Business processes optimization

One of the most important aspects of the internal activity of any company is the search for opportunities to optimize the most common and repetitive business processes. This is not a new concept since every enterprise that has taken place is constantly developing methods for improving activities related to personnel, technology, customers and clients and so on.

In general, the optimization of business processes involves obtaining performance information through monitoring or modelling; identification of potential or actual difficulties and potential opportunities for cost savings or improvements; application of these improvements in the process. In-depth analysis tools can help in identifying critical activity and problem areas, increasing business productivity.

For any company, the optimization of business processes in different ways helps:

  • Reduce costs.
  • Save time.
  • Increase the efficiency of processes.
  • Ensure consistency in managing business processes.
  • To contribute to the improvement of the company as a whole.

More specifically about the most important internal aspects of any enterprise:

Staff

Almost always a lack of knowledge or experience either leads to catastrophic consequences or is a very specific reason in the backlog in terms of work processes. The key solution, in this case, is the elimination of these shortcomings. To increase the knowledge and experience of the workforce, you can use a variety of means: training, webinars, group discussions, providing access to online services, so that employees can improve their knowledge at a convenient time for them.

It has been repeatedly noted that labour productivity improves with the periodic conduction of training, and the efficiency of the operation of the operational staff is increased in the planning of maintenance and performance monitoring. All this positively affects the minimization of production losses, the cost of technical and warranty maintenance.

In some cases, enterprises are having difficulties due to the lack of qualified personnel who could be involved in resource planning. Sometimes this is caused by an attempt to cut costs when the company hires inexperienced (“cheap”) employees. This results in even larger losses for the organization. Therefore, before updating or changing the resource strategy, careful planning must be conducted, which must be based on a thorough analysis of the external and internal situation.

Technologies

To make the necessary strategic decisions and perform everyday tasks, the business can use different technologies. This can be either a serial or custom-tailored software. However, regardless of the technologies that the company uses, optimization, based on serial or custom software, affects the very basics of the activity. Technological improvement of the main processes will help “raise the bar” of the whole enterprise.

Process

Each enterprise uses its own processes, which, nevertheless, comply with the rules and procedures specific to a particular industry. For this aspect, the most important is the standardization and improvement of existing business processes. Optimization can be carried out in various ways: thorough, from beginning to end, the study of a particular process or a single business cycle; eliminating the excessive costs of time and money without the negative impact and risk to the business as a whole.

In a broader sense, process optimization can include the following sequence of actions:

  • Understanding the process.
  • Understanding the problems of the process.
  • Factor analysis and evaluation.
  • Preparation of integrated solutions and approaches.
  • Implementation and implementation of decisions.

Understanding the process. Any activity aimed at optimizing an important business process should begin with understanding it, identifying the best ways to implement it, and comparing it with the company’s business.

 

Understanding the problems of the process. Understanding of problems refers to identified in the process of delays or in some of its stages and does not belong to the established process as a whole. The solution can be the modification of certain steps or tasks, the elimination of excessively expensive steps or their combination for more efficient work.

Factor analysis. It is necessary to systematically collect data for carrying out analysis and evaluation of the flow processes, documentation and competence of the workforce.

Preparation of integrated solutions and approaches. After conducting the analysis and evaluation, it is time to prepare integrated solutions and approaches. Sometimes the client himself points out the problem, and in such cases, it is easier to identify the problem points of the enterprise and focus on finding solutions or approaches to the solution.

The report on the optimization process can contain:

  • The main problem points.
  • Available solutions.
  • A detailed description of the key decisions.
  • Recommended approaches and solutions.
  • Plan of action to implement solutions to existing problems.

Implementation of decisions. At this stage, the implementation of recommended solutions is made. To monitor the effectiveness different types of tools are used. Some companies stop at this step due to different restrictions (features of production technology, lack of integration into the existing business model, lack of qualified personnel, etc.).