Step 1: Collect and Review Primary Information
February 12, 2025
During 1990s’, the popular method of exchanging information between trading partners were Electronic Data Interchange (EDI) and all major ERP vendors added EDI facilities to their products. However, EDI did not achieve its desired outcome as each organization needs its customized EDI (to account for its unique data format), high set up cost (requiring privately […]
A hot topic among investors, economists, and stock market experts these days is the looming fight over the debt ceiling in the United States. Many commentators have been discussing this incessantly pointing to the consequences for the world at large. Before launching into the specifics, it is worth discussing what debt ceiling means. Like a […]
How the Internet has Shifted the Balance of Power in All Fields of Our Lives It would be an understatement to say that the Internet has revolutionized and transformed all aspects of our lives. From the way we shop, work, and live, there is no part of our lives that has been fundamentally reshaped by […]
Analysis To start with, Amazon’s SCM has a strategic fit with its competitive strategy of being the retailer of choice for its customers. The combination of multi-tier inventory management, superlative transportation, and highly efficient use of IT (Information Technology), and its wide network of warehouses are all geared towards aligning its SCM with its competitive […]
Initial investment in acquiring and implementing an ERP system is substantial in terms of both human efforts and financial resources. After, successful implementation, the system goes to maintenance mode and organizations start getting value out of their investment. After a prolonged period, due to changes in business and technological paradigm, it becomes more and more […]
Having the best people execute the plan does not guarantee success. There are a host of external factors which may play a role in determining the outcome regarding whether a project has been successful or not. These are called Project risks. The formal definition of a risk is an event or occurrence that may negatively impact the project.
Risks can be mitigated and even prevented. However this requires a good amount of understanding of the risks and advance planning. It is for this reason that DMAIC methodology in Six Sigma has risk assessment as an inbuilt step. You cannot ignore it if you truly follow the DMAIC philosophy.
To better understand risks, it is essential that we understand that risks fall into categories. The major categories of risk are as follows:
An experienced six sigma team will usually give the risk assessment part to its most capable member. The better prepared the risk assessment plans, the better chance the organization has of successfully implementing that project.
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