17  Lean Management - To remove waste and to add value ← get right things at the right time and right place.

精益管理-消除浪费，增加价值← 在正确的时间、正确的地点做正确的事情。

 Lean management system – The IS to provide right info to right people at right time.

 The five S's concept → To evaluate whether the workplace/the IS is in order ← - waste, +efficiency

 Structurise – Introduce order where possible, EASY to FIND (categories, need or not?).

 Systemise➢ Necessary items are arranged at required places and quantities according to theorders introduced. EASY for USE → Save time (reduce waste) to look for items,improve efficiency, quality and reduce accidents.➢ IT/IS: The new RFID system will help to arrange and identify items, computer terminalsand networks to be set up.

 Sanitise - Be tidy, remove any unnecessary obstacles on site.

 Standardise - Be consistent in the approach taken.

 Self-discipline - Maintain through motivation

5S的定义与目的:5S就是整理（SEIRI）、整顿（SEITON）、清扫（SEISO）、清洁（SEIKETSU）、素养（SHITSUKE）五个项目

5S的效用:

18 Enterprise Resource Planning (ERP) Systems

ERPS are groups of software applications integrated to form enterprise-wide information systems.

⚫ The aim was that one system would serve the whole organisation.

 It leads to less duplication of data, which means less time is wasted entering informationinto two or more systems and reconciling information from different systems.

 Senior managers have access to all the data in one place, rather than information being spread among separate systems. This enables managers to have a clearer knowledge of what is happening.

Salesmanager

• By knowing exactly the real time data of sales, can compare performanceof the product with target and past sales.

• External data included in ERPS may allow sales manager to understand themarket condition so that he/she can make prompt response to customer'demands, e.g. which product might be discounted and to what level.

Inventorymanagement

• The manufacturing system will be linked into the purchase system andinventory control system, for example, to ensure that inventory levels aresufficient to support planned production.

• Minimum inventory level is set up in the system so that ordering will betriggered when inventory reaches that level. This helps avoid problemsfrom employees not entering the purchase order into the computer systemand ensure that the relevant people in the organization are fully aware ofthe inventory both on order and in store.Supplierrelationshipmanagement

• Details of the deliveries can be tracked and the ERPS will enable staff atappropriate level to discover how long deliveries are taking and to managethe supplier relationship accordingly. 

19. Characteristics of Big Data --大数据的特点

 Big Data is 'datasets whose size is beyond the ability of typical database software to capture,store, manage and analyse'. 

 Volume: the ability to process very large amounts of information.

 Velocity: Refers to the increasing speed with which data flows into an organisation, and with which it is processed within the organisation.

 Variety (or variability) : the diversity of source data, with a lot of the data beingunstructured (i.e. not in a database).

 Veracity (truthfulness)

 Value 

The characteristics of big data, known as the 5Vs, are:

• Volume-The volume of big data held by large companies such as Walmart (supermarkets), Apple and EBay is measured in multiple petabytes.

• Variety-

• Browsing activities: sites, pages visited, membership of sites, downloads, searches

• Financial transactions

• Interests

• Buying habits

• Reaction to advertisements on the internet or to advertising emails

• Geographical information

• Information about social and business contacts

• Text

• Numerical information

• Graphical information (such as photographs)

• Oral information (such as voice mails)

• Technical information, such as jet engine vibration and temperature analysis

• T

his data is stored within defined fields (numerical, text, date etc) often with defined lengths, within a defined record, in a file of similar records.

• Velocity-nformation must be provided quickly enough to be of use in decision-making and performance management. 

• Veracity-means accuracy and truthfulness and relates to the quality of the data.

  Value-The last V of big data (although some models have added more) is Value

• 
  

T

The processing of big data is generally known as big data analytics and includes:

• Data mining: analysing data to identify patterns and establish relationships such as associations (where several events are connected), sequences (where one event leads to another) and correlations.

• Predictive analytics: a type of data mining which aims to predict future events. For example, the chance of someone being persuaded to upgrade a flight.

• Text analytics: scanning text such as emails and word processing documents to extract useful information. It could simply be looking for key-words that indicate an interest in a product or place.

• Voice analytics: as above but with audio.

• Statistical analytics: used to identify trends, correlations and changes in behaviour.

20. EVA Economic value added --经济增加值

EVA is an estimate of true economic profit after making corrective adjustments to GAAPaccounting.

