Abstract

Area activity analysis (AAA) is the most effective approach to establishing internal and external supplier/customer relationships. It also establishes individual performance indicators (IPI) related to major activities that go on in all the organization’s natural work teams. IPIs measure what each level of management and all employees do and what they are responsible for. This allows improvement efforts to be focused on real problems and to take advantage of real opportunities that affect the total organization’s performance. Using this approach, an organization’s performance typically increases at a rate of 10 to 20% per year.