Methods ABC-analyse Pros + Cons - - It ensures better control of inventory by minimizing wastage and improper use of materials - It is suitable for big manufacturing companies - It improves stock turnover ratio - It saves time and cost to store materials - Because of effective control and proper utilization of materials, reduction in time and cost, it helps to improve the profitability of the business. - It is complex than other techniques of inventory control - It lacks dynamism and flexibility - It is not suitable for small firms because it consumes high resources - It ignores GAAP (generally accepted accounting principles) Ishikawa-diagram - Helps identify cause and effect relationships - Helps develop in-depth joint brainstorming discussion - Works well with the 5 Whys to drill down to a root cause quickly - Helps prioritize relevant causes, allowing you to address underlying root causes - Irrelevant potential causes can cause confusion - Complex issues may lead to a messy diagram - Lends itself to the divergent approach - Based on opinion rather than evidence; it needs testing to prove results Theory of Constraints It improves capacity by optimizing the constraint. It enables more product to be manufactured. It increases profit. It reduces lead time by optimizing the constraint. Kaizen - better product quality at lower costs - customer satisfaction - rational use of resources and equipment - atmosphere of mutual assistance and cooperation - employee motivation. - Kaizen is not so easy to implement, for this you need to rebuild not only the production process, but also thinking. A second limitation of the theory of constraints is its lack of consideration of variable factors. Constraints such as demand for a product might vary independently from any action taken through implementation of the theory. - process improvement requires investments that will not pay off immediately - it takes a long time to see the effect - 3-5 years - kaizen is not suitable for a rapidly developing economy - it is very difficult to involve employees of all levels - interfere with human factors - laziness, greed, dishonesty Six Sigma Poka Yoke SERVQUAL-model (GAP-model ) In addition to improving the efficiency and costeffectiveness of projects, Lean Six Sigma also actively involves employees in improving processes. It also provides a sense of ownership for everyone involved in the project. Avoid expensive, time-consuming, and ineffective processes. Operations errors are reduced because they no longer rely solely on human knowledge and proficiency The reduction or prevention of errors – and the increased confidence that comes from this – can result in superior products, better customer satisfaction, enhanced brand loyalty, and increased profits. Implementing Poka-Yoke saves both time and resources by having the work done right the first time. SERVQUAL is a tested instrument which can be used relatively for benchmarking intents. It is benefit from being a statistically valid instrument as a consequence of extended field proving and polish. Implementing SERVQUAL may good ensue in client keeping, client trueness and positive word-ofmouth, increasing chance for cross-selling, employee benefits, improved corporate image, net income additions and fiscal public presentation. The method usually involves making important changes to the task. This means that all stakeholders must be willing to commit time, effort and resources to complete the projects. One of the main issues comes with initial resistance to change from employees or decision-makers. The need to justify investment in new processes and the time required to implement and realize benefits can be a challenge. This can be compounded if the methods implemented are inappropriate or ineffective. However, apart from its broad usage, figures of theoretical and operational unfavorable judgments of the measuring theoretical account have been pointed out. SERVQUAL is process oriented it concentrate on the procedure of service bringing, non on the results of the service brush, while procedure and result together is a better forecaster of consumers pick than procedure or outcome entirely .
