Industrial Engineering Process Optimization

Sustainability in Supply Chains A guide for private markets investors 🌍 Private markets investors face increasing pressure to integrate sustainability into supply chain management. This guide by PRI explains why supply chain due diligence is essential and how investors can embed it across the investment cycle to safeguard assets, reduce risks, and capture value. Supply chain risks, ranging from human rights abuses to environmental violations, have become financially material issues with direct implications for investor performance, regulatory compliance, and reputation. Human rights concerns are significant. Forced labour affects an estimated 28 million people worldwide, with rising risks in major sourcing countries such as India, Vietnam, China, Mexico and the United States. Migrant workers are particularly vulnerable, while child labour remains prevalent in high-risk industries and regions. Working conditions also present serious challenges. Excessive hours, unsafe workplaces and poor wages undermine the stability of global supply chains. These issues are concentrated in industries such as apparel, electronics, food and agriculture, construction materials and mining where oversight is often limited. Environmental risks add complexity. Nearly half of global sourcing markets face high or extreme risk of violations related to waste management, emissions and hazardous materials. Biodiversity loss and deforestation linked to commodities such as palm oil, soy and timber increase exposure to both regulatory and operational disruptions. Regulatory requirements are tightening worldwide. The EU Corporate Sustainability Due Diligence Directive, the US Uyghur Forced Labor Prevention Act and the EU Deforestation Regulation compel companies and investors to identify, mitigate and report risks throughout their supply chains. Failure to comply carries financial consequences. Volkswagen shipments were detained at US ports, Shein faced delays in listing plans due to sourcing concerns and companies in Germany were investigated and fined for breaches of the Supply Chain Act. These examples show how supply chain management is now a strategic necessity. Proactive due diligence creates opportunities. Companies with strong supply chain transparency and risk management can secure contracts, improve resilience, reduce costs and strengthen their brand. Investors can leverage these practices to enhance portfolio performance and protect value at exit. The guide explains that due diligence should be present at every stage of the investment cycle. This includes governance and policies, early screening, detailed risk assessments, legal agreements, active engagement, monitoring and exit planning. Clear roles, data systems and training are critical. Integrating sustainability into supply chain due diligence strengthens both risk management and value creation. #sustainability #business #sustainable #esg

Root Cause Analysis (RCA) Methods – Overview, Comparison & Tips 🔍 In quality, safety, engineering, and problem-solving domains, Root Cause Analysis (RCA) is a cornerstone of sustainable improvement. Here’s a quick overview and comparison of the top RCA methods, their strengths, and where they shine: 🎯 Popular RCA Tools & Techniques: ❶5 Whys – Simple yet powerful. Keep asking “why” to drill down to the root cause. ✅ Quick, intuitive | ❌ May oversimplify complex issues ❷Fishbone (Ishikawa) Diagram – Visualizes potential causes across categories (People, Methods, Machines, etc.) ✅ Great for brainstorming | ❌ Needs team consensus ❸Pareto Analysis – Based on the 80/20 rule. Focuses on the most frequent causes. ✅ Prioritization | ❌ Doesn’t show causality ❹FMEA (Failure Modes and Effects Analysis) – Proactive method to assess risk of potential failures. ✅ Risk-based | ❌ Time-consuming ❺Fault Tree Analysis (FTA) – Logical, top-down approach using boolean logic. ✅ Detailed and structured | ❌ Requires expertise ❻DMAIC (Six Sigma) – Structured problem-solving (Define, Measure, Analyze, Improve, Control). ✅ Data-driven | ❌ Can be resource-heavy ❼8D (Eight Disciplines) – Team-based, process-driven RCA with containment and corrective action. ✅ Widely used in automotive/manufacturing | ❌ May be too rigid for some issues ❽Shainin Red X Method – Focuses on dominant cause using progressive elimination. ✅ Fast for repetitive issues | ❌ Less known, needs training ❾Bowtie Analysis – Combines risk assessment with RCA, visualizing threats, controls, and consequences. ✅ Holistic | ❌ More qualitative ❿Cause & Effect Matrix – Prioritizes inputs based on impact on key outputs (CTQs). ✅ Links causes to outcomes | ❌ Needs solid process understanding ⓫AI/ML-Based RCA – Uses data mining and algorithms to detect patterns and predict root causes. ✅ Scalable, modern | ❌ Requires quality data & digital maturity 🔥 Challenges in Using RCA: -Bias and assumptions -Lack of data or poor data quality -Over-reliance on a single tool -Team misalignment -Skipping validation of root cause(s) 🧿 New Additions & Tips: ✅ Combine methods: e.g., Fishbone + 5 Whys or Pareto + FMEA ✅ Train teams on when/how to use each tool ✅ Always validate the root cause with data/evidence ✅ Document learnings for future prevention ✅ Embrace digital tools where appropriate 🧭 Choosing the Right RCA Tool: Ask yourself: ✔ Is the problem complex or simple? ✔ Do we have data? ✔ Is time a constraint? ✔ Are multiple stakeholders involved? ✔ Is this recurring or a one-time issue? 📊 Sometimes, a hybrid approach works best! 📢 What RCA tool do you use most often, and why? Share your experience or tips in the comments! ====== 🔔 Consider following me at Govind Tiwari,PhD #RootCauseAnalysis #QualityManagement #ContinuousImprovement #ProblemSolving #LeanSixSigma #FMEA #8D #DMAIC #Shainin #AIinQuality #CQI #QMS #RiskManagement #OperationalExcellence

