Question

Can you Elaborate on Reducing Risk with Incremental Changes with respect to the Process Strategies?

Answer 1

Process strategies refers to building such production processes that would meet the customers' demands and requiremenrs and also the product's specification that is in managerial constriants and also within a management budget.

Risks can be reduced while having the incremental changes adapt to your organisation. These changes are the small changes that are meant to meet the change in the process specifications, changes in demand, changes in requirements etc. Thus to ensure the risk is minimised as the incremental changes are taking place in the organisation, the following steps could be taken:

1. Plan: Always plan the activities that are about to held. Incremental planning helps the organsation to reduce the risk that would target the processes in the organisation by already knowing what resources what be required to meet the changing demand. You estimate the demand and create a buffer stock to meet the changing demand to reduce the risk. You manage the system in such a manner where you know the requirements could increase or decrease and thus an effective plan is carried out to reduce the risk effects.  

2. Communicate: Always communicate and ask for the feedback. As the incremental changes are taking place in the organisation, make sure you communicate with the retailers or other participants in the organisation to have the right feedback regarding how much demand is anticipated, how much supplier could supply, when the supplier could supply etc. The communication should always be continuous and in flow to have the best efforts.

3. Control: At last, effective controlling. To make sure your activities are responding to the incremental changes effectively and efficiently, make sure to evaluate and monitor them regularly. In the planning phase, you would have created the standards to ensure the processes don't go out of the limits. These process limits help in monitoring and controlling to ensure the quality is maintained and your company is able to withstand any risk.