Continuous improvement in the supply chain focuses on eliminating the root causes of problems. This proactive approach ensures long-term efficiency and effectiveness. Here’s an explanation:
Root causes: Addressing the fundamental issues prevents recurrence and leads to sustainable improvements.
Interorganizational communication: While important, it is a means to an end rather than the core purpose.
Written procedures: Improving procedures is beneficial but secondary to addressing root causes.
Product costs: Reducing costs is a benefit of continuous improvement but not the primary purpose. By eliminating root causes, continuous improvement leads to systemic and lasting enhancements in the supply chain.
References
Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer.
Imai, M. (1986). Kaizen: The Key to Japan's Competitive Success.
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