What Is Process Optimization?
Process optimization is the discipline of adjusting a process so as to optimize some specified set of parameters without violating constraints. The most common goal is minimizing cost and maximizing efficiency. Said another way, process optimization is the practice of increasing organizational efficiency by improving processes. Optimized processes lead to optimized business goals.
COMPANIES WITH STRUCTURED ONBOARDING PROGRAMS RESULT IN:
A CHAIN OF 6 PREVENTABLE HUMAN ERRORS IN THE CHERNOBYL DISASTER CAUSED:
STATISTICS.
Taco Bell wasn’t always the fast food powerhouse that we see today. In fact, back in 1983 the regional Mexican chain was returning a sorry -16% annually. Something needed to drastically change in order to make Taco Bell profitable. They looked inward, at their food production and distribution processes, and optimized their processes. As a result they were not only able to slow their decline, but grow to an international chain worth $1.98 billion less than 30 years later.
WHAT WE DO.
Don’t worry, it’s not as complicated as it seems. Proxona makes it easy for your business to optimize their processes and usually it takes a third party to pull back the layers, and the processes your team lives within daily, to uncover where the biggest benefits to your organization lie. We take care of this in four simple steps:
More Efficient, More Savings.
Every organization operates in a competitive industry – threats from other companies, disruptive technologies, and the constant challenge of change. Optimizing processes offers many benefits that can help businesses stay afloat in the onslaught of change such as:
Market Compliance
Streamlined Operations
Reduced Risk
Efficient Resource Use
End-to-End Visibility
Assured Quality
IDENTIFY.
First, we need to identify what is the process optimization need that exists in your company. Think about a process in your company that is costing you more than it should, or inducing client’s dissatisfaction or even stress between employees.
Now, ask questions about this process, aiming to determine what is the core of the process, the unchangeable items.
- What is the final purpose of the process? What should the outcome be?
- Where does the process starts and ends?
- What activities are part of the process, passing through the stages?
- Which departments and people are involved?
- Which information travels between steps?
At that point, we are asking what is the process, and not how to do it.
RETHINK.
It is the time to map the process, worrying about how to execute each step, about how the process flows, about what is process optimization to this process. Ask yourself and your team these questions:
- Is there a better way to perform this process?
- How exactly is this process conducted?
- How much paper (for example) does this process use?
- How long does the process take to be finished?
- How much time is lost in rework and mistake correction?
- Where does the process stall?
Having a micro and macro vision is important. Each detail is important, since the way an email is written until the perception of what the client wants.
Compare the answers to this questions to the ones in the first item, and maybe you will find out that tasks that seemed crucial are expendable.
IMPLEMENT.
After knowing the process in this level of detail and identifying the changes opportunities and the improvement needs, it is time to apply the process in a new manner. It is a delicate part of the business process optimization.
To insist in the same errors and expect different results is the recipe for failure.
Automate the processes that are proved to work and spread them through the company to see the results in costs reduction, mistake prevention, wastage cut and production increase.
MONITOR.
Through the entire process optimization, monitor, monitor, and monitor. After the automation, you will sure find new improvement points and bottlenecks. Identify them, rethink the process, implement it and automate it.
As all the processes in business process management, this is a cyclical project. If done just one time, it will not offer any solution to your organization. If built into the company’s culture, it will bring client’s satisfaction, employees’ happiness, superior profitability, and a wastage cut never seen before.
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