Part of the broader Enterprise Quality Management Software (EQMS) functionality portfolio, Corrective and Preventive Action (CAPA) management is a tool utilized by many organizations to identify, resolve, and avoid nonconformances. Just as it sounds, CAPA has two main elements, corrective and preventive actions, both of which aim to improve the quality of processes.
Companies have always been focused on financial performance and achieving operational excellence. However, many companies are now striving to hold themselves to an even higher standard and it is all around sustainability.
In our modern economy, business decisions are made based on the forces of the global supply and demand network. In many cases, outsourcing just for cost savings is no longer an optimal strategy; rather market leading companies are trying to balance a diverse set of needs across a global network, which includes responsiveness, quality, and innovation as well as cost. In such an environment, many companies are attempting to engage in off-shoring, near-shoring, and on-shoring strategies all at the same time. So what steps do executives need to take to excel and lead in such an environment?
It recently occurred to me while moderating panels on operational excellence during an SAP Manufacturing Forum that many organizations and manufacturing executives are tangentially, if accidentally, engaged in risk management without their knowledge.
I recently had the pleasure of attending and speaking at the SAP Manufacturing Forum in Newtown Square Pennsylvania on April 3rd and 4th. The event was an intimate one, with a strong showing of sponsoring implementation partners as well as key customers presenting success stories.
There are many different contexts in which the term Operational Risk Management can be referenced. If you look at the definition of Operational Risk Management in Wikipedia, much of it is driven from military applications. It is not until the very end of the entry that definitions more typical to business and software settings are mentioned.
This week LNS Research had the opportunity to be briefed by two solution providers that are taking a new approach to the Quality Management space. In both cases, these companies have put Risk at the center of their solutions. One described their solution as Quality Risk Management (as a subset of Operational Risk Management) and the other as Operational GRC (Governance, Risk, and Compliance).