Strategies for the Global Economic System for 2030

Elena G. Popkova, Artem I. Krivtsov, Aleksei V. Bogoviz, Elena G. Popkova, Artem I. Krivtsov, Aleksei V. Bogoviz

• Publisher: De Gruyter Oldenbourg
• Year: 2021
• eBook ISBN: 9783110650884
• Edition: 1
• Topic: Betriebswirtschaft
• Subtopic: Internationale Wirtschaft

Against the background of continuing crises in the world's economy, the question of what future awaits it in the third decade of the 21st century has become urgent. According to the paradigm model of long waves, the next global economic crisis is expected to transpire somewhere around 2030. This book defines the basic conditions for the development of the modern global economy, analyzing future scenarios for its long-term development, and providing applied recommendations for the practical implementation of the optimal scenario.

The book first explores the conceptual vision of the future and the priorities for the strategic development of the global economic system until 2030. It then formulates the requirements for entrepreneurship to achieve the priorities of the strategic development of the global economic system including long-term industry solutions for entrepreneurship and markets. Third, it outlines the guidelines for state regulation of the global economic system in the interest of achieving the priorities of its strategic development in the period up to 2030.

Part I: The Conceptual Vision of the Future Context and Foundations of the Strategic Development of the Global Economic System Until 2030

1 “The Lean and Six Sigma” Concept as a Strategic Tool for Process Optimization

Liudmila G. Mishura

National Research University of Information Technologies, Mechanics and Optics (ITMO University), Saint Petersburg, Russia

Alina I. Kruglova

National Research University of Information Technologies, Mechanics and Optics (ITMO University), Saint Petersburg, Russia

Introduction

Currently, many competitive companies on the market invest a significant share of their resources in self-development and strengthening of market positions. To become a leader in the industry, as well as to go global, it is necessary to ensure a high degree of customer satisfaction and introduce innovative management methods (Arenkova et al., 2019). For this purpose, many companies have already implemented or are trying to implement the concept of “Lean and Six Sigma” (Lean production & Six Sigma), which in turn represents a unique management strategy that allows increasing management efficiency, and improving the performance. The Lean and Six Sigma concept consists of two types of concepts: Lean production, which focuses on reducing waste and non-production costs and increasing process speed, and Six Sigma, which focuses on customer needs through the quality management of products and services provided, to optimize the process within the framework of available statistical tools (Vasilenok et al, 2020).

The purpose of this work is to study the stages of the “Lean and Six Sigma” concept during its implementation in the service area of the customer service department of the Japanese company “NGK SPARK PLUG CO., Ltd” for the optimization of processes and reducing the wasted time during the operations.

Methodology

The concept of “Lean” originated at Toyota in 1950 as a method of optimizing the automotive industry. In the sixties, the world market received a new strong competitor, and the US car market – a company whose cars turned out to be more reliable and cheaper than American ones. This is what caused the demand for this concept in other industries, for example, trade, energy, healthcare, banking services. Its main goals are to reduce costs and speed up the process. The tools by which the concept achieves these goals are as follows: tools for managing the speed of maximizing the process; tools for analyzing the process flow and time delays during each operation; means for eliminating and calculating the expenses caused by unnecessary complexity; tools to eliminate non-value-added operations and associated costs (George, 2017).

The Six Sigma concept was developed by Motorola in 1980 to reduce fluctuations in the manufacturing of electronic components. The objectives of this concept are as follows: understanding customer needs; identification of key processes related to the customer requirements; application of statistical and qualitative analysis methods to reduce process variability; structuring of the processes. Achievement of these goals allows not only to optimize production or the service sector but also ensures constant improvement of the achieved effect. According to the concept, the stages of the implementation of any project correspond to the cyclical scheme “define – measure – analyze – improve – control” (DMAIC). It was found that with the help of this scheme there is always an opportunity to discern the trigger of negative factors and offer steps to optimize the company’s processes. The concept uses standard quality tools such as cause-effect diagram, Statistical Process Control (SPC), Pareto Charts, checklists, benchmarking (George, 2017).

Figure 1.1 shows the components of the “Lean and Six Sigma” concept that have been combined to form this approach.

Source: Based on the book by George (2017).

Figure 1.1: Concept of Lean and Six Sigma.

