SCHM 2301 Chapter Notes - Chapter 3: Kaizen, Standard Deviation, Cross-Functional Team
18 Sep 2016
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Document Summary
Process: a system of structured activities that use resources to transform inputs, like energy, materials and info, into valuable outputs. Each process has procedures, monitoring, and control structures, and feedback mechanisms. Process thinking: way of viewing activities in an organization as a collection of processes. Focuses one"s attention not only on an operation"s outputs, but also on the processes responsible for these outputs. Operations managers design, document, manage, and change business processes located throughout the supply chain, with the goal of ensuring that these processes make the desired results inevitable. Juran"s law: a key premise of process thinking: 15% of operational problems are the result of human errors: the other 85% are due to systemic process errors. Viewing supply chain operations as a collection of processes instead of a collection of departments, functions, or companies is important because this perspective helps managers to break down organizational barriers that can impede operational performance.