The Power of SMED in Lean Manufacturing: Lessons from Formula 1 Pit Stops (1/2) In the fast-paced world of Formula 1 racing, every second counts. A mere delay of a few seconds in a pit stop can make the difference between winning and losing. This high-pressure environment has led to the development of highly efficient, synchronized processes that can teach us a lot about Lean manufacturing, particularly the SMED (Single-Minute Exchange of Dies) principle. Understanding SMED SMED is a Lean manufacturing technique that aims to reduce the time it takes to changeover or switch from one process to another. Developed by Shigeo Shingo, SMED focuses on minimizing downtime and increasing production flexibility. The goal is to perform changeovers in less than 10 minutes, hence the term "single-minute." Formula 1 Pit Stops: A Masterclass in SMED A Formula 1 pit stop is the epitome of precision and speed. In just a few seconds, a team of mechanics can refuel the car, change all four tires, and make necessary adjustments. Let's break down how these pit stops embody the SMED principles: 1. Preparation and Organization Before the race even begins, extensive preparation takes place. Tools and equipment are arranged in a precise manner, and every team member knows their exact role. Similarly, in SMED, the focus is on organizing tools and parts, ensuring everything is in place before the changeover begins. 2. Separation of Internal and External Activities In a pit stop, some tasks are performed while the car is still racing (external activities), such as preparing the tires and refueling equipment. Once the car arrives, the internal activities (changing tires, adjusting aerodynamics) are executed swiftly. SMED also emphasizes this separation, where preparatory work is done externally to minimize the time taken for the actual changeover. 3. Streamlining and Simplifying Tasks Every movement in a pit stop is choreographed to eliminate unnecessary actions. Each mechanic focuses on a specific task, reducing the overall time taken. This mirrors SMED's objective to streamline and simplify changeover tasks, ensuring that each step adds value and is performed as efficiently as possible. 4. Continuous Improvement Pit stop teams constantly analyze their performance, looking for ways to shave off precious milliseconds. This culture of continuous improvement is at the heart of SMED, where the process is regularly reviewed and refined to achieve faster and more efficient changeovers.

Looking to set a carbon New Year’s resolution in 2025? What has the biggest impact may surprise you! This research brings together 7000 studies looking at which actions matter the most to reducing household emissions. These top 10 apply for the average Western household, but there’s a lot of variability depending on individual situations. 1. Live Car-Free: Reduces emissions on average 2.04 tonnes CO₂e/year. 2. Switch to a Battery Electric Vehicle: Reduces emissions on average 1.95 tonnes CO₂e/year. 3. Avoid Long-Distance Flights: Reduces emissions on average 1.68 tonnes CO₂e/year. 4. Adopt a Vegan Diet: Reduces emissions on average 0.82 tonnes CO₂e/year. 5. Install Renewable Energy-Based Heating: Reduces emissions on average 1.60 tonnes CO₂e/year. 6. Implement Comprehensive Home Refurbishment: Reduces emissions on average 0.895 tonnes CO₂e/year. 7. Purchase Green Energy: Reduces emissions on average 0.37 tonnes CO₂e/year. 8. Use Public Transportation: Reduces emissions on average 0.98 tonnes CO₂e/year. 9. Limit Consumption of Animal-Based Products: Reduces emissions on average 0.35 tonnes CO₂e/year. 10. Practice Energy Conservation at Home: Reduces emissions on average 0.21 tonnes CO₂e/year. Many may be surprised not to see buying local food or recycling on the list. These are good things to do, but have only a marginal impact on emissions compared to energy choice, transportation method, and diet. My view is that you need to consider your own individual situation to determine what makes the biggest impact and what makes the most sense economically for you. A few considerations: -Is your house old and poorly insulated? -Do you fly more than the average person? -Do you eat a lot of red meat? What are your top tips for reducing emissions? Let’s not forget that we need systems change and so voting and supporting green policies are two of the most climate friendly things you can do! Read the full study here: https://lnkd.in/euq_YJP8 #climate #emissions #sustainability #netzero #carbonfootprint

