As Supply Chain professionals we’re all looking to do the best job we can. As such we’re often involved in focussing on continuous improvement activities and when it comes to improvements one of the first steps is to zone in on our own processes – but how well do we know them and do we have to really know them well if we’re going to change them?
There are a variety of models for capturing, reviewing and improving processes. Steps like PDCA (Plan do check act) offer a structured method of stepping through processes to analyze areas of effectiveness and areas for improvement.
In the supply chain world, we’re led by KPI’s and data. Areas for improvement usually start here with an area being highlighted as under-performing and requiring attention.
Most businesses have a plethora of processes and there is a danger of getting dragged into reviewing too much. One of the first steps is to zone in on areas that actually require change, this is greatly helped by focussing in on the critical issues. This isn’t always easy and many times you can’t see the wood for the trees. For many businesses, this will be led by issues affecting cost and performance.
Once those key underperforming processes have been identified it’s important to understand the potential improvement strategy from the outset so as to avoid the analysis stage dragging on for months. For example, if you’re looking at the purchase order process and you’re looking to improve it through implementing a new computer system then how much effort should be spent looking at and mapping existing process steps? Will they not be simply be overwritten by the new system? Clearly, you need to make sure you really do understand what functional and process elements need to be maintained in the new process and systems but you need to do this swiftly and in a way where you don’t just replicate what’s already broken.
The typical continuous improvement process review will involve
1/ Identifying areas of change
2/ Understanding the process
3/ Obtaining buy-in for change
4/ Implementing change
In point 2 the process usually identifies areas of waste (cost/poor performance) that can be removed (through tools like 7 wastes). Once identified, you can implement recommendations and implement. These improvements can be both small and large scale (being part of a wider change program).
There can be significant benefits in re-engineering processes, making the supply chain more agile and more cost-effective and ultimately better performing. Many organizations bring about these changes through introducing technology but it all generally starts through looking at what you do and how you can do it better.