As applied to quality management systems return on

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As applied to Quality Management Systems, Return on Investment is the ratio of the benefits expected from a project to its costs. Quantifying ROI can help in obtaining stakeholder buy-in. An After Action Review (AAR) is a part of Organizational Learning. The review compares the achievement to the expectation, identifies strengths as well as weaknesses or opportunities for improvement, and provides a valuable framework for future teams. It is important that AARs focus on issues and not on people. The three step continuous improvement methodology is comprised of Assess, __________, and __________ Analyze; Act The Japanese method of continuous improvement is called Kaizen At the heart of Six Sigma is the _________ process DMAIC DMAIC is an acronym for Define, Measure, Analyze, __________, and Improve; Control The focus of Lean is a bias for _________ while the focus of Six Sigma is a bias for action; analysis
Page1 / 32 Section 6 Business Integration – Orchestrating Organizational Processes to Create Synergy and Achieve Competitive Advantage Section 6 Introduction A recurring theme in our discussion has been the concept of value creation. How is value created in an organization? This section introduces you to: 1. Michael Porter’s Value Chain. 2. Business Process Integration. 3. Enterprise Integration Tools. The objective of integration is to create synergy – the concept of the whole being greater than the sum of the parts. After reading this section, you will understand: 1. The value creation process. 2. Process integration methods. 3. The importance of synergy in achieving superior performance and a competitive advantage. JmlkPTEzMDIzMjU default
Value Chain – Michael Porter Value Chain – Michael Porter The value chain is comprised of two types of activities – primary activities that directly create value, and support activities that facilitate the primary activities. The value chain is not a hierarchy . The primary and support activities complement each other. If the value created by the interaction of primary and support activities is greater than the cost of carrying out the activities, a margin ( profit in simple terms) is generated. If the costs exceed the value , a negative margin (or loss ) results. Value Chain – Michael Porter PRIMARY ACTIVITIES: Inbound Logistics is the process of ensuring that raw materials, components, consumables, maintenance equipment, and everything required for manufacturing a product are available in time, at the lowest cost, and meeting quality requirements. Inbound logistics is sometimes used synonymously with Supply Chain Management .
Example: The Bose Corporation is well-known for its premium-priced audio products . The company carries no inventory. Components and parts are sourced from different countries including Japan , China , and South Korea . The company has built a robust supplier team, an efficient customs clearance team, and a 24x7 communication system. Any component required can be in the plant typically in 24 hours. Having no inventory does away with expensive carrying costs, storage, and obsolescence. When you buy a Bose

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