Can you save money through increasing efficiency?
Can you increase revenues and growth through a more effective organization and way of working?
International studies show that many companies have quality non-conformity costs or internal wastage of time and money equating to 10-15% of turnover. Our experience from efficiency projects in both the private and public sectors show that there is often even more than this to be saved!
Most organizations need to review their costs on a regular basis and to improve their ways of working to achieve the goals they have for the business. Organizations can only survive and grow by making operations more efficient with measurable and lasting results in the form of increased revenues, reduced costs and smoother ways of working.
Other effects of efficiency
In addition to sheer cost savings, structured and planned efficiency measures mean a number of other advantages for the company, the customers and the staff. These include:
More satisfied customers
Focus on the value-adding processes
Reduced internal bureaucracy
Fewer internal reports
Better and more effective meetings
More effective project work
More satisfied staff with clearer roles and responsibilities
More effective document management
It is important to remember that efficiency does not only mean a specific project. Efficiency in its purest form consists rather of structured and continuous work with constant improvements.
A successful assignment within the organization and efficiency area requires an overall view of the organization’s purpose, tasks, customers, goals, culture, values, working methods, etc. Organizations often use the hourglass model as a tool at the start of the assignment to create this overall view.
It can often be advantageous to start from a process perspective when working with organization and efficiency. Process mapping gives a picture of how the work in the organization actually takes place and the interplay between different roles. In this way, the processes become an excellent tool for identifying shortcomings and opportunities for improvement. Some other and notable tools include
Using a GAP analysis, a picture can be created of the differences between the current position and the desired position for the whole or selected parts of the business. The GAP analysis is often a good tool for identifying potential for improvement and in defining the scope and direction of efficiency initiatives.
Root cause analysis
To achieve lasting efficiency, the analysis must be taken a step further than the identification and description of specific problems. The root causes must be analyzed to determine why the problems and “wastage” in terms of time and resources have occurred.
Internal audits are an excellent tool for finding and qualifying different shortcomings and opportunities for improvement both for companies that have ISO certification and for those that do not.
With the help of benchmarking, selected parts of the business can be compared with other organizations.
As the Darwinian theory rightly suggest that those who adapt survive, when it comes to businesses and organizations it is found that only the most efficient have the ability to adapt to changing demands and market place dynamics.
The Idea Smith specializes in transforming organizations into lean, mean and efficient fighting machines. Survival and Growth is ofcouse a guaranteed outcome.
To know more about how The Idea Smith lean principles and PDCA methodology can help your company improve profitability by reducing lead times, costs and wastes while increasing throughput and customer satisfaction , get in touch .
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