Digital transformation for chiefs and owners. Volume 2. Systems thinking. Dzhimsher Chelidze

of the controllability of your process and not run to rebuild the whole organization after every sneeze.

      5S – Control and Maintenance System

      5S – a tool in an ecosystem of lean production, a method that aims at:

      – increase the efficiency of the operation;

      – eliminate accumulated waste and debris, including in IT solutions, and prevent its further occurrence;

      – reduction of losses by searching for answers to the questions «where is the tool?» «how to access it?»;

      – improving corporate culture through changing conditions and creating new habits.

      The Japanese believe that the first thing is always to «dispel the fog», to make everything clear, signed, arranged in places. Then all losses become visible, and deviations are obvious, and can be quickly corrected before going into trouble.

      If the workplace is a mess, then everything is «fog» where the losses are born.

      At the same time, the essence of the 5S system – not only one-time restoration of order in the workplace, but also the maintenance of such order always.

      5S algorithm:

      – Sorting: All items in the workplace are separated (sorted) into necessary and unnecessary items. Unnecessary items are removed from the workplace. In IT, too: everything superfluous is removed from the system’s desktop.

      – Keeping order: Items are arranged so that they are easy and convenient to use. Here we are talking about UX design.

      – Cleanliness: all items and workplaces are cleaned, washed, painted, dirt, dust and debris removed, unnecessary graphics.

      – Standardization: a visual standard is drawn up for the location of objects: contours of objects, signatures at their locations, cleaning regulations, desktops.

      – Improvement: a system of continuous improvement of previous steps and the workplace is being developed. But without standards and «points of reference», everything will fall into chaos.

      This tool also helps in designing interfaces for digital solutions, including for optimization. For example, some guys regularly monitor which functions are in demand, and put them in the first place. Additionally, what loses its relevance is sometimes cut out of the system altogether. Again, in IT systems, only 20% of the functionality is used regularly, 30% sometimes, and 50% – general garbage.

      This is not a complete list of lean manufacturing tools. There are still:

      – TQC – Universal Quality Control

      – TQM – Global Quality Management

      – TPM – Universal Equipment Care

      – Just-in-time – just in time

      – Report A3

      You can read more about them by QR-code or link.

      Lean Production. Part 1

      Disadvantages of lean production

      – Problems of raw material and resource supply

      Stock limitations make you vulnerable to suppliers, both external and internal. For example, if an employee is ill, some delays in logistics can be fatal. Additionally, as experience shows, sellers are very rarely willing or able to organize reliable deliveries in small lots on a tight schedule. If we add the current global chaos to logistics, then…

      – Reputational Loss

      This is a consequence of the previous paragraph. If due to suppliers will disrupt the technological processes, customers will not be able to receive their goods on time. Additionally, this is a reputation disaster.

      – High Costs

      If you introduce lean production completely, it may be necessary to reconstruct facilities, replace equipment, which is very expensive. In addition, the introduction of all rituals and tools will require long training of staff. Small and medium-sized businesses can end up paying off all these costs for a very long time.

      – Employee resistance

      The introduction of lean manufacturing, as well as digitalization in general, mainly causes stress and stiff resistance among staff. We went through the first book.

      6 sigma

      Six Sigma is the American approach to production management, where the main goal is to reduce the number of rejects to 3—4 units per 1 million units of finished products.

      This tool is based on the processing of statistical data and the work with measurable indicators, which is generally characteristic of the American management culture. Here they say: «the right process gives the right results».

      The main effect of using 6 sigma is the ability to distinguish the boundaries of the managed process. And in the case of detection of the problem to understand where is a system error and where is a private case, which allows not to treat force majeure excessive measures for the whole system. Just because one employee shows up at lunch doesn’t mean everyone has to be fined five minutes late. If there is one failure per million hours of work in an IT solution, it is not advisable to reassemble the whole system. Additionally, it is also a tool that allows us to identify, analyse and implement beneficial developments to improve the overall process.

      Rule 3 sigma

      Therefore, what are the «sigms» about?

      Sigma (σ) is the letter of the Greek alphabet, which in mathematics denotes a standard deviation, that is, when indicators do not conform to this deviation, they are an anomaly.

      Rule 3 Sigma states (in simplified terms): Virtually all values and results that can be considered normal for this process lie within a range of +– 3 sigma of the mean. If you plunge into the calculations, it turns out that all normal for the process results will be in these 3 sighs with a probability of 99.73%.

      Algorithm of calculation 6 sigma

      – Add all measured values and calculate the arithmetic mean.

      – We consider the difference between the maximum and minimum values, for example, for a month.

      – We consider the same difference for another, for example, 5 months.

      – We calculate the average of this difference for 6 months.

      – In Shuhart’s control cards (GOST R 50779.42—99) we find the index d2, and take the value for the sample, in our example it is 6 months, so d2 = 2.534.

      – Take our average difference between maximum and minimum and divide by d2.

      – We get a sigma.

      – From the mean value of paragraph 1, we shall now defer 3 sigma to the right and to the left. We get six sigmas that show the boundaries of our managed process. What’s not inside is the deviations. We investigate the causes and work with them. Additionally, if we don’t like the boundaries of the process, we work systematically.

      Of course, in life it is not always necessary to use all tools in full compliance.

      Here’s a practical example from my practice.

      What is on the input: the table with the data about the drilling of wells. Records in it about two hundred.

      Additionally, on the basis of this data, it is necessary to understand