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E0660: Input Cost Pass-Through Framework

A decision-ready template derived from the framework.

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English
E0660: Input Cost Pass-Through Framework
Katakana
サイクルタイミングフレームワーク
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Quality / Updated / Source / COI

Quality
Reviewed
Updated
COI
none

Context

Context: Decision frequency is high, but inconsistent definitions of labor productivity and capacity utilization weaken accountability. Under supply chain friction, delayed decisions directly reduce execution windows and increase rework. A one-page standard is required so stakeholders can evaluate options quickly while preserving auditability, ownership traceability, and escalation readiness.

Options

  • Option A: Keep the current operating model and defer structural changes. This lowers short-term disruption, but preserves existing bottlenecks and learning delays.
  • Option B: Deploy in phases, track labor productivity and capacity utilization, and expand scope only after evidence confirms threshold movement. This balances risk, learning, and execution speed while protecting governance quality.
  • Option C: Replace the existing model through a broad transformation rollout. Strategic effect may be high, but rollback complexity and failure impact also rise.

Decision

Decision: Adopt Option B with phased deployment. Lock metric definitions and stage gates first, then expand scope only after two consecutive reviews confirm threshold improvement in labor productivity and capacity utilization.

Rationale

Rationale: Option B balances learning speed and execution safety under supply chain friction. It enables progressive adjustment of efficiency vs quality stability while keeping accountability, evidence traceability, and rollback readiness intact. The phased design also reduces coordination overhead, increases transparency for leadership review, and prevents large irreversible errors when assumptions fail.

Risks

  • If instrumentation for labor productivity and capacity utilization is weak, outcome comparison becomes unreliable and the governance process loses credibility.
  • If ownership and deadlines remain ambiguous, execution drifts and teams revert to siloed criteria, reducing decision quality over time.

Next

Next actions: Finalize pilot scope, approve baseline thresholds, and run a pre-mortem on supply chain friction. Establish weekly checkpoint rituals and require explicit sign-off records for every expansion decision.