2.6 Economics Management
Losses definition
Loss analysis overview
Result controlling overview
The Economics management module is a DSS (Decision Support System) designed for the management of continuous improvement programs for complex processes. It is in fact used by several large companies for the implementation of Blue Rooms (also known as Compass Rooms) as part of World Class Manufacturing and similar programs.
This is because the module has all the necessary features to analyze a process’ losses, establish intervention priorities, schedule changes, monitor their implementation, assess their impact and identify the most effective methods of action for subsequent periods.
The module comes from the long experience of Exagogica in the creation of information systems to support continuous improvement programs in different areas: manufacturing, product development, sales network management. The module is based on the logic of the Lean Organization, according to which the continuous improvement consists in the progressive and constant re-engineering of existing processes, carried out, however, on the basis of a very precise economic analysis of process costs and losses generated within it (Cost Deployment).
The Losses definition function allows creating or importing the analytics of economic losses found in the production process and allocating them to specific loss types that can be extended to all process centres involved in the improvement program.
The Improvement analysis is the function that allows to associate the losses to one or more causes, deriving methods and tools of intervention, based on a configuration that is also standardized for the whole organization. The Improvement analysis function ends up with the definition of the intervention projects and with their assignment to a manager.
The Project monitoring feature allows updating the system on the progress of ongoing interventions. It is a function that can be used independently, or it can draw information from the management of projects carried out with the functions of the Project Management module.
Also the Results controlling function can be used independently, or as a tool to verify the information entered by project managers operating within the Project Management module. In both cases, this function is the one that allows analysing and consolidating costs and benefits brought about by the process changes previously made.
Finally, the Strategic analysis is the function that allows aggregating data of the improvements made on the process over different financial years, in order to establish the benefit / cost ratio of each intervention methodology and to choose the best methodologies to insist on for the subsequent investments.
The Economics management module, besides offering extremely useful functions for all involved controllers in process review programs, provides aggregation features and validation processes for consolidated data over different budgetary periods at the Site (service centre), Business line and Corporate level.