In construction supply chain management, we have worked with three dimensions of process development. Deviation-driven, challenge-driven, and risk-driven development. The idea has been that by working with minor steps with standard work, management by objectives and risk management, we get a continuous improvement of the process. This has also been referred to as Kaizen. Sometimes we see small and large leaps in process development. We can call these innovations. By effective management, these innovations can contribute to process development, not just in construction supply chain management, but in processes in general. This is my next paper.
Deviation driven development is perhaps the most common way to start working with flow optimization of the construction supply chain. That is, we describe standardized work methods and when something deviates from the standard, we get a chance to evaluate and improve the process. Often by using PDCA.
Challenge driven process development is based on target states and how we try to achieve a future state for the process. The way to do this is to either adjust the standard or the narrow the process variance. By challenging the supply chain and adopt to customer requirements or increased effectiveness we develop the process. An important part of this is to experiment.
Risk driven development is based on risk analysis and external monitoring. By utilizing different supply chain scenarios, we try to investigate the future and predict things that can go wrong. By categorizing, evaluating, and developing actions for risks, we develop the process before the deviation has occurred. A powerful tool has been to work with A3’s.
Innovation driven development, perhaps also called Kaikaku, involves pushing process development through fundamentally new ways of working, new management methods, digitization, and automation. However, it is difficult to draw the line for what exactly is an innovation. Therefore, innovation is both a part of deviation-driven, challenge-driven and risk-driven development, but it is also a part that is entirely new ways of thinking.
How do you develop your processes?
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