Prioritizing issues is a critical component in any SCM improvement initiative. If you’re using Lean methodology, (find out more about lean in the Lean Data Management Practices: Seeking value is a never-ending story white paper) prioritization should be based on value vs. effort, which applies the Pareto rule or 80-20 rule:
“80% of effects come from 20% of the causes”
This example focuses on the two recurrent SCM challenges of increasing employee productivity and reducing stock levels. By focusing on improving just these types of issues without wasting effort on other minor issues, users will see huge improvements because these issues correspond to an accumulated 61% of total issues.
For more details, check out the white paper “How to Reduce Waste and Add Value to Your Supply Chain Processes with Winshuttle.”
Questions or comments about this article?
Tweet @IsraelRosJ to continue the conversation!