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Table Of Contents
10 Steps to Launching a Successful Process Improvement Initiative ...... 4 10+ Process Improvement Examples to Drive Growth ...... 8 5 Actionable Tips to Reduce Operational Costs ...... 12 5 Ways to Reduce Waste and Build Lean Business Processes ...... 16 6+ Continuous Improvement Tools to Help Drive Growth ...... 21 7 Basic Quality Tools for Process and Product Improvement ...... 26 7 Wastes Of Lean Manufacturing: Definition and 2+ Real-Life Examples ...... 28 8 Most Important Six Sigma Tools to Help Drive Change ...... 33 8+ Practical Business Process Improvement Ideas ...... 37 All You Need to Know About APQP: Definition, Steps and Benefits ...... 43 Business Process Improvement (BPI) - Definition, Steps & Methodologies ...... 47 Complete Guide to Business Process Improvement Tools [10+ Tools!] ...... 52 Continuous Improvement Tools to Enhance Business Processes ...... 60 Continuous Process Improvement (CPI): Definition and Techniques ...... 64 Continuous Process Improvement - Secrets to Success ...... 68 Customer Onboarding - Tips For Continuous Improvement ...... 72 Definition - What Is a Business Process Consultant? ...... 75 Definition - What is a Kaizen Event? ...... 78 Definition - What is a Process Improvement Plan? ...... 81 Definition - What is a Process Map? ...... 86 Definition - What is Business Process Engineering? ...... 89 Definition - What is Digital Process Automation? ...... 92 Definition - What is Process Consistency? ...... 95 Definition - What is Process Consulting? ...... 98 Definition - What is Six Sigma? ...... 101 Definition – What is a Care Pathway? ...... 105 Definition – What is a Fishbone Diagram? ...... 109 Definition – What is Business Process Redesign (BPR)? ...... 112 Definition – What is Process Variation? ...... 116 Determine the Root Cause of Any Problem With 5 Whys ...... 119 Everything You Need to Know About ISO Audit ...... 122 Grow Your Business With 7+ Lean Process Improvement Tools ...... 124 How to Choose a Process Improvement Consultant for Your Business ...... 129 How to Choose the Right Six Sigma Consultant ...... 132 How to Crowdsource Ideas for Process Improvement ...... 135 How to Do Pareto Chart Analysis [Practical Example] ...... 139 How to do Process Improvement with As-Is and To-Be Processes ...... 144 How to Document and Implement a To-Be Business Process ...... 147 How to Eliminate Change Management for Business Process Improvement ...... 149 How to Improve Business Processes [4+ Practical Ideas] ...... 152 How to Improve Content Marketing Processes ...... 159 How to Improve Your Business With the Gemba Walk ...... 164
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How to Map and Analyze an As-Is Business Process ...... 171 How to Solve Any Problem With Root Cause Analysis (RCA) ...... 174 How to Solve Any Problem with the Eight Disciplines (8D) ...... 180 How to Stop Email Overload [10+ Actionable Tips] ...... 184 How to Succeed with Business Process Management for SMBs ...... 189 How to Use Deming's 14 Points to Improve Quality ...... 192 How to Use Kaizen to Continuously Improve Your Business ...... 199 How to Use PDCA Cycle to Improve Process Efficiency ...... 206 How to use the 5w2h Method to Get Things Done ...... 209 How to Write a Project Proposal That'll Get You Noticed ...... 212 How to Write a Standard Operating Procedure [5 Easy Steps] ...... 216 Improve Company Efficiency by Streamlining Business Processes ...... 221 Key Ways to Significantly Improve Business Process Management ...... 225 Lean vs Six Sigma: What's the Difference & Use Cases ...... 228 Maximizing Efficiency Through Multistep Approval Processes ...... 232 Process Architecture: Definition and Examples ...... 237 Process Improvement Methodologies – Complete List [6+ Tools] ...... 240 Process Owners: Key to Process Improvement ...... 246 Six Sigma Process - A Brief Introduction ...... 250 Six Sigma Software: Definition, Types and Uses ...... 253 Skyrocket Productivity with Business Process Transformation ...... 257 The Biggest Problems with Process Improvement ...... 261 The Process Collaboration Pair Makes Great Organizational DNA ...... 265 Top 5 Benefits of Automating Manual Processes ...... 268 Total Quality Management (TQM): Definition and Principles ...... 271 Types of Business Processes Explained: A Full Guide on Business Processes ...... 274 Value Stream Mapping: Definition, Steps, and Examples ...... 279 What is a Business Process [2+ Practical Examples] ...... 284 What is a Process Flowchart and How to use it [5+ Examples] ...... 288 What Is an End to End Process [Real-Life Examples] ...... 293 What is Cost of Quality (CoQ) and How it Works ...... 295 What is Define, Measure, Analyze, Improve, Control (DMAIC)? ...... 298 What Is Inventory Management Process? (& How To Implement It) ...... 301 What is Process Documentation (And How to Do it) ...... 309 Workflow vs Business Process Management - What's the Difference? ...... 312
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10 Steps to Launching a Successful Process Improvement Initiative by Amit Kothari https://tallyfy.com/successful-process-improvement-initiative/
A successful process improvement initiative is the key to a company’s ability to maintain an edge over the competition. Unfortunately, many company executives are so fixated on rapid growth and profits that they overlook the importance of evaluating the processes that they implemented when the business was launched. Failure to devote adequate focus to process improvement can lead to operational bottlenecks, poor service, and a low rate of customer satisfaction.
Below is a look at the key benefits of a process improvement initiative and 10 steps to using it successfully in your business.
How Does a Process Improvement Initiative Benefit an Organization?
A Process improvement initiative yields a number of tangible and intangible benefits for companies. Tangible benefits are easier to quantify and often take center stage in the process improvement arena. They include reduced operating costs, higher revenues and improved compliance with industry standards. Intangible benefits are difficult to measure but are important for an organization’s image. Examples of some of the intangible benefits of process improvement include an improved brand image, higher levels of customer satisfaction, and time savings. Organizations should keep these benefits in mind as they begin investing their resources in process improvement.
Key Steps to Launching an Effective Process Improvement Initiative
A successful process improvement initiative requires the participation of all employees, including managers and front-line workers. Company training programs and tools should exhibit consistency and accuracy, and employees should be rewarded for adopting work behaviors that reflect their commitment to process improvement. Below are 10 specific steps to help organizations launch a fruitful process improvement initiative.
Improve company culture
There is a big difference between building a process improvement program and a process improvement culture. Building a culture that values process improvement requires you to identify the behaviors that you would like employees to exhibit on a daily basis. Successfully crafting a culture of ongoing process improvement involves the following:
Employees remain engaged by proposing ideas and discussing suggestions There is no variance in the way that different employees perform the exact same job
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All employees understand their roles and how their performance is tied to outcomes Every employee is focused on continually improving their job processes Stress consistency between departments
One of the most popular ways of establishing a culture of improvement is by using Kaizen. Learn the "hows" and "whys" with our guide!
Tie process improvement to key objectives
Your employees need to see the connection between their efforts to improve processes and your company’s mission. By linking process improvement strategies to organizational goals, you will be more apt to earn the support of employees across the board.
Request employee feedback
Your front-line employees are the best embodiment of your company’s processes. They perform the same tasks every day and often have firsthand information regarding procedural strengths and weaknesses. Suggestions and feedback from front-line employees can play an incredibly vital role in improving your processes. Below are some strategies to help encourage employees from every department of your organization to submit suggestions and feedback:
Set up an email address to which employees can send their suggestions Make sure your company has an actual suggestion box on the premises Encourage employees to verbally share ideas and suggestions during meetings Establish a private group for sharing feedback on Facebook or LinkedIn Ensure that managers are open to hearing both positive and negative feedback
Optimize everyday operations
Many companies are never able to grow because they spend all of their energy fixing broken processes. While addressing bottlenecks and other problems is an important part of process improvement, a more productive approach is to evaluate procedures that are not broken. Sometimes this can be achieved by making an adjustment that is as small as a minor tweak to the order entry process.
Fully optimized processes can do wonders for your company productivity. Learn how to do business process optimization the right way with our guide.
Enhance training programs
Your company’s focus on process improvement should first be noted during the employee hiring process and then reemphasized in detail during the training process. Below are some steps to cover during employee training:
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Outline the scope of your existing processes Teach employees how to spot inefficiencies and opportunities for improvement Educate employees about documentation of roles and assigned tasks Highlight the need for consistency
Use blended learning
Your training program should exemplify process improvement by engaging employees and exhibiting consistency in approach. A blended learning approach engages employees by using a multi-media approach that involves a combination of live and online learning activities. A Learning Management System (LMS) also uses a standardized online approach to training which provides a quantifiable means of assessing training effectiveness. Below are some key reasons why an LMS facilitates process improvement:
An LMS allows companies to measure and improve upon employee training success Companies can monitor training completion rates through use of built-in analytics Acquired knowledge can be measured through an online exam following the completion of training Companies can measure employee satisfaction with the online training process
Empower employees
By delegating key process improvement responsibilities to your managers and supervisors, you help ensure that key employees remain actively involved. Additionally, managers and supervisors are aware of key problem areas that require sustained attention. Some strategies to empower employees to manage process improvement include the following:
Assign a team of employees to conduct an internal process improvement audit Establish regular reporting procedures to track results Delegate responsibility to employees who consistently model process improvement behaviors
Use process improvement tools
Some operational inefficiencies can be easily addressed. More complex issues, however, are best addressed with the help of new software or workflows that help prevent bottlenecks and ongoing operational challenges that organizations face. Below are some of the most common process improvement tools used by companies to identify and address problems:
Process mapping: Creation of workflow diagrams to clarify processes Scatter diagrams: A graph that plots two variables along two axes to illustrate a correlation Histograms: Illustrations of frequency distributions Cause and effect diagrams Pareto analysis: A statistical technique to solve problems that operates under the principle that 80% of problems are caused by 20% of causes
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There are a lot of other tools out there than the 6 we've mentioned. Want to learn more? Read up our comprehensive guide on business process improvement tools?
Focus on long-term success
The most successful process improvement initiatives value future solutions over short-term fixes. You should expect to encounter obstacles as you focus on process improvement and strive to maintain a positive attitude towards process improvement. Success requires patience and a long-term commitment to documenting strategies and outcomes from start to finish. This allows you to review your execution in detail to determine when and where a process faltered.
Reward employees
Linking incentives and bonuses to process improvements is an effective way to stimulate employee interest in process improvement. Below is a step by step process to use to reward employees for remaining engaged in process improvement strategies:
Identify specific process-related goals for employees to attain Tie goal attainment to employees’ receipt of rewards Choose rewards that are relevant and desirable to employees Make sure that employees also know how their goal attainment is influencing company goal attainment
Enlisting the Support of a Process Improvement Expert
Not all process improvement strategies produce desirable results. The best way to achieve desired results for your company is to seek the guidance of an experienced professional. The process management experts with Tallyfy help companies of all sizes improve their processes and workflows. Tallyfy’s commitment to providing companies of all sizes with cost-effective solutions has made them a trusted leader in the process improvement industry. With a free 30 day trial, your organization can experience the benefits of Tallyfy’s process improvement solutions.
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10+ Process Improvement Examples to Drive Growth by Amit Kothari https://tallyfy.com/process-improvement-examples/
A business process is directly defined as a string of activities within your organization typically performed by a group of people (though sometimes only one employee) with the aim of achieving specific goals or milestones.
Businesses often focus on trying to make these processes more efficient in order to save time and money, but it’s not efficiency that should be the primary focus. For any company to see positive growth and profit, the business processes it has in place needs to be effective.
Any time processes are improved, they should be done so for the purpose of making them more effective. Because even highly efficient processes may not be effective.
Process Improvement Examples
There are a number of process improvement examples that show how steps could be taken in a business to make things more effective as well as efficient.
Cost Cutting – One process improvement example is in cutting costs. Through restructuring processes, organization, and visualization it’s easy to spot redundancies and other items that wind up increasing overhead costs. From there, unnecessary tasks are dropped. That restructure allows for resources to be reallocated so you spend less while your processes flow better.
Reducing Communication Issues – Another business process improvement example is the improvement of communication. Process improvement is intended to improve functionality by streamlining communication, such as decreasing the number of emails and contact touch points between departments and employees. This is often achieved using software that allows employees and departments to see and share information – rather than chasing email threads through an inbox.
Process Visualization – With process modeling, it becomes far easier to audit and continually make improvements. Visualization allows you to follow the process and locate bottlenecks as they arise, or opportunities to make that process more efficient.
That auditing is one of the most critical parts of process improvement because every process you create needs to be monitored regularly. Without proper monitoring, you’re not really in control.
Process Improvement Examples – Types of Process Improvement
As businesses try to accelerate growth while running lean, there’s always a desire to reduce costs through process improvement. Like the examples above, this could include:
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Improving product quality Upgrade service quality Improve delivery times Reduce billing cycles Make production more efficient
There are three terrific process improvement examples seen in larger organizations, even down into SMBs.
LEAN Technology
LEAN Tech, also known as LEAN manufacturing, was a process that originated with Toyota. It was implemented to streamline the company’s production chain and dramatically reduce operating and overhead costs.
The key idea is to base process improvement on the customer perspective; taking the time to understand what they value from the product and then using LEAN process improvement to eliminate unnecessary waste, errors and other things that drive up costs. By focusing on value, the entire process is organized to drive more of what the customer is willing to pay for.
Six Sigma
Six Sigma is a process improvement example that focuses on achieving the maximum level of obtainable quality within an organization. At the Six Sigma level, that is a rating of near 100% perfection (or 99.9966%).
The Six Sigma approach looks closely at the root cause of problems, defects, and variations that reduce the effectiveness of processes. At its heart, there’s a philosophy of constant improvement that is in place to consistently and progressively improve results until that max level of perfection is achieved.
Top Quality Management
Six Sigma is a new process improvement example. The older approach, Total Quality Management, was crafted by W. Edwards Deming who was best known for the process improvements he brought to automotive manufacturing – particularly in Japan. Like Sig Sigma, Total Quality Management focuses on the elimination of errors.
Looking for more practical ways to improve business processes? These 4+ ideas might help.
Focusing on Continuous Process Improvement
Process improvement isn’t a one-and-done affair. Well-run businesses focused on growth needs to maintain continuous improvement. As those process improvements positively impact the bottom line, further investments in making operations more effective can be made.
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Some continuous process improvement examples include:
Ideation and Think Tank Sessions
Companies should consider hosting regular ideation sessions, either open to all employees or strategically held to bring in key team members from each team or department. These sessions should also include key members of leadership. This way all ideas and perspectives are considered when generating new ideas for workplace improvements.
Rather than have a free for all of the ideas, you might want to have an agenda or list of topics to discuss. Then each individual or team is given the opportunity to present possible solutions.
Time Audits
One key approach to continuous improvement comes in auditing time. Set measurable benchmarks so you can track the time it takes to complete any specific job or task. This isn’t done at the employee or even leadership level. Instead, a professional researcher observes the work that is performed and makes a record of the time needed to complete the task.
Once this data is recorded, a study can be run to examine the data and establish the standards by which that process or task should be completed in the future. While the primary focus should always be on the effectiveness of process improvements, you should still target task efficiency to better control the costs involved in the production.
Monthly Training and Cross Training
Ongoing training is a smart choice for inclusion in ongoing process improvement. When you cross-train employees to work in multiple positions, you’re protecting your processes from bottlenecks that occur as a natural result of people-centric processes. Anything from a sick day to a vacation can have a negative impact on production.
Having trained staff that can rotate and fill a position helps to avoid any slowdown in production. For this reason, schedule monthly training programs that continually educate your staff.
Poll Everyone
The people who work directly within your processes have the best insight into the root cause of errors, and where things could potentially be improved. The savviest and watchful employees could likely give you a list, right now, of improvements that could be made.
Introduce surveys that go out to your vendors as well as your employees and customers, each with unique questions, to help you understand the impact of your process improvement efforts. The surveys can also provide a great deal of insight into things you didn’t even realize were a problem – or potential issue. There are some key questions your surveys should include:
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What are you doing that they believe to be satisfactory – how do you delight them? What could be done to improve the quality of products and services? What changes would they like to see in the future (let them prioritize what is most important to them.)
Take the data from those surveys, done at regular intervals, to score how your company operates, and how previous changes have (or have not) improved your processes.
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5 Actionable Tips to Reduce Operational Costs by Sonia Pearson https://tallyfy.com/5-tips-reduce-operational-costs/
Regardless of what the circumstances are for your business, it is always a priority to find ways to reduce operational costs. Doing so is the most efficient and effective way to save money without necessarily having a negative impact on services being rendered to customers or on salaries being paid to staff. Rather than causing problems in these areas, reducing operational costs in the right way has the additional benefit of improving business processes.
Of course, it’s not quite as simple as looking at the money being spent and cutting back in a few areas.
The process needs to be more strategic than that to achieve the twin goals of saving money and refining processes in a way that would be beneficial to the business even without the reduction in operational costs. So here are the best ways to do just that.
Automate And Refine Business Processes
The most effective way to reduce operational costs without a negative impact on the delivery of services is to bring in business process management software that automates processes that are currently being done manually.
Functions like accounting, marketing & communications, payroll, and HR, amongst others, can be at least partially automated using software programs and services, allowing staff to save time spent on these activities, thus offering cost savings for the business.
Some of the software you can use include:
Quickbooks, for accounting Tallyfy, for workflow & process optimization Zenefits, for HR & payroll Intercom, for customer support
Not only does this reduce operational costs in the sense of reducing man-hours spent on the tasks, but it has the additional benefit of making these functions more efficient by minimizing the risk of human error.
This means less money wasted on fixing these errors, making extra savings on top of the reduced expense of paying for the manual work. In addition, the increase in productivity from your staff after removing their repetitive tasks can help your business generate further income.
As well as automating your business processes to reduce operational costs, you should look in general at whether your processes are being managed efficiently and effectively.
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Introducing business process management across the board is an excellent way to reduce costs, remove bottlenecks, improve workflow and boost productivity as well as eliminating silo mentality. It should also make your business more agile and forward-looking, more able to respond to change and be more competitive.
Outsourcing
As well as identifying business processes that can be automated and managed by internal staff, businesses looking to reduce operational costs should also consider whether money can be saved by outsourcing functions to external agencies or consultants.
One of the most commonly outsourced business functions is marketing and communications, where there is so much competition in the marketplace that finding a reliable, innovative and results-driven business or freelancer to deliver for you does not necessarily mean spending a lot of money.
This is particularly helpful for small-to-medium businesses, who may not have the requirement for a full- time marketing or communications resource, and find it is more cost-effective to budget for a part-time or hourly-rated resource.
