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SummaryoContinuous 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.oProblem Solving is comprised of four steps: Defining the problem, Generating alternative solutions, Evaluating and Selecting an alternative, Implementation and Follow-up.oAs 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.oAn 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 QuestionsoThe three step continuous improvement methodology is comprises of Assess, ____, and ____.Analyze; ActoThe Japanese method of continuous improvement is called ____.KaizenoAt the heart of Six Sigma is the ____ process.DMAICoDMAIC is an acronym for Define, Measure, Analyze, ____, and ____.Improve; ControloThe focus of Lean is a bias for ____ while Six Sigma is a bias for ____.Action; analysisBusiness Integration: Orchestrating Organization Processes to Create Synergy and Achieve Competitive Advantage (32)IntroductionoA recurring theme in our discussion has been the concept of value creation.
oHow is value created in an organization?oThis section introduces you to:Michael Porter’s Value ChainBusiness Process Integration.Enterprise Integration ToolsoThe objective of integration is to create synergy – the concept of the whole beinggreater than the sum of the partsoAfter reading this section, you will understand:The value creation processProcess integration methodsThe importance of synergy in achieving superior performance and a competitive advantageMichael Porter’s Value ChainoThe value chainis comprised of two types of activities – primary activitiesthat directly create value, and support activitiesthat facilitate the primary activities.ohe value chain is not a hierarchy. The primary and support activities complement each otheroIf 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) resultsoPRIMARY ACTIVITIESInbound 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