Process Improvement (1 of 2): Improving Processes - The Key - John M. Leask II CPA/ABV, CVA

Process Improvement

Part 1 of a 2 part series

Warning Signs: SIGNS A PROCESS NEEDS IMPROVEMENT

    • Falling profits with stable or growing sales, stable prices and costs.
    • Net sales to total assets out of line with industry averages.
    • Unnecessary duplication.

  • Bottlenecks.
  • Missing information.
  • Missing resources.
  • Poor morale.
  • Rejects.
  • Customer complaints.
  • Absenteeism.

Steps to Improve: GENERAL

  • Interview employees and managers.
  • Brainstorm to identify and solve problems.
  • Use structured or unstructured brainstorming.
  • Organize departmental or cross departmental task forces.

Steps to Improve: CUSTOMER REQUIREMENTS

  • Better understand customer requirements.

Steps to Improve: RAW MATERIALS & INFORMATION

  • Eliminate missing resources.
  • Eliminate missing information.
  • Improve use of resources.
  • Improve use of information.
  • Improve quality of input (resources and information).

Back to The Business Doctor

>>Process Improvement (1 of 2): Improving Processes - The Key
>>Process Improvement (2 of 2): Improving Processes - Steps That Work