You can find freelancers & remote workers on some of these websites:
Upwork - both freelance & remote People Per Hour - both freelance & remote Fiverr - one-time, low-cost gigs Flexjobs - focused more on full-time/part-time telecommuting jobs Outsourcely - based more on remote, with an emphasis on foreign workers
The same goes for digital marketing functions like search engine optimization and pay-per-click advertising, which is usually most effectively managed by agencies, again at competitive rates that work out cheaper than using internal staff, as well as more productive in terms of generating income.
Cut Down On Office Space
The days where a business needed all of its staff to be sat together in a large office are long gone.
Doing a proper analysis of desk occupancy over a few months is a good way of identifying whether you really need all the space you are paying for. At the very least you might be able to ascertain whether money can be saved by downsizing and introducing a hot desking scheme to allow fewer desks to be used, on the basis that there should always be enough available without staff having their own assigned desk.
At the very least you might be able to ascertain whether money can be saved by downsizing and introducing a hot desking scheme to allow fewer desks to be used, on the basis that there should always be enough available without staff having their own assigned desk.
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This is also an area where technology can be utilized to reduce operational costs via telecommuting, an increasingly popular practice that works to the benefit of both staff and business when managed effectively.
Emails, workflow messaging services and video conferencing (and, of course, telephones) mean that there’s no real loss of connectivity or accessibility with staff who are working from home as opposed to those sitting in the office. Meanwhile, the staff is saving time and money on their commutes as well as enjoying the ability work in a more relaxed setting.
This means that even less actual office space is required, allowing some businesses to start working from shared workspaces with a minimum of overheads, making huge savings on their operational costs.
Telecommuting also expands the potential pool of staff beyond geographical boundaries, as someone from another country is as able to work for you as someone who lives over the road from your headquarters. As well as potentially able to cut costs by not having to have desk space for them, you can also save money on wages, without compromising on quality.
For managing a remote team, you can use project management software such as:
Slack - mainly for messaging / communication Asana - for managing & communicating with teams, as well as assigning tasks and projects. Basecamp - same as Asana, but a bit easier to learn & user-friendly
Go Green And Reduce Operational Costs
This is another area where you can reduce operational costs at the same time as generating other benefits for your business, and in this instance, the planet as a whole.
There are enormous cost savings to be made by looking at the way your business consumes resources as part of a low carbon scheme, and doing so is an excellent way to demonstrate corporate social responsibility by doing something to reducing your environmental impact.
All businesses have money that they could save by reducing the amount of wastage of resources and money spent on things like unnecessary printing in offices and reducing emissions in manufacturing businesses. Energy bills can be slashed by using greener solutions for lighting and heating.
Sustainability and cutting down on waste not only makes more sense for the planet, but it almost always makes more sense for the balance books as well, particularly with some governments incentivizing green schemes like these.
Improve Financial Processes
Finance is - obviously - an area where you can reduce operational costs simply by running more efficiently. If your business regularly pays invoices late, this can incur late fees and penalties, which is an unnecessary cost, particularly as many companies will offer a discount if you actually pay earlier than
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required.
This is a simple way for you to save money by operating in a more effective manner, and if you have got the right processes in place, it shouldn’t require any extra work or effort.
These are a few ways that your business can reduce operational costs, so if you want to find out more about how business process management software can transform the way you operate, why not book a free demo of Tallyfy’s software and we can demonstrate just how much your business will benefit.
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5 Ways to Reduce Waste and Build Lean Business Processes by Amit Kothari https://tallyfy.com/5-ways-reduce-waste-build-lean-business-processes/
Traditionally, lean business processes were centered in the manufacturing sector as a means of controlling cost. This ensures that the production process or it's costs don't have an impact on the forecasted bottom line. But there’s nothing that limits the growing SaaS industry, or any other industry, from taking a lean business approach to developing hyper-effective processes and profitable business models.
To develop lean business processes, the general procedure is managing processes, auditing from point to point, and improving those processes through the compression of time rather than trying to juggle and manage assets.
If you view every business as a collection of processes designed to complete tasks, create value (for the company and the customer) with secondary processes to support the others (the office and administration for example) you can see how it applies to virtually every business.
What is Lean Process Improvement
In most cases, lean process improvement emphasizes not only the prevention of waste but the elimination of existing waste. Rather than adding processes, or trying to manage existing processes, you have to first reduce waste.
That means targeting time, labor and materials that are not being used effectively or are wasted.
For a manufacturing business, that could be reducing material variances. A SaaS company could be faced with bloated hours due to hiring too many developers or developer overtime on extended services that are unnecessary.
Some businesses develop leaner processes to better serve their customers while still cutting costs. For example, a manufacturer of snowboards improves customization options for their product to delight customers. Rather than build excess inventory they make products to order. This reduces inventory overhead and eliminates the need for constant production.
Goals of Lean Business Processes
The primary goal of lean business processes is to reduce wasteful spending. This kind of spending can happen in countless ways given how different every business can be.
To reach that reduction in spending, businesses should set one or more of the following goals:
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Improve Quality
The quality of your goods or services directly impacts your ability to meet or exceed customer expectations. Let’s say a product you sell has parts that can be sourced from 3 different suppliers. The cost varies with each, as does the quality. The cheapest option can save you hundreds of thousands each quarter but is more prone to defect.
While you save during production, the likelihood of greater defects is going to impact the customer experience. That results in bad reviews, negative PR, and diminishing returns. Sometimes cheap isn’t so cheap.
Lean business processes allow you to focus on quality on the front end. This cuts the costs of your product in the long run and increases the lifetime value of your customers.
Likewise, improved quality in production reduces the need for frequent quality control checks. You can put those man hours into customer service or reduce your workforce accordingly.
Eliminate Waste
Companies tend to account for waste and activity at every stage as part of their overhead – costs which get rolled into the price paid by customers. There isn’t a customer alive that wants to pay for your organizations waste and inability to control your costs.
Thus, an essential step in creating lean business processes is eliminating wasteful activities that eat up time and resources but provide no value to you or the customer.
Reduce Lead Time
Lead times are the gaps between steps in a process or the amount of time it takes to complete a series of tasks. Lead times are one of the greatest areas of waste within a company that can and should be controlled through process improvement.
Long lead times can undermine your business by interrupting critical processes. A few examples of lead time problems:
The amount of time it takes to receive or send a payment after receipt of a sales order or purchase order The lead time for turning raw materials into a finished product The launch time, from point to point, once a product or service is ready to roll out The lead time in the execution of a marketing campaign from the point of ideation
Reduce Total Cost
Your total cost is made up of the direct and indirect costs of getting your product to customers or selling and delivering your service to customers. There’s never a fixed cost involved, and those costs can and
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will fluctuate.
Because of this fluctuation, you have to continually balance the prices of your product/service against operating costs. Finding ways to reduce cost through lean processes can help you retain market share and prevent your profit margin from shrinking.
The Key Areas of Waste
Waste is anything that provides no value to the customer, contributes nothing to your bottom line, but absolutely has a cost. It exists at every level of your company, in every department, and within virtually every activity that takes place.
When you can transition your teams away from a “that’s just how we do it” mentality, you can start developing lean business processes by identifying and eliminating key areas of waste.
The ultimate lean target is the total elimination of waste. And while that is virtually impossible to achieve, it should still be the ultimate goal. Here are the most common areas of waste in business, regardless of sector or industry.
Inventory
For product-based businesses, inventory can be a massive waste. This is especially true in the CPG industry where products can expire. Any inventory that isn’t directly required for meeting customer orders should be considered potential waste.
Examine your inventory against sales data to reduce inventory to the absolute minimum. Reset production processes so you’re only producing the inventory necessary to meet short-term sales. If you’re able to do so, transform your production process so that you’re producing based on customer demand rather than maintaining inventory overhead.
Inventory isn’t just applicable to your products. You have to consider your office supplies and what you regularly keep in stock for the administrative side of your business. If you spend money on office supplies, then you have wasted money sitting in unneeded files, supplies, extra copies, books and manuals, shipping supplies, and more.
Overproduction
For manufacturing, this ties back to your inventory. Companies often want to keep employees busy so their labor is well-used, they’ll continue production, and move more stock into the warehouse. The better approach is to reduce hours and trim those employees when the work is done.
In times like this you’re wasting on the product and the cost of maintaining that inventory as well as the labor involved in creating and maintaining that product.
Overproduction also occurs in the office and in service related businesses. For example, developers
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producing too many features beyond what is necessary (working out of scope), workers pulling reports before they’re needed, or over-analyzing data. It boils down to employees producing beyond the scope of what is expected or required.
Multistep approval processes in production with lean batching, and cutting labor hours accordingly, can help reduce wasteful production that doesn’t produce an immediate return.
Over-processing
It’s staggering how many companies utilize an extensive system of checks and balances to catch errors, yet they still occur. Where we aim for improving quality on the output, we wind up wasting more without making a significant dent to justify the costs.
Over-processing often occurs when extra work is required to fix issues and defects, or to rework a problem that could have been done properly the first time if processes were carefully followed and/or improved upon.
One of the largest wastes in this regard is how many times a piece of paperwork will change hands. In one corporate position I held, any expense invoices would require four different signatures and two approval stamps from different departments before expenses would be reimbursed. Each time I had to turn in expenses (which was roughly every 2 week pay period due to travel) I was forced to interrupt those employees.
If I didn’t interrupt their activity and simply left the expense report, the lead time to completion would go from 1 day to more than a week.
This is when automated approval processes for document sorting and filing can streamline many of the problems that plague the office environment. Requiring an approval, and holding teams accountable for those approvals can get documents sorted quickly while keeping lead times down. It can also eliminate over processing in virtually any environment since each step requires an approval and review.
This improves accountability, reduces errors, reduces the number of people who need to be involved, and ensures that nothing is missed.
Transportation
It’s shocking how much cost goes into moving something, be it product or data. For manufacturing and physical goods, products are constantly moved from one facility to another despite the fact that they may sit for an extended period. In many cases, they’re constantly routed around the same facility to make room for additional inventory being moved.
Products get routed further than necessary and transportation for filing, stocking, stacking and moving continues to eat up labor and fuel costs. Sometimes this transportation isn’t authorized and employees move product randomly. There’s an immediate cost to that, plus additional costs when other team members have to spend additional time locating the original products that should have never been moved.
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For offices that utilize multiple systems without business process integration, a tremendous amount of waste occurs when the same data has to be entered multiple times across different platforms.
Integrated software applications, automated processes, and leaner operations can eliminate a great deal of this waste.
Downtime
Downtime occurs regularly, often as a period of forced inactivity due to a downstream process that is halted or bottlenecked. Waiting for parts and subcomponents, change in orders, downed equipment, too- frequent inspections, product changes, a lack of orders and more can all bring manufacturing to a halt.
With family in the automotive industry, I frequently hear about temporary layoffs with changeovers for new vehicles and production that can last as long as 7 weeks.
This same delay occurs in the office environment as well. Marketing departments, accounting, and others may find themselves without work to do when they’re stuck waiting for feedback, approvals or decisions from leadership.
Clearly defined, lean process can eliminate some downtime in production and manufacturing. For the office environment, approval processes with notifications can ensure that decisions and approvals are turned around quickly.
Building Lean Business Processes
To create lean business processes, you'll have to audit and reorganize them. Those processes must also be more effective and help you achieve your goals.
Before that can take place you have to reduce waste. A costly process with a lot of waste can be streamlined but it’s still going to produce waste. If you eliminate the cause of the waste first, you’ll be building processes around the optimal performance of your departments and teams.
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6+ Continuous Improvement Tools to Help Drive Growth by Amit Kothari https://tallyfy.com/continuous-improvement-tools-growth/
In today's world, businesses that can innovate and improve thrive. Ones clinging to old practices, however, eventually die out.
To stay ahead of your competition, your organization should focus on continuous improvement. Meaning, you should constantly re-evaluate your business processes, find improvements, and implement them.
Unless you’re a process improvement consultant, though, this won’t be the easiest of tasks. Over 50% of process improvement initiatives fail – and that happens for a reason. You need a lot of know-how to do this right. You need to know, for example, how to map processes, how to analyze the map, and so on.
If you have the right tools at hand, though, you’ll be dramatically increasing your chances.
To give you a head start, we’ve compiled a list of 6+ continuous improvement tools which are bound to significantly improve your odds.
Continuous Improvement Tools List
Before we dive into the specific tools, let’s talk basics. If you already have a good basic understanding of process improvement as a methodology, jump ahead to the first tool, Drive. Otherwise, read on!
As we’ve already mentioned, continuous improvement means constantly improving your processes.
There are 2 parts to it. One is cultural – making your organization used to improvement on a general basis. Your employees should be supportive of any initiative, and should always be willing to take part in it.
To learn more about this part, check out our article on Kaizen, where we cover the cultural aspect of improvement more throughout.
The other part is more practical – the “hows” and “whys” of improving specific processes.
The continuous improvement tools we’ll cover in this article will focus on the later part.
New to process improvement and want to learn more? Check out our complete guide to continuous improvement.
Process Mapping
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Process Mapping is the methodology for visualizing business processes. It’s one of the most essential continuous improvement tools. Before you can improve a process, it’s helpful to have it down on paper. This way, you can actually see potential improvements.
There are several different types of process maps, depending on what you’re working on improving…
Process Flowchart - This is the most straightforward process map. You simply draw the business process as a flowchart, with each block being a single step. If you want to optimize the steps of the process, this map type is the go-to.
Process flowchart example: content marketing
SIPOC Diagram – SIPOC stands for Supplier, Inputs, Processes, Outputs, and Customers. This is a more top-down process map, as it doesn’t go into the details of the process flow itself. Rather, you analyze all the external aspects of the process and improve on those.
Value Stream Map – As with the SIPOC diagram, this one’s top-down. The value stream map analyses the exact way you deliver value to the end-customer, including the process itself, duration of each step, KPIs, etc.
Depending on your needs, there are several other types of diagrams you could use. Check out our complete guide to process mapping to learn more.
Drive
DRIVE is a continuous improvement tool that involves evaluating problems so you can break them down into simple, actionable steps. DRIVE stands for:
Define - Defining the problem and identifying success criteria. Review - Analyze the current situation, looking for areas that are problematic or need improvement. Identify - Finding potential solutions to the problem and evaluating the type of changes needed to sustain these improvements. Verify - Figure out whether or not the solutions and changes conducted will help reach the criteria of success as defined in step #1. Execute - Carry out the implementation of solutions or improvements. Check if your success criteria are met and review the entire process.
Root Cause Analysis
The Root Cause Analysis is, as evident from the name, a methodology aimed at discovering the root of any problem, issue or quality concern. It's done in three stages...
Open Phase - The first is the brainstorming phase. Here, the team comes up with any possible
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issue that might be causing the problem. The idea here is to generate as many ideas as possible (without filtering any) Narrow Phase - The team narrows down the possible ideas to as few as possible, proving most of the theories wrong Closed Phase - Once several potential issues are identified, the team validates the final short-list of problems.
Need help implementing the root cause analysis? We've got you covered!
The 5 Whys
The 5 whys is a theory first developed by the Toyota Production Systems and now are an important part of Lean Manufacturing, Kaizen, and Six Sigma.
The idea behind it is simple – you continue asking “why” 5 times until you discover the root of the problem. This allows you to break through the layer of symptoms and get to the root of the problem.
People commonly want to address symptoms when problems arise. Then they don’t understand why these same problems tend to keep happening.
Using the 5 Whys may take longer initially, but it will save you the trouble of having the same problems crop up over and over again in your business.
The 5 Whys help you get to the root of any problem and understand the relationship between the different causes of this problem. It is one of the easiest tools you can use because it doesn’t require any data or statistical analysis.
To give you a better idea of how this works, here’s a simple example from Toyota’s website…
Practical Example
1. Why did the robot stop? The circuit has overloaded, causing a fuse to blow. 2. Why is the circuit overloaded? There was insufficient lubrication on the bearings, so they locked up. 3. Why was there insufficient lubrication on the bearings? The oil pump on the robot is not circulating sufficient oil. 4. Why is the pump not circulating sufficient oil? The pump intake is clogged with metal shavings. 5. Why is the intake clogged with metal shavings? Because there is no filter on the pump.
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Want to learn more? We've got a dedicated guide for conducting the 5 Whys Analysis!
Plan-Do-Study-Act (PDSA) Cycle
The PDSA cycle is a continuous improvement tool developed by Edwards Demming. It consists of four phases...
Plan - Identifying potential problems and shortcomings within the company, be it about a process, product or service. Do - The planned changes are carried out on a small scale. This acts as a test on whether the proposed changes work or not, without having to risk implementing it on a larger scale. Study - Once you have some data on how well the new process works, it's time to benchmark it to the original. If doesn't work as planned, then all the new information is taken into consideration when starting the cycle anew. If it does, then you proceed to the final step. Act - Having confirmation that the new process is better than the old one, you can finally start executing it on a company-wide scale.
DMAIC
DMAIC is a bit similar to drive, and it stands for: Define, Measure, Analyze, Improve and Control.
Define - The first phase is identifying all the strategic aspects of the entire procedure. That is, articulating the problem, defining the budget or the scope of the project, etc. Measure - Here, the benchmark for improvement has to be identified. i.e, once the process improvement initiative is carried out, the new data should be compared with the old, identifying which method or process is better. Analyze - During the analyzing stage, the team has to identify the root cause of the problem. This can be done with a root cause analysis (Fishbone diagram, for example). Once about 3 or 4 potential causes are identified, their connection to the original metric is to be determined. From then on, the exact root cause has to found the potential causes. Improve - Once the root cause is found, different solutions are to be tested (usually on a smaller scale). If the solution does solve the problem, and it's empirically proven with data vs the "measure" step, it can be scaled and applied to all relevant processes. Control - The DMAIC process improvement initiative doesn't end with implementing the right changes. Once that's done with, it's important to keep track of the improved process, making sure that it's working as intended.
Bonus: Process Management Software
There are a lot of problems with process improvement. One of the most notable ones is enforcement.
You spend countless hours improving a process, but your employees just won’t stick with the new variation.
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In most cases, this is usually because of habit. The employees are used to doing the things one way, and then you expect them to completely change their behavior.
Some will stick, others will take a while. By using business process management software, though, you can completely get rid of this problem.
Instead of having to notify your employees of changes manually and keep track of whether they’re sticking to it or not, you can simply make a change to the process through software.
The employees will get a notification that the process will be carried out in a different way. Then, the system will automatically enforce the changes, telling the employees exactly what they need to do for each step.
Want to get started with BPM software, but not sure which provider to pick? Learn how to tell them apart with our guide to some of the best BPM tools on the market.
