II Steps of Systematic Improvement Planning

Chapters 3 to 8 take us through the SIP pattern. They describe step by step the procedure and improvement techniques to use. Each chapter is devoted to a specific step of the pattern.

Organize the Program and Investigate the Current Status by Data Analysis

In this step, the operational environment of the organization is evaluated in general terms and the organizing program (which individuals are responsible for what, and where they will work) and other related issues are determined. External conditions are determined—basic assumptions or other related issues that need to be considered (such as legal, financial, technological, or organizational constraints). Planning issues is an explanatory stage—who is responsible for what until when, mandatory issues of the duty or under which constraints the planning will be made. Content is specified—planning dimensions or limits.

Additionally, gathering data regarding the current status and briefly analyzing them is the crucial action of this step.

Why you do it

This comprehensive study’s main output is, no doubt, to provide an overall clear picture of the current status of the business. Determining the current status is necessary for setting measurable and quantifiable improvement targets. Additionally, before starting improvement work, an organizing program should be set up.

Deliverables

  • • Organization: Planning team list, duties, contact data, and limits
  • • Planning, resources, and budget issues that need to be solved before the program starts
  • • External conditions
  • • Program schedule
  • • Understanding the current situation
  • • Operational strategies, values, and policies
  • • Economies of scale
  • • Research and development, technology, and innovation capabilities
  • • Production planning and control system
  • • Effectiveness of operations control procedures
  • • Effectiveness of cost control system
  • • Basic financials
  • • Overall plant layout
  • • Materials handling plans and losses
  • • Utilities and building specifications
  • • Capacity utilization of labor and equipment
  • • Machine maintenance and setup efficiencies
  • • Review of appearance and cleanliness issues
  • • Productivity of labor and equipment
  • • Delays
  • • Inventory turnover rates
  • • Suppliers’ performance
  • • Cost and availability of raw materials
  • • Organization chart
  • • Management performance
  • • Staffing charts
  • • Understanding of working hours, break times, staffing levels, and variations in work load and peaks
  • • Employee satisfaction and training levels
  • • Employee turnover rates
  • • Incentives to motivation
  • • As-is process flow charts
  • • Sales and production volumes
  • • Cycle times
  • • Customer complaints
  • • Defect types and rates
  • • Effectiveness of channels of distribution
  • • Aftersales service performances
  • • Products and their image and qualities
 
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