Online retailers have had to become masters at data analytics. They have an ocean of data and can make experiments & get feedback quickly. They keep iterating on how to get visitors to shop more and come back more often.
At the other extreme, many manufacturing and purchasing organizations still live in the pre-digital world. They “touch” many data that are, unfortunately, not collected in a database for analysis.
That’s a pity. Using relatively simple statistical tools can provide many actionable ideas for cutting defect rates, supplier risks, and operational costs. Machine learning should come much later.
How to drive improvements in your company, and in your suppliers’ factories? A very common approach is to request a CAP (Corrective Action Plan) when a problem comes up.
However, issuing a one-size-fits-all CAP for each issue makes little sense. There are actually 3 complexities of problems. Let’s explore each and a relevant plan of action here…