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7 Basic Quality Tools for Process and Product Improvement by Amit Kothari https://tallyfy.com/quality-tools/
The 7 quality tools were first conceptualized by Kaoru Ishikawa, a professor of engineering at the University of Tokyo. They can be used for controlling and managing quality in any organization.
The 7 basic quality tools are, essentially, graphical techniques used to identify & fix issues related to product or process quality.
7 Basic Quality Tools: The Complete List
The 7 basic quality tools are as follows:
1. Flow Chart 2. Histogram 3. Cause-and-Effect Diagram 4. Check Sheet 5. Scatter Diagram 6. Control Charts 7. Pareto Charts
Flow charts: Flow charts are one of the best process improvement tools you can use to analyze a series of events. They map out these events to illustrate a complex process in order to find any commonalities among the events. They're also one of the most common methods of creating a workflow diagram.
Flow charts can be used in any field to break down complex processes in a way that is easy to understand. Then, you can go through the business processes one by one, identifying areas for improvement.
Histogram: A histogram is a chart with different columns. These columns represent the distribution by the mean. If the histogram is normal then the graph will have a bell-shaped curve.
If it is abnormal, it can take different shapes based on the condition of the distribution. Histograms are used to measure one thing against another and should always have a minimum of two variables.
Cause-and-effect Diagram (also known as Fishbone diagram): Cause-and-effect diagrams can be used to understand the root causes of business problems. Because businesses face problems daily, it is necessary to understand the root of the problem so you can solve it effectively.
Check Sheet: A check sheet is a basic tool that gathers and organizes data to evaluate quality. This can be done with an Excel spreadsheet so you can analyze the information gathered in a graph.
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Scatter Diagram: Scatter diagrams are the best way to represent the value of two different variables. They present the relationship between the different variables and illustrate the results on a Cartesian plane. Then further analysis can be done on the values.
Control Charts: A control chart is a good tool for monitoring performance and can be used to monitor any process that relates to the function of an organization. These charts allow you to identify the stability and predictability of the process and identify common causes of variation.
Pareto Charts: Pareto charts are charts that contain bars and a line graph. The values are shown in descending order by bars and the total is represented by the line. They can be used to identify a set of priorities so you can determine what parameters have the biggest impact on the specific area of concern.
Looking to streamline or automate your business or manufacturing processes? Tallyfy offers an easy solution for your workflow automation needs. So, why don't you give it a free try?
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7 Wastes Of Lean Manufacturing: Definition and 2+ Real-Life Examples by Sonia Pearson https://tallyfy.com/7-wastes-lean/
Is your company wasting its potential profits? Chances are, you’ll say “No!” but it might be time to take a step back and look for the hidden wastes that could be eating into your bottom line. The Lean Manufacturing philosophy identifies 7 wastes, but lately, experts have suggested that we consider an 8th one too.
What are the 7 Wastes?
A lot of people recommend using the acronym “TIMWOOD” to remember what the seven wastes consist of. Let’s tackle them in that order before moving on to some real lie examples.
Transportation
Transportation isn’t always a waste – but it can be. Think of a production process. The product moves from one process to another. The less transportation there is from one area to the next, the more efficient the process will be. Any movement that doesn’t directly add value to materials is really just dead weight.
Overproduction also leads to transportation waste, because finished products must move to storage locations before the manufacturers can distribute them to clients. Look at the physical layout of your value-adding operations, and see whether you can reduce waste by improving layouts or by altering the batch sizes you produce.
Inventory
Inventory, be it excess materials that your company must store, or completed products that need to be warehoused prior to dispatch, costs your business money. Capital that could be earning interest is tied up in inventory. You need to have storage facilities. Stock taking becomes longer and more complex than necessary, and goods can get damaged during storage.
Lean manufacturing employs the JIT (Just in Time) inventory management system. It aims to reduce inventory waste by ensuring that you have just enough materials to keep processes going, and just enough finished products to satisfy market demand.
Motion
While “transport” refers to wasted materials movement, “motion” refers to the movements personnel must undertake in the process of doing their jobs. For instance, if a technician has to walk from one workstation to another during the course of a workday, the total time he or she spends moving back and
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forth adds no value to the product. It is therefore wasted.
Another typical example occurs in many offices. The printer is situated across the office from the workers’ desk, or even in another office altogether. Every time he or she stands up and walks to the printer, you have wasted motion.
Even people operating from a single workstation could be forced to waste time through motion. Time and motion studies look at workstation design and consultants attempt to find ways to eliminate unnecessary movements.
Interestingly, the pedal bins and fitted kitchens we are familiar with today were developed in an attempt to improve household efficiency through eliminating wasted motion.
Waiting
This is probably one of the easiest wastes to spot. If one process has to grind to a halt because a bottleneck has developed in another process, you’re wasting time, and time is money. Monitor your process flows from inputs to outputs closely. Use the data to develop ways to overcome bottlenecks that result in idle time for people or capital equipment.
Many businesses use software and computer modeling to identify and overcome this problem. For example, Tallyfy allows for the design, modeling, testing, and real-time monitoring of process flows.
Overproduction
We’ve already touched on overproduction as a source of transport waste, and we have looked at the wastes that excess inventory causes. But why do companies overproduce? There are many possible reasons.
If your suppliers or processes are unreliable, you may feel the need to keep more safety-net stock so that you can continue to meet demand when suppliers or internal processes fail. Perhaps you just forecast demand incorrectly, or have fallen into a “more is better” mindset. Try to overcome this type of waste by balancing what you supply with market demand.
Over-processing
What processes do you need to undertake to generate value in the eyes of your customers? Anything you do over and above that may feel good to you, but it’s a waste. Find out what matters to your customers when they buy your product.
If those extra finishing touches make a meaningful difference your clients are willing to pay for, that’s great. If not, you need to focus your resources and attention on what they do value.
Defects
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Every manufacturing defect results in waste. If your company detects defects, you end up having to scrap materials or rework components. If it fails to detect problems, the resulting cost can be even higher as you deal with requests for replacement, product recalls, and even lawsuits. That’s without taking the damage defects deal to your company’s reputation.
Try to identify the causes of defects to reduce this type of waste. Are your employees sufficiently well- trained? Are the processes your firm follows at fault? Are materials from your suppliers up to standard? Are products getting damaged during shipping or transportation?
The 8th Waste: Creativity
Have you asked your employees how you can improve the design of their workspace for better productivity? Are you giving them opportunities to learn, grow and perform beyond basic expectations? There could be a lot of talent and creativity going to waste without you even knowing it. Tap into the creativity of ordinary employees – you may be surprised by the results.
Real-Life Examples of the Seven Wastes
Morgan: Accepting Wastes to Maintain its Traditions
One of the most famous case-studies on the seven wastes resulted in the production of a documentary and is widely cited. Morgan, a British car manufacturer that hand-makes a very small volume of highly exclusive cars for connoisseurs asked for help in improving efficiency. Unfortunately, the company didn’t feel that the suggested changes to eliminate wastes matched its traditions, and most recommendations were never implemented.
Over-processing takes on a slightly unusual form at Morgan. In this instance, it’s the company’s insistence on doing everything with hand tools that presented an area its consultants felt could improve. Would Morgan’s customers really mind if an artisan made use of hand-held power tools? Probably not. However, the company balked at altering its production methods.
Transport also posed a problem. The layout of the facility meant that vehicles under production were moved from one end of the facility to the other and then back again.
Waiting also occurred at Morgan as production processes ground to a halt awaiting the completion of earlier ones.
Inventory management was still undertaken using an old-fashioned card-based system, and unnecessary volumes of materials were stored. Meanwhile, finished cars were stored in a gravel lot where they were at risk of damage.
Defects in the manufacture of Morgan cars are very rare indeed. However, consultants noted that all inspections were manual and visual and were concerned that the hidden defects modern technology can uncover were going unnoticed.
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However, as has previously been noted, Morgan prizes its heritage, and even the introduction of computerized inventory monitoring systems proved to be controversial for the manufacturers. Whether such dedication to the old ways of doing absolutely everything adds value to its clients is debatable, but the company is steadfast in maintaining its traditions.
Toyota: Eliminating Wastes to Take the World by Storm
To find a real-world example of how reducing or eliminating the 7 wastes can build a company up, we need to look no further than the firm that first developed the concept and put it to work: Toyota.
Toyota didn’t continually strive to produce more cars and then try to stimulate market demand. Instead, it worked to eliminate overproduction. Although this step took courage, the company has reduced storage costs and says that it’s easier to detect defects. It gauges market demand and only produces what it can immediately sell or ship.
In addition, the company streamlined process flows, and production flows so that they would flow seamlessly into one another, thereby reducing the waste of waiting. In the same way, it designs its production facilities to minimize the amount of transport between processes.
Many companies boast of their cutting-edge automation and equipment. To Toyota, what matters most is that its equipment does the job. Toyota has become a byword for low-cost automation coupled with a maintenance schedule that ensures all equipment is working perfectly. In this way, it reduces over- processing that doesn’t add value to consumers or the company.
As for inventory management, we have already seen that Toyota implements Just in Time (JIT) inventory levels. As an important element in Lean Manufacturing, Toyota is also the source of the concept.
But this wasn’t enough for Toyota. It also worked on improved workplace ergonomics and workstation layout that would reduce wasted motion. If that sounds like splitting hairs, do the math. If a motion takes 5 seconds longer than necessary to complete, each employee engaged in that task loses 40 minutes of potentially productive time in an eight-hour shift.
Reducing the number of defective products that get passed on to consumers through final inspections is possible, but it doesn’t address the cause of the defects. Toyota reduced defects by tracking them down to source and addressing the problem there.
The results? We can’t say that Toyota has zero inventory or zero defects, or that it never loses a minute in waiting time. But it is a highly successful automaker that is respected the world over for the quality and reliability of its reasonably-priced vehicles.
Addressing the 7 Wastes: Beyond Car Manufacture
Companies all over the world today are building efficiency and increase profits through reducing the seven wastes. And it's not just the manufacturing industries that are implementing the idea. McDonald's,
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for example, uses JIT inventory management to reduce food waste. You could argue that making burgers is manufacturing in a different form, but even purely service-based industries are implementing the concept.
In this context, you could interpret duplication as being an example of over-processing, for example. You could experience waiting times but also delays in service delivery. We could be moving our customers around from pillar to post, causing customer experience problems, or we may have laid out our offices so that our staff needs to move around more than necessary.
With a little thought, we can see how the 7 wastes affect just about any type of industry. Boosting our bottom line could be a matter of analyzing our businesses in a 7 wastes context. Identify bottlenecks, move processes along, and try never to have too much or too little of anything. If attempting this sounds like a challenging task, remember that you can rely on technology. Simply automate data collection and analysis and make continuous improvement a reality.
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8 Most Important Six Sigma Tools to Help Drive Change by Amit Kothari https://tallyfy.com/six-sigma-tools/
Six Sigma tools are an essential part of any business process improvement initiative. By identifying flaws and weaknesses in your processes, they allow you to significantly improve the efficiency of your business.
Six Sigma Tools to Help Drive Change
Six Sigma is a methodology that helps eliminate waste & inefficiencies within business processes.
Six Sigma tools, on the other hand, are techniques and methodologies that help with the analysis and improvement of the said processes.
If used the right way, Six Sigma tools can help eliminate waste, increase employee productivity, and drive profits. Here are 8 of the most important Six Sigma tools that you can begin incorporating into your organization.
Value-Stream Mapping
The value-stream map outlines the information and materials required to bring the product to a customer. This tool is helpful for streamlining the production process.
Although value-stream mapping is primarily used in lean manufacturing, it can be useful for businesses in almost any industry. Its main goal is to visualize such information as time period, error rate, and unnecessary delays within the process.
Value-stream map consists of three different parts: the process map, the timeline, and the information flow. It uses a unique set of symbols to help you better understand the process.
The process map includes each of the steps involved in the business process. The timeline comes from the process map and summarizes all the data on duration of the process. The information flow explains how each of these steps interacts with each other.
Cause-and-Effect Analysis
A cause-and-effect analysis diagram is also called fishbone diagram because it resembles a skeleton of a fish. It's one of the most famous six sigma tools, as it allows you to brainstorm various causes of a problem.
The first step in performing the analysis is to identify the problem you want to solve. You have to write
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down who works on the process and when and where the process occurs.
Next step is to write the problem in a box on the left-hand side of the paper. Then you draw a horizontal line extending to the other end of the paper. From there, you draw vertical lines extending off of the “spine”. On these lines, you write the major reasons behind the problem and think through any possible causes. You can further break these causes down into sub-causes.
Once you complete the diagram with all possible causes of the problem, you can analyze your results. The results may need further testing and analysis.
The 5 Whys
Organizations often find that one and the same problem occurs over and over again. No matter how many times they address it, it keeps creeping back in at a later date.
Problems that won’t go away are the symptom of a deeper issue that you need to resolve. To get to the root of chronic issues, you can use the tool known as the 5 whys.
The 5 whys originated in the 1930’s with the Japanese industrial revolution. The method is simple: when the problem arises again, you get to the cause by asking “why” five times. This method is most effective when used to deal with moderately difficult problems. If you deal with more complex issues, you may achieve better results by using a cause-and-effect diagram.
The 5 whys sounds like a very unsophisticated method, but don't underestimate it. Its simplicity is what makes it so helpful. Besides, this tool works well in combination with other Six Sigma tools.
Kanban System
Kanban System is a supply chain control system that focuses on cost reduction by implementing just-in- time inventory control system. It is also one of the most popular six sigma tools, due to its ease of use and potential benefits. "Kanban" is Japanese for "billboard." The term was coined by Taichi Ohno, an industrial engineer at Toyota. Ohno based his system on how supermarkets control their inventory depending on the demand.
When you shop at a supermarket, you don't stock up for month or years ahead. Neither does the store stock items that it doesn't expect to sell right now. Instead, you tailor your shopping list to what you need right now, just like the store bases its supply of the products on customer demand. Kanban mimics this arrangement by allowing the demand for the firm's output to control the supply of its inventory.
Kanban system sets limits for the inventory-holding for all current business processes. This frees additional resources and allows to use them better. Kanban system works on a simple and elegant idea: only activate the supply chain when the demand requires it. This system both brings more focus to the business process itself and increases its efficiency.
Pareto Chart
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Pareto Chart is a graphic representation of the Pareto Principle: 20 percent of input produces 80 percent of output in any given situation. The chart combines a vertical bar graph and a line graph. The bar graph represents the metrics of various business process components, ordered from the largest to the smallest one. The line graph represents the cumulative total of these metrics.
Pareto Chart is a tool that visualizes what part of the process influences output the most. To create such chart, you first figure out the components of the process and how to measure them. Once you've done that, you can put this data into a Pareto Chart. This will help you see how big of an influence on the outcome each component has. In addition to that, it will give you a clear idea of what requires your immediate attention.
Process Mapping
Business process mapping is a way to visualize the business process and better understand how it works. A typical map outlines the roles, responsibilities, and standards involved in the process. It presents this data in a structured way that shows the steps of the process along with who is responsible, what the inputs and outputs are, and other information relevant to the process
Business process mapping is a great aid in problem-solving. It visualizes the entire process, making it easier to see what's wrong and get straight to the root cause. It also helps to visualize the roles of the people within the process and ensure everyone knows what to do. In addition to that, business process mapping is great for finding the potential risks the process creates. Constructing a map makes you rethink each step of the process and see if there are any liabilities hidden within.
Types of Process Maps
Whether you use business process mapping to see the big picture or to concentrate on the details, you can choose a map that works best for your goal.
Flowchart is the most common type of a process map. While this process map is less flexible, you can easily draw it by hand or in software like MS Office. Flowcharts are often used for the creation of workflow diagrams. Swimlane diagram is similar to generic flowcharts, except it is better structured in terms of who does what. Value stream map is a more in-depth alternative to the flowchart. It is common for lean six sigma operations, and you may find it harder to analyze at a glance. SIPOC Diagram (Supplier Inputs Processes Outputs Customer) is the most visually simplified map. It focuses on the essentials of the process and the people involved. By stripping all extra information, it defines a complex project better in terms of its basic elements.
Project Charter
Project Charter is a document that defines the purpose and the scope of the project. It works both as the blueprint for the business process and as legal authorization of the project. Project charter usually includes the project overview and its scope, details about the team and the resources, and the timeline. It
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gives you all the basic information about the project and clarifies the main points about it.
The main benefit of a project charter is that it keeps things less chaotic. Once a team dives into the project, it is easy to lose track of who is responsible for what, which deadlines the team has to meet first, etc. If the company doesn't have a clear managerial hierarchy, things will get even messier.
Having a project charter helps you to keep a clear focus on what your project is all about. It lets you understand the project's structure and the relationship between the people involved. In other words, project charter helps you bring your firm back to order when things get confusing.
RACI Matrix
Responsibility Assignment Matrix, also known as RACI matrix, is a table that describes the responsibilities of each team member on every task of the business process. RACI stands for Responsible, Accountable, Consulted, and Informed - the key responsibilities most commonly used in the matrix.
Responsible refers to those whose role is to achieve the task. Accountable is the person assigning the tasks to others and monitoring their progress. There is always only one accountable per task. Consulted are the experts on the subject matter whose opinions guide those working on the task. Finally, informed are the people you notify once you complete the task.
Typically, RACI matrix has the tasks specified on the left of the table and the team members listed in the top row. The cells at the intersection of the two have the letter corresponding to what the person handles within the task. This simple system helps every team member clearly understand their role in the process. It also allows you to see the gaps in the team structure and which roles you have to fill.
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8+ Practical Business Process Improvement Ideas by Amit Kothari https://tallyfy.com/business-process-improvement-ideas/
Whatever your organization does, there’s a pretty good chance that your business processes aren’t as efficient as they could be. Most companies are very passive about their processes, holding a “why fix something that isn’t broken” mindset.
If you want your organization to stand out from the competition, however, that won't cut it. You should be striving for doing as well as you could be. Companies that have a culture of innovation and improvement tend to outlast their competition both through time and through crises.
Starting off with process improvement isn’t all that easy, though. You might realize that while you do want to improve, you have no idea where to begin. To help start off with a blast, we’ve compiled a list of 8+ practical business process improvement ideas – all of which you can immediately put into action.
8+ Business Process Improvement Ideas
Explaining how to do process improvement can be pretty tough – the practical improvements you can do really vary by the industry you work in, as well as any given department.
So, while some of the improvement ideas are very practical & can be implemented 1-to-1, others are more of a theoretical framework. They help you figure out potential improvements yourself.
