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Optimizing Business Processes

Posted by Dave Kravitt

business process optimizationMost companies understand the importance of consistent, efficient and scalable business processes but are fuzzy on the best way to achieve it. Optimizing business processes is a way for companies to eliminate inefficiencies and reduce costs – a strategic approach that alters how an organization conducts business and manages operations to produce better results and increased profits. 

The first step toward manufacturing operational excellence is a thorough analysis and understanding of your business process and procedures, followed by recommendations and solution implementation specifically tailored to your unique requirements and manufacturing industry best practices. To do this systematically, efficiently and effectively, it’s important to conduct a complete business systems analysis and assess your company’s strengths and weaknesses in the following:

  • Inventory management
  • Planning and scheduling
  • Customer order management
  • Purchasing and procurement
  • Activity costing
  • Production 

The end results of this in-depth business systems analysis and assessment will enable you to:

  • Re-engineer manufacturing business processes to maximize efficiency and effectiveness
  • Evaluate opportunities for better alignment and streamlining of business processes across business units and geographies
  • Communicate more clearly and efficiently with suppliers and partners
  • Better integrate legacy systems and applications with newer technology and software platforms within a service provider or across a value chain 

Better Business Operations By Design

Business process optimization starts with developing a goal for each business activity and then designing or redesigning a process to specifically address it. In addition to setting goals, company stakeholders should create operating standards and identify potential bottlenecks. By removing these anticipated bottlenecks early in the business process design phase, workflow can be improved and surprises eliminated when implementing the process. 

Once implemented, it’s important to review each activity and process on a regular basis to assess its performance and value without regular reviews a tendency can develop in employees to simply go through the motions to complete business processes and the benefits of optimization run the risk of being minimized or even lost. 

A good business process optimization consultant can help organizations achieve better results by assisting with every phase of business process assessment, redesign and implementation. At PSGi, we ensure that all operational processes support your business goals and are optimized to: 

  • Streamline procedures
  • Eliminate waste
  • Increase accessibility to key data
  • Reduce duplication of efforts
  • Increase profits 

Properly designed and executed, business process optimization can yield significant results, including substantially improved operational efficiencies, increased productivity and reduced costs. 

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Tags: Supply Chain Optimization, Business Process Optimization