Clarify Improvement Targets
Creating financial and operational improvement objectives is based on customer evaluations and on methods by which efficiency and competency can be sensitively measured. Determining clear, measurable, and quantitative improvement targets is necessary for developing meaningful measurements.
Understand Analysis and Determine Operational Leverages
While the second step determines the improvement targets, the third step concentrates on understanding how successful we can be to meet these targets under current conditions and how they can be sustained in the future by
- • Determining the measurement and analysis basis
- • Prioritizing the improvement areas and focusing on sources
- • Determining the best operational improvement leverages
The main task is to analyze the 20% of the total cost of the business, the losses that correspond to the 60% of the cost of converting (the root causes that reduce the productivity), in order to select and implement the appropriate solutions for the chosen losses and to select the successful implementations with respect to their financial returns.