Business processes in most organizations offer considerable cost savings opportunities. By taking a systematic approach to improving business process, profitable and sustainable results can be achieved, often in the medium term. The main focus is to systematically evaluate these processes with the view to improving, combining or eliminating them. All business fields and functional activities should be targeted for improvement.
The overall project is undertaken using Demming’s PDCA framework. This means PLAN the activities carefully, Do the implementation according to a detailed project plan and following the principles below, CHECK the results to ensure the implementation meets expectations and ACT on any points which fail to meet expectations with corrective action.
Principles of Systematic Process Management :
- Consistent with business strategy
- Planning is realistic
- Resources are specified and available
- Based on use of proven methods and tools
- Activities are regularly reviewed
- Reporting requirements are reasonable
- Decision making is timely and not bureaucratic
A sustainable outcome is best achieved when:
- A vague idea leads to a specific request to change a process
- A number of alternative options are presented
- Solution can be achieved with reasonable effort
- These solutions are rolled-out systematically
- The solutions are lived by the users
- An improvement can be demonstrated
Critical Success Factors
- Well defined goals and targets
- Specific criteria for measuring progress and status
- Clear open communication and awareness
- Open dialog and input from process users
The execution of the process optimization can be achieved using various methods and tools. The choice of method depends on the functional area of the business and the degree of automation which can be used, as well as the focus on continuous improvement. Among the methods and tools available for process improvement are Lean Manufacturing, Six Sigma, ISO 9000, TQM and CMMI. Some of these can also lead to certification, which may be a customer or industry requirement.
Process Management is an important part of Cost Improvement. To save you the effort and expense of developing your own process management procedure, for a reasonable fee*, we will provide you with our standard detailed procedure, which can be easily adapted to your organization. Additionally, should you need additional support, we can also provide you with an expert to get your systematic process management up-and-running. Just let us know how we can help.