The Five Steps to Increase Profitability and Competitiveness
The Five Steps to Increase Profitability and Competitiveness
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Step 1: Strategic Quality and Process Planning
Achieve greater success by understanding and managing the critical success factors
• Link the improvement vision, goals and objectives to business success
• Understand how improved quality and process performance increases financial performance and competitiveness
• Identify opportunities, threats, strengths and weaknesses
• Develop an effective improvement strategy
• Establish coordinated system of business and improvement performance measurements
Step 2: Cost of Poor Quality Assessment
Identify and quantify the cost of nonvalue-added activities and waste caused by poor quality and inadequate business processes
• Cost of poor quality as a performance measure and cultural change agent
• Add a financial dimension to the quality and process improvement process
• Determine the dollar value of effective quality and process improvement
Step 3: Cost Driver Analysis
Determine the short-term, high payback opportunities to increase profits, reduce costs and improve customer satisfaction
• Identify the root causes of poor quality costs
• Determine the financial impact of the root causes of poor quality
• Conduct cost benefit analysis to identify the vital few projects
Step 4: Project Selection and Planning
Select the vital few quality and process improvement projects and develop a project plan to increase success through proper resource allocation and commitment
• Sequence projects to increase customer satisfaction, profitability and competitiveness
• Eliminate problems that cross functional boundaries
• Set realistic expectations and resource requirements
• Deploy the teams
Step 5: Monitor and Measure Progress
Ensure the right steps are taken to eliminate the root causes of poor quality and track the resulting improvements in profitability and competitiveness
• Accelerate quality and process improvement through accurate and timely reporting
• Report financial and non-financial achievements to top management
• Assess progress
• Determine the payback from quality and process improvement
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