Process - Correct Answers -A series of actions or steps taken in order to achieve a
particular end (Input>Activities>Output)
SCM Organization Processes - Correct Answers --Reorder Inventory
-Set a Budget
-Order Transportation
-Help a Customer
-Fix a machine/Truck
-Pick an Order
-Write a work order
-Inspect shipments
-Rework
A process consists of 4 major elements - Correct Answers --Steps and Decisions
-Variability of processing time and flow
-Timing and interdependence
-Assignment of resources
Steps and Decisions - Correct Answers -The flowchart. A series of steps and decisions
involved in the way work is completed
Variability of processing time and flow - Correct Answers -the pattern of processing
times
Timing and Interdependence - Correct Answers -When the arrivals happen, when
people work
Assignment of resources - Correct Answers -How many and where they are assigned
Business Process Improvement (BPI) - Correct Answers -is a systematic approach to
help an
organization optimize its underlying processes to achieve more efficient
results. The methodology was first documented in H. James Harrington's
1991 book Business Process Improvement. It is the methodology that both
Process Redesign and Business Process Reengineering are based upon.
BPI has allegedly been responsible for reducing cost and cycle time by as
, much as 90% while improving quality by over 60%.
Lean - Correct Answers -Doing the Right Things
-Lean - is a team-based form of
continuous improvement that focuses
on identifying and eliminating waste.
Waste is non-value-added activity
from the viewpoint of the customer.
Total Quality Management - Correct Answers -A core definition of total quality
management (TQM) describes a
management approach to long-term success through customer
satisfaction. In a TQM effort, all members of an organization participate in
improving processes, products, services, and the culture in which they
work. The methods for implementing this approach come from the
teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming,
Armand V. Feigenbaum, Kaoru Ishikawa, and Joseph M. Juran.
Six Sigma - Correct Answers -Doing Things Right
-s a set of techniques and tools for process improvement. It was
introduced by engineer Bill Smith while working at Motorola in 1986. Jack
Welch made it central to his business strategy at General Electric in 1995.
Today, it is used in many industrial sectors.
Six Sigma Cont. - Correct Answers -Six Sigma seeks to improve the quality of the
output of a process by identifying
and removing the causes of defects and minimizing variability in
manufacturing and business processes. It uses a set of quality management
methods, mainly empirical, statistical methods, and creates a special
infrastructure of people within the organization, who are experts in these methods. Each
Six Sigma project carried out within an organization follows a defined sequence of steps
and has specific value targets, for example: reduce process cycle time, reduce pollution,
reduce costs, increase customer
satisfaction, and increase profits
Six Sigma Cont. - Correct Answers -Six Sigma comes from the number of standard
deviations away from the mean. It is the number of parts per million out of tolerance
Difference between Six Sigma and TQM - Correct Answers -One difference between
the two systems lies in their areas of focus. While
TQM concentrates on individual departments and more specific
quantitative goals, TQM's ultimate focus is customer satisfaction. The path
that takes the business toward that final goal is secondary. TQM must be
redefined when the predetermined goals are accomplished.
Six Sigma, however, aims at continuous improvements and is selfpropelled.
Six sigma, when correctly applied, will continue to yield benefits
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