The business process improvement ideas are divided into 3 categories…
Software Adoption & Process Automation – Using software to make processes more efficient. This can help eliminate any kind of grunt work, making your employees happier with their work. Analysis & Improvement – In some cases, there might be a couple of easy wins just waiting to be found. A process step, for example, can be useless and overpriced. Simply eliminating the step would make the entire process more efficient. These methodologies help find inefficiencies within your processes, as well as how to improve them. Problem-Solving – Are your processes malfunctioning? Are bottlenecks and missed deadlines a frequent sight? These techniques help figure out the root cause of the problems, allowing you to get everything back on track.
Software Adoption & Process Automation
Unless you’re taking advantage of digital transformation, you’re missing out. According to IDC, over two- thirds of all CEOs will have digital transformation in the heart of their corporate strategy by the end of 2017.
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And there’s a pretty good reason behind that, too. Simply adopting the right software or tech can make your processes more efficient. In some cases, they can even completely automate a big chunk of a certain business function.
To help you get started with this, we’ve covered three of the most common software types that help with process improvement and automation.
Task / Project Management
For a non-digital organization, task-management can be very hectic. You can hear the cries of confusion and frustration all around the office…
“Wait, so why isn’t this done yet?”
“Wasn’t John supposed to do it?”
“John’s on vacation. Wasn’t Jane supposed to delegate the task to someone else?”
And so on.
Task or project management software puts all the to-do management in one place. Rather than having to chase after your employees, you get a top-down view of everything going on in the organization.
This makes the process of task management significantly easier and more efficient.
While there are a lot of different tools for this, our favorites are…
Basecamp – This software consists of different boards depending on the department or business function. In each board, you (or your employees) can create and assign tasks to whoever’s relevant.
Trello – If your company is already using Kanban, Trello might be the easiest option. It’s essentially a digital Kanban board. Your employees move tasks around based on their completion status (to-do, in progress, done).
Business Process Management
Other than simple tasks, your business also has a lot of processes or workflows.
These are the type of tasks you complete repeatedly on a daily, weekly, or monthly basis. For example, this can be onboarding a new employee, writing and publishing a blog post, opening a new customer account, etc.
So if we take employee onboarding as an example, the process would be…
1. Have the new employee sign all the paperwork 2. Let the supervisor know about the new hire
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3. The supervisor creates a list of initial to-dos, assignments, projects, goals, etc. for your new hire 4. Let everyone in the company know about the new hire (so as to make proper introductions on day one) 5. etc.
Business Process Management software helps automate the communication part of the process. Think, instead of completing your task and sending over an email to the next responsible person (in this case, the supervisor), you simply create an instance of the process.
Then, the BPM software helps enforce the process. Once any given task is complete, the process owner in line gets a notification that they have a new task.
If you want to give business process management software a go, you can try it free here.
Want to learn more about Business Process Management (BPM)? Check out our comprehensive guide on how to use the methodology to improve your business.
Task Automation
Grunt work is the most annoying thing your employees face. It’s something that has to be done, but no one really wants to bother spending hours and hours on it.
Task automation software, such as Zapier, helps you cut corners.
So for example, you have a lead generation website set up that captures the emails and general information about your customers.
You’d probably want to move the data from MailChimp (most common email marketing solution) to whichever CRM you use.
While this is OK if you have to do it once or twice a day, it can be overly time-consuming if you have a surge of traffic & capture hundreds of emails within a day. To save you from having to copy-paste contacts manually, you can use Zapier to do it for you.
To learn how to use Zapier in any given industry or function, you can check out this list. If you want to discover other types of task automation tools, here's 3 that can automate most types of tasks.
Analysis & Improvement
These techniques allow you to analyze any given process and figure out how to improve it. You’d do this in three steps…
Step #1: Process Mapping
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Before you can analyze any given process, you should have it mapped out. This allows for significantly easier introspection – unless you’re the individual working the specific process, you probably don’t know it by heart.
So, you’d want to create a process map. The simplest way to do this is with a flowchart diagram. That’s the exact steps you’d take to complete the process. Here’s an example of employee onboarding…On one hand, the process map allows you to gain insight into how the process works. On the other hand, your employees can use it as a point of reference. You can use it to teach new employees the intricacies of the process, as well as make sure your current employees don’t forget any process step.
To learn everything there is to know about process mapping, check out our step-by-step guide.
Step #2: Streamlining the Process
Once you have the process map, you can make certain conclusions on how to streamline it (think, remove useless steps, make some steps more efficient, etc.).
Ask yourself…
Are any of the process steps unnecessary to get to the end-goal? Do your employees frequently miss deadlines for a given step? Why? Is any given process step overly expensive or time-consuming? Is there any way to make it cheaper or faster?
Once you’ve found how the process can be potentially improved, you can put the theory into action.
Want to learn more about how to improve business processes? These 4+ ideas might just be what you're looking for.
Step #3: Standardizing Processes
Once you’ve identified the best variation of any given process, you’d want to standardize it. Meaning, you want to make sure that all of your employees stick to the best practice, not how they used to do it before.
For this, you can share the process map with relevant employees & explain how things should function differently from here on out.
To make sure that they stick to the changes, you can reward the employees that show initiative and adapt.
To make process standardization easier, you can use Business Process Management software. You can use the software to create a process model. The software will then enforce the new process standard, ensuring that all of your employees are following the changes.
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Problem-Solving
If your processes are broken in some way (missed deadlines, bottlenecks, etc.), these business process improvement ideas help find the root cause behind the issue, allowing you to get things back on track.
5 Whys Analysis
The idea behind this analysis method is that if you keep asking the question “why?” enough times, you’ll figure out what’s the root cause of a given problem.
So, for example, let’s say that 5% of your customers are receiving a defective product.
1. Why are the customers receiving a defective product? Because there was a serious malfunction in a certain manufacturing line 2. Why? Because the manufacturing machine on the given line was faulty 3. Why? Because the machine was shipped by a new partner company (for a price cheaper than the industry average)
Once you’ve got the root cause of the issue down, fixing the problem can be very simple. In our example, you could stop working with the partner. Or, you could ask them to fix the machine ASAP at the threat of litigation.
Fishbone Diagram
Ishikawa (or the fishbone diagram) helps you determine the causes and effects of different elements.
To create your own fishbone diagram, you should do the following…
1. Identify the exact problem. Place it on the right of the diagram. 2. Come up with the major categories that might be contributing to the problem. Put them down as separate arrows on the diagram. The categories could, for example, be… 1. Machines 2. People 3. Materials 3. Then, branch out from each category & name potential problems within each. 4. Analyze each potential problem. Identify why is it happening, how you’d fix it, etc.
Conclusion
Hopefully, the business process improvement ideas we’ve mentioned were helpful.
Do you have any examples or ideas that we’ve missed? Maybe personal stories from your own process improvement initiatives?
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Let us know down in the comments!
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All You Need to Know About APQP: Definition, Steps and Benefits by Sonia Pearson https://tallyfy.com/apqp/
In the competitive world of business, quality isn’t a luxury – it’s a necessity. Quality failures can ruin a business’ reputation quickly and comprehensively – and that makes the introduction of new products or any significant changes to existing ones a particularly delicate process. Advanced Product Quality Planning was developed in the automotive industry, but it has relevance to the successful planning, production, and release of just about any product.
What is Advanced Product Quality Planning (APQP)?
A complex process can be easily defined, and APQP falls into this category. It consists of procedures that govern product development, and its aim is to create a product quality plan that ensures customer satisfaction.
The Advanced Product Quality Planning concept is very nearly related to Design for Six Sigma (DFSS). It was first implemented by General Motors, Chrysler, and Ford, but is now used in a wide variety of industries.
APQP objectives are at the heart of the process and should be kept firmly in view. To ensure customer satisfaction, companies implementing Advanced Product Quality Planning will strive to:
Develop a framework that allows for effective communications between the internal departments and external suppliers who will implement the plan. Reach a defined set of goals in a timely manner. Reduce risks associated with the launch of a new product by ensuring that there are few or no quality problems.
APQP is implemented from the very beginning of any product development process. Before the product design is even finalized, the APQP program is planned and defined. Once the product’s design is in place, the production processes will also be designed, developed and validated, and the resulting product will also require validation.
Since the entire process aims to eliminate any problems before the product ever reaches the client, a final assessment will search for issues so that the company can take corrective action. However, APQP doesn’t end there. Any glitches or hiccups are also addressed after the release of the product onto the market.
5 Phases of the Advanced Product Quality Planning (APQP) Process
Before we move on to the benefits of Advanced Product Quality Planning, we need to take a closer look
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at the steps in the process to gain a better understanding of what it entails.
1. Define and Plan the Program
Fulfilling customer expectations requires an understanding of what these expectations are. Thus, design and product reliability goals come first. Now, it’s possible to formulate a preliminary bill of materials needed as well as a draft process flow chart that shows how the inputs will be transformed into outputs. Next, it’s important to define the product and process characteristics which in turn gives rise to a product assurance plan. And since management support is essential, the roles and responsibilities of management must also be determined.
Suppliers will have a crucial role to play, and they can consider this portion of the process as being similar to Design and Development Planning and Design Input as specified in QS-9000.
2. Designing and Developing the Product
To meet the goal of customer satisfaction, the company assembles a team to carry out a Design Failure Mode and Effects Analysis (DFMEA) to see what can go wrong and what the effect would be. The design and engineering specifications are also verified and reviewed in detail before a prototype plan can be finalized. If necessary, the design and its specifications may be adjusted.
Meanwhile, the Advanced Product Quality Planning Team is looking at the equipment and tooling that will be needed. It will define key product and process characteristics while considering and deciding on the testing requirements that will be used for quality verification. Staffing requirements and management support are also on the agenda.
3. Aligning Manufacturing Processes for Customer Satisfaction
After reviewing the product and process quality system, the AQPQ team now focuses its attention on the elements that must be in place for productivity, efficiency, and uniform quality, all of which have a role to play in customer satisfaction.
Process design includes such activities as providing a floor plan layout, process flow charts, and a characteristics matrix – and since processes can fail just as designs can, they will carry out a Process Failure Mode Effects Analysis (PFMEA). Process instructions and a measurement system analysis plans are formulated, the capability of processes is studied, and packaging standards and specifications are drawn up.
4. Finally, it’s Time for Product and Process Validation
Now that everything is working well on paper, its time to see whether the process and product work as well as planned in the real world. This begins with a production trial run. The production team implements the predetermined processes and measurement systems, and if all goes well in the final analysis, the product, its components, packaging, and all the accompanying control plans can receive final approval.
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5. Assessment and Corrective Action
Few plans, even the ones you've tested numerous times, will be without room for improvement. Once production begins in earnest, there are almost sure to be small issues that can be corrected or improved. Quality depends on the ability to produce predictably uniform products, and customer satisfaction, the goal of the whole of the process, will be an indicator that points towards any changes or improvements that must still be made.
If there’s a marked need for corrective action, the entire process, or parts of it can be repeated, allowing for product changes that will meet client expectations.
Benefits of Advanced Product Quality Planning (APQP)?
By looking through the steps involved in APQP, you probably have a good idea of why it's useful to use for your business. However, capturing them in a list helps us to fully grasp just why APQP is so helpful:
The process keeps customer satisfaction at the core of its activities. Ultimately, resources are directed with the specific intention of fulfilling customer needs. Introducing a product becomes a carefully tested and validated process, limiting the number of changes that must be made (and fires to put out) after the product has been released onto the market. When faced with an urgent problem, the solution implemented may be the quickest, but not necessarily the most cost-effective one. By pre-empting quality problems and firmly establishing client expectations, the process gives planners time to look for cost-effective solutions before the product is launched. By implementing APQP, the company mitigates the risks inherent in introducing or modifying a product. Design and process specialists work together. This ensures that there is no miscommunication between them and that processes will fulfill the requirements of the design. Suppliers can be briefed in accordance with APQP guidelines and specifications. They, therefore, know exactly what is required, and how quality will be measured. Manufacturing and assembly processes are carefully aligned with design specifications, limiting variation, promoting efficiency, and ensuring quality. Finally, APQP is a process of continuous improvement that doesn’t end once the company begins to produce and distribute a product. Feedback is received, and corrective action is taken.
A Complex Process Well Worth Undertaking
It's clear that APQP can’t be undertaken without a multidisciplinary team. By working together, sharing information and giving the benefit of their expertise, designers, engineers, production specialists, suppliers, and managers work together to achieve a single goal: customer satisfaction.
In the process, the team will generate a lot of vital documentation: process flows, quality standards, and quality control measures must all be captured. In addition, there’s the all-important feedback step that allows the project team to fine-tune and improve production and service and deliver even greater
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customer satisfaction. Needless to say, changes will have a knock-on effect, and related workflows may also need to be revisited.
Back in the day, this would have meant revisiting the entire process to determine where the impact of changes would be felt and how they would affect the people, departments, managers, and supplier organizations involved in the production. Today, however, it's a lot more common to employ workflow management software to make the whole process easier and more effective. The software helps digitize your processes, track them in real-time, and make improvements based on data.
With or without software, however, simply by applying the basic principles of APQP, you'll eliminate most of the guesswork and risk inherent in the introduction of a new product, or the modification of an existing one.
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Business Process Improvement (BPI) - Definition, Steps & Methodologies by Amit Kothari https://tallyfy.com/business-process-improvement-bpi/
Business processes are rarely as efficient as they could be. Most businesses never stop to re-evaluate their processes - they just stick to what they started out with. While this isn't necessarily bad, it leaves room for mistakes. And that's where business process improvement comes in.
What is Business Process Improvement (BPI)?
Business Process Improvement (BPI), while it doesn't really have a universally-accepted definition, can be seen as the analysis, review, and improvement of existing business processes. This is done by mapping out the business process, identifying inefficiencies, redesigning the process & benchmarking to initial metrics.
Typically, the main goal of BPI is either, or all 3, of the following:
Goal #1: Reducing Process Time - Finding ways of carrying out the process faster or more efficiently. There are a lot of different ways this could be done, from eliminating useless steps to adopting new technology.
Goal #2: Improving Output Quality - Creating a better product with the same input of resources. This usually means finding steps within the process that negatively influence the end-product, resulting in defects and errors.
Goal #3: Cutting Out Waste - Discovering wasteful processes & cutting them out of the workflow. This may either help achieve the first 2 goals or simply just improve overall productivity. If your team doesn't have to do useless work, they can spend more time on the work that creates value for the company.
Business Process Improvement (BPI) Steps
There are a lot of different business process improvement methodologies, but the general idea is usually the same - taking your old processes & finding ways to improve them.
The following is typical steps you'd have to take to carry out a BPI initiative...
Step #1: Mapping
If you don't know what your processes are, how can you analyze their efficiency and improve them?
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So, you'd want to map them out to get a birds-eye view of your business. Business process mapping is a good way to understand how your business works & find anything that might seem weak or inefficient.
The most basic way you could do this is through pen and paper, by drawing a flowchart of the steps included in a process. This, however, is a bit outdated - the best way to map out processes is through software.
Graphing software does just that, lets you draw a process flowchart digitally.
Workflow applications, on the other hand, are much more powerful. The software allows you to track your processes in real-time, as opposed to just put them down on a graph. This has several potential benefits for your business...
Complete Process Tracking - With a graphing tool, you have a simple document with a flowchart of your processes. With workflow software, on the other hand, you have the processes running in real time. You can see who's working on what, whether someone is being late with a deadline, etc. This leads to... Accountability & Productivity - Since the entire process is being tracked by software, everyone knows whenever what they're supposed to be working on, and are in turn more accountable for their own work. This, in turn, leads to higher overall productivity & product output. Automation - Workflow software usually comes with integration with different task automation tools, such as Zapier. This allows you to cut out any useless, menial processes (for example, sending out an automatic email), allowing your employees to focus on work that matters.
Want to start using the workflow software, but not sure which one to pick? We don't blame you - there's more than a handful on the market. To figure out which workflow management system is right for you, check out our comparison guide.
Step #2: Analysis
Once you have your process mapped out, you can start analyzing it. You can do this by asking yourself...
Are there any steps in the process that are taking longer than they should? In case there are delays or missed deadlines, what is the primary factor for that? What are the steps that have the highest impact on product quality, and is there any way to make them more efficient? Are some of the steps more financially straining than the rest? Why & how?
You can also use different types of business process improvement tools, such as the 5 Whys, for example, as a framework for finding inefficiencies or problems.
The gist of 5 Whys is, you keep asking the question "why" until you discover the root cause of an issue. So for example, let's say the problem is that the sales are down compared to the previous 3 months...
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1. Why are the sales down? Because the sales team isn't closing as many clients as usual. 2. Why? Because the leads are weaker than usual (yeah, sure, blame the leads!). 3. Why? Because the marketing team has been trying out new lead generation partners. 4. Why? Because they can no longer afford the older partner. 5. Why? Because the partner upped their rates by 20%.
Once you get to the root cause of the problem, it's much easier to come up with a solution. In this case, you'd compare the new sales number with the old ones, and if the profit difference is higher than the 20% expense for the old partner, you'd want to consider switching back.
Did the analysis, but still not sure about what adjustments to make? These 8+ business process improvement ideas might help.
Step #3: Redesign
Once you've identified the inefficiencies in your old process, you'll need to figure out how to change it. This is, of course, very much dependant on your specific situation, and there's isn't a one-size fit all solution.
There are, however, several best-practices you could follow...
Pick the right metrics for comparison - you'd want to compare your new process to the old one in terms of efficiency, so you can empirically know whether it's better or not. Work with the field-level employees. Chances are, they might have some input on what you could improve on. Think long-term & account for error. In some cases, your solution works wonders in the short- term, but prove to be inefficient or costly long-term. Define the exact scope of changes. You should know exactly what impact your solution will have, or you'll be opening up to risk you could have avoided. Perform risk analysis. You can never predict the outcome at a 100% accuracy. You'd want to account for anything that can go wrong. The manufacturing methodology, for example, might seem to work wonders initially - right up to the point when it completely breaks down due to some minor oversight.
Step #4: Implementation
Implementation is a very critical step for the success of a business process improvement initiative - if something goes wrong, you might end up losing more than whatever the inefficient process was costing you.
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The steps for successful implementation are as follows...
1. Implement the changes at a small scale to mitigate risk. Before carrying out the changes throughout the entire organization, you're better off testing it at a small scale & benchmarking it to the original process. 2. Acquire the right resources & define the steps. 3. Let all the shareholders know of the changes & start implementing it.
Step #5: Reflection & Benchmarking
Things don't usually go exactly the way you plan them. Once you roll out the changes, you still want to monitor everything, making sure everything is as it should be.
Let's say, for example, you're optimizing your manufacturing process to increase output per hour. While you may succeed with this, it might turn out that while the output is better, so is the defect rate, leaving you with a new problem to work on (and back to square one, in terms of profits).
Even if that is not the case, BPI is a continuous process - there's always something new changes you could test and implement.