 Principles of EVA

- Assets once created cannot be diminished by accounting actions.

- Investment leads to assets regardless of accounting treatments.

 Calculating EVA

EVA = Net operating profit after tax (NOPAT) - Capital employed x Cost of capital

 NOPATPAT (I/S)

Add: Tax charged (I/S)

Less: Tax paid+ Interest after tax+ Accounting depreciation- Economic depreciation+ Goodwill AMORTISED+ Increase of doubtful debt / (Decrease of doubtfuldebt)+ Non-cash expenses+ Increase of R&D / (Amortised R&D)+ Operating lease expense / (Economic Depreciation)- Goodwill impairmentNOPATNOPAT = PBIT * (1 – t)NOPAT = PBIT-i*t–Tax paid

21. Capital employed

Opening Bal. of Total assets (NCA + CA) in the B/S

Minus: non-interest-bearing activities (e.g. A/P, tax payables)Adjustments:NBV of tangible NCAs + accumulative accounting Deprn’ – accumulative economic Deprn’

Add: Non-cash expenses (Opening figure)

 Cumulative amortised GW (Opening figure) 

NBV of Provision of doubtful debts (Opening figure) 

NBV of development costs to be capitalised (Opening figure) 

PV of operating lease costs to be capitalised (Opening figure)

Adjusted Capital invested

22. Transfer pricing--TP 

A transfer price is the price at which goods or services are transferred from one division to another within the same organization.

Objective of a transfer pricing system (Why using a formal transfer pricing system?)

- Reducing time to argue on prices between divisional managers. More time to spend on other issues therefore.

-Autonomy and goal congruence

 No autonomy → demotivating divisional managers.

 With autonomy → possibility of making sub-optimal decisions.

 Formal TP system → to maintain autonomy & to avoid dysfunctional behavior → org profitmaximised

-A good transfer price would enable each centre to be evaluated on the basis of profit.

- Cost centre If the seller is a cost centre, it is motivating for buyers to pay at seller’s costs.

1 Market price

Where there is a perfectly competitive market for an intermediate product

⚫ A perfect market means that there is only one price in the market

⚫ There are no buying or selling costs and

⚫ Care must be taken to ensure the division's product is the same as that offered by themarket (e.g. sizes, quality, delivery terms, etc.).

⚫ The market price should be adjusted for costs not incurred on an internal transfer.5.2.2 Cost-based Price

⚫ The selling division has surplus capacityMarginal cost of the supplying division ≤ Transfer price ≤ External purchase price ofbuying division

⚫ The selling division has no surplus capacityMarginal cost of the supplying division + Lost contribution from other product ≤ Transferprice ≤ External purchase price of buying divisionPros of MP Cons of MP1) Equivalent price → making decisions2) Equivalent price → fair to both divisions3) Equivalent price → reducing time taken to argue on the TP4) Encouraging seller to improve efficiency5) Buyer gets better services and quality from internal transfer6) Avoidable costs removed → benefit may be shared to bothparties7) No selling and purchasing costs, saving costs for thecompany → Goal congruence1) No equivalent prices2) Temporary prices →changing TP, timeconsuming, confusing themgrs3) Difficult to agree onavoidable costsTransfer price = market priceTransfer price = market price – avoidable costs

23. Features of NFPIs 

Pros                                                                                                 

• Long-term focused/Leading info•

•  External factors concerned• 

• May be less likely to be manipulatedthan financial indicators•

•  Are easy to understand, especiallyfor non-financial managers• 

   Cons

• Soft issues difficult to quantify

• Definitions are subjective

• Customer data difficult to collect andinterpret

• Not audited like financial data

• May not be accurate/reliable ← no matter theinfo is from internal source or externalsources

24. League table--排名表

The use of league tables helps benchmark performance as measures and targets areclearly set up when designing the table. League tables give a clear and immediate answerto questions of relative performance using the rank in the table

 Advantages League table

• Clear targets set based on how performance is measured and assessed.

• Stimulates competition and the adoption of best practice → the quality of the service shouldimprove.

• Monitors and ensures accountability of the providers.

• Performance is transparent → more choices for information users? (e.g. selecting a schoolaccording league table results)

Weaknesses of league table

• Relative performance is better ≠ better performance in absolute terms.

