jjc showroom business development lss approach textiles 14 sep 04
TRANSCRIPT
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jjc
SHOWROOM BUSINESS DEVELOPMENTLEAN 6 SIGMA APPROACH
14 Sep 04
PREAMBLE
In the current globalised, highly dynamic and competitive market, the awareness and theknowledge level of the customers are very high.
To develop the business and then to retain the developed status, 360 degree efforts are requiredthrough continuous (kaizen) improvement of productivity, quality and the cost.
To control the cost, optimization of input resources, eliminating wastage, is essential.
The factors influencing the cost, productivity and the quality will all vary from season to season,time to time (business hours) and sector to sector in jewellery business.
Controlling all the factors will be difficult and will not bring the required results. Identifying right
measures and controlling the right factors at right time will bring in the optimum results.
Lean 6 sigma is the latest statistical tool practised in electronics and auto industries for this
purpose.
jjcteam has simplified this tool industry wise for direct applications as required, without gettinginto the complex mathematical and statistical analysis.
A long list of measures has been developed for show room business development of any kindcovering textiles, jewels, furniture, utensils, travel aids etc.
Monitoring right measures and applying right controls will give the best results.
This expert work is offered at a nominal cost with the aim of spreading the LSS concept among allsectors of business and industries.
LSS
The LSS approach is to identify,
= Major selling,
== Brands== Varieties
= Major customer characteristics fetching maximum business,
== Customer class/groups== Age, visiting style (solo/friends/family)== Buying habit (festival/occasional/casual)
= Preferred time slots by each customer sector,
== Very lean to peak busy etc.
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1 Raam Nagar North 4th Street Madipaakkam Chennai 600091 T/F +91 - 44 - 2258 0637
jjconsultants.webs.com [email protected]
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SHOWROOM BUSINESS DEVELOPMENTLEAN 6 SIGMA APPROACH
14 Sep 04
All such data will help to
= Resizing the capacity of the major and minor business sections as required
= Optimize the administrative and sales staff in show room and to depute fortraining/back office work
= Depute skilled/fresh staff in major business sections at appropriate time slots= Fine tune/change the advertising and marketing techniques and efforts
Also these data will help to measure the performance of
= Business policies
= Show room design/systems
= Sales staff efficiency
= Effectiveness of marketing efforts
= Effectiveness of administrative staff and procedures
And helps to optimize the
= Manpower deployment and cost= Space allocation for different sections
= Investment in inventories
= Sales procedures (presenting, packing, billing, delivering) and cost
A typical matrix of measures is depicted with their scope to improvement in the next sheet.
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SHOWROOM BUSINESS DEVELOPMENTLEAN 6 SIGMA APPROACH
14 Sep 04
DAY FRI DATE 02 OCT 2004
SECTION Silk sarees sft 150 STAFF STAFF ID 101/234/556
DATA/MEASURES TOTAL
9 -10
10-11
11 2
2 3
3 5
5 6
6 8
8 9
9 10
Lean,
Very
Lean Busy Lean Busy Busy,
Very
Busy,
Peak
Busy,
Very
Lean
01. SALES01 Sales, Rs
02 No. of bills
03 Sales, Rs/Bill Measures the administrative efficiency/cost
04 Sales, Rs/Area, sft Accordingly space can be varied between sections
05 Sales, Rs/Staff
06 Sales, Rs/Design 1 Provides data about customer class/their preference for brands/varietiesduring different time slots ;Accordingly suitable staff can be deputed during the time slots;Staff can be accordingly advised to promote brands during the slots
07 Sales, Rs/Design 2
08 Sales, Rs/Design 3
09 Sales, Rs/Variety 1
10 Sales, Rs/Variety 2
11 Sales, Rs/Variety 3
12 Sales, Rs/Staff 1 (or team 1) Performance measurement of sales staff in terms of value13 Sales, Rs/Staff 2
14 Sales, Rs/Staff 3
15 Pcs/Staff 1 Performance measurement of sales staff in terms of work input;Combining with the above, incentives can be designed16 Pcs/Staff 2
17 Pcs/Staff 3
18 Pcs/ Design 1 Provides the movement of brands and time duration;Accordingly knowledgeable staff can be deputed in these time slots;