Business Process Improvement (BPI) Methodologies
BPI methodologies help you apply a framework to your initiative, as opposed to just going with the flow. Some of the most famous BPI methodologies include...
Six Sigma
Six Sigma was first developed by the engineers at Motorola and is used to measure defects or inconsistencies in a process. This, in turn, can be used to perfect the end-product.
Six Sigma is also used as an indicator for the level of efficiency for a process. A "Six Sigma Process" is a process that, out of a million output, doesn't produce more than 3.4 defects.
For process improvement, specifically, DMAIC is one of the core tools under the Six Sigma umbrella. It consists of 5 parts...
Define - Find the opportunity for improvement. Measure - Identify the metrics you're going to benchmark new processes to. Analyze - Uncover any defects or inconsistencies in the process. Improve - Get rid of the aforementioned problems Control - Monitor the new process, making sure that there aren't any new problems.
Lean
While Six Sigma focuses on eliminating defects to better the product quality, Lean aims at optimizing the
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process itself as much as possible. It means, for example, finding a low-value step in a process and cutting it out completely - something that would improve employee productivity, but not have much of an effect on the end-product.
The system was developed by Toyota as a means of shortening the order-to-cash cycle. Typically, the steps for lean process improvement would include...
1. Defining what value is for the end-customer 2. Mapping out the process and identifying which steps aren't creating any value 3. Cutting out the steps that don't add value, or modify them in a way that they do 4. Repeat the steps 1 through 3 for other business processes, repeat until the organization is sufficiently more efficient
Total Quality Management (TQM)
Total Quality Management (TQM) is a methodology that originated in the 1950s, but only becoming popular in the early 1980s.
As with the Lean methodology, it's main priority is delivering value to the end-customer. The difference is, however, that TQM focuses on the organization as a whole, rather than individual processes. The key idea here is that every department (anything from engineering to marketing) within the company should be optimized with customer values in mind.
What really makes TQM shine, however, is that it involves the alignment of an entire organization. It's not just the responsibility of the senior management to carry out change - rather, it's a company-wide initiative, all the way down to the lowest level employees.
Conclusion
Now that you have a good grip on how BPI works, it might be time to start carrying it out. Theorizing, after all, doesn't have much of an impact on your company's bottom line.
To help you get a good start, you might want to give Tallyfy a try. Business process improvement and workflow management software tend to go hand-in-hand, after all.
Map, optimize, and streamline your processes with Tallyfy - simply by adopting software, you're already taking the first step in making your processes more efficient. Or, learn why everyone else loves Tallyfy here.
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Complete Guide to Business Process Improvement Tools [10+ Tools!] by Amit Kothari https://tallyfy.com/business-process-improvement-tools/
Your organization most likely carries out dozens of processes on a daily basis. You probably follow a similar set of steps when you onboard a new employee, resolve a customer complaint or create a new report. Business process improvement tools can serve as a roadmap for improving these processes when they stop working.
Inefficient processes are very harmful to any business, though. They can lead to…
Wasted Employee Time – some processes (or process steps) might turn out to be completely useless, taking valuable employee time that could be spent elsewhere. Lower Productivity – if your employees are spending time on processes that could be easily automated, they won’t be too happy. Errors & Mistakes – inefficiency leads to defects.
To help you analyse and improve your processes, we’ve compiled a complete list of business process improvement tools.
How to Use This Guide
If you want to learn just about everything about process flowcharts, just read through the whole thing - we've got you covered. If you're looking for specific sections, though, just jump over to whatever's relevant!
Process improvement has a lot of different uses – you can, for example, improve an inefficient process. Or, find the reasons why some of your processes are failing.
We’ve divided the tools into different categories, so if you’re looking for a specific use-case, jump right ahead! Otherwise, read on…
Want to improve your processes? Learn how to map them out depending on what you’re using it for. Did something stop working? Is the manufacturing department suffering from too much downtime? Learn how to find the causes of failure within your processes. Already know both the problems and solutions with your processes? In that case, you need to learn how to execute the changes right. Automation can solve a lot of problems. Learn how to use software to automate your processes.
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Business Process Improvement Tools – A Simple Introduction
Everyone wants their business to be as efficient as possible.
Improving your processes, however, isn’t that easy (unless you’re a full-fledged process consultant, of course).
Knowing how to use the right tools, though, will definitely give you a good start. Since there are a lot of different ways to improve processes, we’ve divided the process improvement tools into 4 categories…
Process Mapping – To makes your processes more efficient, you need to find which process steps add value and which ones don’t. These tools help you create a step-by-step map of the business process, which in turn, helps you make adjustments.
Problem-Solving – If your processes are malfunctioning, you need to figure out “why?” These tools help you get to the root cause of any issue, allowing you to put out fires faster.
Improvement Methodologies – Putting a process down into a diagram is easy. Analysis and improvement, not so much. These methodologies help you define improvements and put them into practice.
Automation Software – One of the simplest ways to improve a process is to automate whatever you can. Depending on what you’re automating, you can use different types of software. Task automation can, for example, take care of that pesky grunt work everyone has to deal with.
If you want to get the best out of your processes, you’ll need to master tools from each category.
Process Mapping
Process mapping is one of the most essential business process improvement tools.
You can’t, after all, improve a process unless you know what exactly it consists of. There are several different types of analysis tools that help map your business processes.
Some are pretty straightforward. The process flowchart, for example, details the exact steps you need to take to complete a process.
Others are more top-down, such as the SIPOC diagram. It helps analyze how you deliver value, starting with the suppliers and ending with the customers.
To arm you with the right know-how, we’re going to explain each in detail…
Process Flowchart
The process flowchart is, well, a process visualized through a flowchart. Here's a simple example...
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Process flowchart example: Employee Onboarding
This business process improvement tool can help with…
Standardization – Having your employees carry out the best practice process every time without variation. Improvement – Removing low-value steps, using tech to automate parts of the process, etc. Writing SOPs – Documenting a process through standard operating procedures. SOPs are documents used for either process standardization or employee onboarding (explaining how to carry out the process).
You can create a simple process flowchart by using a pen and paper or use online graphing software such as LucidCharts.
The later is, as a given, the better option. You want the document to be online and easily accessible by all your employees.
As for the “how,” you can either use the basic symbols…
Or, if you’re an enterprise, you can go for BPMN2 instead. BPMN is a process mapping methodology that creates a common language for process documentation. Just about anyone will be able to understand the flowcharts – the management, employees, process consultants, etc.
The down-side here, though, is that BPMN can be hard to learn, so as a start, it might be a better idea to go for the simpler option.
Want to create a process flowchart, but not sure where to start? Check out our step-by-step guide!
SIPOC Diagram
The SIPOC diagram helps with a more top-down analysis. While the process flowchart helps you define and optimize process steps, SIPOC helps pinpoint how value is delivered to the customer.
The methodology analyses 5 aspects of the process…
Suppliers – Who supplies the process inputs?
Inputs – What inputs are required?
Processes – What are the steps in the process?
Outputs – What are the process outputs?
Customers – Who receives the outputs?
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To create the diagram, draw 5 titled after each of the aspects. Then, list out the respective information.
Or, better yet, simply download a template from the web.
To learn more about the SIPOC diagram, check out our article.
Swimlane Diagram
Many business processes will involve people from different teams or departments. Communication is necessary for these processes to be done accurately and in an efficient way.
But with so many people involved, even the most well thought out processes are at risk of coming undone. In this situation, a swim lane diagram can be a helpful business process improvement tool.
To create and use a swim lane diagram, you will start by listing everyone who is involved in your process (by department) on top to make vertical swim lanes.
Then, you map out the process between different departments. i.e, Step #1 by department 1, step #2 by department 3, etc.
The end result should look something like this...
Problem Solving
Putting out fires, while not the most pleasant experience, is unavoidable for any business. “To err is human,” after all. You’re bound to make mistakes (and that’s OK).
These business process improvement tools help you find the root cause of problems, allowing you to prevent it from ever happening again.
Cause and Effect Analysis
Cause and Effect Analysis (also known as the Fishbone Diagram) is a problem-solving tool that helps you find the root of any problem.
You start with the analysis by identifying the exact problem you’re trying to solve. Put the problem in a rectangle box and draw a horizontal line to its left. As an example, let’s say that your software development team frequently misses important deadlines.
On the horizontal line, pinpoint the things that might have a major impact on the process. In our case, that could be employees (lack of skill?), communication (inefficient practices?), clients (unrealistic demands?), finances (low budget?).
Then, for each factor, identify the possible causes for the problem until you’ve exhausted all the ideas…
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At this point, you already have a number of good leads you should start investigating – one of which will turn out to be the root cause of your problem.
Want to learn more about the root cause analysis? Check out our article!
5 Whys Analysis
This business process improvement tool is more on the theoretical side.
The gist of it is, you keep asking “why” until you’ve discovered the root cause of the issue. To give you a better idea of how this works, here’s a more practical example found on the Toyota website (the originator of the 5 whys analysis)...
1. "Why did the robot stop?"
The circuit has overloaded, causing a fuse to blow.
2. "Why is the circuit overloaded?"
There was insufficient lubrication on the bearings, so they locked up.
3. "Why was there insufficient lubrication on the bearings?"
The oil pump on the robot is not circulating sufficient oil.
4. "Why is the pump not circulating sufficient oil?"
The pump intake is clogged with metal shavings.
5. "Why is the intake clogged with metal shavings?"
Because there is no filter on the pump.
For a more in-depth review of the 5 Whys Analysis, head over to our guide.
Improvement Methodologies
If you’ve already created the process maps, you’re probably wondering – “where do I go from here?”
These process improvement methodologies help you figure out how to find possible improvements and implement them.
PDCA
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The PDCA is a process improvement framework developed by Dr. Williams Edwards Deming in the 1950s.
It consists of 4 steps...
Plan
Pin-point the change you’re planning on making. You can do this through a process improvement tool, such as the process flowchart, or problem-solving tool, such as the 5 Whys analysis.
Do
Once you’ve identified the exact improvement you’re making, you can start with the implementation.
It might be a good idea to do this at a small-scale, though. Before scaling it company-wide, you need to have proof that the new process is better than the old.
Check
Benchmark the results from the new process to the one from the old.
Keep in mind, though, that a process being efficient short-term doesn’t mean it’s going to be better in the long run.
You might find out that while the new process improves outputs, it can also increase the defect rates, bringing you back to square one. So, make sure that the new process is better than the old before moving on to the next step.
Act
Once you’re certain that the new process is performing well, you can start scaling it company-wide. Your job, however, isn’t done – PDCA isn’t meant to be a one-time initiative. Rather, it’s more of a loop.
You should constantly be on the lookout for process improvements, carrying out PDCA whenever needed.
For a more in-depth overview of PDCA, check out our article.
DMAIC
DMAIC is one of the most popular Six Sigma tools. It stands for Define, Measure, Analyze, Improve, and Control.
As with PDCA, it’s a framework for process improvement.
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Define – Define the problem. What’s the issue you’re tackling? How does it affect the company? Measure – Measure how the process is performing as-is. You’ll need the data as a benchmark for any improvements you make, as well as for helping with analysis. Analyze – Analyze the process and find potential improvements. The data you’ve gathered in the previous step might be useful for this. Find any process steps that take either too much time or resources. Improve – Put the solutions into practice. As with PDCA, it might be a better idea to start at a smaller scale. Control – Make sure that your employees stick to the new process (you can use workflow management software to help with this. More on that later). Keep track of the process performance. If you find the results unsatisfactory (or believe that there’s room for more improvement), start DMAIC all over again.
To learn more about DMAIC, head over to our guide.
Automation Software
The easiest wins you can find in process improvement are through automation. By using the right software, you can free up your employee time by allowing the software to do the menial work for them.
This makes your employees both happier (no one likes grunt work) and more productive (their time is spent on something that creates more value).
There are 2 types of software that help with automation – task automation software (Zapier) and workflow management software (Tallyfy).
Task Automation Software
The best (and most popular) software for task automation is Zapier – the software has integrations with most 3rd party tools (Google Suite, and just about anything else).
There are a lot of different ways to use Zapier depending on what kind of automation you’re looking for. For example, let’s say you have an opt-in form on your website that sends the emails to MailChimp. You also want to feed the same data to your CRM tool so that you can read out to the leads individually.
Instead of having to manually copy and paste the data every time, you can Zap the two tools together, allowing for the data to transfer automatically.
For a complete list of Zapier integrations, you can head over to their website here.
To get the most out of task automation tools, you should use them in combination with other software. Learn how with our article.
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Workflow Management Software
A common problem with process management is that you can’t keep track of everyone’s work. Are your employees following the best practices, or do they tend to deviate? How do you make sure they stick to the process improvements you’ve made, without having to stand over their shoulder?
Workflow management software helps you enforce business processes. The system acts as a facilitator for your processes – it lets your employees know whenever they’re assigned a new task, as well as if there are any changes to the process.
Instead of having to manually update your employees about the changes you’ve made to processes, the software automatically gives them the updated tasks.
New to process management? Learn everything there is to know about workflow software with our guide. If you're stuck between choosing a handful of providers, though, check out our comparison of some of the best workflow management tools on the market.
Getting Started With Process Improvement – How to Learn More
Knowing what business process improvement tools to use is only one part of a successful process improvement initiative.
Getting this right isn't easy. After all, 70% of all improvement initiatives fail. So to maximize your odds, you need to arm yourself with as much know-how as possible.
A good start is to learn about the best practices of process improvement. Sure, knowing how to use certain tools is helpful, but you should also know how to implement them. Head over to our guide on business process improvement to learn more about process improvement, such as…
How to come up with process improvement ideas How to empower your employees to improve processes without managerial supervision How to implement improvements and measure their success And more!
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Continuous Improvement Tools to Enhance Business Processes by Jamie Johnson https://tallyfy.com/continuous-improvement-tools/
To remain competitive in today’s business environment it is necessary to utilize continuous improvement tools. Continuous improvement tools help to enhance business processes. They do this by providing small improvements over time or a breakthrough improvement all at once.
No matter what service or product your company offers, it can always be improved. Using continuous improvement tools is the best way to strengthen your business processes and continue to remain competitive in your industry.
The information below will outline different continuous improvement tools you can begin using today to improve your business processes.
Continuous Improvement Tools & the 5 Whys
Taiichi Ohno is the former Executive Vice President of Toyota Motor Corporation. He once said, “Having no problems is the biggest problem of all.” Ohno viewed problems as opportunities for ongoing improvement. While many business owners may desire a lack of problems, this usually indicates that there are a number of problems you are overlooking.
The 5 whys are a theory first developed by the Toyota Production Systems and now are an important part of Lean Manufacturing, Kaizen, and Six Sigma. The idea behind it is simple – you continue asking “why” 5 times until you discover the root of the problem. This allows you to break through the layer of symptoms and get to the root of the problem.
People commonly want to address symptoms when problems arise. Then they don’t understand why these same problems tend to keep happening. Using the 5 whys may take longer initially, but it will save you the trouble of having the same problems crop up over and over again in your business.
The 5 whys help you get to the root of any problem and understand the relationship between the different causes of this problem. It is one of the easiest tools you can use because it doesn’t require any data or statistical analysis.
Before we continue deeper - take a moment to check out the video below about setting up your process improvement initiatives for success.
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DRIVE and Process Mapping
DRIVE is a continuous improvement tool that involves evaluating problems so you can break them down into simple, actionable steps. DRIVE stands for define, review, identify, verify, and execute.
You begin by defining the problem and deciding what criteria you will use to measure success by. You should be able to come up with a specific and actionable focus on what you need to do to move forward. Then you can review the current situation, which will allow you to see any problem areas or areas that need improvement.
Now you can identify potential solutions to the problem and evaluate what changes are required to sustain these improvements. Be sure to focus on the key issues and verify that the improvements you had decided on will meet the criteria you outlined earlier.
Now you are ready to execute your plan and implement the solutions. Be sure to gather feedback and review any success or failure of this implementation.
Process mapping is a workflow diagram that can help bring a clearer understanding of this process. It involves gathering information to construct a model of the activities that will take place in the process. This continuous improvement tool can help teams understand and identify opportunities for improvement.
ICOR stands for inputs, outputs, controls, and resources. It is a process analysis methodology used for process mapping that breaks down processes into simple, more manageable parts.
Process mapping offers a common framework which allows a systematic way of working. Complex processes can be explained in ways that are logical and easy to understand. It demonstrates any issues that exist and gives teams an immediate framework for decision making.
To begin process mapping you will brainstorm any activities that regularly occur in the scope of the process. Now you can group these activities into 4-6 key sub-processes, identify any links between these sub-processes, and define them using ICOR.
Continuous Improvement Tools & 7 Quality Tools
The 7 quality tools were first emphasized by Kaoru Ishikawa, a professor of engineering at the University of Tokyo. These continuous improvement tools are useful for controlling and managing quality in any organization. The 7 quality tools can be used in any domain and are generic enough to be applied to nearly any condition.
Here is an overview of the 7 basic tools:
Flow charts: Flow charts are one of the best continuous improvement tools you can use to analyze a series of events. They map out these events to illustrate a complex process in order to find any
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commonalities among the events. Flow charts can be used in any field to break down complex processes in a way that is easy to understand.
Histogram: A histogram is a chart with different columns. These columns represent the distribution by mean. If the histogram is normal then the graph will have a bell-shaped curve. If it is abnormal, it can take different shapes based on the condition of the distribution. Histograms are used to measure one thing against another and should always have a minimum of two variables.
Cause-and-effect Diagram: Cause-and-effect diagrams can be used to understand the root causes of business problems. Because businesses face problems daily, it is necessary to understand the root of the problem so you can solve it effectively. Histograms can be used as a team exercise that involves brainstorming to come up with an effective diagram. Once the main sources of the problems are listed, the group can come up with likely causes from each area.
Check Sheet: A check sheet is a basic tool that gathers and organizes data to evaluate quality. This can be done with an Excel spreadsheet so you can analyze the information gathered in a graph.
Scatter Diagram: Scatter diagrams are the best way to represent the value of two different variables. They present the relationship between the different variables and illustrate the results on a Cartesian plane. Then further analysis can be done on the values.
Control Charts: A control chart is a good tool for monitoring performance and can be used to monitor any process that relates to the function of an organization. These charts allow you to identify the stability and predictability of the process and identify common causes of variation.
Pareto Charts: Pareto charts are charts that contain bars and a line graph. The values are shown in descending order by bars and the total is represented by the line. They can be used to identify a set of priorities so you can determine what parameters have the biggest impact on the specific area of concern.
Conclusion
To begin improving the efficiency and effectiveness of any organization, it is important to begin by observing and understanding the problem so you can come up with an effective solution. Continuous improvement tools can be used in businesses to ensure that the organization continues to maintain standards for quality in their processes.
