Summary o continuous improvement can be incremental

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Summary o Continuous improvement can be incremental or radical. The Plan–Do–Check–Act (PDCA) cycle is a useful method for continuous improvement. The continuous improvement methodology starts with someone initiating a process, listening to the Voice of the Customer (VOC), identifying the root cause of a problem or issue, determining alternatives, finalizing one for implementation, a pilot run, adaptation as required, and full implementation. o Problem Solving is comprised of four steps: Defining the problem, Generating alternative solutions, Evaluating and Selecting an alternative, Implementation and Follow-up. o 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. o 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. Review Questions o The three step continuous improvement methodology is comprises of Assess, ____, and ____. Analyze; Act o The Japanese method of continuous improvement is called ____. Kaizen o At the heart of Six Sigma is the ____ process. DMAIC o DMAIC is an acronym for Define, Measure, Analyze, ____, and ____. Improve; Control o The focus of Lean is a bias for ____ while Six Sigma is a bias for ____. Action; analysis Business Integration: Orchestrating Organization Processes to Create Synergy and Achieve Competitive Advantage (32) Introduction o A recurring theme in our discussion has been the concept of value creation.
o How is value created in an organization? o This section introduces you to: Michael Porter’s Value Chain Business Process Integration. Enterprise Integration Tools o The objective of integration is to create synergy – the concept of the whole being greater than the sum of the parts o After reading this section, you will understand: The value creation process Process integration methods The importance of synergy in achieving superior performance and a competitive advantage Michael Porter’s Value Chain o The value chain is comprised of two types of activities – primary activities that directly create value, and support activities that facilitate the primary activities. o he value chain is not a hierarchy . The primary and support activities complement each other o 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 o 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

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