Notable Bookkeeping

Reasons for Lean Six Sigma

Lean Six Sigma allows for the improvement in speed and performance of a process coupled with the reduction of waste and defects. If you ever find your current processes with high rework, client turnover, product recalls/crashes, and a plethora of errors it might be time to change your process design. As you will read below, I have noted a few benefits and reasons for Lean Six Sigma.

  • Lean Six Sigma projects cut costs and expenses by eliminating waste (a result of inefficient or non-value added process steps).
  • Whilst, the reduction of expenses helps companies yield higher revenues and profits. Improvements in quality and delivery also have the potential to increase sales and profit.
  • When waste is eliminated, processes flow seamlessly and delivery times improve.
  • As a process flows more quickly, the amount of inventory needed to keep the process moving is reduced and cash is freed up for investment elsewhere.
  • By improving quality in each process, customer satisfaction is increased.
  • Lean Six Sigma allows employees to work in valued added processes which in turn increases overall internal satisfaction and morale.
  • The cost savings of implementing Lean Six Sigma, compared to the time and resources spent working on a project without Lean Six Sigma is typically 10 to 20 times the investment.

 

Notable Bookkeeping is a certified Lean Six Sigma company. Contact us today to learn more about our process improvement/Lean Sig Sigma services! We work with all industries and all company sizes.

 

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Planning a Data Analysis

At Notable Bookkeeping we believe a successful data analysis is attributed to how well it was planned. It will weed out the factors that do not have a relative effect on the response variable and identify the best value points for the factors that do have a relative effect on the response variable.

When conducting a data analysis you must first do the following:

  • Establish the purpose by defining the problem.
  • Identify the components of the data analysis.
  • Design the data analysis plan.
  • Conduct the data analysis.
  • Analyze the data.
  • Have someone audit your analysis and have it approved.
  • Generate the report.
  • Act on the results.

A well designed data analysis plan should provided unbiased results, utilize enough historical data and random sampling, have strong data quality assurance processes, and ensure past events are sufficiently similar to the current event or problem you are trying to predict or solve.

It is best to use all possible combinations of all selected value points of the factors to be investigated. This can determine the main effects of the factors manipulated on response variables and effects of factor interactions on response variables.

Paid Tier Subscriptions based on consumer cooking levels can drive growth for Cooking Delivery Services

Cooking delivery services offer customers the convenience and adventure of trying new meals right at home. However, the offerings are very similar amongst all mayor players like Blue Apron, Plated and Marley Spoon. Fresh packaged ingredients, serving plans and delicious recipes is the main offering package. Blue Apron offers a wine subscription delivery plan and suggests wine per a customer’s meal choice which optimizes its value to customers.

However, there is an under-valued opportunity that I believe will really drive growth for these companies. By developing targeted tier paid subscriptions based on consumer cooking levels, lifestyle (fitness, vegan, et cetera), meal preparation time, dish type and ingredients will help them lure in non-customers and increase revenue.

For example, lets say a cooking delivery service wanted to target people who hate to cook or don’t have time to cook. They could offer a beginner paid subscription based on the consumer cooking capabilities with easy to follow educational video instructions, meal prep time categories, dish types, and lifestyle categories with upgrade options to intermediate, advanced and expert level cooking subscriptions. They could further optimize this by partnering with grocery stores and integrating a rewards system for users who complete and learn cooking skills (badges, coupons, et cetera).

This example demonstrates how understanding the non-customer can help companies realize common value factors between current customers and non-customers. By personalizing the cooking offering customers would be able to choose their preferred prep time, dish type (breakfast, lunch, dinner, et cetera) and lifestyle category, in turn, increasing overall satisfaction and value to the consumer.

Notable Bookkeeping Friday Chat: Voice of the Customer

 

“Companies that listen to their customers will achieve higher retention rates than their competitors. The Voice of the customer can be acquired through surveys, social media, forums, et cetera. For better customer satisfaction, Listen to them!”