There are a large number of continuous improvement tools available so finding the one that is best suited to your individual organization is not always an easy task. It is important to find the continuous improvement tools that will be the best fit for your organization and won’t add more roadblocks to future success.
Continuous improvement tools cannot fix every problem but they do provide a means for helping you solve problems. They provide the structure and resources to understand and analyze solutions to existing problems.
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Bonus Infographic - "How Do You Prepare for Process Improvement?"
Courtesy of the Process Consultant.
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Continuous Process Improvement (CPI): Definition and Techniques by Amit Kothari https://tallyfy.com/continuous-process-improvement/
Continuous process improvement (CPI) ensures that your business survives and strives in the long-term. By constantly re-evaluating and improving business processes, your organization will be more efficient, innovative and agile.
If you look at all the big or successful companies today, you’ll rarely find one that doesn’t audit and analyzes their processes or products systematically.
What is Continuous Process Improvement (CPI)?
By definition, Continuous process improvement (CPI) is the act of implementing improvements to a product, service or process. These changes can either be incremental (over time) or breakthrough (all at once).
The key here is continuous - CPI isn't a one-time initiative. You don't just optimize a certain process once, pat yourself on the back, and call it a day. Once you succeed with a process improvement initiative, you need to periodically look back and see whether there are any changes you could make. Think, adopting new hardware, software, methodology, etc.
If you're familiar with other process management terms, you might be a bit confused where CPI stands. Here's how it's different from other methodologies...
Business Process Improvement (BPI) - As the name suggests, BPI is the act of improving a process. Continuous process improvement involves carrying out a BPI initiative whenever it's needed.
Business Process Management (BPM) - BPM is a methodology that helps you manage processes. While Continuous process improvement is an essential part of BPM, a company that does CPI doesn't necessarily employ BPM.
Kaizen - Kaizen is more related to company culture rather than process improvement. It involves building a culture of innovation and contribution, which allows for continuous process improvement.
Continuous Process Improvement (CPI) Techniques
Enforcing continuous process improvement in your company is up to you. You'll need to ensure that your employees are motivated enough to carry out BPI initiatives (we'll explain how to do that in a bit). To help you with actually improving processes, you can use one of the many continuous improvement
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tools...
Business Process Mapping
Chances are, you don't really know every one of your business processes by heart. To get a better idea of the hows and whys of the process you're working on, you'll need to create a business process map. The simplest way is to create a flowchart including different process steps. So, for example, here's a process map for employee onboarding...
For creating the map, you have three options...
Pen & Paper - The easiest way is to just grab a piece of paper and draw the flowchart. Flowchart Software - Dedicated software for creating process maps. The benefit here is that you can share it with your employees digitally.
Once you have a process map, you can use the Deming Cycle technique to improve the process.
Still not sure how, exactly, process mapping works? We don't blame you, creating a process map isn't that easy. Read up our guide to learn the exact steps you need to take in order to successfully map your business processes.
Deming Cycle (PDCA)
The Deming Cycle, also known as PDCA, is a concept introduced by Dr. Edwards Deming. There are 4 steps to it...
Plan – Identifying a goal or purpose, formulating a theory, defining success metrics, and putting a plan into action Do – Implementing the plan on a small scale to prove or disprove it’s validity Check – Measuring and monitoring outcomes to test the validity of the plan. This allows for identification of potential problems and areas for improvement Act – Taking the knowledge gained from the previous steps and putting it to use. This can either mean implementing it on a wider scale or restart the cycle and apply the lessons learned to change the plan for the better
Want to learn more about the Deming Cycle? Read up our complete guide to PDCA
Process Management Software
Once you make improvements to a process, you need to make sure that they stick. Business Process Management Software (BPMS) allows you to do that and more.
You can create a digital process and the software will take care of its execution. Instead of making to let
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your employee know of any changes to the process, you simply update it within the system and they'll be automatically notified.
In addition, BPMS automatically routes tasks between your employees, making sure that everyone gets the job done.
Want to learn more about how the software works? Check out our guide to different BPM solutions.
Creating the Culture for Continuous Process Improvement (CPI)
If you, the manager, personally lead every single process improvement initiative, you're not likely to make any lasting change. More often than not, it's the employee that knows how to work with the process best, not their supervisor. You want to empower them with the tools and ability to carry out process improvement when need be.
The key to establishing a culture of continuous process improvement is to make it a part of company culture. It should start top-down from the organization - the C-suite should encourage the management to make suggestions on process improvement. This, in turn, will trickle down from the management to shop- floor employees.
As a given, there should be a system that rewards initiative. Anyone that contributes an idea or two (whether it's implemented or not) should be encouraged and rewarded.
An example of a system you can use is the "Kaizen Corner." It's a place where all of your employees can go and hand in suggestions on how to improve processes. This usually works in three stages...
1. Everyone's suggestions and considered and evaluated. The employees are made aware of the reasoning for accepting certain suggestions and rejecting others. This helps show your team that their input is valued, whether their suggestions are implemented or not. 2. To ensure that the employees do a better job in the long-term, you hold training on process analysis. 3. Offer different incentives for employees to help with process improvement. This can be in the form of bonus pay, physical gifts, etc.
Once you've got the culture down, you should also consider creating a special team for breakthrough innovation. Your average employees are great at helping with incremental innovations - finding minor faults in the process and proposing suggestions.
For breakthrough innovation, you'll need a more specialized team consisting of engineers. There will be times when adopting new technology, for example, could make a process 2x more effective. A team of specialists will help find such situations and create more complex solutions.
Process consultant and author Ron Ashkenas describes the need for and benefits of this type of balance:
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“Question whether processes should be improved, eliminated, or disrupted. … For example, a six sigma team in one global consumer products firm spent a great deal of time streamlining information flows between headquarters and the field sales force, but didn’t question how the information was ultimately used. Once they did, they were able to eliminate much of the data and free up thousands of hours that were redeployed to customer-facing activities.”
A combination of incremental and breakthrough innovation will ensure that your company is as efficient as it could be, giving you an edge over any competition.
What's YOUR experience with continuous improvement? Do you have any tips or tricks that can help make the adoption process easier? Let us know down in the comments!
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Continuous Process Improvement - Secrets to Success by Amit Kothari https://tallyfy.com/successful-continuous-process-improvement/
The consistent buzz about continuous improvement has been present for more than three decades by now—to the point where it is in danger of becoming a fading background hum. That presents a real danger for enterprises seeking to attain, and retain, a competitive edge in their respective industries. We need to understand what successful continuous process improvement looks like. Why?
Point to any industry in which the most successful companies have remained static—incorporating no ongoing process or product improvements. It can’t be done. In the global marketplace where outsourcing, partnerships, technical solutions, and flexibility to pivot rule, enterprises thrive only when they adapt, innovate, and grow. Note, too, that increasingly savvy customers demand continuous improvement in exchange for their brand loyalty.
What is successful continuous process improvement (CI)?
First, a look at what continuous improvement (CI) is not. CI is not an add-on to a process any more than is turning a screw to the right to tighten it, or to the left to loosen it. CI is not letting each department or team go off on its own to solve a piece of a problem in a vacuum. Nor is it “a change”—although beginning to implement it may be one.
Now a look at what continuous improvement is.
Simply put, continuous process improvement is a systematic approach to an ongoing review of workflows and outcomes to identify ways to improve them both. The approach was schematized as the Deming Wheel or Deming Cycle by Dr. W. Edwards Deming who credits his mentor, Walter Shewhart of the Bell Laboratories, with the idea.
As described by the W. Edwards Deming Institute, Deming’s cycle contains four stages: PLAN, DO, STUDY, and ACT:
Plan involves identifying a goal or purpose, formulating a theory, defining success metrics, and putting a plan into action. Do involves implementing the plan. Study involves measuring and monitoring outcomes to test the validity of the plan for progress and success, or problems and areas to improve. Act integrates the learning generated by the entire process, which can be used to adjust the goal, change methods, or even reformulate a theory altogether.
The four steps are repeated over and over as part of a continuous cycle.
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Ralph Keller sets out the overarching idea well in this issue of Industry Week:
“The key to differentiating your company is that your competitors do not design products, process orders through customer service, manufacture them in your plants or even sell and distribute them exactly like you do, and that’s where you can create a uniqueness that could yield a competitive advantage. It also is where your continuous-improvement (CI) projects are concentrated.”
What aspects of my enterprise are affected?
Good question. The short answer is, it depends.
Consultant Brad Power in the Harvard Business Review suggests that it is best to cherry-pick your optimal use of continuous improvement:
“Startups don’t need process improvement; everyone in the startup has to be obsessed with getting their new product or service to market, even if it’s sloppy. Companies with blockbuster products such as a patented drug or a breakthrough smartphone can be grossly inefficient in production, delivery, and service and still be successful. Executives at companies like Google, Apple, and Nike… don’t need to focus on excellence in every process; the process they need to focus on to achieve or maintain industry leadership is product development.”
Power adds that where you choose to emphasize continuous improvement may change over time to better align with shifts in your business objectives, your industry, and the global economy. IBM has remained competitive for decades doing exactly that.
The secrets to successful continuous process improvement
The key secret to successful continuous process improvement is its absorption into the corporate culture and dynamics of your enterprise. For that to happen, the C-suite team—not just the VP of QA—don the role of cheerleaders-in-chief and ensure that their workforce, down to the last person, is on board.
This goes beyond the notion that everyone is on the same page; rather, everyone writes the CI book, and then everyone works on editing it, as well.
Tallyfy’s post - about crowdsourcing ideas for process improvement contains tips on the successful integration of continuous process improvement into your workflows in ways that eliminate resistance to "change" and instead, engage your workforce in identifying efficiencies.
The second secret is finding the right balance between a focus on CI and the need for intuitive explorations of new ideas that may lead to true breakthroughs in processes, products, and services. Consultant and author Ron Ashkenas describes the need for and benefits of this type of balance:
“Question whether processes should be improved, eliminated, or disrupted. … For example, a
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six sigma team in one global consumer products firm spent a great deal of time streamlining information flows between headquarters and the field sales force, but didn’t question how the information was ultimately used. Once they did, they were able to eliminate much of the data and free up thousands of hours that were redeployed to customer-facing activities.”
Indeed, a cycle of breakthrough thinking followed by continuous process improvement (and repeat) is the best chance your company has to achieve and maintain a global competitive edge. It’s an idea for which consultant Becky Morgan offers case after case examples.
Benefits of continuous process improvement
Benefits will begin to accrue once continuous improvement is woven into the fabric of every work process and viewed as “the way we work” rather than as a separate, added task to be performed.
Initially, internal efficiencies may emerge that simplify a process or assist a customer. Efficiencies in supply chain requests or communications, for instance, may shorten time-to customer deadlines and even offer budget savings. Further efficiencies may be found in looking at workflows and outcomes with outsourcing partners. And benefits don’t stop there.
We all know what continuous process improvement has achieved for the U.S. auto industry. It is important to point out, then, that benefits accrue regardless of the industry. Take, for instance, the financial sector. U.S. Bancorp’s paper on the “Benefits of Continuous Improvement Initiatives” lists these “proven benefits”:
Increased operational efficiency and productivity. Better documentation and elimination of redundancy. Greater quality awareness. Enhanced internal and external communication. Improved audit results. Faster and better decision making. Greater data reliability. Increased risk management.
Continual process refinement not only will likely to lead to better products and services, it also will strengthen customer relationships and loyalty to your brand.
Another benefit—a more confident and engaged workforce—is likely to boost products, services, and customer satisfaction as well.
Once the word gets around that your enterprise engages in continual review and tweaking of your processes and products, attracting and retaining the best and brightest workforce becomes easier.
Finally, you may have heard the expression, Don’t look back; someone may be gaining on you.” With a company-wide reputation for relying on continuous improvement, competitors will be nipping at your
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heels as they try to reach and then pass you in the marketplace. That is the key reason to ensure that your team never lets up on continual changes.
A summary on other ideas to consider to ensure success with your process improvement initiative are covered in the video below.
Keeping it going, continuously
The right software app is key to successfully standardizing improvements once they are designed and initially implemented. That’s where Tallyfy’s process mapping and improvement tool comes in.
Tallyfy makes it easy to keep everyone working in tandem rather than at odds towards the company’s goals. The app offers a unique way to maintain progress already in place across the board while still enabling new improvements to bubble up for review.
Sign up for a free trial to learn how the app can map and track workflows, standardize and automate any repeatable process, and transform your success.
Bonus Infographic - "How Do You Prepare for Process Improvement?"
Courtesy of the Process Consultant.
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Customer Onboarding - Tips For Continuous Improvement by Amit Kothari https://tallyfy.com/customer-onboarding-continuous-improvement/
A good first impression can work wonders.
J.K. Rowling did just that with her first book. It hit the shelves and it exploded. For every book that she's written since, upon its release, there are lines out the door and around the corner. This is the type of impression that every business should aim to make with its customers--one that explodes and creates a long line to purchase the organization's products or services. The way to do this is by developing an excellent customer onboarding process, and then continuously improving that process.
The first step in developing an outstanding process is understanding the benefits that your business can reap. The second is acknowledging that maintaining an excellent onboarding process means always striving for continuous improvement.
The Benefits of Customer Onboarding
Customer onboarding should never be seen as a burden or an annoying process that doesn't really have a point. It has a big point and it has the potential to provide you with advantages over your competitors--if done correctly.
The first benefit is the referrals that you will get. Consumers are used to buying a product from a vendor and never hearing from them again unless they request help or the organization is trying to sell them something else. When you go above and beyond by welcoming the new customer in, getting them set up with your product, helping them get to know you and your company better, and ensuring their happiness, they will be both surprised and delighted. They'll tell everyone they know about you and strongly encourage others to work with you. And just in case you don't realize the value of referrals, up to half of all purchases are influenced by recommendations.
The second advantage that can be seen in improving customer onboarding is customer loyalty. It's important to keep in mind that just 20% of existing customers can create 80% of a company's future revenue. If you want to ensure that this happens, welcoming a customer to your brand is essential. Consumers, now more than ever, want to have relationships with the companies they buy from. They want to know that they are valued. The only way to grow this relationship and illustrate value is to take them by the hand, show them your company culture and engage with them. When you do this, they'll stay with you, regardless of whether your competition has better prices.
The third benefit gained through getting onboarding right is increasing your revenue. Bringing consumers through the sales pipeline is time and money intensive. You had to market your company, identify the lead, pursue them, nurture the prospect, draft a proposal, possibly meet or speak over the phone, and then
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convert them into a buyer. All of this will have been a waste if they return the product or decide to discontinue your service. Companies need to understand that converting a lead into a customer is not the end of the journey. It is only the beginning. When onboarding happens is really when your time to shine begins. This is where you help the customer understand and love the product or service. This is where true revenue is maintained.
Steps Towards Continuous Improvement in Your Customer Onboarding
The benefits of a customer onboarding process are inevitable--if it is created thoughtfully and continuously improved upon. The market changes and so do consumers' desires. Organizations need to be able to adjust. This means shaping a process that encourages change and asking the right questions, internally, at regular intervals.
The first key ingredient to getting onboarding right and finding ways to improve it is by following up--quickly and often. This is especially important with brand new customers. Some businesses are hesitant to follow-up too often because they don't want to annoy customers. This is a misconception. The success of both cross-selling and customer satisfaction increase the more communication there is--just make sure it's valuable communication that benefits the customer. And you need to do this quickly to ensure that customers understand how much you appreciate their business. Extra tip: The same representative who brought them through the sales funnel should be the one to follow-up with them--it feels much more personal.
The second way to improve the onboarding process is through conducting a needs assessment with each and every new customer. When you ask customers questions you benefit in three ways. The first is that the customer feels valued. They see that you have a desire to understand them and to better serve them. The second benefit is that you can use this information to identify other products or services that might fit the customer's needs. The third is that you can gain insight into what they thought of the sales funnel, how you can serve them during the onboarding process and ways you can improve both the sales funnel and the onboarding.
A third way to make sure that your customer onboarding process is always up to par is through encouraging customer feedback. When your customers are happy you want to know and when they are unhappy you want to know. This is the only way you can figure out what works, and stick with it, as well as what doesn't work, so you can change it. And this isn't just feedback in regards to your service. It is feedback about the product or service. They are the ones who use it every day. They likely have ideas to make it better. Even if those ideas aren't possible to implement, explain why that's the case to them. There are just two important aspects of making customer feedback work. First, make it easy to give feedback. Send out emails requesting it. Give them a call. Leave options on your website and social media platforms. Second, respond to the feedback. This will encourage them to give you more and it will make them feel like you care.
A fourth method of improving the onboarding system in your organization is talking to the customers who left. This is rarely comfortable, but it is always necessary. You need to know why individuals decide not to stick with you. Ask earnestly and kindly--not in a way that signifies you are asking for them to come back, but rather that you are trying to improve. A lot of the time, the reason will be one you would
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never have thought of. It will be an undercover issue that has been eating away at customers. In addition, find out why they didn't come to you before. Maybe you aren't responsive enough. Maybe the feedback options are too hidden. This information is invaluable.
To solidify the continual growth with the help of customer onboarding, there are a few questions you need to ask internally:
Identify the methods you're using to build user relationships. Figure out how you are helping customers to see success with the product or service. Find the main causes of churn. Determine how you communicate value to customers. Pinpoint how you can better explain the product and how to use it. Know what worries customers. Ask for the metrics for success that your consumers are using. Verify customer's objectives and desired outcomes.
The point of customer onboarding is to solve your customer's problems and help them reach success quickly. If you understand their needs and worries, it's not difficult to do this. It simply takes time and continually finding new and interesting ways of getting the information you need. When you do this, you'll see customer retention rise and churn fall.
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Definition - What Is a Business Process Consultant? by Sonia Pearson https://tallyfy.com/business-process-consultant/
A business process consultant is an external consultant who helps businesses by researching and analyzing the processes and systems that a business implements. Once this has been done, he or she will make recommendations to improve these processes and practices with an eye to improving overall efficiency. The consultant may also be involved in designing simulations to test proposed process improvements. A business process consultant would generally report to top management.
Question - Would You Really Let a Critical Business Process Loose in Your Business?
Although the first impression you may get from a short definition is that business process consultants are paid meddlers, there’s a lot more to it than that. A real professional in this field will have a great breadth and depth of experience and will very likely have some pretty impressive qualifications.
If your impression has now changed from “I don’t want this meddler!” to “I can’t afford a pro like that!” you might be right. After all, anyone with the credentials to be a business process consultant isn’t small fry. There’ll be a big business background positively littered with incredible efficiency-enhancing achievements. That’s how it should be. After all, you wouldn’t want to let a graduate student test his or her wings by messing around with the way your business does things.
