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New Way of Process Improvement
To effectively improve your company's process
you need to look at the basic laws of business. Just as their are
undeniable laws of physics, there are undeniable laws of business
which, if broken, yield catastrophic results.
Re-inventing a company's process is a four (4)
step operation. The steps must be followed in the proper order or
the results will be less than desired as discussed previously. The
four steps are:
1) What Products Should I Produce That
The Customer Will Buy?: 
The first thing your company must determine is
"what product (or service) will my company produce that the
customer will buy?" This requires a customer driven analysis of
the marketplace, the competition, the economic conditions, etc.
2) The Process Produces The Product:
Now you must determine the optimal process to
consistently, reliably, and profitably produce the product. The
ability to be the low cost producer, first to market and with the
best product will yield a substantial competitive advantage. Always
remember, it is the process that produces the product.
3) Services & Tools Support the
Process:
Processes need services & tools to make
the process function efficiently and effectively. Understanding the
inter-relationship between the product, the process and the
supporting services & tools is important in order to develop
efficiencies and to understand the optimal organization to support
it.
4) The Organization Supports The
Process:
Only after all of this information has been
developed should the company determine what organizational structure
will best support the process. The organization supports the
process, not the other way around. Many in business fail to make
this realization.
Based on these basic business premises, if the
company is going to "re-invent" itself successfully the
company needs to follow these same rules.
Excerpt from "Process
Improvement or Process Re-Arrangement: Will You Know Before It Is
Too Late" paper presented at the 1998 Project Management
Institute international symposium.
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