2. Business
Improvement
Tools
Introduction
• Every business today is subjected to environmental
pressures; legislation, competition, consumer
demands etc.
• Innovation and change are dynamic in today’s
environment for customer and technology edge.
• Most companies will apply improvement tools for
cost reduction, especially large corporations to
SMEs, especially in manufacturing sectors.
3. Business
Improvement
Tools
Objective
Today our objectives are for business
improvement tools is drive for new business
opportunities.
How these improvement tools can be adopted
for customer loyalty, innovate new products or
services to drive in revenue based objectives.
6. Business
Improvement
Tools
5S
Japanese Term
English Term
Meaning
Seiri
SORT
Throw away all rubbish and unrelated materials in the workplace
Seiton
SIMPLIFY
Set everything in proper place for quick retrieval and storage
Seiso
SWEEP
Clean the workplace; everyone should clean/tidy up at end of day
Seiketsu
STANDARDISE
Standardize the way of maintaining cleanliness
Shitsuke
SUSTAIN
Practice 'Five S' daily - make it a way of life; this also means
'commitment'
7. Business
Improvement
Tools
7 Wastes
1. DELAY – Waiting for service, delivery, response.
2. DUPLICATION – Re-enter data, repeat details on
forms, copying information etc.
3. INVENTORY – Incorrect, out of stock etc.
4. OVER PROCESSING – Out of date standard, not focusing on
customer needs.
5. UNCLEAR COMMUNICATION – need for clarification, confusion
caused due to incorrect information.
6. ERRORS – In service transaction, faults etc.
7. UNNESSERY MOTION - Poorly designed work space, lack of
training.
9. Business
Improvement
Tools
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80:20 Rule
The distribution shows up in several different aspects
relevant to entrepreneurs and business managers. For
example:
80% of your profits come from 20% of your customers
80% of your complaints come from 20% of your
customers
80% of your profits come from 20% of the time you
spend
80% of your sales come from 20% of your products
80% of your sales are made by 20% of your sales staff