Four Cs which will drive Business results through Business Excellence. One of them is not Covid-19!
Yes! Corona or COVID 19 both starting with letter C has put the entire world in a Chaotic situation. Decades before this I wrote about 4Cs which drive any organizations to pursue the Journey of excellence.
Below are those 4 Cs
- Customer Demand
- Chairman or CEO of Vision
Here the definition of Excellence, I am limiting to Business Excellence journey using strategies like TQM, TPM, Lean, Six Sigma, etc..
Why should some organizations start any of this journey?
If the organization is in deep trouble, its profits are negative, Liabilities increasing, No demand for the product, etc.. we can consider that this particular organization is in Crisis. The current scenario of COVID 19 puts many organizations in Crisis mode. Many organizations thinking of adapting practices like Lean, 5S, Kaizen, etc.. to reduce their losses.
The problem with this driver is it works until the crisis ends. The later organization thinks about excellence only when another crisis hits!
Many organizations depend on a few key customers and those Customers mandate organizations on certain Systems. For example, some customers may ask its suppliers to implement Lean or TPM or Six Sigma. In such cases, suppliers have no options other than accepting it.
The problem with this driver is, it works only to satisfy customers. So TPM- Total Productive Maintenance becomes Total Paint Management (Painting the factory during customer visits) or Total Presentation Management. ISO 9001 only lies in papers. So the organization will never reap the benefit of the business excellence journey.
Our competitor is practicing Six Sigma, so we also should launch it! Some organizations closely follow their competition and copy whatever they do. They are too much obsessed with competition. The biggest danger in this approach is, what works for competition may not work for us.
CEO/ Chairman’s Vision
Very few organizations, Business excellence is driven by Chairman or CEOs vision. There is no crisis, no competition, no customer mandate but the leadership proactively implementing it keeping long term results in mind. They anticipate changes and prepare the organization for the same. It is these organizations which will survive even in Corona era
Lean thinking talks about doing more with less – fewer Efforts, Less Resources, Less space, Less Inventory, Less supervision, etc.. This thinking obviously brings the cost down and make the organization more profitable. To achieve this lean provides tools like 5S, Value Stream Mapping, Kanban, Quick Changeover, etc..
TQM organizations use a powerful tool called Hoshin Kanri. This tool makes leadership anticipate changes and keep plan B and C in case of uncertainties. Unfortunately, very few organizations applying it . If it is used with Balanced Scorecard, the benefits will multiply.
Related Article– Hoshin Kanri – The Secret Behind Visionary Organizations
5S is a very effective tool to create a disciplined and organized workplace. It is the dream of many Leaders to create a good work culture and 5S is a simple but powerful tool to achieve it.
Kanban will ensure optimum inventory is maintained and improves cashflow. SMED (Single minute Exchange of Dies) or Quick Changeover (QCO ) is companion of Kanban and JIT ( Just in Time) Manufacturing
DMAIC, PDCA, QC Story all are various problem-solving methodologies which make organizations highly competitive and profitable by reducing the cost of poor quality (COPQ)
Related Article– How to minimize stock out and improve inventory – Kanban Training
The above table gives an idea about the power of Business Excellence tools.
Finally, if organizations realize the importance of the Business Excellence Journey and start now, there is a possibility of Foreseeing the future and prepare for uncertainties. The fourth C – CEOs vision will help to Foresee the Cs like COVID 19 and helps to counteract the same
Seven Steps Business Transformation systems are a member of the Seven Steps Group company. specialized in Business turnaround facilitation. Our team of Business consultants is specialized in
- Business Turnaround Facilitation.
- Lean manufacturing
- Total Productive maintenance
- Six Sigma implementation
- Total Quality Management
- Overall organization improvement.
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