We now have the foundation for assessing the value of increasing process
maturity. Based on an analysis of 40 case studies, we asked the owner of each
case study to:
_ Select the processes that had been improved
_ Assess the maturity level that each process had been moved from and
to
_ Allocate the value created to the processes
Surprisingly, we could find
little hard information about the returns process � perhaps indicative of just
how recently this process has become important.
Doing a better job of planning showed the greatest return on inventory, as
the need for extra safety stocks was reduced and redundant inventories were
eliminated. Labor costs went down nicely, and customer service ratings increased.
Sourcing showed a wide range of advantages, as this core function
usually provides help throughout the maturity process. Substantial improvements
were found in four of the five major categories. Make was especially
beneficial in reducing inventory and labor costs, but had considerable impact
on customer service and lead time as well. Deliver showed a range of enhancements,
but our analysis here indicated that these are minimal ranges of potential
improvement. We expect more will develop as this part of the model continues
to mature.
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