• When comparing NPOs' performance in different countries: Different countries, government policies may affect what should be managed andmeasured in the specific situations.➢ Measures used may not all be specifically linked to each NPO's objectives?➢ Weightings in the formula affects managers' decisions? → objectives?

•Copying league table from other country or other NPOs may not be suitable no. of KPIsshould be used? Decisions of info users?

• League table → behaviour Measured, done. Not measured, not done. Measured, not controllable not accountable.

25. JIT--just in time

 is based on the Kaizen philosophy of continuous improvement.

⚫ Pull system – respond to demand each component is produced only when needed.

The Impact of JIT on Performance Management:

⚫ Inventory counting – The inevitable reduction in inventory levels will reduce the time takento count inventory and the clerical cost.

⚫ IS – IS design to support inventory management, especially communication betweendepartments and, with suppliers and customers.

⚫ Changes in purchasing Selecting suppliers  Suppliers' desire to JIT supplies (Suppliers' operations) No. of suppliers is reduced → reducing time for discussions and easy to improverelationship with suppliers Defects-free from suppliers → delivering right items at right time to customers On-going supplier audit

⚫ Changes in production→ To supply right items at right time Quality➢ Customers' quality level is mutually understood.➢ Increasing prevention and appraisal cost → reducing failure costs (both IFC & EFC).➢ Improved by team members  staff are grouped by orders and together, they areresponsible for quality of the orders. Quantity➢ Multi-skilled team members to reduce bottleneck and unnecessary cost, e.g.supervisor cost is no longer needed.➢ changing factory layouts to allow team flexibility.➢ Staff training and culture change to allow multi-skills staff capable to identifydefective goods and to avoid further processing them → +quantity & Lead time Bonus → quality measures, e.g. defects detected, zero error, lead time 

2 Problems which will accompany a move towards just-in-time manufacturing

⚫ Demand forecasted accurately?  close relationship with customers

⚫ Price and delivery term and quality?  detailed supply chain analysis to locate 'right'suppliers

⚫ To reduce supplier numbers → + suppliers' power → supply chain disruption?

⚫ Mind-set? Training? Factory layout for flexibility?

26. Target costing is a pro-active cost control system. Its purpose is to reduce cost continuously.

目标成本法是一种主动的成本控制系统。其目的是不断降低成本

Steps of target costing: 

27.  Kaizen costing--成本制度

•Using small, incremental changes routinely applied and sustained over a long period resultin significant improvements.

•Kaizen costing has been developed to support the continued cost reduction of existingcomponents and products (after R&D).

Reducing waste after R&D --> -cost,updating cost target once it is achieved,team --> quick response to problems,continuous improvement, small &incremental changes routinely --> notsuitable for products with short LC

How can Kaizen help improve performance?

- Reducing waste Focuses on eliminating waste in the targeted systems and processes of an organization,improving productivity, and achieving sustained continual improvement. KPIs to reflectwaste reduction.

-Team-work Aims to involve workers from multiple functions and levels in the organization in workingtogether to address a problem or improve a particulate process. Training staff toparticipate in and contribute to team-work.

- Cost target Cost reduction targets are set and applied on a more frequent basis than standard costs.

- Empowered staff to react quickly without large capital expenditure.

- IS to support (team communication, real-time cost data)

- It takes longer time to achieve a dramatic improvement, does not help if the project/p roductis with a short life cycle. 

28. TQM --Total Quailty Management  全面质量管理

是一个将所有集团的质量管理工作整合在一起的系统。

-TQM is a system which integrates the quality management efforts of all groups in anorganisation.

- The basic principle of TQM is that costs of prevention (getting things right first time) are lessthan the costs of correction.

Impacts on perf. Mgmt:

- Involvement of everyone in the organisation in continually improving the processes andsystems under their control → Culture change.

- An investment in training and education to realise individual potential.

- Teamwork in a number of forms such as quality circles → To effectively use prevention coststo reduce failure costs.

- IS to support departmental communication for better understanding effectiveness of thequality initiatives.

- Target setting for zero defect.

- Continuous improvement → Reducing cost continuously.

- Suppliers and customers forming an integrated part of the process of improvement.

- Ensuring that quality factors have been correctly engineered into the design of products.

- Process re-design - to simplify processes, procedures and the organisation. 

