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Elements and Performance Criteria

  1. Determine the basis of product organisation
  2. Apply analysis tool
  3. Develop a strategic response to the results

Range Statement

This field allows for different work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included.

Competitive systems and practices include one or more of:

lean operations

agile operations

preventative and predictive maintenance approaches

statistical process control systems, including six sigma and three sigma

Just in Time (JIT), kanban and other pull-related operations control systems

supply, value, and demand chain monitoring and analysis

5S

continuous improvement (kaizen)

breakthrough improvement (kaizen blitz)

cause/effect diagrams

overall equipment effectiveness (OEE)

takt time

process mapping

problem solving

run charts

standard procedures

current reality tree.

Stock keeping unit (SKU) is a unique identifier applying to one or more of:

items that are purchased

items that are offered for sale

items that are manufactured/conducted internally

countable services/events (e.g. time slots available for service calls charged by the hour, insurance claims).

Relevant metric includes one or more of:

sales volume

profit

profitability

sales/profit growth

other metrics appropriate to the analysis tool.

Time basis includes one or more of:

one year

one business cycle

one seasonal cycle

one/two quarters

one period related to the business/product.

Analysis tool for grouping the SKUs includes one or more of:

Glenday Sieve

Pareto analysis

80:20 rule

similar grouping tools.

Sensitivity testing includes one or more of:

repeating the analysis using a different tool

repeating the analysis using a different metric

repeating the analysis using a different time basis.

Strategic response incudes one or more of:

the levelling of production

the creation of different virtual production processes

the application of kaizen blitz to some groups

other relevant tool or strategy.