Accordingly shelf space can be rearranged19 Pcs/ Design 2
20 Pcs/ Design 3
21 Pcs/Variety 1 (eg. silk sarees) Accordingly displays/space can be re- arranged
22 Pcs/Variety 2 (eg. bangles)
02. PAYMENT PATTERN01 Customers paid in cash
02 Customers paid thru credit card Accordingly bill counter staff/telephone lines can be deployed
03 Customers paid thru debit card
04 Customers paid thru coupons
03. CUSTOMER PATTERN/CHARACTERISTICS01 Total
02 Gents Advt concepts to be designed to attract the weaker categories;Advt media, marketing efforts to be fine tuned accordingly03 Ladies
04 Solo
05 Friends
06 Family
07 Interactiveness Less Accordingly, well mannered/knowledgeable/jovial/serious salesstaff to be deputed08 Jovial
09 Informative
10 Income group Premium Ratios of branded/non branded can be modified accordingly
11 Regular Trainees/freshers can be trained in these sections/time slots
12 Buyinghabit
Festival
13 Regular/casual
14 Occasional (marriage)
15 Religion Hindus Marketing efforts to be accordingly put in at appropriatemedia/modes/means/areas;Varieties can be offered accordingly
16 Christians
17 Muslims
18 Residence Advt reach to be ensured accordingly
19 Interested in offers Offers to be promoted accordingly
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SHOWROOM BUSINESS DEVELOPMENTLEAN 6 SIGMA APPROACH
14 Sep 04
DATA COLLECTION
FREQUENCY
= The data to be collected ideally throughout a year, all the working days to cover the variationsdue to seasons. Each month will be differing due to various reasons
= However to reduce the burden on data collection, each month can be studied for various effectsand the similar months can be avoided
= Data collection in the lean time slots need not be repeated all the days and al the months.
= Data collection in minor business sections need not be repeated
= Wherever possible, assumptions, extrapolation can be applied to reduce the data collectionwork
METHODS
= Most of the data will be available through the barcode. With minor modifications/developmentsin the software, the inventory related data and measures can be made available through the
software
= Other marketing based data need to be observed on a sampling basis and recorded likereligion/visiting type - group or family or solo/buying habit - festival or casual or occasional etccan be estimated from the card repeating data for 3 years as a sampling basis
CUSTOMER VISITS
= CCTV recordings Cameras should be kept confidentially as this may hurt some customers
= Can be taken section by section but all the sections should be covered for all the days and for allthe dates (as beginning/closing/mid dates will have varied patronage)
= Manually through college students without embarrassing the customers
= Through sensors where possible like entrance/gate/decorative arch is available for the section temporary decorative gate structures can be installed to provide sensors
= The working hours can be slotted according to the very lean, lean, busy and very busy
duration
= The slots can be of different durations 1/2 h to 2 h slots; too long slot will reduce the accuracy
of the data and too narrow time slot will increase the complexity of the data at initial stages.
= This slotting will help to reduce the data collection work burden during lean slots so that thedata collection cost is optimized
= A typical time slots for a 9 am to 10 pm working hours is as shown above
= These time slots will need to vary from sections to sections, season to season, day to day
= This study will help to accordingly allocate staff, optimize the cost on interiors, control inventoriesFine tune the focus of marketing efforts etc.
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SHOWROOM BUSINESS DEVELOPMENTLEAN 6 SIGMA APPROACH
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CUSTOMER CHARACTERISTICS
= Challenging task; hence sampling data can be applied with appropriate statistical techniques
= Major characteristics (signalfactors) influencing business development should bedistinguished from the minor characteristics (noise factors) for this study
= Sampling data should be carefully taken and the results extrapolated statistically
REGIONAL DATA/MEASURES COMPARISON
= In case of multi location show rooms, comparative study of appropriate data/measures of show
rooms of different regions/locations would infer the possibilities of improvement in systems andprocedures.
