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    Chapter7

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    Keanne Armstrong
    An operational audit can identify multiple types of waste occurring simultaneously in a process. For example, unnecessary motion in employees and excess inventory may both be present if a process involves redundant steps performed by different employees that result in overproduction of stock. The operational audit work program should consider how the eight areas of waste identified in lean methodology - defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra processing - interact and occur together in organizational processes. Identifying and addressing waste across multiple categories can maximize efficiency gains from lean improvements.

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    Chapter7

    Uploaded by

    Keanne Armstrong
    1K views2 pages
    An operational audit can identify multiple types of waste occurring simultaneously in a process. For example, unnecessary motion in employees and excess inventory may both be present if a process involves redundant steps performed by different employees that result in overproduction of stock. The operational audit work program should consider how the eight areas of waste identified in lean methodology - defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra processing - interact and occur together in organizational processes. Identifying and addressing waste across multiple categories can maximize efficiency gains from lean improvements.

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    An operational audit can identify multiple types of waste occurring simultaneously in a process. For example, unnecessary motion in employees and excess inventory may both be present if a process involves redundant steps performed by different employees that result in overproduction of stock. The operational audit work program should consider how the eight areas of waste identified in lean methodology - defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra processing - interact and occur together in organizational processes. Identifying and addressing waste across multiple categories can maximize efficiency gains from lean improvements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views2 pages

    Chapter7

    Uploaded by

    Keanne Armstrong
    An operational audit can identify multiple types of waste occurring simultaneously in a process. For example, unnecessary motion in employees and excess inventory may both be present if a process involves redundant steps performed by different employees that result in overproduction of stock. The operational audit work program should consider how the eight areas of waste identified in lean methodology - defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra processing - interact and occur together in organizational processes. Identifying and addressing waste across multiple categories can maximize efficiency gains from lean improvements.

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    Chapter 7

    QUESTIONS
    1. How can overproduction be minimized?
    We can minimized overproduction by using different approaches that conducting about minimizing
    products.

    2. Describe three reasons why waiting is damaging to organizations?


    Patience for Purchases - It is difficult to be patient, like these frogs, when waiting in long lines.

    Losing Customers - The most obvious effect of waiting in long lines is the loss of customers.

    Less Efficient - Bad Reputation

    3. How is transporting a waste? Provide an example to support your answer.


    The transportation of waste is the movement of waste over a specific area by trains, tankers, trucks,
    barges, or other vehicles. The types of wastes that may be transported range from municipal garbage to
    radioactive or hazardous wastes.

    4. How can organizations avoid, or at least minimize, unnecessary paperwork and processing?
    Use electronic storage rather than paper storage for material. Don’t print them unless you really have
    to. Electronic storage can be very reliable if it is set up with backups.

    5. If inventory is an asset, why is it considered a waste?


    Because sometimes other inventory that are existing has no value so that it is already considered a
    waste.

    6. Explain how you can identify excess motion during an operational audit.
    We can identify excess motion during an operational audit by using different approaches like JIT for
    example.

    7. Describe the impact of defects on organizational success from an internal and external (e.g.,
    competitive) perspective.
    External factors that affect an organization may be political, economic, social or technological. The same
    internal factors that lead to an organization's success inevitably characterize that organization's
    relationship to the external environment in these broad areas.

    8. Provide three recommendations to minimize the presence of underutilized employees.


    Reducing bench time entails reducing non-billable hours so that your teams can spend more time
    generating higher revenue while delivering projects on time and producing more revenue per
    consultant.

    Throwing more resources at the problem is only a band aid fix which does nothing to prevent skewing
    the estimated time and budget. But in some cases, a project may need more resources than originally
    estimated.
    Decreased employee engagement and productivity

    9. How can the Eight Areas of Waste be used to build an operational audit work program?
    Internal auditors can play an important role helping to avoid the Eight Areas of Waste by searching for
    their occurrence during audit and consulting projects. These areas of waste can occur prospectively due
    to the poor design of programs and processes, while activities are underway, or after the work has been
    performed and the auditor reviews the transactions, retrospectively. In any case, by searching for these
    problem areas, internal auditors can help the organization operate more efficiency and be more likely to
    achieve its financial and operational objectives.

    10. Show how a process can have more than one of the Eight Areas of Waste present simultaneously.

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