Hello Folks,
Talking about day-to-day transactions, I have noticed over the years how business leaders take process improvement initiatives like SS and Lean with a pinch of salt. Often times, transactional processes are designed without proper understanding of the end point. Scores of millions is lost yearly on avoidable wastes that are either embedded or generated by the business. This time around I'd like to focus on designing process for an error-free transaction processing.
I have itemized a number of ideas for anyone interested in implementing some ideas on error-free processing.
Talking about day-to-day transactions, I have noticed over the years how business leaders take process improvement initiatives like SS and Lean with a pinch of salt. Often times, transactional processes are designed without proper understanding of the end point. Scores of millions is lost yearly on avoidable wastes that are either embedded or generated by the business. This time around I'd like to focus on designing process for an error-free transaction processing.
I have itemized a number of ideas for anyone interested in implementing some ideas on error-free processing.
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| Picture from www.improsys.in |
IDEA 1 - Think of AUTOMATING repetitive activities using light computer apps like MS Access or off-shelf apps - nothing hypertek.
IDEA 2 - ELIMINATE HUMAN INTERVENTION where possible (very similar to idea 1)
IDEA 3 - For repetitive transactional processes, insert CONTROL steps that will limit errors like maker, checker approval
IDEA 4 - Where automation is not feasible, consider OPTIMIZING CONTROL steps that will eliminate error from processes like job rotation, shifts periods, job deliniation.
IDEA 5 - Where possible PREVENT processors from making errors using system capacities. This is called POKA-YOKE (Error Proofing). e.g. Design your Customer Information Systems to take only appropriate figures on texts and not both - thereby eliminating mistakes of putting erronous texts in date field.
IDEA 6 - Design your CONTROL to be BEFORE the PROCESS or at worst part of the process and not after the process (post moterm). This helps processors to own the audit/control thereby developing the subconiousness to do things right
IDEA 7 - SET achievable STANDARD for acceptable error rate using benchmark analysis and train processors on it.
IDEA 8 - MEASURE error rate of your processes using the six sigma methodology (or any better method if you know one)
IDEA 9 - REWARD error free processing. Put your money where your mouth is.
IDEA 10. This is the most important one - OBTAIN MANAGEMENT COMMITMENT. and stakeholders buy-in.
IDEA 2 - ELIMINATE HUMAN INTERVENTION where possible (very similar to idea 1)
IDEA 3 - For repetitive transactional processes, insert CONTROL steps that will limit errors like maker, checker approval
IDEA 4 - Where automation is not feasible, consider OPTIMIZING CONTROL steps that will eliminate error from processes like job rotation, shifts periods, job deliniation.
IDEA 5 - Where possible PREVENT processors from making errors using system capacities. This is called POKA-YOKE (Error Proofing). e.g. Design your Customer Information Systems to take only appropriate figures on texts and not both - thereby eliminating mistakes of putting erronous texts in date field.
IDEA 6 - Design your CONTROL to be BEFORE the PROCESS or at worst part of the process and not after the process (post moterm). This helps processors to own the audit/control thereby developing the subconiousness to do things right
IDEA 7 - SET achievable STANDARD for acceptable error rate using benchmark analysis and train processors on it.
IDEA 8 - MEASURE error rate of your processes using the six sigma methodology (or any better method if you know one)
IDEA 9 - REWARD error free processing. Put your money where your mouth is.
IDEA 10. This is the most important one - OBTAIN MANAGEMENT COMMITMENT. and stakeholders buy-in.
Customer satisfaction, Your customers will get what they paid for every time. In addition, they will receive it at a higher value or a lower cost.
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Six Sigma is all about reducing the defects to the minimum. Thus while implementing six sigma one should not really be concerned with the size of the organization.Six Sigma Certification
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