100%(18)18 out of 18 people found this document helpful
This preview shows page 107 - 111 out of 142 pages.
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; ActThe Japanese method of continuous improvement is called KaizenAt the heart of Six Sigma is the _________ process DMAICDMAIC is an acronym for Define, Measure, Analyze, __________, and Improve; ControlThe focus of Lean is a bias for _________ while the focus of Six Sigma is a bias for action; analysis
Page1 /32 Section 6Business Integration – Orchestrating Organizational Processes to Create Synergy and Achieve Competitive AdvantageSection 6 IntroductionA 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 thesum 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.JmlkPTEzMDIzMjUdefault
Value Chain – Michael PorterValue Chain – Michael PorterThe value chainis comprised of two types of activities – primary activitiesthat directly create value, and support activitiesthat facilitate the primary activities.The value chain is not a hierarchy. The primary and support activities complement each other.If the value createdby the interaction of primary and support activities is greater than the costof carrying out the activities, a margin(profitin simple terms) is generated. If the costs exceedthe value, a negative margin(or loss) results.Value Chain – Michael PorterPRIMARY ACTIVITIES:Inbound Logisticsis 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 Corporationis 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 carryingcosts, storage, and obsolescence. When you buy a Bose