Process optimization usually contributes to cost reduction.
Process optimization is the strategy that a company carries out to improve its daily operations . In this way it seeks to achieve a reduction in costs, time savings and an increase in efficiency.
The term optimization refers to the act and consequence of optimizing: finding the most appropriate or preferable way to do an activity. A process , meanwhile, is a series of successive actions that are executed in an orderly manner.
It can be said that process optimization involves the introduction of certain changes in the organization and activities of a company. Modifications may occur in workflows, methodologies or systems.
Importance of process optimization
Process optimization is a philosophy whose interventions can cover all areas of the entity or focus on specific sectors. It must be considered that multiple processes of different types are executed in a company, making optimization a complex task.
The effect of these changes is transcendental for the firm. Process optimization can correct errors , add operational effectiveness and efficiency, and increase productivity, to name a few possibilities.
Implementing a process optimization strategy also makes it possible to work towards continuous improvement . The review of procedures encourages problem solving and helps improve the quality of the product or service, contributing to customer satisfaction.
Working with AI for big data analysis helps optimize processes.
Different techniques
To achieve process optimization, various principles and techniques can be applied. The strategy known as Six Sigma or Six Sigma is one of them: it seeks to strengthen the different parts of each process to achieve a minimization of their variability. The objective is to establish a limit of 3.4 defects per million opportunities, considering defects as those events that cause a service or product to be unsatisfactory for the customer.
Another management model that favors process optimization is lean manufacturing , which is based on using the minimum necessary amount of resources in order to reduce losses and maximize the value created in production. Lean manufacturing helps avoid unnecessary procedures and overproduction, for example.
You can also implement the Kaizen method (which consists of applying simple and specific actions that involve all workers - including managers - to encourage continuous improvement) and the Kanban information system (with cards that help adjust operations). . The Just in Time or Just in Time (JIT) system to reduce inventories and costs and Total Quality Management or Total Quality Management (TQM) are other important tools in process optimization.
Adequate information management is essential for process optimization.
Stages of process optimization
Process optimization is developed through a series of stages or phases:
- Process mapping : It consists of surveying and recognizing the operations carried out by the company.
- Elimination of unnecessary steps : With the operations already identified, those that are not essential can be eliminated.
- Analysis of activities : The activities that will continue to be carried out must be examined to know their strengths and weaknesses.
- Application of improvements : It involves introducing changes after analyzing previous data.
- Evaluation of results : It is essential to monitor the consequences of the changes to determine if the direction is correct or if, on the contrary, the strategy must be adapted.
The obstacles
When trying to move forward with process optimization, various problems may arise. One of the most common are the difficulties in carrying out planning : it can be difficult to define the budget and establish deadlines, two basic issues to ensure the effectiveness and sustainability of the changes to be introduced.
Another drawback is the lack of resources . Appropriate tools are needed to identify, analyze and improve processes.
Not defining objectives precisely and not correctly determining key performance indicators (KPIs) to evaluate actions are other frequent obstacles that hinder the success of process optimization.
Examples of process optimization
Let's take the case of a company that wants to optimize its project management. Using enterprise resource planning (ERP) software , you begin to use various calendars and agendas, assigning tasks and resources in an orderly manner and using alert and notification systems. It also uses artificial intelligence (AI) to automate tasks and data-driven decision making and cloud computing to facilitate teamwork.
Let's now think about a company that aspires to optimize processes in the marketing area. To this end, it implements a computer program for customer relationship management (CRM) . This way, you can improve the creation and monitoring of leads and establish effective communication. The system also helps you achieve customer loyalty and makes it easier to create digital marketing campaigns.