To realize the 5 Keys of Process Improvement, we must first understand them and then find out how to acquire them.
The Primary Key is Efficiency.
The other 4 are Time, Labor, Cost and Effectiveness and can be measured as the subparts that create Efficiency.
Let's get a better understanding of Efficiency and how it's created. Efficiency is the measurable ability to avoid wasting Materials, Energy, Efforts, Money, and Time in doing something or in producing a desired result. It is the ability to do things well without waste.
In mathematical or scientific terms, it is the measure to which the Inputs are used for an intended task or function. It comprises the capability of a specific application of effort to produce a specific outcome with a minimum amount of waste, expense, or unnecessary effort.
Efficiency can be different inputs and outputs in different fields and industries.
In general, Efficiency is a measurable concept, quantitatively determined by the ratio of useful output to total input. Efficiency can often be expressed as a percentage of the result that could ideally be expected.
Sometimes there's confusion in the difference between Efficiency and Effectiveness.
"Efficiency is doing things right".
"Effectiveness is getting things done".
This suggests that the Objectives of a Process are different than the Quality of that Process. This can help us understand that Effectiveness, unfortunately, if not done correctly, can be achieved through inefficient processes.
For example, if workers work longer hours or with greater physical effort than say other Companies or other Processes that might be available, the Effectiveness can be the same. Just not with the same Time, Labor or Cost.
Therefore, a company can achieve Effectiveness through inefficient processes, if it's willing to use more energy per product or is forced to do so by antiquated processes or by not realizing there are BETTER PROCESSES AVAILABLE.
This has been the way MANY Companies have been operating 'FOREVER'.
But is that the Right or Best Way?
Wouldn't it be Better to be More Efficient?
In creating the same Effective Outputs?
Efficiency can be measured as the ratio of useful outputs to total inputs. This can be expressed in the mathematical formula:
Where 'P' is the amount of output (or Products) produced per the amount of 'C' (Cost) of the resources consumed. This equates to a Percentage that defines the current process in place.
Therefore, the ONLY way to IMPROVE EFFICIENCY is to IMPROVE THE PROCESS.
That has always been the Elusive goal for Managers, hasn't it?
Many Companies have spent great deals of Time and Money to accomplish this. Whether on their Own or through costly Consultants.
Some have gained Limited Successes. Some have not had Much Success at all.
Wouldn't it be great if in Accounting, Operations, HR, Legal, Customer Service, Engineering, Manufacturing, Shipping/Receiving, Inventory, Document Management or any other Administrative functions in your Business that there was a Simple Answer to this Complex set of Questions?
Now there is!
It's the extremely Low-Cost BSAutoCapture Suite.
BSAutoCapture Suite can Many times take processes that normally take Many steps and Effectively Reduce them to just a Few.
That will SAVE a tremendous amount of Time, Labor and Cost.
That can Create tremendous Efficiency!
Averaging 62% to 87%.
For a Case Study how to do a Business Process Improvement, See https://bridgesmart.co/case-study-3/.
To learn more how to do Business PROCESS IMPROVEMENT, how to implement PROCESS IMPROVEMENT, how to drive PROCESS IMPROVEMENT, how can barriers to PROCESS IMPROVEMENT be overcome and get the Efficiency your Business deserves, Visit https://bridgesmart.co/bsautocapture-suite/.
If you would like to schedule a short Web Demo of BSAutoCapture Suite, Sign up at https://bridgesmart.co/contact-us-for-web-demo/.