Improvements in Processes and be competitive

In this article, we shall explore the understanding on improving the business processes. Since it is a multi-dimensional subject and we need to touch upon multiple aspects, the article may go little lengthy or else I will break into few chapters. Here we will broadly explore all such aspects and in my later articles, I would take them one by one in detail.

To survive the businesses, they must be profitable. Even to let them do some CSR efforts, they would need to be in profit, and then only some money spared for CSR activities. In today’s competition. It is tough to keep business in profit and at the same time seek for significant growth.

The definition of a Process

When we are referring a business, it is not merely about manufacturing business but as such any kind of business. By definition, a process usually have an Input and with the help of some value
added activity, an output generated.

A process essentially depicted as below

In a manufacturing environment there is conversion of raw material into finished product, similarly, a banking environment have conversion of a ‘New account open’ request to creation of a new account (finished product). So it is evident that in all business processes, an input is converted to some output.

Several companies operate this way for same field of business, but only those few earns profit or remain on top of competition, which runs their processes most efficiently.

Process efficiency
The unit resource cost we take in producing unit output is what differs the business. There are resources like, men, machine, material, time and so on.

Process steps can include ‘value added steps’ as well as ‘non value added steps’. In simple terms, value added steps or activities can be termed as

‘activities which provide some value to product to give it its form or function and for which customer is willing to pay cost of the said activity. So such activities are necessary to perform. Non value added activity are those for which customer would not like to pay or those are not needed for the product being made. In simple terms all such steps are ‘Wastes’ or unnecessary.

So we need to identify and observe all process steps and increase/optimize the value added activities and eliminate/ reduce non value added activities.

Such objectives lead us to make the organization ‘Lean’ and efficient in its operations. We tend to and we must question each process if it is as efficient as it can be or are not there any waste
activities we need to act upon eliminate.

By now, you may be thinking if we are moving towards discussing Lean-Six Sigma (LSS). Yes, that’s the way we can make our organizations efficient and competitive.

Lean – common sense of doing things right, even first time

Six sigma – Yes, at some point depending how deep we delve into analysing our processes, we can see usage of statistical terms but even before that, we shall get a much simpler DMAIC
approach to tackle a complex problem.

In simple terms, LSS is way of doing continual improvements in whatever we do and there is a whole set of tools aka ‘Tool kit’. In my later articles, I will explore this Tool kit including DMAIC. Tool kit have many tools, but depending on one’s circumstances we need to find the right tool.

So as we have discussed about analysing and improving the process efficiency.

One of the challenge in implementing such best manufacturing practices is lack of suitable environment in the organization to go such deep into the processes and improve them up to ideal
levels. For example, we may not get enough data on process operation or consumption of a cooling gas. This may lead us to do manual recording of the data or search of a digital recorder. In another case, we may find the need of adequately trained staff to understand such concept and lead the improvements. In another case, organization may not have ‘Quality management system’ or ISO9001/14001 or it does not follow it in true sense, our improvements reverts back to earlier nonoptimum conditions in the lack of adequate control documentation.

So there are suitable conditions we need to review and create in our course of making improvements. I will make an effort to just list out here.

Again, to reiterate, such conditions are not prerequisites as such, but looking for these and implementing as soon as possible shall help us to be efficient in every aspect of business
operation.

This will make the operating conditions favourable to continual improvement drive. So we have touched upon several items in this article and in subsequent ones we shall try to get more insight
in each of those.

Meanwhile look at possibilities of improvements in your business operations and ways to be competitive. Look forward to respond any of your questions/queries.

Author: By M K Jain