Mistake Proofing or Error Proofing. This activity is also known by the Japanese word term poka-yoke, from poka (inadvertent errors) and yoke (to avoid).
Mistake-Proofing is a simple and effective method to prevent defects from occurring in an organization’s manufacturing, service, or business process.
This article describes the 12 mistake-proofing principles to design both product and processes so that mistakes are impossible to make or, at the least, easy and early to detect and correct.
So, let’s know what are they.
12 Important Steps of Small Business Mistake Proofing
- Find fault
- Quick Correct
- Fault analysis
- strategize
- Vigilant check
- Get More Funds
- Revisit contingency list
- Correct Fault Lines
- Variable Adjustment
- Set milestones
- Set accountability
- Measure key performance indices.
1. Find Fault
The first step is to find the fault. Before correcting the fault, it’s important to know about the mistake. If you have done Small Business Mistake, then you have to perform the first step which is to Find FAULT.
In this step, you have to Find your Fault, so that you can fix it.
One of the most common (and deadly) mistakes in entrepreneurship is creating a solution before identifying the problem.
You might think you have the next big idea, but have you done the research to see if it could be successful? Is there a need in the marketplace? Is the space full of slow-moving companies unwilling to change? Then maybe you have an opportunity. If not, you might be wasting money and time.
If you want to obtain success, the first thing you need to do is find the problem to solve. The problem serves as the foundation for your company.
What is needed + what you can do?
It can be very tempting to jump on the next hot idea you have, but so many people fail with fly-by-night operations that have no mission or framework.
Before starting your next company, take a step back and assess two things: the marketplace and your abilities.
Think hard about this. Starting a company is equal parts passion and planning. You need the motivation for both.
2. Quick Correct
The first step was to find the fault. So, now if you have a fault, then stop wasting your time and Quick Correct your Fault. This is very important.
If you Quick Correct your Error, then there are high-chance to be successful in life
Do not pressure . . . anything!
This final mistake is possibly the most dangerous of all because you know what you know, and it all seems so simple to you.
You build a business, perform a task, work through a process and tell yourself that the process is second nature to you. It’s easy for you, and it’s easy to presume other people will find it easy, too. Big mistake.
3. Fault Analysis
The purpose of failure analysis is to determine the primary causes leading to failure, develop ways to prevent future failure occurrences, and modify design and manufacturing procedures to develop a product or system that is robust against potential failures.
Failure analysis involves investigating how something failed, why it failed, and how to prevent it from happening again. It is a systematic and logical examination of a machine or equipment. Investigators also examine all relevant documentation. Sometimes the analysis also includes determining liability.
4. Strategize
A strategy is a long-term plan that you create for your company to reach the desired, future state you envision. A strategy includes your company’s goals and objectives, the type of products/services that you plan to build, the customers to who you want to sell to and the markets that you serve to make profits.
They stand for Plan, Pattern, Position, Perspective, and Ploy. These five components allow an organization to implement a more effective strategy. A strategy is aimed at the future, concerns the long term, and involves different facets of an organization.
5. Vigilant Check
Vigilance is a tool of management. It is primarily the responsibility of the management. An organization has both external threats and internal dangers. The organization protects from external threats by creating security and posting manpower to guard against such threats. The role of vigilance is to protect the organization from internal dangers which are more serious than external threats.
Vigilance in any organization is an integral function like any other function of management, such as finance, personnel, operation, marketing, material, and contracts, etc. If the vigilance set up is effective in an organization, it will certainly ensure the functioning of the other segment like finance, personnel, operation, and marketing, etc. efficiently. It has therefore to be given a rightful place in the management.
6. Get more Funds
Self-funding, also known as bootstrapping, is an effective way of startup financing, especially when you are just starting your business. First-time entrepreneurs often have trouble getting funding without first showing some traction and a plan for potential success. You can invest from your savings or can get your family and friends to contribute. This will be easy to raise due to fewer formalities/compliances, plus fewer costs of raising. In most situations, family and friends are flexible with the interest rate.
Self-funding or bootstrapping should be considered as a first funding option because of its advantages. When you have your own money, you are tied to the business. At a later stage, investors consider this as a good point. But this is suitable only if the initial requirement is small. Some businesses need money right from the day-1 and for such businesses, bootstrapping may not be a good option.
7. Revisit contingency list
Contingency plans are used by smart managers who are aware that there are always risks that can sideline any project or business. Without having a contingency plan in place, the chances of completing a project successfully will drop considerably, even if that project plan was made with planning software.
The use of contingency plans is widespread and applies to any business venture. Governments, for example, use them to prepare for disaster recovery or economic disruption. If you’re not working on a contingency plan when you’re planning any enterprise, then you’re opening yourself up to unnecessary risk.
8. Correct Fault Lines
This is the most important step. In this Step, you have to correct the Fault lines. It is very important to correct fault lines.
So, now I hope you understood all the 6 steps, so without wasting time, let’s know the other steps.
9. Variable Adjustment
Before knowing “What is Variable Adjustment”, let’s know what is Variable Adjustment.
A variable is an event, idea, value, or some other object or category that a researcher or business can measure. Variables can be dependent or independent. … An independent variable in business may affect sales, expenses, and overall profitability.
Variable costs are dependent on production output. … Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs. The total variable cost is simply the quantity of output multiplied by the variable cost per unit of output.
10.Set milestones
Before knowing to set milestones, let’s know that what is milestones.
Milestones are goals that you set for business, with dates and the person or team responsible. For example, The marketing team will launch a new website by the end of the third quarter. A business plan and strategy can’t turn into a real business without milestones.
How to Set Milestones
- Specific. Each milestone of the project should be scoped out so that when you look at the milestone you know what is exactly required to reach it.
- Attainable & Timely. …
- Progressive. …
- Significant. …
- Those are just four components of well-set milestones
11. Set Accountability
Sometimes managers will let employees avoid accountability at work because they dislike confrontation. But a lack of individual accountability is bad all around.
It’s bad for the employees who likely know they aren’t performing well. For instance, a salesperson will probably know he is the only one who didn’t meet his sales goal. Without the encouragement and push to improve, he may feel ignored, discouraged, and devalued, which may lead him to quit.
A lack of accountability at work sends a message to the rest of your staff that lower standards are OK. The team may begin to resent the low-performing employee and his or her manager because they have to shoulder more work to make up for their teammate’s deficiencies.
And if you don’t address the problem employee, the team may perceive it as favoritism or weakness, which can be demotivating for everyone.
But you can turn this trend around. Here’s how you can make sure everyone on your team is pulling their weight equally.
So, it is important to set Accountability. Now, let’s view the next step.
12. Measure key performance indices
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes in departments such as sales, marketing, HR, support, and others.
Final Words
In this article, I have told you that What is Small Business Mistake Proofing? (Detailed Overview).
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