How Does Business Process Consultancy Work?
Being a business process consultant is hard work. A consultant may even employ a team to help him. To begin with, analyzing business processes on paper isn’t enough. One has to see them in action, and a quick glance won’t be enough to provide data from which a consultant can make a conclusion about the process as a whole.
So, the first step a business process consultant takes will be to get to know your business processes as intimately, if not more so, than you already do. He or she will watch your people at work, asking questions for clarification as needed.
Now, the business process consultant strives to find more efficient ways of handling the processes that have been observed. He or she will look for inefficiencies in the system, seeking ways to eliminate them so that the work can flow more smoothly and efficiently. Areas for improvement would include:
Bottlenecks where work piles up in one area Inefficient use of resources Inefficient use of time
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Redundant processes that could be eliminated Redundant processes that could be automated The incidence of errors that call for redoing parts of the process Physical layouts that increase the time needed to complete a task Areas where poor communication or lack of accountability affect productivity
Finally, the business process consultant reports to management, highlighting areas for improvement and making suggestions for improvement. In certain instances, the consultant or business owner will want to see how the proposed new workflows operate in practice, and then a trial run will be set up.
How do you Know if This Intervention Will Work?
The success of a business process consulting intervention will depend on the quality of the consultant. If you decide to use a consultant, you should check past results, getting your information directly from the consultant’s client. A really good consultant might not need experience in your line of work, but the more specialized the area, and the less experience he or she has of it, the longer it will take to perform the preliminary evaluation.
Benefits of using a business process consultant
One of the biggest benefits of using a business process consultant is that you get a “fresh pair of eyes.” When we’re in the thick of things, it can be difficult to spot inefficiencies that are painfully obvious to an outside observer.
Since a proper business process consultant is highly qualified and will have a strong business background, you will also get the benefit of this experience. And although you will certainly pay for this professional’s time, it still works out a lot less costly than hiring a person with that skill level as an employee.
Finally, a business process consultant will be perfectly honest and will be comfortable with raising issues that your own staff members might be reluctant to bring to your attention. For example, if you have a strong sense of ownership of processes you introduced, your staff might be reluctant to tell you about flaws for fear of offending you.
Drawbacks of using a business process consultant
Although getting an outsider’s impressions can be valuable, this person may not obtain a deep enough understanding of what you do and why you chose to implement certain processes in the way you did. There have been many success stories stemming from the use of business process consultants, but there has also been a fair share of disappointments in which companies feel that they failed to gain suitable recommendations.
To maximize your chances of obtaining a good outcome, you and your consultant should meet in advance so that you can discuss your expectations and clarify the reasons why you thought business process consultancy could help your company. This will guide the consultant during the business process
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evaluation.
Alternatives to using a business process consultant
You or a trusted staff member could undertake the process of evaluating workflows, both on paper and at the coalface. You won’t have the advantage of a fresh pair of eyes, but you will have the advantage of the pre-existing knowledge of your company. If you can eliminate bias to a large degree by preparing yourself to approach the process with an open mind, you could identify areas for improvement as efficiently as a consultant would.
The primary drawback of this alternative is the time it will take. You and your staff members already have functions to fulfill, and unless your workflows are carefully tracked, you could miss important areas that need attention.
Tallyfy offers a solution to overcome time constraints. Your real workflows can be tracked in detail, and even when you don’t have your eye on the ball, you can draw analytics after the fact to see how each portion of a process fared.
Once you have identified problem areas, it’s just a matter of finding out what the cause of the problem is. Addressing it may mean having to adjust the workflow, getting new equipment to make your employees’ jobs easier, or even employing extra staff members to cope with the workload in certain areas.
If the reasons for hitches in work process flows aren’t obvious, you’ll at least know which areas will need closer observation in order to determine how you can improve efficiency. Would you like to know how Tallyfy can turn you into your own business process consultant? We’ll give you a free demo, or you can sign up for a free trial and take it from there. Why not try it? It could be the best thing you ever did for your business. We also offer paid services, of course.
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Definition - What is a Kaizen Event? by Jamie Johnson https://tallyfy.com/kaizen-event/
As a business owner, you are probably very familiar with employee workshops and understand the value of organizing one for your own employees. Fostering an atmosphere where employees can gain new skill sets and you can leverage their knowledge is an invaluable opportunity. This is the idea behind a kaizen event.
A kaizen event is a five-day team workshop with a specific goal or set of goals for an area that needs improvement. This event will be led by a team leader and will include training, data collection, brainstorming, and implementation. At the end of the event, the team leader will create a follow-up plan and a report to be submitted to management.
Many people are familiar with the term “kaizen”, which is Japanese for “change for better”. In business, kaizen refers to any activities that improve the function of a process. This article will look more closely at how to plan for a kaizen event and what you will experience over the five days.
What is a Kaizen Event?
Kaizen involves breaking down a process, removing any unnecessary elements, and then putting it back together in a new and improved way. The process should now work more smoothly and fully utilize the skill sets of everyone involved.
The goal is similar to a kaizen event, only on a larger scale. Kaizen events can target very specific areas such as:
5S Kaizen - A process that focuses on maintaining the standards and discipline of an organization.
TPM - TPM emphasizes preventative maintenance to maximize the efficiency of equipment. It places a strong emphasis on encouraging operators to maintain their equipment to avoid inefficiencies.
SMED - SMED is a system for minimizing the time it takes to complete equipment changeovers. The focus of SMED is to minimize the time involved in the changeover steps to simplify the remaining steps as well.
Value Stream Mapping - Value stream mapping is a method of analyzing the current process a product or service goes through from its beginning stages.
Production is often a focus of kaizen events because of the savings and improvements it can bring to your company. However, kaizen events can be applied to many different areas of a business, not just
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production. A kaizen event can be useful for any business, regardless of your industry.
Whatever the focus on the kaizen event, it will be aimed at improving a specific area of your business. Now let’s look at what goes into planning a successful kaizen event.
Planning a Kaizen Event
A successful kaizen event will need strong leadership and thoughtful planning ahead of time. On the first day of your event, the last thing you want is employees that are standing around wondering what they are supposed to be doing.
A successful kaizen event can lead to major improvements in the areas of efficiency and quality. Before the event begins, you need to figure out exactly what you hope to achieve through your kaizen event. Here are four ways you can plan for a successful kaizen event:
Decide the boundaries of the kaizen event
Of course, you should know what the goal of your event is and what you hope to accomplish. But you also need to know where it will take place and who should be involved.
Communicate your goals to employees
Your kaizen event should not be a surprise to your employees. Let me know why you are having this event and what they can expect to gain from it.
Decide on a team leader
You should select a team leader who will share your understanding about the importance of the event. This person will usually be a key supervisor in your company and someone who is focused on creating positive change as well.
Create measures for performance
You need to have a clear understanding of what improvements you want to make. Put measurements in place to show current levels of performance so you have something to compare that to when the event is finished.You will also need to have an idea of what you will be doing during the kaizen event. Figure out a rough timeline for your event. This will ensure that you have everything you need for any specific projects you might do.
Experiencing the Kaizen Event
During your kaizen event, the team leader will provide training and support to the team. It is also important that they keep employees engaged for the majority of the event. A lack of enthusiasm during the kaizen event will make it harder to implement any changes once the event is over.
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It is important to let the team come up with their own ideas for how to make improvements. Since they are closest to the work involved they are the best ones to come up with solutions for improvement.
Here is a brief summary of what each day of the event will entail:
Day 1
The first day of your event will start with a kickoff and an explanation of why the event is important. There will usually be a training on the seven common forms of waste and a look at the current process that needs improvement. The first day of the kaizen event is about informing your employees and setting the stage for day two.
Day 2
Day two is usually focused on documentation and data gathering. Employees will identify bottlenecks and identify what resources are necessary to complete their tasks.
Day 3
On day three, employees will begin brainstorming possible solutions for improvement. They will create a plan that will identify a timeline for immediate and long-term improvements. Ideally, they should create a visual map to illustrate the impact of these changes.
Day 4
On the fourth day of the event, employees will focus on the implementation of their plan. This day focuses on find ways to implement their changes with minimal impact to the operation. This can be one of the toughest days of the kaizen event.
Day 5
On the final day of the event, employees will create a follow-up plan as well as a report for management. The teams should outline an overview of the best practices and things they learned. This can be useful for future kaizen events.
Conclusion
A kaizen event is not designed as a “quick fix” but as part of a solution for long-term improvement. Kaizen can be a valuable tool for positive change within any business. And with the right planning and tools, a kaizen event can deliver a number of positive improvements to your business.
Many businesses find that kaizen events help them gain a better understanding of their processes. By learning what does and does not work their entire organization feels more empowered toward creating positive change. The intangible benefits that come out of kaizen events are what many businesses find the most valuable.
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Definition - What is a Process Improvement Plan? by Amit Kothari https://tallyfy.com/process-improvement-plan/
What is a Process Improvement Plan?
While this is a very open-ended question, as processes vary greatly from one industry to another, it still remains quite simple. A process is little more than a collective of steps and decisions involved in the way a specific task or workload is completed.
Virtually everything we do in our personal and professional lives involves some kind of process – some far more than others. Bearing this in mind - let's consider a "process improvement plan".
Examples of General Processes
Processes vary by importance. Others are so mundane we don’t notice they take place, while some processes are so integral to the flow of business that if they were to cease, all production would grind to a halt.
Here are some examples of simple, general processes people deal with every day:
Creating work orders Firing a weapon Repairing pipe fittings and valves Performing a system test Allocating a budget for a new project Conduction a drill Getting out of bed Closing out payroll Milling a part of a specific measurement
From the examples provided, it’s obvious that the priority of processes can vary greatly. Likewise, the complexity of processes can vary quite a bit. The process for milling apart could be a number of steps involving computers and software. The process of a firing a weapon or getting out of bed is far simpler by comparison.
Who Owns Processes?
In a smaller organization, a process may be fully owned by a single individual. In fact, it’s not uncommon for startups to see a single individual wear many hats, working on and managing a number of processes from start to finish.
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More commonly, processes (especially complex ones) are spread across departments in an organization resulting in everyone having a stake in one or more processes. Beyond those who work within the process, there is typically one person who is ultimately accountable for the flow and results of the process. This is usually an immediate supervisor overseeing the process from end to end.
What is Process Improvement?
A process improvement plan means to create a documented strategy for improving or making things better. This isn’t about reactive plans where the teams within an organization have a course of action for managing crises. It is a proactive and problem-solving approach that seeks to find bottlenecks or weak points within established processes, and find ways to improve them. This course of action moves teams into becoming fire preventers rather than firefighters.
The process improvement plan typically includes a number of items, answering questions such as:
Which processes are selected for improvement and why How the process is evaluated for improvement What resources may be required to make improvements Who are the right team members for ideation and process improvement How are improvements deployed How can the improved process be institutionalized How is the new process audited and reviewed, and who is involved How are training and continuing education handled for the new process
Another way to improve and document processes is by using SOP. Learn How to Write a Standard Operating Procedure using our step-by-step guide.
How to Establish a Process Improvement Plan
There are a number of steps involved in creating a process improvement plan. Following these steps improves the adoption of the process, broadens decision-making, and enhances the likelihood of achieving the desired long-term results.
Step 1 – Select the process to be improved and identify the core objective of the improvement.
Step 2 – Create a team dedicated to making the improvement. Choose the right people for the core team with consideration for time, costs, materials, and reporting requirements.
Step 3 – Define your current process using a visual aid to track current flow. This allows you to see how each activity within the process takes place. You can also begin to identify starting and stopping points, as well as bottlenecks.
Step 4 – Collect data on the current process and align it with your workflow. Use the data to simplify the process and remove redundant or unnecessary activities. The data will also help you establish a baseline
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of comparison and can be used to measure against the objective.
Step 5 – Determine whether the process is stable. Using the data collected in the previous step, your team can better understand what is taking place in the process and what kind of variations occur.
Step 6 – Determine if the process is capable of comparing data collected against the process improvement objective. This will help you determine if the process is capable of helping you achieve the desired objective. This is typically where you uncover the major bottlenecks and problems with existing processes.
Step 7 – Pick out the primary issue in your process that would prevent you from meeting your objective
Step 8 – Develop a plan for implementing change based on the reasons for the process’s inability to meet the desired objective
Step 9 – Test the optimized process and begin collecting new data to compare against the target objective
Step 10 – Assess whether the changed process is stable, capable, and has actually been improved upon. This includes evaluating a wide range of operating costs – especially employee labor and time.
How to Make a Process Improvement Plan Stick
You might be surprised to know that a number of process improvement plans are dead on arrival. Despite ideation, testing, and data the plans don’t pan out. Companies spend millions on development, yet the results are disappointing.
If the process modeling and testing showed positive results, what happened?
The answer: People.
Processes don’t change themselves or deviate unless something breaks. Since processes can’t change on their own, that means people change. For a new process to stick, every person involved in that process along the way has to also change.
Here are some of the most common causes of breakdowns in a process improvement plan:
Communication disconnects Wide gap between executive expectations and what teams can deliver Improvement plans are developed without input from the teams doing the work The new process doesn’t take into account the ripple effect for the rest of the operation and disrupts occur in other processes. Lack of consistency where leadership desires change and process improvement yet cuts budgets to move onto the next big thing Leadership rolls out new process improvement plans and expect immediate results Feedback loops and auditing are broken or nonexistent for processes, so nothing is actually
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measured.
If you want process improvement plans to stick, you need to focus more on the people than the process itself. This can be achieved with two approaches.
Business Process Management Software can make process implementation. The software allows you to create digital processes. Then, all you have to do is update the process through the platform, and the software will ensure that your employees stick with it.
Visual Thinking
When you want people to change, or adopt a new way of tackling a process, then it’s best to show them what you want them to do. This is critical for process improvement. The more complex the process, the more difficult it is for employees to adapt.
And it only really makes sense at first to the people who wrote it in the process improvement plan.
Visualization will accelerate the understanding and alignment, as your teams can actually see what they are supposed to do and how their role fits into the larger picture within the organization. It can make them feel valued to understand how their work impacts the entire chain along a process.
Vision is a dominant sense for people and takes up over 50% of your brain’s resources as it processes more than 80% of new information received. From research on the Picture Superiority Effect, people only remember about 10% of something they hear after 3 days. If that information is accompanied by a visual, then people remember up to 55% more.
Co-Creation
Co-creation is about involving the people in your organization in the development of new processes. Rather than having outside experts try to refine and optimize within a conference room, trust in the employees you have to let you know where the biggest problems arise.
Use their feedback to build new processes, and benefit from the ideas of the people who understand the work the best.
Since people tend to better support what they build, you’ll see adoption rates improve with a far larger investment in new processes.
Don’t Stop Once the Process Improvement Plan is Created
Once you’re rolling out your process improvement plan, the work doesn’t end. Take a position of constant improvement. Regular audit the new process and gather feedback from your teams. This will ensure that the process remains stable, and further improvements can be made to continue optimizing operations.
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Definition - What is a Process Map? by Sonia Pearson https://tallyfy.com/process-map/
Processes turn inputs into outputs. A process map visually depicts the workflow that achieves this.
If you’re thinking “That’s just like a process flowchart!” you’ve hit the nail on the head, because the two terms are used to describe the exact same thing. However, there are several types of process map, and these are worth examining more closely.
Depicting Process Flows
There is more than one way of depicting process flows on a process map. As you will know, there will be conditional points where what happens next depends on the result of the previous step. Therefore, you can end up with a muddle of arrows that’s hard to follow. Clearly, this isn’t ideal, so one of the first principles to bear in mind when designing a process map is that it should be uncluttered and easy to follow.
Naturally, that doesn’t mean that you should alter an efficient process just so that it looks better on paper, but it does affect how you will lay out your visual representation.
You can also simplify things by using different shapes of text boxes to indicate just what kind of activity is represented. So, you could place core steps in vertical rectangle text boxes, indicate decisions with a diamond shaped one, and note data transfer steps in horizontal rectangles. These shapes are standardized in Unified Modelling Language (UCL), but there’s nothing stopping you from reinventing the wheel if you prefer other shapes.
Why Create a Process Map in the First Place?
Unless your business is tackling something new, you may wonder how creating a process map of existing workflows would be of any use to you. There are several reasons why a process map could be very helpful indeed:
Understand the process better yourself. Be able to communicate the process to others and train new employees with greater ease. Indicate responsibilities and communication channels. Capture the process so that it will always follow the same pattern with minimal variation. Indicate points in the workflow that should be examined for opportunities to improve. Identify bottlenecks that are holding up processes. Eliminate duplication of work. Identify gaps that are leading to operational problems.
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By simply creating a visual representation of processes, we are able to understand them a whole lot better. We can see how different tasks that are performed to obtain desired outputs relate to each other from start to finish, and we are much more easily able to see any lurking problems that need attention to improve efficiency.
When we are looking at creating new workflows, process maps are even more useful. We know what we want to achieve, but we need to identify the exact workflow we’ll implement before we begin. Thus, process maps are both a planning tool and a way of evaluating and improving existing process flows.
The High-Level Process Map vs Low-Level Process Map
In any business, there are workflows and workflows within workflows. For example, you can produce a high-level process map that indicates workflows between departments and core processes, but you can’t possibly include every tiny detail of the work that will be done in each of the departments. If you tried to do so, your process map would become very hard to follow!
To get some order from the chaos, it’s best, to begin with the high-level process map. This simply names the core processes, the inputs, and the outputs. It also shows how they relate to the supplier and the customer. You can use different colors to indicate the type of flow. For example, it’s standard practice to use a red line for primary material flows; a black one for inventory flows, and a dotted line for information flows.
Once you have the high-level process map, it now becomes much easier to deal with the details in low- level process maps.
Here’s a simple example. On your process map, you have flow lines going from the sales team to accounts and from accounts to the customer. There are many other departments with roles, including purchasing, production, and dispatch. But what is the accounts department actually doing?
Zeroing in, you see that in the flow between salespeople and customers, the accounts team has to set up accounts and issue invoices, receipts, and credit notes. It will probably also have to follow up overdue accounts and send out monthly statements.
Now that you’ve thought this through, you can see that each of these tasks is, in fact, a process. Using the inputs through process actions to final output logic, you can now set up low-level process flows for each of these.
Cross-Functional Process Map
Once you have high and low-level process maps, you might think your work is done, but what about the ways in which different departments or functional areas work together to get a single sub-process done? For this, you might want to consider a cross-functional process map.
In this map, you will create a number of horizontal levels indicating which function performs each task and how the process flows from one function to the next. It looks a bit like the lanes in a swimming pool,
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so some people call it a “swim lanes” process map.
