not able to convince the finance managers the tangible benefits are reasonable. I had many cases where team over estimate the saving, or over optimistic about the improvement results. Thus make the Cost-Benefit Analysis unrealistic.

How to Overcome Cost Benefit Analysis Problem

Key focus to this issue is to justify the cost and benefit with real data and analysis. Simulation test or even pilot run to confirm certain improvement will be a great help to ascertain your action. This is one tool that it must be done quantitatively not only to justify the cost, but to provide assurance to the team for action to be taken.

In summary, there bound to have problem with the tools used. When it happened, it must be addressed promptly before team member loss confidence. Team must use these tools effectively so that it helps in the improvem

This TQM article is a continuation of the Part 4a article, the IMPROVE PHASE. In this issue, I will share with you some of the difficulties faced with the team in carry out this TQM project using these tools in the D.A.I.C. methodology as described in the article.

Just to recap, tools used in the IMPROVE Phase are listed below. In this article, I will cover the tools in bold:

Brainstorming of action / solution | Selection Grid | Benchmarking | Cost-Benefit Analysis | Control lot and testing | Pilot the action / solution | Force-Field Analysis | Prevention Planner

Problem with Benchmarking

a) Benchmark the result
In most cases, teams work on projects that are assigned by management. Come along with the project is the assigned target. These targets are normally taken from the budget which has been committed to the shareholders during the budget time. Subsequently, the target figures are used to compute operating costs.

After team is set up, team would follow the steps in the D.A.I.C. methodology. When team arrived at setting target, there were incidence teams still debate how realistic was the target given by the management. Team failed to realize that the target is a minimum benchmark figure as far as budget is concerned.

b) Benchmark the process
In many occasions, members from one plant visited another would agree the visited plant is better, their process are more efficient and so on. When asked to use the visited plant processes performance as a benchmark, member give many reasons why they are different from the visited plant hence cannot meet the benchmark processes. In many case, even the management are in agreement to their rationale.

How to Overcome Benchmarking Problem

a) Benchmark the result
There are two schools of thoughts dealing with this issue. Firstly, to challenge the target set by the management with data to support your justification. You may should some trend of some historical data but keep in mind that data are historical. Strictly speaking, while historical data provides a trend in the past it does not fully support prediction for the future. Since there is no absolute truth to its justification, the assigned target is good as anybody else guesses. Under such circumstance, management would not convince to change the target.

Secondly, instead of spending time to justify how the target is too high, team might as well analysis what it takes to meet the assigned target. Most of the time, team complained that those assigned targets are unreasonable. Due to this fact, I always advocate the team that they must think of some unreasonable actions in order to get those unreasonable results. There is a saying “Only idiot would think of getting different result by doing similar things”

b) Benchmark the process
There is no better way to insist team to improve processes by using systematic improvement tools such as process capability etc. Management should be persistent enough to follow through such expectations and provide assistance to help the team to succeed. Such assistance may include further training, enhancement of analytical knowledge and skill or even engage external help.

Problem with Cost-Benefit Analysis

While the tool is guided by a template, most problems faced by team in this tool is to justify the cost may have incurred and validity of the benefits stated. Team were not able to convince the finance managers the tangible benefits are reasonable. I had many cases where team over estimate the saving, or over optimistic about the improvement results. Thus make the Cost-Benefit Analysis unrealistic.

How to Overcome Cost Benefit Analysis Problem

Key focus to this issue is to justify the cost and benefit with real data and analysis. Simulation test or even pilot run to confirm certain improvement will be a great help to ascertain your action. This is one tool that it must be done quantitatively not only to justify the cost, but to provide assurance to the team for action to be taken.

In summary, there bound to have problem with the tools used. When it happened, it must be addressed promptly before team member loss confidence. Team must use these tools effectively so that it helps in the improveme

o the shareholders during the budget time. Subsequently, the target figures are used to compute operating costs.

After team is set up, team would follow the steps in the D.A.I.C. methodology. When team arrived at setting target, there were incidence teams still debate how realistic was the target given by the management. Team failed to realize that the target is a minimum benchmark figure as far as budget is concerned.

b) Benchmark the process
In many occasions, members from one plant visited another would agree the visited plant is better, their process are more efficient and so on. When asked to use the visited plant processes performance as a benchmark, member give many reasons why they are different from the visited plant hence cannot meet the benchmark processes. In many case, even the management are in agreement to their rationale. How to Overcome Benchmarking Problem

a) Benchmark the result
There are two schools of thoughts dealing with this issue. Firstly, to challenge the target set by the management with data to support your justification. You may should some trend of some historical data but keep in mind that data are historical. Strictly speaking, while historical data provides a trend in the past it does not fully support prediction for the future. Since there is no absolute truth to its justification, the assigned target is good as anybody else guesses. Under such circumstance, management would not convince to change the target.