Currently, critics have not found alternatives and better management techniques for implementing the strategic approach, and therefore the concept of “Lean and Six Sigma” is the standard way to optimize production in the 21^st century. Let us consider the sequence of this concept implementation using the example of the Japanese company “NGK SPARK PLUG CO., Ltd”.

Results

The Japanese company NGK SPARK PLUG CO., Ltd is one of the world’s leading suppliers of automotive components and technical ceramics. Along with it, such companies as DENSO and Bosch are developing in the field of automotive components, occupying a leading position in the production and sale of automotive components and technical ceramics. To provide an advantage over competitors and to increase consumer loyalty, it is necessary to improve product quality, optimize all production and service processes. The company should pay close attention not only to the production area but also to the service area, which includes receiving an order for a product from a customer, processing it, shipping and warranty service.

To achieve this goal, a number of tasks must be completed:

1. Analyze the company’s customer service department using the Lean and Six Sigma methodology, in accordance with the DMAIC methodology.
2. To identify negative factors in this area using statistical methods of quality control.
3. To draw conclusions about the effectiveness of the company’s customer service.
4. To develop measures for improving and optimizing the work of the NGK service sector.

Define: At this stage, it is necessary to determine the object of the research, to form a team of responsible persons who will supervise the improvement process, and to establish the areas of responsibility. The object of the research will be the logistics and customer service department, namely: order processing from the customer service side. A team responsible for conducting the study has been formed, which includes a leader, manager and assistant of the logistics and customer service department, as well as a regional manager.

Measure: At this stage, data on the process progress is collected, analyzed, and assumptions are made about the triggers of fluctuations. For collecting and analyzing data, a statistical method of quality control is used – a Pareto Chart and a Cumulative Frequency Curve. The responsible persons brainstormed a number of factors that, in their opinion, have a negative impact on the entire activity of the company’s customer service. These factors are reflected in the checklist presented in Table 1.1, their registration was carried out on days of the week from 13.04.2020 to 17.04.2020.

Table 1.1:Checklist.

Delays in order processing	13.04	14.04	15.04	16.04	17.04	Total	% to the total	Trigger
1. Making an order with an error	III		II	I		6	8.45	Method of work
2. Late discount message	II	I	III	III		9	12.67	Performer
3. Large quantity of orders in one day		III		II	III	8	11.27	Method of work
4. Processing a back-order upon shipment	II	II	II	II	II	10	14.08	Method of work
5. Formation of a back order upon request	II	II		I	III	8	11.27	Method of work
6. Addition of already processed order	I		I		III	5	7.0	Performer
7. Warehouse load		III		II	IIII	9	12.67	Method of work
8. Placing orders beyond NGK working hours	II	III		III		8	11.27	Performer
9. Breaking/updating 1C system		I		II		3	4.22	Equipment
10. Others (meetings, checks, dialogue with the customer by phone)	I	I	I	I	I	5	7.0	Method of work
TOTAL	13	16	9	17	16	71	100

Source: Based on data obtained by the authors.

The next step in the analysis of activities is to identify the triggers due to which negative factors arise. This could be human factors, the failure of equipment or order processing systems, or the company working method in a customer service department. Triggers such as the Performer, Equipment, and Method of Work were in the company “NGK SPARK PLUG CO., Ltd”.

To identify the significant triggers, a Pareto Chart and cumulative frequency curve on negative factors and their triggers were plotted. It is presented in Figure 1.2.

Source: Based on the data obtained by the authors.

Figure 1.2: Reasons for the Negative Result, %.

To determine the priority types of work and analyze the obtained results, we will use the ABC method – analysis of the Pareto Chart, which allows us to distinguish three groups of negative...

Table of contents

• Title Page
• Copyright
• Contents
• Introduction: Priorities for the Strategic Development of the Global Economic System Until 2030
• Part I: The Conceptual Vision of the Future Context and Foundations of the Strategic Development of the Global Economic System Until 2030
• Part II: Long-term Industry Solutions for the Strategic Development of Entrepreneurship and Markets in the Global Economic System Until 2030
• Part III: Recommendations for Improving Government Regulation in the Interests of the Global Economic System Strategic Development in the Period Up to 2030
• Index