29. Six capitals involved in value creation:

6 sigma⚫ It is designed to decrease wastage and improve products and services, leading to greatercustomer satisfaction and lower costs.⚫ Error target – there are no more than 3.4 defects per million opportunities – the SixSigma (6σ) level of performance. (Error rates ≤ 0.00034%)⚫ Defining defects (errors) – performance targets are based on customer requirements. 

 Financial capital

 Manufactured capital

 Human capital

 Intellectual capital

 Natural capita

l Social and relationship capital

The Six Sigma is a framework which makes use of a range of tools, such as:

- Fishbone diagrams

- Process mapping tools

- SWOT analysis

- Pareto analysis 

The Five Steps Of The Six Sigma Process

-Define: defining the problem, clarifying the purpose of the project and identify customerr equirements

- Measure: data collection to quantify the problem and causes, measuring the key processes which are critical to quality

- Analyses: analysis of data to find the root cause of the problem.

- Improve: developing solutions and implementing them

- Control: monitoring changes and dealing with problems arising. The control process willfocus on key performance measures. 

30. Management styles 

Hopwood identified three distinct management styles of performance appraisal:

31. The performance pyramid  塔形分解

The performance pyramid was developed:

 to understand and define the links between objectives and performance measures at different levels in the organisation;

 to ensure that the activities of every department, system and business unit support the overall vision of the organisation.

 How the Pyramid model can help companies achieve its vision?

 (Pros of the model)

 It helps to set financial and non-financial performance measures ➡ holistic view of perf

 Non-financial perf indicators will lead to long-term financial sustainability

 Objectives cascade down the pyramid from the strategic to the operational level. The elements of the pyramid are interrelated, and each level in the pyramid supports the oneabove it.

 The pyramid ensures that all aspects, both internal and external, of performance are measured. 

32. Fitzgerald's and Moon's building block model--Fitzgerald和Moon的积木模型

ctivity-Based Costing and Control将企业的各项活动分解成若干个基本活动，然后通过对这些基本活动的成本和效益进行分析，确定企业的战略和管理方针。

1.战略层次：确定企业的战略目标和方向，包括市场定位、产品定位、成本控制等。

2.过程层次：将企业的各项活动分解成若干个基本活动，然后对这些基本活动进行成本和效益分析。

3.操作层次：根据过程层次的分析结果，制定具体的管理措施和操作方法，实现企业目标的落实。

The Building Block model looks at three areas of performance: 

dimensions

Companies compete across a range of dimensions besides financial performance. The Building Block model considers this and describes two categories of dimensions: ‘Results’ and ‘Determinants.’

‘Results’ are the outcome of decisions and actions taken by management in the past. These are captured under the first two dimensions of the model, financial performance and competitiveness.

‘Determinants’ refer to the forward-looking dimensions of the model: what areas of future performance are most important for a company to achieve positive financial and competitive results? Quality, innovation, flexibility and resource utilization are the determinants of future success.

standards-- After an organisation’s dimensions are understood, standards can be set.

• Who is responsible for achieving the standard (ownership)?

• What level are the standards set at (achievability)?

• Can we use the standards for a fair appraisal across the company (equity)?

 rewards-- The last part of the model looks at the overall reward structure of the organisation and is the link to HR systems.

• Is the system understandable to all employees (clarity)?

• Will the system drive employees to achieve their objectives (motivation)?

• Do employees have control over their areas of responsibility (controllability)?

Like other modern performance measurement frameworks, the Building Block model connects an organisation’s strategic objectives to a range of forward-looking, non-financial performance measures. Where the Building Block Model differs, however, is that also considers reward systems and aims to create a framework of clearly understood and communicated individual metrics that aligns individual performance targets with organizational objectives.

33.Network (virtual) structure

Problems of Measurement

Not on-site → Difficult to observe their dedication to works (effort and outcomes)IT/IS to collect performance data automaticallye.g. Staff log-in org's IS to work 

 Log-in hours (input or effort of staff)However, productivity (outcomes) difficult to define and monitorStaff computers HW and SW must be compatible  

Strategic partners

Collecting data relying on IS → IS not compatible, data processed with differentformats and methods → wasting time to reconcile data and interpret data →Arguments on perf

Conflicts of objectives → Arguments on acceptable level of perf (targets)Org: +quality → +Q & profitPartner: -cost → +profitQuality level to be agreed

Problems of perf mgmt 

Staff：

perf mgmt ：Staff not on site, reducing travellingtime, more family time, more flexiblehoursOrg: Difficult to motivate staff toachieve desired output

