Knowledge To Negotiate

Can you use Six Sigma Methods with Contracts and Contracting? Six Sigma tasks follow two methodologies The DMAIC strategy is the approach that might be use to boost both agreements and contract procedures as it is targeted on improving an existing business process. DMAIC methodology has five phases that make up the acronym. Gauge the current process and gather relevant data. Analyze the info to find cause-and-effect interactions verify.

Seek out the root cause of problems. Control the future process to avoid deviations and monitor improvement. 1. The five whys. The “five whys” was developed by Toyota to understand the root cause of a problem. You first start with a declaration of a problem and keep asking why until you realize the root cause of the problem.

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  • Mr. Nuradin Osman, Director Africa & Middle East, AGCO
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I think 5 may have been a common quantity, the main element is you will need to keep requesting why until you find the primary cause of the problem and sometimes why that real cause exists. Borrowing from an example in Wikipedia here’s and exemplory case of the 5 whys. The automobile shall not start. This is the problem that you need to correct. Why won’t the vehicle start? The battery pack is dead.

Why is the battery pack deceased? The alternator is not functioning. How come the alternator not functioning? The alternator belt has broken. How come the belt damaged? It had been old rather than been changed. Why was the belt not changed? The vehicle had not been maintained according to the recommended service plan.

Replacement parts are not available because of the extreme age of the vehicle. Why was the ongoing service schedule not adopted? That could identify the primary cause or the nagging problem. You could use the “five whys” to question whether certain contract terms are needed or if they actually match the way the business has been conducted.

2. Business process mapping. Business process mapping documents all the steps that you do in executing each job. When you map business processes you can identify dependencies between steps, deliverables that must definitely be provided, what processes can be done in parallel and which need to be done serially. You can look at the business enterprise processes for duplication also, consider them from a value added perspective and appearance at where control factors are or should be. Business process remapping can be an activity that is frequently used in re-engineering activities to remove redundancies and low value added activities and reduce cost. 3. Cause and impact or fishbone diagrams that are called Ishikawa diagrams also.

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