jjc showroom business development lss approach textiles 14 sep 04

8/2/2019 Jjc Showroom Business Development LSS Approach Textiles 14 Sep 04

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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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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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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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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



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 rearranged

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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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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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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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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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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j& j consultants


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DEDICATED.

jjc


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


1 Raam Nagar North 4th Street Madipaakkam Chennai 600091 T/F +91 - 44 - 2258 0637

jjconsultants.webs.com [email protected]


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jjc showroom business development lss approach textiles 14 sep 04

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