Business
Process Improvement
"How will your business transform its product or service delivery to better provide what customers desire?"
By transforming their business into a customer focused, constantly
improving, fact based value delivery system.
Transforming businesses into the above criteria has been
the focus of many efforts over the years and, unfortunately,
many companies have come up short of this goal. Achieving
this goal does not come from one single tool application
or methodology. It comes from carefully evaluating each business
area and applying the method which focuses on that specific
issue within that area. What this means is, there is no ‘silver
bullet’. Single methodologies have been typically suboptimal
for all business applications. This is not to say that one
method cannot deliver value to a business, but in order to
transform holistically, you must focus the right methods
on the right areas.
Thinking lean, which requires an understanding of customer
demand along with creating a culture of continuous improvement,
companies can deliver higher value, faster. Foundational
Lean tools like 5s, Method Sheets, Total Production Maintenance
along with Lean awareness training will help businesses transition
to a waste eliminated and customer focused culture. Driving
data decisions by utilizing Six Sigma, which is focused on
variation elimination and process control, will greatly improve
ROI for not only process improvement, but also in new product
development/delivery. Starting the improvement with a focus
on the constraining steps, which are identified by using
a Theory of Constraint philosophy, will allow quick wins
and faster movement to where companies need to move their
business. As with all improvement methodologies, a business
must transform by foundationally keeping their customers
needs at the forefront, while driving a continuous improvement
culture at every level in becoming better, day after day,
in their journey toward greatness.
Theory of Constraints or TOC is an improvement methodology which will focus efforts in your process toward the step which is constraining your system and keeping your from delivering value to your customer. It is a systematic method which has four steps: Identification of your constraint, exploit the constraint, subordinate everything in the line to that constraint and finally elevate the constraint so that it can be ‘broken’. Once the constraint is broken the cycle will start over with the next identified constraint.
TOC is a simple systematic improvement methodology that will improve production Throughput, which is defined as the products or services that have been purchased by the customer. Inventory, which simply put are the things transformed into Throughput, can be minimized and optimized to improve production effectiveness. By managing Operating Expense (the costs that are spent to turn Inventory into Throughput) a company will ensure that the customers will be served with a quality and timely product or service delivery.
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