S4 Assignment (Group 2)

Hypothesis

1. Sales growth across other regions of the United States and stagnating in Region 1 leading to
lower number of orders
2. Increase in receivables due to spoilt client relationships throwing forecasts out of the window
3. Unorganized and dirty work floor at the SKS manufacturing plant
4. Reactive approach to technology upgrade - high number of breakdowns
5. High work pressure on the workers, thereby contributing to burnouts and poor returns
6. Inability to provide customer service putting a stop on sales and having a tunnel effect down
the production line
7. Poor communication (linearity) between Maria Chen (representing Deloitte) and SKS in
Phase 1
8. Poor integration of functional divisions in SKS
9. Poor approach to IT in the entire process
10. Lack of a proper talent management system
11. Lack of enthusiasm from the workers on the floor fearing that they might get fired
12. A lukewarm approach to a critical situation leading to a ripple effect

Approach

● Fishbone Diagram

The fishbone diagram can be used to analyze the cause and effects of a particular
situation. In this case, the high WIP could be because of many reasons, and all of those
could be granularized in a manner that would allow for the team to individually address it
(or cluster them, as is their prerogative)

● Regression

Regression could be used to identify the variables that are contributing to the parameter
of choice, in this case, the high WIP. This can optimize resource allocation and allow for
a more concentrated focus

● Encoding qualitative data (Likert scale)

Considering that a lot of points in this case are qualitative, Likert scales (and their
modified forms) can be used to quantify the data in a manner that can be analyzed and
simulated. This can contribute majorly to the task at hand

● Pareto Diagram
 In a cash crunch situation, not every problem can be solved by SKS, and thus, the
Pareto framework is useful to identify the major controlabes that can turn around the
situation
● Six Sigma

Six sigma projects can be useful to provide quantifiable results in a short period of time.
Considering the scenario, the same could be deployed to provide actual results to SKS
in the time that is left.

● Balanced scorecard

One framework that can also work for SKS that is looking at cross-functional
realignment, a balanced scorecard can provide a realistic picture of the entire
manufacturing process going beyond the financials and including the qualitative aspects
as well.