Systems Thinking for Operations Consultants: Cost Reduction
Uncover the power of systems thinking to drive sustainable cost reduction in operations consulting.
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Foundations of Systems Thinking for Cost Reduction
Unit 1: Introduction to Systems Thinking
What is Systems Thinking?
Systems Thinking & Cost
Linear vs. Systems Thinking
Interconnectedness
Emergence
Unit 2: Feedback Loops and System Boundaries
Feedback Loops: Intro
Reinforcing Loops
Balancing Loops
Loop Examples in Cost
Defining System Boundaries
Unit 3: Stakeholders and Perspectives
Identifying Stakeholders
Stakeholder Perspectives
Stakeholder Impact
Balancing Stakeholder Needs
Section 1 Recap
Mapping Cost Systems with Causal Loop Diagrams
Unit 1: Introduction to Causal Loop Diagrams
What are CLDs?
CLDs for Cost Reduction
Variables in Cost Systems
Unit 2: Building Causal Loop Diagrams
Drawing the Links
Reinforcing Loops
Balancing Loops
Combining Loops
Unit 3: Analyzing and Applying Causal Loop Diagrams
Finding Leverage Points
CLD Analysis Techniques
Assumptions & Boundaries
Data and CLDs
Unit 4: CLD Practice and Advanced Concepts
Scenario: Inventory Costs
Scenario: Labor Costs
Scenario: Material Costs
Dynamic Behavior
CLDs and Strategy
System Archetypes in Cost Reduction
Unit 1: Introduction to System Archetypes
What are Archetypes?
Archetypes & Cost Reduction
Fixes That Fail: Intro
Unit 2: Common System Archetypes in Cost Reduction
Fixes That Fail: Example
Shifting the Burden: Intro
Shifting the Burden: Costs
Tragedy of the Commons
Commons: Cost Example
Unit 3: Advanced Archetypes and Mitigation
Growth and Underinvestment
Growth: Cost Reduction
Escalation Archetype
Escalation: Cost Wars
Unit 4: Mitigating Archetype Effects
Avoiding Fixes That Fail
Breaking the Burden Shift
Governing the Commons
Systems Thinking Tools for Sustainable Cost Reduction
Unit 1: The Iceberg Model
Intro to the Iceberg
Events Level
Patterns Level
Structures Level
Mental Models Level
Unit 2: Stock and Flow Diagrams
Intro to Stocks/Flows
Cost as Stocks & Flows
Diagramming Inventory
Diagramming Cash Flow
Diagramming Waste
Unit 3: Intervention Strategies
Systems Interventions
Changing Mental Models
Redesigning Structures
Sustainable Solutions
Evaluating Interventions