Inventory management Methods: FIFO, LIFO, and FEFO Efficient inventory management is essential for businesses to optimize operations, reduce waste, and meet customer needs. Three commonly used methods are FIFO, LIFO, and FEFO. Here’s a detailed overview of each method, along with examples and their significance: FIFO (First-In, First-Out) Definition: FIFO ensures that the first items added to inventory are the first to be sold or used. Best For: Products with expiration dates, such as food or pharmaceuticals. Example: A grocery store practicing FIFO sells milk cartons based on their arrival dates, prioritizing those with the earliest expiration to ensure freshness. Importance: Reduces the risk of obsolescence or spoilage by selling older inventory first. Aligns with accounting standards and provides accurate cost tracking. LIFO (Last-In, First-Out) Definition: LIFO assumes that the most recently added inventory is sold or used first, opposite to FIFO. Best For: Primarily used in accounting for tax benefits; less common for physical inventory management. Example: In a grocery store following LIFO, the latest milk shipment would be sold before older stock, regardless of expiration dates. Importance: Offers potential tax advantages by reducing taxable income during periods of rising prices. May not align with actual product flow or quality standards, making it unsuitable for industries prioritizing freshness or safety. FEFO (First-Expired, First-Out) Definition: FEFO focuses on selling or using items closest to their expiration date first. Best For: Industries dealing with perishable or time-sensitive products, such as food and pharmaceuticals. Example: In a pharmacy, medications are dispensed based on their expiration dates, ensuring that items nearing expiry are used first. Importance: Minimizes waste and prevents selling expired products. Enhances product safety and quality, which is crucial in sectors where compliance and consumer trust are paramount. Conclusion The choice between FIFO, LIFO, and FEFO depends on the nature of the inventory and the business’s objectives: FIFO is ideal for reducing waste and ensuring product quality. LIFO may provide tax benefits but is less practical for physical inventory. FEFO is indispensable for industries with strict safety and expiration requirements. Implementing the right inventory management method ensures efficiency, compliance, and customer satisfaction.

Load balancing is crucial for scaling applications and ensuring high availability. Let's examine key algorithms: 1. Random    • Distributes requests randomly across servers    • Pros: Simple implementation, works well for homogeneous server pools    • Cons: Can lead to uneven distribution in short time frames 2. Round Robin    • Cycles through server list sequentially    • Pros: Fair distribution, easy to implement and understand    • Cons: Doesn't account for server load or capacity differences 3. IP Hash    • Maps client IP addresses to specific servers using a hash function    • Pros: Ensures session persistence, useful for stateful applications    • Cons: Potential for uneven distribution if IP range is narrow 4. Least Connections    • Directs traffic to the server with the fewest active connections    • Pros: Adapts to varying request loads, prevents server overload    • Cons: May not be optimal if connection times vary significantly 5. Least Response Time    • Routes requests to the server with the quickest response time    • Pros: Optimizes for performance, adapts to real-time conditions    • Cons: Requires continuous monitoring, can be resource-intensive 6. Weighted Round Robin    • Assigns different weights to servers based on their capacity    • Pros: Accommodates heterogeneous server environments    • Cons: Requires manual configuration and adjustment Choosing the right algorithm depends on your application architecture, traffic patterns, and infrastructure. What challenges have you faced implementing these in production environments? Any performance insights to share?

Most Business Analysts don’t get the ‘As-Is’ process right. Why? Because they assume it, document the ideal version, or miss the exceptions. ‘As-Is’ understanding is not about making flowcharts — it’s about seeing how work really happens on the ground. 👉 Talk to people doing the work 👉 Observe the actual process 👉 Capture variations and workarounds 👉 Validate your understanding If you get the current state wrong, your future-state solution won’t solve the real problem. Be curious. Be thorough. That’s where good analysis begins. #BusinessAnalysis #AsIsProcess #BusinessAnalyst #BAtips #ProblemSolving