Solutions ：

Clearly defining input and output of staff measures to quantify and motivate perf Log-in hours, Project-based output RewardsTo communicate with staff about rewardsand the measurement system

Strategic partners

perf mgmt ：Org: How to motivate partners to have goal congruence:

Org: How to motivate partners to have goal congruence:1. Conflicts1. To encourage partners to improvequality so that sales volume and profitcan be improved.  Shared profit withpartners2. Relying on partners.Taking time to replace and affectingcustomer satisfaction.2. Relationship mgmt  To reducedisputes and disagreements aboutperformance  Mutual trust  Clearcontract terms dictate outcomes (SLAs)3. IS (EDI) to contact with partners forquick response to customer needs →Confidential data to be leaked? E.g.Customer and supplier data3. To protect confidential data e.g. withclear contract terms for penalty

34.JV (Joint Venture)Difficulties in measuring and managing performance of a JV

Difficulties in measuring performance of a JV

• Difficult to measure contribution from eachparty

• Confidential data  Design, productionefficiency (commercial sensitive)• Different IS → taking time to integrate andinterpret data

35. Approaches of budgeting

- Fixed and flexed budget

- Incremental budgets

- ZBB-Zero-based-budget

- Rolling budgets

- ABB-Activity-Based-Budget

Purpose of budgeting --A budget is a quantitative plan prepared for a specific time period. It is normally expressed in financial and non-financial terms and prepared for one year.

- Purposes:- Planning- Control- Communication-Evaluation- Motivation

36. Value for money (VFM)--货币价值 

the approach which is used for the evaluation/assessment of the workof especially non-profit enterprises and it consists of analysing 3 E: 

Economy – the optimisation of the resources which the organisation has; ensuring theappropriate quality of input resources are obtained at the lowest cost;

Efficiency – the optimisation of the process by which inputs are turned into outputs;

Effectiveness – how the outputs of the organisation meet its goals.

37. Benchmarking (BM) 

Best practices are used to compare performance to learn & improve.

Competitor BM -To Competitor：

- Improvements to be made with a similar business.

- However, only valuable when competitors demonstrate competitive advantages.

- It does not identifyhow to gain advantage over therivals.

- Difficult to obtaininfo.

- Even if a competitorcan be persuaded toshare information, itwill often only givestrategicimprovements, notoperational ones

Functional BM -Similar function inanother industry,e.g. logistics

- However, it isdifficult totranslate lessonsfrom one industryto another.

- Could share detailed operational data without the worry of loss of confidential information directly to acompetitor. However, different IS tocollect data makes the use of info challenging.

Internal BM -Internal divisions

-Improvements within thesame organization, e.g.business integration.

- Detailed operational information. However,non-financial info production is less robustthan financial ones andinvolves subjectivejudgments.

- Ignore competitor performance, may not beworld leading.

 However, it is suitable for companies to use this approach as a one-off exercise, to harmon iseand improve the divisions' performance.

⚫ Difficulties & limitations of Benchmarking

- Costly and time-consuming.

- Other organisation may be unwilling to share information, particularly non-financiali nformation about competitors.

- Benchmarking information must be interpreted carefully to ensure that organisations are generalising reasonable conclusions:

     Differences in the way that data is produced could detriment the comparison.

     The business functions being benchmarked must be similar enough to allow meaningful comparison.

     Exchange rate impacts could confuse the comparison.

     Impacts from different economic and market conditions between organisations.

     Not real-time data: 20X7 data can not predict performance in 20X8.

- Does not tell how to improve performance.

38. Stakeholder analysis

Mendelow's Matrix 

39.  Performance management information systems (PMIS) 

IS to provide management info ➡ Must be matched with info requirements 

Factors affecting info requirements/info to be provided: :

• Easy to understand

• Easy to use for comparisons

• Timely

• Accurate → human errors

• Reliable

• Relevant to users ← functional dept, responsibilitycentres

• Controllability

• Not overloading

• Backups

• Communication channel

• Frequency of reporting•

 Cost-effectiveness

• Details

• Internal and/or external info

• Short-term and/or long-term info

• Quantitative and/or qualitative

40. Sources of management information 

1 Internal sourcesInternal sources of information may be taken from a variety of areas such as the sales ledger,payroll system and/or fixed asset system.

