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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.