LESSON 1&2

• Productivity


  The relationship between the number of outputs and number of inputs needed to produce a product
• Quality


  The measure of how flawless a product is.
• A change in the quality of raw materials or labor may decrease the overall quality of the product
• Productivity and quality tools


  Software applications, methodologies, or frameworks designed to enhance efficiency, effectiveness, and quality in various aspects of business operations
• Key Results Areas (KRAs)


  • Broad areas of focus or key functions that are critical for the success and effectiveness of an individual, a team, or an organization
  • Closely aligned with the overall strategic objectives of the organization
  • Defined based on the responsibilities and roles of individuals or teams
  • Outcomes or results that need to be achieved, rather than specific tasks
• Key Performance Indicators (KPIs)


  • Specific metrics or measures that are used to assess and evaluate the performance of an individual, a team, or an organization in achieving their goals and objectives
  • Quantifiable and expressed as numerical values
  • Directly related to the specific goals and objectives set for a particular function or area
  • Associated with a specific timeframe for measurement and assessment
• KRAs and KPIs

  • KRAs provide the overarching focus areas, while KPIs offer the specific metrics to measure success within those areas
  • KPIs help in quantifying progress and success in achieving the desired outcomes outlined in the KRAs
  • Together, they provide a structured approach to performance management, ensuring that efforts are directed toward strategic priorities and allowing for effective monitoring and adjustment
• Control Chart


  • A statistical process control tool used to determine if a manufacturing or business process is in a state of control
  • Monitors and visualizes the stability and consistency of a process over time, identifying variations that may indicate quality issues

  
• 5S Method

  1. Sort

  2. Set In Order

  3. Shine

  4. Standardize

  5. Sustain
• Benchmarking


  The process of comparing your business's performance to that of others in your industry
• Types of Benchmarking

  • Performance benchmarking
  • Internal benchmarking
  • External benchmarking
  • Strategic benchmarking
  • Competitive benchmarking
• Supplier Quality Management (SQM)


  • The process of monitoring a supplier's ability to meet the customer's needs
  • Measures supply chain performance using a proactive and collaborative approach
• Benefits of Supplier Quality Management

  • Minimize risk
  • Strengthen supplier relationships
  • Make better procurement decisions
  • Stay compliant
  • Maintain safe supply chain
  • Uphold a brand reputation of quality
  • Cultivate loyal, satisfied customers
• Characteristics of KRAs:

  Strategic Alignment: KRAs are closely aligned with the overall strategic objectives of the organization.
• Characteristics of KPIs:

  Relevance: They are directly related to the specific goals and objectives set for a particular function or area.
• Characteristics of KPIs:

  Timely: KPIs are often associated with a specific timeframe for measurement and assessment he overall strategic objectives.
• Sort is the first step in any 5S process. The term sort derives originally from the Japanese word “Seiri” which means decide what you need. When you sort, the goal is to remove unnecessary items from the room, station, or

  space you live or work.
• Set In Order focuses on creating efficient and effective storage methods to arrange items so that they are easy to use and to label them so that they are easy to find and put away
• SHINE It relates to cleanliness and the absence of unnecessary dirt and debris. Shine is a crucial part of Lean Management. Here is a look at how to implement the distinction in the workplace.
• STANDARDIZE involves putting the systems in place to ensure that everyone does things the same way. The methodology for Sorting needs to be standardized, the approach to Set in Order needs to be standardized, and Shine especially needs to be standardized
• SUSTAIN - the goal is to stick to the new rules. Workers keep the new standards in place and practice the first three steps every day until they become automatic and the accepted way of doing things.
• Types of Benchmarking

  1. Performance benchmarking is a common practice for businesses to pinpoint areas for improvement. It involves measuring the performance of various business processes against top performers in the same field. This process also requires collecting and comparing Key Performance Indicator or other quantitative data.
• Types of Benchmarking

  2. Internal benchmarking is a process used to compare metrics or practices within a company’s products, departments, or locations. It helps determine the best ways to conduct business moving forward by analyzing the business’ historical data to identify gaps or areas for improvement.
• Types of Benchmarking

  3. External benchmarking compares your business to others regarding products, services, processes, and methods. It provides insight into how your business compares to others in your industry and helps identify areas for improvement. Although it requires additional effort compared to other benchmarking methods, the information gained can be valuable
• Types of Benchmarking

  4. Strategic benchmarking involves comparing your performance with a top performer, a direct competitor, or any business that has mastered a specific process or operation. This process requires looking beyond your industry and can lead to considering new approaches or thinking differently about longstanding practices
• Types of Benchmarking

  5. Competitive benchmarking is a tool used by businesses to identify industry standards and understand their position in the market. It involves analyzing competitors’ products, services, or methods and comparing metrics like NPS or customer satisfaction rates. With this information, businesses can create action plans to improve their performance
• Benefits of Supplier Quality Management

  1.Minimize risk

  Extending your supply chains is not a risk-free endeavor. It’s always possible that you’ll encounter issues with quality, safety, compliance, etc. Effective supplier quality management mitigates some of the risks by giving you complete visibility over your supply chain. This allows you to spot each risk before a costly problem arise.
• Benefits of Supplier Quality Management

  2. Strengthen supplier relationships

  To get a business off the ground, you have to put your nose to the grindstone. SQM can help you through all the hurdles standing in the way of long-term profitability, whether you’re trying to reduce costs, streamline contract management, or safeguard your brand’s reputation
• Benefits of Supplier Quality Management

  3. Make better procurement decision

  Supplier quality management takes the pressure off your chief procurement officers and expedites procurement decisions through effective communication, evaluation, selection, and monitoring. More data = better quality procurement decisions and less lead time.
• Benefits of Supplier Quality Management

  4. Stay compliant Working with many suppliers complicates compliance. The more proactive you are when it comes to monitoring potential upsets, the easier it is to remain compliant
• Benefits of Supplier Quality Management

  5. Maintain safe supply chain

  Supplier quality management measures health and safety standards throughout every step of the supply chain, from contractor prequalification, document management, and employee qualification and training all the way to insurance verification
• Benefits of Supplier Quality Management

  6. Uphold a brand reputation of quality

  The last thing your brand needs is to have recalls and lawsuits plastering news headlines. With good supplier quality management, you can build a reputation of quality across your supply chains and a brand customers will trust. This can ultimately improve shareholder value and overall profitability
• Benefits of Supplier Quality Management

  7. Cultivate a loyal, satisfied customers

  SQM helps companies deliver better quality goods or services to customers. It can even get goods and services to customers faster. When customers experience quality, they’ll come back for more. In a recent survey over 65% of consumers stay loyal to a brand because they love the product. By improving quality with supplier quality management processes, you can ultimately increase customer loyalty and customer lifetime value