Running head: DATA ANALYSIS SKILLS AND THNKING
DATA ANALYSIS SKILLS AND THNKING
Data Analysis Skills and Thinking.
BUS307: Operations Management & Quantitative Techniques
June 4, 2018
Spend analysis is the process by which historical data is collected in terms of commodity and relative to the demand, in the business, with the exception of personnel expenses, occupation, and corporate spend. (Monczka, 2011) Data should go to the correct level of unit level detail necessary for the analysis and management of the commodity. It should be accumulated at an aggregate level on each element of our expenditure. The outcome is a mutual understanding of the history of expenditure relative to the demand from each end user in a firm founded on the accurate information collected via distinct and automated procure-to-pay system. I spend analysis, one has to drive all spend a unit of consumption and the consumption rate. Its result facilitates commodity management, demand, and risk strategies. Business stakeholders should understand where they spent their money and the reason for spending.
Achieving a successful supply chain management can be attributed to great sourcing tactics, effective negotiation, procurement and classification expertise. These factors cannot be achieved, however, without the capability of the firm to access data and conduct the analysis. Specifically, spend data is fundamental to many business strategies like inventory, budgeting, product development, and planning. In any supply chain, it is wise for the management to have detailed, complete and most importantly, accurate data in real time. these data facilitate the identification of the performance, the spending behavior, inventory and the compliance situation. These data are crucial because, without it, it is difficult to have a budget, save costs, and identify product design and advancement strategies.
The six sigma facilitates data-driven problem-solving. Bass (2007) notes that Six Sigma is based on statistical analysis and is a strict approach which drives process and product improvements by the use of statistical measurements and analyses. Six Sigma compels firms to define their vision of quality numerically. it derives from a past quality sequence that requires a quality process to be producing quality outcome if 99.74 percent of the commodities produced lie within the set specifications. The end goal of the process is to have a defect-free situation.
Six Sigma is fundamental because it makes firms work hard and faster to unearth and minimize variations and their sources in the processes. It raises the standards of the quality objectives that make an organization to stress on constant quality improvement. Six Sigma is committed to quality, which may be great in achieving globally acceptable status and gain a competitive edge in the world market. Most importantly, Six Sigma possesses a formal problem-solving approach that is known as DMAIC process. It stands...