Serving the coffee → Cleaning the station. They realize that the waiting time between the customer’s order and receiving the coffee is long due to multiple unnecessary steps. 3. To improve flow, the shop arranges the counter so that each step happens consecutively. The espresso machine is positioned in a way that allows baristas to easily brew coffee and prepare drinks quickly, minimizing downtime between steps. 4. As flow is introduced, let customers pull value from the next upstream activity. To prevent overstocking and waste, the coffee shop switches to a pull system where ingredients are restocked based on customer demand. 5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, repeat this process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

Credits: Dinesh Sharma Basic QC Tools and Problem Solving: Quality Control (QC) tools are essential for identifying, analyzing, and solving problems within processes to ensure that products or services meet specified quality standards. These tools are particularly useful for continuous improvement and troubleshooting in various industries such as manufacturing, healthcare, and service sectors. By systematically applying these tools, teams can resolve issues, enhance process efficiency, and achieve consistent quality. QC Tools and Their Role in Problem Solving QC tools are not just about finding problems; they are about solving them effectively. Here’s how these tools contribute to structured problem solving: 1) Data Collection and Organization: Tools like the Check Sheet and Histogram allow teams to gather and organize data, making it easier to spot issues. 2) Identifying Root Causes: The Fishbone Diagram and Pareto Chart help uncover the underlying causes of a problem, ensuring that teams focus on addressing the most significant issues. 3) Prioritization of Problems: Tools like the Pareto Chart help identify which problems to tackle first by highlighting the most critical issues that contribute to defects or inefficiencies. 4) Process Analysis and Improvement: Flowcharts and Control Charts allow teams to examine process flow, detect variations, and make informed decisions about process improvements. 5) Understanding Relationships: The Scatter Diagram helps establish links between different variables, guiding teams in identifying factors that contribute to issues. Conclusion Incorporating QC tools into problem-solving methodologies provides a structured, data-driven approach to quality improvement. Whether it's identifying defects, understanding process variation, or pinpointing root causes, QC tools empower teams to take corrective actions that enhance product and service quality. By using these tools effectively, organizations can solve problems efficiently, reduce waste, and ensure consistent quality in their operations.

A fantastic insight by Gareth Barr James Clear, author of Atomic habits quote “Goals are for people who care about winning once. Systems are for people who care about winning repeatedly” prompted me to lift and re-read Mike Rothers Toyota Kata book. The KATA mindset, roles, structure and its methods for always iteratively improving, experimenting and learning are the system to win repeatedly at lean, Operational Excellence and continuous improvement culture. I have had success using these methods when being coached. Then again as the coach with new teams. Aside from the ‘win once’ performance results we achieved together, the lasting effect is building a foundation of alignment, competency, confidence, increased engagement, autonomy, routine and habit to make further improvements and the team to go on to ‘win repeatedly’

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Ceedtis: Bojan Radojicic Learn how to create inventory forecast. 𝗧𝗵𝗶𝘀 𝗶𝘀 𝘀𝘁𝗲𝗽 𝗯𝘆 𝘀𝘁𝗲𝗽 𝗴𝘂𝗶𝗱𝗲: → Split inventories to 3 levels: Raw materials, WIP and Finished Goods → Cost of material is associated with Raw material planning, COGS is associated with WIP and FG planning → Input historical figures of cost of material and COGS and inventories → Calculate days on hand for each type of inventories → Input forecast of cost for material and COGS → Make best estimate for each type of DOHs for next period → Calculate inventories level based on formulas 𝗣𝗦. Have a look to full 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴 𝗣𝗮𝗰𝗸𝗮𝗴𝗲 👉 www.bojanfin.com New Year, New Finance Superpowers!