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Process Improvement (Cost) Number) May 16, (Faculty) Process Improvement (Cost) The to-be process in the previous discussion about lean strategy in the Boeing Company addressed the cost category of process improvement. The to-be process aims at doing a quick change on waste management processes in order to meet customer needs. This could be achieved by first determining the total amount of waste produced by the company. The process itself is primly aimed at reducing wastes and keeping things flowing so efficiently.
This study therefore focuses on the exploration of the cost category of process improvement to be adopted by the Boeing Company in order to achieve top quality performance. Mind Tools (1996-2015) talks about the effects of waste in relation to cost. From this site it is affirmed that "Waste costs you and your customer’s money", which is an implication that is nothing is done about it soon enough then the consumers might consider finding a much better place. Anything adding no value to the final product can be termed as waste.
Mind Tools (1996-2015) goes ahead to list some of the most common wastes in organizations (businesses) that end up increasing the production costs for no good reason. They include; overproduction, waiting, inefficient transportation of materials, over-processing, and production mistakes/defects, and inefficient use of workers. All is these can bring about unnecessary expenses in the production process and that explains why the to-be process focuses on selling credible ideas to the Boeing Company to help it get rid of waste and minimize production costs in the long run.
Let us take for instance transportation in the Boeing Company. The company has to implement the to-be process effectively in order to manage the manner in which it transports its products. This will help the company determine whether its manner of transportation is efficient or not. Inefficient transportation in this case means the company is probable transporting production materials more frequent that the materials are being used perhaps due to fear of exhaustion. This could also lead to another waste problem as damage of the materials due to lack of proper storage and in the end more will have been spent due to poor planning.
Therefore, managing wastes is as good as managing costs. This can then be achieved by first identifying the waste, analyzing it to find the root cause, and then solving the root cause. This cycle goes on and it is therefore imperative to acknowledge that the to-be process for the Boeing Company is very appropriate as it contains the as-is process flowchart which is also a cyclic process. "Costs can be avoided and reduced through process re-engineering" (Misiewicz 2010). This means imposing of change on your work.
Misiewicz (2010) talks of three phases that can help in cost reduction through business process improvement. The first phase is cost identification, factors as labor and materials costs should play a major role in the identification of cost. The to-be process employs lean to help in the eradication of unnecessary costs. The second phase is cost elimination, this phase works hand in hand with process improvement. In this phase therefore, inefficiencies are identified and eliminated. The final phase talks about cost reduction.
The inability to eliminate any unnecessary costs should leave the Boeing Company with an option to reduce it. This is achieved through strategizing of procurements. In this case unnecessary production processes ought to be avoided and the as-is process flowchart effected. ReferencesMind Tools, (1996-2015). Lean Manufacturing: Working More Efficiently. Especial Skills for an Excellent Career. Retrieved on: May 15, 2015. Retrieved from: http://www.mindtools.com/pages/article/newSTR_44.htmMisiewicz, S. (2010). Cost reduction through business process improvement and procurement for the Service Industry.
Slidestare. Retrieved on: May 15, 2015. Retrieved from: http://www.slideshare.net/accountsdirect/cost-reduction-through-business-process improvement-and-procurement-for-the-service-industry
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