Question

1.Determine at least two (2) challenges in identifying Opportunity for Improvements (OFIs).

2.Suggest at least one (1) strategy that business management can use to mitigate the challenges in question.

3. Provide a rationale to support your suggestion.

Answer 1

Determine at least two (2) challenges in identifying Opportunity for Improvements (OFIs). Suggest at least one (1) strategy that business management can use to mitigate the challenges in question. Provide a rationale to support your suggestion.

There are challenges of identifying OFIs within the workplace as they are not always things or processes that are easily identified and often are required within the process. The text points out the “hidden plant” which could be a salvage dock inside a distribution center where their trucks pick up at each store after dropping off groceries and return loaded with salvage.

This salvage is bales of cardboard, milk crates, scrap pallets, which is all re-work. These items must be re-sorted and disposed in their proper locations. This brings cost to the bottom line and because we feel that this process is part of the “system process” does not mean its value-add. One thing that could be done here is to bring in a 3pl to handle this part of the process to reduce cost to the company and add value to the bottom line.

One other action that could be taken is to have all the salvage handed at store level where there is more of a straight forward process which would eliminate the rework back to the distribution center. This would also depend on the size of the store’s back rooms and ability to handle the salvage at store level. Perhaps a 3pl makes pickups at the store level which would also eliminate the non-value added at the distribution center. I think another reason it’s difficult to identify OFIs is because things like “resolving customer complaints” relative to quality seems to be considered part of the process which we all know if the job was done correctly, this part of non-value add would be eliminated. In fact it’s often not listed as part of the work-flow when looking at an overall business process flow chart.

Another factor may be, we know that eliminating the non-value add work, also presents the possibility of eliminating someone’s job which causes many managers to turn their heads and accept the non-value add work. This is not acceptable as it only adds to the bottom line and will come full circle. No business can afford to pay for work that is not part of the work flow and stay in business for a long time or maximize the potential earnings.