2 External sourcesIn addition to internal information sources, there is much information to be obtained fromexternal sources. For example from suppliers, customers and the government.

- Not reliable?

- Subjective?

- Difficult to gather e.g. from customers or competitors

- Non-structured?

- Out of date?

- May not meet the exact needs of the company

- Costs?

41. Performance reports

To evaluate a performance report:

1. Aim of the report

2.  Break down and prioritise themission/strategies

3.  Measurement of objectives (KPIs →Mission)

4. Useful info to support strategic decisionmaking:

   • FPIs + NFPIs, S-T + L-T, Internal +external, divisional + organisational, relative+ absolute

   • Backward (controlling) + forward looking(planning)

5. Presentation:

   •Clear structure? Not overloading?

   • Detailed or summarised? Rounding?

   • Commentary – Explanation theperformance in relation to objectives➢ Numbers➢ Non-numerical issues

42. Nature of info 信息性质

43. Integrated reporting (IR) 综合报告

Integrated reporting has a focus on opportunities and risk, how resources are allocated and performance both recent historic and expected in the future. 

There is no standard format for integrated reporting. 

Six capitals involved in value creation:

 Financial capital

 Manufactured capital

 Human capital

 Intellectual capital

 Natural capital

 Social and relationship capital

44. Data warehouse & data mining 

⚫ A data warehouse is a type of data management system that is designed to enable andsupport business intelligence (BI) activities, especially analytics.

⚫ The data within a data warehouse is usually derived from a wide range of sources such asapplication log files and transaction applications.

⚫ Data warehouses often contain large amounts of historical data.

⚫ Data mining involves seeking relationships, for example, geographical preferences forproducts; links between price offers and volumes sold; products which are often boughttogether; seasonality of product purchases.

45. RFID--It allows organisations to keep track of assets by tagging them with small radio transmitters(RFID tag).

Benefits:

 Tracking the movement of the tagged items

 Real-time count of items

 Checking whether the items are at the secured places

 Quick decision on inventory movement (e.g. items close to expiry date to be issued outfirst)

46. Customer relationship management (CRM)

CRM systems help the organisation to know their customers better and to use thatknowledge to serve customers better. 

They enable a business to manage its relationshipcentrally through the storage of existing and potential customer contact information.

47. Knowledge management system (KMS)

is a relatively new approach to business in which an organisationgathers, organises, shares and analyses its knowledge to further its aim.

⚫ Knowledge resides in:

 Human capital – the knowledge, skills and experience possessed by employees,suppliers and customers.

 Structural capital – includes intellectual capital (e.g. patents) and client information (e.g.address lists and client records).

⚫ Knowledge management systems (KMS) aim to manage the knowledge that theorganisation has. The aim of the systems is to store the information and share it, so it isavailable to other members of staff when they need it. 

48.. Measuring divisional manage performance 

EBITDA - Assessment of earnings before interest tax, depreciation and amortisation

49. Life cycle costing

Life cycle costing measures all costs and revenue of each project over the complete life cycle of the project,

 

Drawbacks of AI:

 Customers may react adversely to interactions with technology.

 AI systems may operate in a way that is not predicted so some controls over AI behaviourmay be useful.

 AI systems may be ignored or misused by human operators if they do not explain theircourse of action.

 If AI systems only use data generated within a business, they will be less effective atlearning as big data should be sourced to learn.

The management of human resources (HRM)

•Recruitment• No. of vacancies unfilled• No. of qualified staff employed• Salary per staff compared with industry average

•Motivation• Output/hour• Salary per staff compared with industry average• Absenteeism, which can give an indication of the morale of employees.• Turnover rates, which should be further analysed to identify the reasons forleaving.

•Resourceutilisation• Sales per staff

•Retainingstaff• Staff retention rate• Staff turnover rate

Seven main types of waste:

1. Over-production: produce more than customers have ordered

2. nventory: holding or purchasing unnecessary inventory

3. Waiting: production delays/idle time when value is not added to the product

4.  Defective units: production of a part that is scrapped or requires rework

5. Motion: actions of people/equipment that do not add value

6. Transportation: poor planning or factory layout results in unnecessary transportation ofmaterials/WIP

7. Over-processing: unnecessary steps that do not add value

• Artificial intelligence (AI) 

• Data Protection Regulation (GDPR)

T• he International Integrated Reporting Council (IIRC)