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Process Management Techniques
Transcript of Process Management Techniques
1) Identify the system's constraint.
2) Decide how to exploit the system's constraint.
3.) Subordinate everything else to the prior decisions.
4) Elevate the system's constraint.
5) If the constraint is broken, go back to step one. Lean manufacturing or lean production, which is often known simply as "Lean" is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. More value is leass work. Toyota is the first to implement this
strategy and it worked wonders for them.
As the name Just-in-time points out, the
products are built just in the time that the customeroders them.
Therefore, there is no excess product laying around. Six Sigma seeks to identify and remove the causes of defects and errors in manufacturing and business processes. Six Sigma was originally developed as practices to improve manufacturing processes, but it has spread to other typed of business processes including: Continuous efforts to achieve stable and predictable results.
Manufacturing and business processes have elements that can be measured, analyzed, and improved.
Achieving sustained quality improvemt requires help from the entire organization, particularly from top level management.
Activity-based costing is an accounting method that allows businesses to gather data about their operating costs. Costs are then assigned to specific activities: planning, engineering, or manufacturing. These costs are the associated with different products or services. Managers then can generate data to create a
better budget and gain a greater over understanding of the expenses that are required to keep the company running. By: John Campbell