DATA NORMALISATION
= The observed data should be corrected for errors, like:
== Data observation errors by the observer
== Repeated data eg> Same customer can roam around and visit the same section several
times, which will be observed and recorded as new customers
MEASURES
MEASURES, SALES
01 Sales, Rs02 No. of bills
03 Sales, Rs/Bill
04 Sales, Rs/Area, sft of show room
05 Sales, Rs/Staff - staff wise or team wise06 Sales, Rs/Design - design wise
09 Sales, Rs/Variety - variety wise eg silk sarees, t-shirts, chairs, rings,10 Sales, Pcs/Staff - staff wise or team wise
11 Sales, Pcs/Design - design wise12 Sales, Pcs/Variety - variety wise
13 Billing per customer per day, range wise (up to Rs 5 000; Rs 5 001 10 000 .)
MEASURES, MARKETING
01 Total sales/Total marketing expenses02 Increase in sales/Increase in marketing expenses
03 Trend of above 02 during various seasons to distinguish the real effectiveness of marketingefforts from the natural seasonal growth
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SHOWROOM BUSINESS DEVELOPMENTLEAN 6 SIGMA APPROACH
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MEASURES, INVENTORY
01 Inventory turn ratio, Total02 Inventory turn ratio, Design wise
03 Inventory turn ratio, Variety wise
MEASUERS, ADMINSITRATIVE
01 Sales/Administrative cost, Total02 Sales/Administrative cost, Section wise (variety wise)
MEASURES, SYSTEM
01 Sales team input hours/Total man power input in hours including performers/supervisory exceptexecutives (not involved in daily routines)
MEASURES, PRODUCTIVITY
01 Sales, Rs per hour or day as appropriate, Total
02 Sales, Pcs hour or day as appropriate, Total
03 Sales, Rs per hour, Section (variety) wise04 Sales, Pcs per hour, Section (variety) wise
05 Sales, Rs per staff, Staff wise (team wise)
06 Sales, Pcs per staff, Staff wise (team wise)
07 Billing time, seconds per bill staff wise08 Billing time, seconds per bill counter wise
09 Material transfer time from section to billing counter section wise
10 Material transfer time from section to billing counter team wise (within the section)11 Material transfer time from billing to delivery counter section wise
12 Packing time, seconds per item staff wise13 Packing time, seconds per item type wise (eg sofa, formal shirts, bangles, suitcases)
14 Delivery time per item staff wise15 Delivery time per item counter wise (average of all the staff of the counter)
16 Time taken per sale variety wise, staff team wise
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SHOWROOM BUSINESS DEVELOPMENTLEAN 6 SIGMA APPROACH
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MEASURES, POUPLARITY OF VARIETY/DESIGN
01 Sales, Rs per minute or hour or day as appropriate, variety and design wise02 Sales, Pcs per minute or hour or day as appropriate, variety and design wise
MEASURES, POUPLARITY OF CUSTOMER SECTOR
01 Singles (Men)/day or week or month as appropriate02 Singles (Women)/Day
03 Friends group (Men)/Day04 Friends group (Women)/Day
05 Couples/Day
06 Families/Day
07 Small businessmen/Day
MEASURES, CUSTOMER CARE
01 Pcs presented per customer (or customer team, family), variety wise02 Pcs presented per pce sold
03 Pcs presented per pce sold, staff wise
04 No. of customer complaints per month, total
05 Customer complaints per month, pcs/pcs sold
06 No. of customer complaints per month, brand wise
07 No. of customer complaints per month, variety wise08 No. of customer complaints per month, defect wise, variety wise
09 No. of customer complaints per month, customer sector wise10 No. of customer complaints per month, brand wise
11 Cost of complaints per Rs lac of sales per month
MEASURES, PAYMENT PATTERN
01 Customers paid in cash02 Customers paid thru credit card
03 Customers paid thru debit card04 Customers paid thru coupons
Week wise trend of these ratios correlated to the sales pattern will guide on further developments.
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SHOWROOM BUSINESS DEVELOPMENTLEAN 6 SIGMA APPROACH
14 Sep 04
We hope you would have gone through this brief guide.
Thanks for your interest.
Hope nothing would have been new to you as you know
better your business than anyone else.
However, this brief guide would have helped you to collatethe relevant data available with you in a systematicapproach and consolidate your efforts to develop your business.
Please feel free to contact us for further information/guidance.
We appreciate your interest in Lean 6 Sigma and
We wish you all great success !!
j& j consultants
j& j consultantsDEDICATED.
1 Raam Nagar North 4th Street Madipaakkam Chennai 600091 T/F +91 - 44 - 2258 0637
jjconsultants.webs.com [email protected]
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