Sustainable Solutions for SCM

Figure 3.6 Importance of effect-mechanism for performance management systems

The following approach is proposed as how process improvement principles can be used to cover this gap. The challenge is to cover the gap between more or less standardised process or driver KPIs such as lead times, inventory levels etc. and an infinite number of possible concepts that can be implemented to improve the process KPIs. The idea is to create a standardised evaluation grid for concepts in order to get a better idea of what the effects of the concepts to be implemented will have when implemented. Based on past experience an evaluated toolbox can be created to give hints for the management which concept can be implemented to reach which goal in the form of a driver KPI. The first step is to create the standardised evaluation grid. An analysis of generic process improvement principles in contributions in the field of logistics and process management [29], [35], [44], [50] showed a limited number of principles: • Eliminate: remove process steps in order to decrease the number of resources needed. • Parallelise: perform two or more activities at the same time to decrease throughput time. • Change order: reorganise the process steps to decrease interfaces or smoothen process flow. • Segment: differentiate processes according to process characteristics or customer requirements. • Bundle: increase capacity usage of trucks etc. • Level/Stabilise: equal out fluctuations of input factors or capacity usage. • Mobilise: decrease throughput times (e.g. by lot size 1) and thus increase flexibility.

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