Efficiency of Business Processes

The business processes of any organization are aimed at generating profit and achieving goals. When developing a company, it is crucial to monitor the efficiency and relevance of processes, as over time, processes become outdated and do not contribute to the company’s development. Loops, unnecessary movements, and other losses may occur.
According to the LEAN methodology (Lean Manufacturing), there are eight types of losses that significantly increase company costs, namely:

1. Overproduction
2. Waiting
3. Inventory
4. Excessive transportation
5. Unnecessary movement of people
6. Defects
7. Overprocessing
8. Loss of creative potential

Applying LEAN methods improves the efficiency of the enterprise, allowing for the identification of losses and unnecessary actions in current business processes.

LEAN principles help to:

• Eliminate unnecessary movements and downtime that hinder the process.
• Reduce product manufacturing time.
• Reduce product cost.
• Reduce expenses throughout the process cycle.
• Improve product quality for the customer without increasing the price.
• Increase the potential of the entire staff.
• Standardize processes.
• Continuously improve the work of each employee.
• Significantly improve the overall efficiency of the enterprise.

An audit is a tool that helps maintain process efficiency by identifying losses and forming a plan to eliminate them.

During an audit:

1. Processes are described in detail by collecting information through observation, conducting interviews with employees, and breaking down processes into steps.
2. All types of losses are identified according to the LEAN methodology.
3. The collected data is analyzed, and recommendations for eliminating losses are formulated.

As a result of these activities and the implementation of the LEAN philosophy:

1. Efficiency and consistency of business processes are improved.
2. Awareness and involvement of process participants are enhanced.
3. Process thinking among employees and managers is developed.
4. Savings are achieved by reducing the implementation of new automated solutions through a decrease in redundant operations.
5. Competitiveness is enhanced through increased efficiency, cost reduction, and improved product/service quality.
6. Market resilience is attained through the implementation of a culture of continuous improvement.

The practice of using Lean concepts in enterprises allows them to achieve the following results:

• Decrease in production and service costs by 30-60%.
• Reduction in the time required for individual service/product creation processes by up to 50%.
• Approximately halving the amount of defective products/services.
• Increase in work volume by up to 20% without additional costs.
• Increase in labor productivity by up to 35%.
• Average increase in efficiency by 20%, including productivity.
• Additional annual business efficiency improvement of 5-6%.

Implementing the Lean concept in the company is a trend followed by “Konsu” and involves its clients as well.