Secondly, instead of spending time to justify how the target is too high, team might as well analysis what it takes to meet the assigned target. Most of the time, team complained that those assigned targets are unreasonable. Due to this fact, I always advocate the team that they must think of some unreasonable actions in order to get those unreasonable results. There is a saying “Only idiot would think of getting different result by doing similar things”

b) Benchmark the process
There is no better way to insist team to improve processes by using systematic improvement tools such as process capability etc. Management should be persistent enough to follow through such expectations and provide assistance to help the team to succeed. Such assistance may include further training, enhancement of analytical knowledge and skill or even engage external help.

Problem with Cost-Benefit Analysis

While the tool is guided by a template, most problems faced by team in this tool is to justify the cost may have incurred and validity of the benefits stated. Team were not able to convince the finance managers the tangible benefits are reasonable. I had many cases where team over estimate the saving, or over optimistic about the improvement results. Thus make the Cost-Benefit Analysis unrealistic.

How to Overcome Cost Benefit Analysis Problem

Key focus to this issue is to justify the cost and benefit with real data and analysis. Simulation test or even pilot run to confirm certain improvement will be a great help to ascertain your action. This is one tool that it must be done quantitatively not only to justify the cost, but to provide assurance to the team for action to be taken.

In summary, there bound to have problem with the tools used. When it happened, it must be addressed promptly before team member loss confidence. Team must use these tools effectively so that it helps in the improvem

>How to Overcome Benchmarking Problem

a) Benchmark the result
There are two schools of thoughts dealing with this issue. Firstly, to challenge the target set by the management with data to support your justification. You may should some trend of some historical data but keep in mind that data are historical. Strictly speaking, while historical data provides a trend in the past it does not fully support prediction for the future. Since there is no absolute truth to its justification, the assigned target is good as anybody else guesses. Under such circumstance, management would not convince to change the target.

Secondly, instead of spending time to justify how the target is too high, team might as well analysis what it takes to meet the assigned target. Most of the time, team complained that those assigned targets are unreasonable. Due to this fact, I always advocate the team that they must think of some unreasonable actions in order to get those unreasonable results. There is a saying “Only idiot would think of getting different result by doing similar things”

b) Benchmark the process
There is no better way to insist team to improve processes by using systematic improvement tools such as process capability etc. Management should be persistent enough to follow through such expectations and provide assistance to help the team to succeed. Such assistance may include further training, enhancement of analytical knowledge and skill or even engage external help.

Problem with Cost-Benefit Analysis

While the tool is guided by a template, most problems faced by team in this tool is to justify the cost may have incurred and validity of the benefits stated. Team were not able to convince the finance managers the tangible benefits are reasonable. I had many cases where team over estimate the saving, or over optimistic about the improvement results. Thus make the Cost-Benefit Analysis unrealistic.

How to Overcome Cost Benefit Analysis Problem

Key focus to this issue is to justify the cost and benefit with real data and analysis. Simulation test or even pilot run to confirm certain improvement will be a great help to ascertain your action. This is one tool that it must be done quantitatively not only to justify the cost, but to provide assurance to the team for action to be taken.

In summary, there bound to have problem with the tools used. When it happened, it must be addressed promptly before team member loss confidence. Team must use these tools effectively so that it helps in the improvem

this fact, I always advocate the team that they must think of some unreasonable actions in order to get those unreasonable results. There is a saying “Only idiot would think of getting different result by doing similar things”

b) Benchmark the process
There is no better way to insist team to improve processes by using systematic improvement tools such as process capability etc. Management should be persistent enough to follow through such expectations and provide assistance to help the team to succeed. Such assistance may include further training, enhancement of analytical knowledge and skill or even engage external help. Problem with Cost-Benefit Analysis

While the tool is guided by a template, most problems faced by team in this tool is to justify the cost may have incurred and validity of the benefits stated. Team were not able to convince the finance managers the tangible benefits are reasonable. I had many cases where team over estimate the saving, or over optimistic about the improvement results. Thus make the Cost-Benefit Analysis unrealistic.

How to Overcome Cost Benefit Analysis Problem

Key focus to this issue is to justify the cost and benefit with real data and analysis. Simulation test or even pilot run to confirm certain improvement will be a great help to ascertain your action. This is one tool that it must be done quantitatively not only to justify the cost, but to provide assurance to the team for action to be taken.

In summary, there bound to have problem with the tools used. When it happened, it must be addressed promptly before team member loss confidence. Team must use these tools effectively so that it helps in the improvem

not able to convince the finance managers the tangible benefits are reasonable. I had many cases where team over estimate the saving, or over optimistic about the improvement results. Thus make the Cost-Benefit Analysis unrealistic.

How to Overcome Cost Benefit Analysis Problem

Key focus to this issue is to justify the cost and benefit with real data and analysis. Simulation test or even pilot run to confirm certain improvement will be a great help to ascertain your action. This is one tool that it must be done quantitatively not only to justify the cost, but to provide assurance to the team for action to be taken.

In summary, there bound to have problem with the tools used. When it happened, it must be addressed promptly before team member loss confidence. Team must use these tools effectively so that it helps in the improvement planning. In my next article, I will continue to share how team uses other tools in the IMPROVE PHASE to improve their project. I welcome readers feedback how else I could present these articles.

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