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For this article we will cover the Third Principle of process management. This principle states the following: An effective operation must be built on a base of correctness, consistency, and capability. The strategic decision makers provide a correct facility for the tactical decision makers to run correctly. Consistency is the level at which the tactical […]
Violation One, No Thought to Capability If we violate the Division of Labor by confusing the responsibilities of management with those of operations, we have no basis for assessing the capability of the facility. We in management can only ask operations to do what the facility is capable of doing. This way we can hold […]
What not to do is just as important as what to do Second Principle (Division of Mental Labor) violations must be understood and avoided in order to make effective decisions. The harder a decision-maker works with improper instructions (violating the Second Principle), the poorer the performance. Quality will degenerate. As an example, when operations violates […]
Historical Foundations for the Second Principle of Process Management In the late 1700s in his book The Wealth of Nations, Adam Smith coined the phrase Division of Labor to explain specialization of manual labor. The Second Principle expands that concept into the realm of decision-making. Since decision-making is the heart and soul of effective organizations, […]
To run an operation, department, service center, machine, etc. optimally, we must understand the First Principle of Process Management. Clearly understanding this principle is mandatory to everything we will do. First Principle of Process Management: A fundamental understanding of BOTH the product and process is essential to improvement. Both the product and the process must […]