How Can Sustainability Reshape Supply Chains? When you think about supply chains, do you see them as a system of endless transactions or a powerful avenue to drive sustainable impact? 🤔 I recently came across an insightful conversation with Steve Bernard, a CU Denver sustainability program alum with a decade of experience in supply chain management. His journey shows how sustainability isn’t a checkbox it’s a continuous path of collaboration, innovation, and improvement. Here’s a roadmap to integrating sustainability into supply chains, based on Steve’s reflections and my own experience as a sustainability professional: 🛠 The Five-Year Roadmap to Sustainability in Supply Chains 1️⃣ Set Clear Principles: -Publish sustainability principles and codes of ethics. -Share them with suppliers to set expectations early. 2️⃣ Assess and Align: -Conduct sustainability assessments for suppliers. -Use tools like CDP or collaborate with third-party evaluators. -Ensure alignment with your company’s mission and goals. 3️⃣ Build Relationships: -Foster open communication with suppliers. -Collaborate on goals rather than enforcing compliance-only approaches. 4️⃣ Integrate Sustainability into Contracts: -Include sustainability requirements in supplier agreements. -Recognize this as a long-term process—3 to 5 years for full integration. 5️⃣ Track and Improve: -Establish baselines to measure progress. -Use benchmarks and continuous improvement practices to evolve. 🌟 What Should You Ask of Suppliers? Here are key areas companies can address when working with suppliers: 🔵 Environmental Impact 🔵 Health and Safety 🔵 Stakeholder Engagement 🔵 Circular Economy Practices 💡 Why It Matters Sustainability isn’t just good for the planet—it’s good for business. Studies show: 🌱 88% of consumers are more loyal to companies that support environmental issues. 📈 Companies with strong ESG programs see higher employee retention and satisfaction. 💰 Businesses practicing sustainability often realize long-term cost savings through efficiencies and innovations. 🏆 A Balanced Approach: Carrots, Not Sticks If you’re starting this path, remember: 🌟 Progress takes time. 🌟 Collaboration drives success. 🌟 Transparency builds trust. What do you think? Have you faced challenges aligning sustainability with supply chain practices? #Sustainability #SupplyChain

To change the reality in which we keep pushing work into the operation, things hardly move, and we’re are often late, we need to unclog the flow. We do that by controlling our WIP (Work in Process); we make sure we don’t work on too many things at the same time and avoid multitasking between them. But. With less work in process, the concern is that our throughput will go down. And that concern is valid unless we take it further.   Controlling WIP provides visibility we didn’t have before. It enables us to see more clearly where and why things are still delayed; we can locate other obstacles to our flow and remove them. We can see more clearly which resources have the largest queues of work waiting in front of them; we can identify the operation’s constraints and start managing them. Then, we get the flow going much faster and we’re able to maximize our throughput.   In production, it’s usually easier to start by choking the release of raw material, then identify the constraints, and then locate other obstacles to our flow. In project environments, it’s usually easier the start by freezing projects, then locate the obstacles to the flow, and then identify the constraints. The logic is the same. Goldratt’s Rules of Flow. #goldrattsrulesofflow #theoryofconstraints #goldratt #projectmanagement #devops #engineering #pmi

KEY SIX SIGMA TOOLS VS. THEIR PURPOSES: DMAIC (Define, Measure, Analyze, Improve, Control) – A structured problem-solving approach for process improvement. DMADV (Define, Measure, Analyze, Design, Verify) – Used for designing new processes/products with Six Sigma quality. SIPOC Diagram – Identifies Suppliers, Inputs, Process, Outputs, and Customers to understand process scope. Process Mapping – Provides a visual representation of workflows to identify inefficiencies and improvement areas. Pareto Chart – Prioritizes problems using the 80/20 rule, focusing on major issues first. Fishbone Diagram (Ishikawa) – Categorizes potential root causes of problems for root cause analysis. 5 Whys – A simple method to identify root causes by repeatedly asking "Why?" Failure Mode and Effects Analysis (FMEA) – Identifies potential failures and their impact, allowing preventive actions. Control Charts – Monitors process stability and variations over time using statistical control methods. Histogram – Displays data distribution to analyze process performance and variations. Regression Analysis – Determines relationships between variables to optimize process outcomes. Gage R&R (Repeatability & Reproducibility) – Evaluates measurement system accuracy to ensure reliable data collection. Design of Experiments (DOE) – A statistical approach to optimize process settings and analyze factors affecting performance. Value Stream Mapping (VSM) – Identifies waste in processes and highlights opportunities for Lean improvement. Poka-Yoke (Error Proofing) – Prevents defects by designing foolproof mechanisms into processes.