Four typical characteristics of Just-In-Time Inventory
- Lot sizes equal to one
- insignificant set-up times and costs
- Balanced and level workloads
Business Process Management (BPM) definition
management approach that seeks to coordinate the functions of an organization toward an ultimate goal of continuous improvement in customer satisfaction
BPM Design Category
ID of existing processes and how improved process should function
BPM Modeling category
introduces variables to the conceptual design for what-if analysis
BPM Execution category
design changes are implemented and key indicators of success are developed
BPM Monitoring category
Information is gathered, tracked and compared with expected performance
BPM Optimization category
using monitoring data and original design, the process is refined
Five BPM activity categories
- Design
- Model
- Execute
- Monitor
- Optimize
Five BPM Techniques
- Define
- Measure
- Analyze
- Improve
- Control
PDCA alternative BPM definition
Plan
Do
Check
Act
Three benefits of BPM
- Efficiency
- Effectiveness
- Agility: responses to changes are faster and more reliable
Shared Services
seeking out redundant services, combining them and sharing those services within an organization
Two issues caused by shared services
- service flow disruption: can create waste in the transition, rework and duplication as well as increased time to deliver service
- Failure Demand: demand for a shared service caused by a failure to do something correctly or at all for a customer. Task must be performed again.
Risks of outsourcing
- quality risk:
- productivity
- staff turnover
- language skills
- security
- qualifications of outsourcers
- labor insecurity
Irrational improvement initiative
intuative and emotional. Short term and based on fad, fashion or trend
Rational improvement initiative
- Strategic Gap Analysis: what is the customer expecting and how are we falling short?
- review competitive priorities
- review production objectives
- choose improvement program
Features of successful implementation activities
- internal leadership
- inspections
- executive support
- internal process ownership
Business Process Reengineering (BPR) vs BPM
BPM is more cyclical, incremental type work. BPR is radical change
Underlying concept of JIT is
inventory does not add value. Its best to not have any inventory onhand in order to reduce costs.
Benefits of JIT
- synchronization of production scheduling with demand
- arrival of supplies at regular intervals
- improved coordination with suppliers
- more efficient flow of goods between warehouse and production
- reduced setup time
- greater efficiency in use of employees with multiple skills
Push vs Pull supply chain strageties
Push is where where projected demand determines what enters the process. Pull is where good deliver is driven by receiving organization requests
