What does sub-optimization refer to in a process?

Sub-optimization refers to a situation where individual parts or functions of a process are optimized independently, without regard for how these optimizations affect the overall system or process. By focusing solely on the peak performance of one function, it can lead to inefficiencies in the overall workflow, as improvements in one area might cause delays or bottlenecks in another.

For instance, if a manufacturing department improves its efficiency through faster production times but does not coordinate with the shipping department, it may produce items faster than they can be shipped, resulting in excess inventory or delayed deliveries. The essence of sub-optimization is that while one segment may see gains, the overall process may suffer because the interconnectedness of the various functions is overlooked.

The other options reflect different aspects of process management that may involve efficiency considerations but do not encapsulate the core idea of sub-optimization as effectively as the one identified. Allowing sub-par performance of the supply chain or maximizing function output without attention to process flow might contribute to suboptimal performance, yet they do not emphasize the critical difference between individual function performance and overall system efficiency. Similarly, not improving the entire process across the value stream – while important – does not capture the specific nature of sub-optimization in the way that the focus on