Developing Process Map Discipline
It’s easy to see that process maps provide a great way to capture all the procedures involved in getting business done and that doing so can have decided benefits. The problem is that processes are not static. Every now and then, you will implement a tweak. If you don’t capture it on your process flow maps, they will soon be outdated and as good as, or worse than, useless.
Thus, if you hope to use process maps and get the full benefits they confer, you will have to be very disciplined about capturing changes as and when they are implemented.
Tallyfy Makes It Easy
Imagine if you could have a process flow engine that could not only capture and update your process maps but even allocate work as processes move along. Well, you can stop dreaming, because you really can do both of these things with Tallyfy. What’s more, you can use its analytics to determine whether your processes really are working as effectively as you thought they would when you drew up the workflow diagram.
Need a tweak? There’s no need to start from scratch. Just enter your changes along with any conditional logic that determines which route the task should follow based on circumstances, and you’re all set. With each person having his or her own dashboard indicating what to do next, you don’t have to worry about dropped balls or confusion as to what to do and what follows.
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Definition - What is Business Process Engineering? by Sonia Pearson https://tallyfy.com/business-process-engineering/
Business process engineering refers to the study of business processes so that they can be improved and streamlined for optimum efficiency in terms of both performance and cost.
This term scares some people so badly that they hire external business process engineers to act as consultants. These people then follow and get to know business processes, looking for ways in which they can be improved.
However, if you've ever created business processes or tweaked the way work is done to get better results, you have done business process engineering, even if only in a relatively basic form. Since you have all the inside knowledge of your business at your fingertips, an open mind and a willingness to consider all options could be all you need. Your goal is to ensure that you engineer business processes that contribute to your overall goals in every detail.
Begins With Data
Unless you are creating an all-new business process that has never been done before, there will always be data to inform the business process engineering effort. If you are starting a new enterprise, you can look at the ways in which other businesses perform similar processes. If you’re hoping to improve current processes, you can analyze data you have already accumulated.
Some experts say that you should start with a blank slate when you embark on business process engineering, and if you’re designing a new business process, that’s all you have to get started with anyway. However, if you are looking at existing processes, it may not be necessary to chuck out everything you’ve been doing to date.
As the old saying goes: “If it ain’t broke, don’t fix it!” your data will indicate where the problem areas are, and from there, you can track the problem to its source. Of course, that means that you need not only the correct data but a correct interpretation of the data.
Remember, a problem may not be the fault of the particular part of the process where it manifests itself but may have originated earlier on in a process, or even in a process that only contributes to the one you’re looking at. Once again, your data is key to finding out where each piece of the process puzzle fits.
Don’t be Afraid to Start From Scratch
It can almost be easier to engineer business processes from the perspective of a brand-new enterprise. There are no entrenched habits, no processes that have become bogged down in complex steps that there were good reasons for, even though nobody remembers what they were, and no resistance to change.
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Sometimes, mature organizations find that it is best to start from scratch. If a process is wasteful and dysfunctional from start to finish, that’s a sure sign you need to rethink absolutely everything. At other times, a process runs smoothly up to a point and then gets bogged down. If the earlier steps created the situation, then they must either go or face radical adjustment.
Starting over when you’ve always worked in a particular way can be difficult. The need for a paradigm shift is perhaps one of the reasons why businesses choose external business process engineering consultants. They look at business processes from a fresh perspective, but they will need a lot of information and much of your and your employees’ time to get the full picture. And, at the end of it all, your business remains accountable for any changes made and will pay the price if the business process engineering initiative fails.
This having been said, data, supplemented with the input of the people who manage and perform processes, are extremely powerful tools – but only if your data is complete and in a format that you can interpret.
What Makes Business Process Engineering a Success?
Whether you call in a consultancy firm or embark on business process engineering yourself, there are factors that will contribute to, or detract from your chances of success.
Your business process engineering team must be highly motivated, well-informed, and ready to think out of the box. Know what business needs you seek to address. Do you hope to deliver an excellent customer experience? Are you seeking more cost-effective ways to get things done? Your goals inform the way in which you engineer your processes for efficiency. Have the IT infrastructure you need. With business process engineering, IT infrastructure provides the tools and data that are needed. Effective change management strategies help to get all the affected parties working together towards common goals. Commitment to continuous improvement is a must. Whether you are setting up processes that will run for the first time or are streamlining, changing or revising existing systems, the actual results you achieve will point towards areas for further improvement.
Watch Out for These Pitfalls
Just going through a business engineering process is no guarantee of success. Be aware of the following pitfalls:
Tunnel vision: Only analyzing the consequences of changes from one department’s perspective. Lack of adequate follow-up: Not allocating sufficient time to follow up on results and take corrective action. Mistaken identity: Failing to recognize the source or extent of issues. Lack of capacity: Failing to provide adequate tools and training to address problems. Unnecessary complexity: Overcomplicating processes so that they become overly cumbersome.
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Not getting everyone on board: A lack of commitment on every level of the organization.
How Tallyfy Helps to Make Business Process Engineering a Success
Having the right tools and data at your disposal are key to successful business process engineering. Firstly, the process must be clearly mapped, and the interfaces between individuals and the department can be indicated clearly.
Tallyfy provides a means of capturing and organizing workflows, automatically allocates tasks based on the process you engineered, and not only provides but analyses the data that shows how the process is working in real time.
During reviews following initial implementation, you will need accurate data to see how your business is performing at ground zero and in all the areas that might be impacted by changes. Since learning curves can be costly, careful monitoring helps to optimize implementation and pick up problems with areas that may have looked good on paper, but aren’t working well in practice.
Thus, you don’t have to wait for a business process engineering error to impact your bottom line before realizing that you need to tweak it. You’ll also know exactly where any hang-ups or tangles occurred, helping you to identify causes and formulate solutions.
Best of all, you can implement any changes you need to make instantly, without the need to call meetings, get everyone on board and informed, and then relaunch the process in its new format. Are you in need of a business process engineering tool? Looking for low code BPM to help? Allow us to demonstrate how Tallyfy would work in your business context for free!
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Definition - What is Digital Process Automation? by Sonia Pearson https://tallyfy.com/digital-process-automation/
Process automation refers to the use of digital technology to perform a process or processes in order to accomplish a workflow or function. The term “business process automation” is also used to describe digital process automation.
A wide variety of business processes and activities can be automated, or more often, they can be partially automated with human intervention at strategic points within workflows. Sales, marketing, production, supply chain, inventory control, administration, IT and management process are among those benefitting from digital process automation.
Digital Process Automation Helps us to Visualize, Understand and Improve Business Processes
When we first introduce a new process, we specify the steps that must be completed to achieve the desired result. But over time, the process will change, often for good reasons. However, this organic development of processes makes process flow documentation inaccurate and out of date. Should management wish to analyze the process to determine whether it can be improved, there’s no clear picture of the status quo.
When processes are documented using process management software, each change is made in real time and recorded. Not only that but the people who are responsible for moving the process along know where they are in the process flow, even after sweeping changes have been made.
Want to get started with process management software, but not sure which provider to go with? Check out our guide to picking the right BPM solutions for your business.
The Sooner You Start, the Better
In a competitive and constantly changing business environment, the ability to adapt fast gives us a competitive edge. To achieve an outcome, many complex, interrelated process may contribute. Every change has knock-on effects, and these can be unpredictable. But digital process automation software allows you to set up highly complex process flows and test them, making adjustments as soon as the need for adaptation becomes apparent.
Ultimately, business process automation allows you to manage organizational outcomes, not only the individual processes that contribute to them.
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Integrate Digital Process Automation into Every Facet of Business
IT has never been, and will never be, a rarefied department all on its own. IT is a tool and a very powerful one at that. IT experts increasingly have to become all-rounders in the understanding of how businesses work, and the people who make businesses work need to understand IT, at least as it applies to their area of activity.
This calls for close collaboration in which operations and IT feedback to one another on a continuous basis. By accessing the technology, an overview of operations is easily obtained, and individual role players can see exactly what is required of them. If they need to raise an issue, they can do so within the digital process automation system, facilitating communication.
Check Your Analytics
Since digital process software captures processes and workflows in real time, it can also perform detailed analytics. You can determine whether a problem was just a blip or whether it falls into a pattern. When the workflow fails, analytics help you determine where and why they failed. Managers overseeing the process can, therefore, pinpoint areas for improvement rapidly without the need to manually analyze huge chunks of data first.
Successful Implementation Requires Commitment
Digital process automation can be a route towards business excellence, but a tool is only useful when it is put to work. Those who adopt business process automation with a firm commitment towards using it as means of improving business processes in a drive towards ultimate efficiency will benefit most from it.
By building business excellence at every level, your competitive edge in terms of efficiency, resource utilization, and customer service will be enhanced. However, change is almost inevitable, and entrenched methodologies may be challenged.
Yes, we can use digital process automation to follow the same steps we always did. It will help our teams to cooperate and communicate better, but it is when we are willing to embrace change that it will produce the best outcomes.
Creating Synergy Between Human and Machine Intelligence
Human and machine intelligence are two very different things. Even the most intuitive software works with repetitive patterns and within pre-set parameters. The human mind, on the other hand, can use intuition, creativity, and innovation to solve problems machines can’t resolve. People are also happiest when they are given opportunities for creative thinking.
By using digital process technology, the mechanical steps within processes are managed by the automated process flow. The human element contributes its unique abilities in the way that is most likely to further the process and its outcome. Together, the two have a synergistic relationship in which the combined
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effort is more effective than the sum of its parts.
When this synergy isn’t present, artificial intelligence can pinpoint the problem area, allowing management to evaluate the information and make the necessary adjustments to the automated process flow.
From Individual Processes to Holistic Business Management
There are many apps and software packages with specialized process automation features. Some focus on accounting, others on HR, others on operational task allocation, and so on. Whether or not you already use specialized software for these areas, having a form of digital oversight that covers the business as a whole, allowing for a “zoom in; zoom out” view of processes and how they contribute to business goals is extremely valuable.
It may even make some of the more specialized software redundant, since the simplification of information and the platforms used to convey it makes overall management much easier.
Digital Process Automation Increases Employee Satisfaction
As an employee, there’s nothing worse than not knowing your priorities and what comes next. But with digital process automation, the points where you’re expected to intervene are clearly indicated.
So, although we might view the word “automation” as a situation in which machines or software, manage processes as impersonal agents, they actually help to keep employees motivated. When they work, they know that they are working on the correct priority without first having to hunt down a manager to check.
They also know exactly what is expected of them since a good process automation system like Tallyfy will allow parameters and standards to be specified. Reporting problems and asking questions is also more efficient since communication forms part of the workflow automation platform.
Time to Try Tallyfy?
Getting complex processes organized takes cutting-edge technological help – or a genius IQ and constant vigilance. Even in the rare cases when we’re blessed with the latter, it would best be applied in areas software can’t cope with. The ability to use the right tool for the right task is one of the reasons why humankind has been able to achieve dominance on the planet.
On a smaller scale, tool using makes us successful in business. Digital process automation is the tool we need to boost our efforts, making us effective and competitive players in today’s tough and ever- changing business environment. Tallyfy can help you to take your business to the next level. Are you ready to try it?
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Definition - What is Process Consistency? by Jamie Johnson https://tallyfy.com/process-consistency/
Business processes should be viewed as an asset that is diligently managed, maintained and improved upon. This is because even the very best business plans will fail without process consistency. The need for consistency may seem obvious enough that it doesn’t even warrant a discussion. But the truth is, many businesses – especially small businesses – operate daily with processes that are disorganized, lack consistency, and are inefficient.
Consistency is necessary for any business to succeed because anytime you start a new project the initial excitement will keep people motivated for weeks or even months. Eventually, that will wear off and this is where process consistency is so beneficial. By developing consistent standards and processes that go hand-in-hand with the values of the organization every area of a business will benefit.
What is Process Consistency?
What is a process? A process is a set of clearly defined tasks that must take place to complete a business activity. Different people are responsible for completing each task and they understand fully how they should do this and when the tasks must be completed by.
Process consistency is simply a system you put in place that will support your overall business strategy. It makes businesses more competitive because they are able to easily evaluate their strengths and weaknesses and find areas where they can improve. Their products and services are delivered consistently which increases customer satisfaction and loyalty.
Process consistency allows businesses to deal with the unknown and react to changes in the competitive landscape. Process consistency allows companies to know when they are doing things right and make changes when they are not.
Why is Process Consistency Important?
Simply put, when businesses don’t model process consistency they are being inefficient as Forbes outlines in this article. No matter what your industry, the more you can implement process consistency the better. The goal isn’t to over-complicate basic processes; the goal is to streamline operations without any unnecessary complexity.
Here are five reasons why process consistency is important:
1. It allows for measurement
You can’t decide whether or not a system works until you have tried it consistently over a period of time.
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You can’t measure what is effective if it is not being performed with consistency.
When beginning a new process try to give it at least six months before you decide whether it is a success or failure. You can make minor changes along the way but try not to implement any major overhauls until the six months are up.
2. It creates accountability
This is especially important when you are managing employee performance. When you have clear goals and expectations set in place employees will be more empowered to act on their own and leaders have to spend less time micromanaging.
Create consistent and recurring patterns for communicating with your team and a set time to report on their progress. Businesses function better and employees are much happier when everyone knows that is expected of them.
3. It demonstrates a track record of success
It is hard to be successful when you are always changing things and trying out new tactics. If your goals are not clear then it will be hard to succeed no matter how good your tactics are. Often projects fail simply because the team was inconsistent in their efforts to achieve the desired objective.
4. It shows you are reliable
Many businesses will adopt a new marketing strategy only to abandon it just before it starts to gain momentum. It takes time for new campaigns to gain traction and it is important that your customers hear from you on a consistent basis. Develop a strategy for advertising and distributing content on a predictable basis throughout the year.
5. It reinforces your message
Employees will pay attention to your actions far more than they will listen to what you say which is why it is important to develop a consistent leadership model. So if you treat things like meetings as unimportant, don’t be surprised when they model that behavior.
If something doesn’t work and your team fails to deliver on a project, take a serious inventory of what happened. Were your expectations unrealistic? Did you make changes too soon? Often you will find that a lack of process consistency was the culprit.
Who is impacted by Process Consistency?
It is important to remain consistent with any products or services you provide. This may seem obvious but this is not always the case with some businesses and it is not unusual to find vast differences in the quality of products or services some companies produce. This will not only disappoint your customers but it will impact your company’s sales and likely cause you to lose business.
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Customers should know what to expect every time they interact with your business. And if those expectations and interactions are positive, by meeting them consistently you will create loyal customers who continue to buy from you. And as I outlined in this article, you will also benefit from word-of-mouth marketing as your customers begin to recommend you to people they know.
Your employees are just as important to your business as your customers. Employees should know what standards are expected of them and how they will be treated. Employees that are treated with consistency will be happier and feel more secure, bringing in more money for your business. If your employees are unhappy this will result in a high turnover rate and will hurt your business in the long run.
Conclusion
The most important traits of process consistency are patience and focus. You should develop a realistic time frame for when you can expect your efforts to begin producing results. Avoid making any decisions until after at least six months. The focus is important because any random action is ineffective; 20 percent of the tasks you do will be responsible for 80 percent of your success.
One important thing to note is that process consistency does not mean work that is boring or uncreative. When you incorporate process consistency into different areas of your business you are simply creating roadmaps. It is possible to be very consistent without stifling creativity or individuality. Consistency and flexibility should go hand-in-hand; you can say the same thing a hundred different ways and still remain true to the message your employees and customers are expecting.
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Definition - What is Process Consulting? by Sonia Pearson https://tallyfy.com/process-consulting/
Everything a business does involves processes that are designed to achieve a certain result. But sometimes, those results aren’t what we would like them to be, and we realize that it is time to ring some changes. Process consulting means the analysis & improvement of company processes by a 3rd party expert. By making processes more efficient, process consultants help to reduce time spent in meetings, resolve conflicts, and improve efficiency.
There are various sub-branches of process consulting, including IT process consulting, which focuses primarily on streamlining IT processes. Other process consultants may have industrial psychology qualifications and will have a greater focus on group dynamics and interpersonal interaction.
Regardless of the consultant’s background, process consulting has the overarching goal of improving workplace efficiency by helping businesses to optimize workflows.
Process Consulting: Helping Teams to Help Themselves
To a large extent, process consulting consists of facilitation or coaching rather than saying how things should be done. After all, a consultant is an outsider, and can’t “lay down the law.” During process consulting sessions, key team members discuss the issues that gave rise to the intervention, asking questions and providing information that helps the team to solve its own problems.
The mix of coaching and mentoring the consultant employs depends on his or her consulting style and background. In a mentoring role, consultants provide information, whereas coaching consists mainly of asking questions, listening and paraphrasing in such a way that solutions become apparent to the team members themselves.
Revisiting Processes
Most businesses start small and coordinating work is relatively easy. But as businesses grow, they become complex, and what was a perfectly good way of getting things done in the past becomes increasingly cumbersome and inefficient.
This not only impacts on organizational profitability but also causes a great deal of workplace frustration for the employees who have to navigate the business process. Decision-making processes may be too slow, too much or too little responsibility may be allocated, and knowing that things aren’t running as smoothly as they could demotivate people and leads to conflict.
The habits of years can be hard to change, and when your team is accustomed to doing things in a certain way, they may find it hard to think out of the box and come up with efficient solutions. A consultant can
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help them to take a fresh look at processes.
Process Consulting Begins with a Defined Problem
Business leaders and managers see the need for process consulting because of a specific problem they have identified. For example, customers are unhappy with lead times, or process costs are increasing while potential profits wane. Whatever the problem is, it is the starting point for process consulting.
Every problem has a cause, but the first cause you identify may not be the root cause. For example, the time needed to prepare and dispatch an order is too lengthy, but the reason why it takes so long is that there is poor communication between the dispatch and sales teams. This, in turn, is the result of another glitch in the workflow, and so on. As a result, process consulting helps teams to reconsider entire process flows that have become problematic.
Commitment to Continuous Improvement is a Prerequisite
Of course, the whole idea of process consulting is that it will lead to change and improvement. If the team is not committed to this, the intervention will not succeed. A consulting intervention is much like a Kaizen Event in that the goal is continuous improvement.
Once changes have been implemented, they will also need to be fine-tuned, and because businesses and their environments are not static, the process must be revisited periodically to see if there is room for further improvements. Since there invariably is, process consulting leads to a process of continuous improvement that continues long after the consultant’s intervention is over.
Hard Data Available
Although the consultant will look at team dynamics and attitudes, he or she isn’t there to perform a “soft” intervention. The consultant deals with a real problem which has real causes, most of which are not the fault of the people, but the process that is leading to a flawed outcome.
When evaluating a process, hard data is needed. Just laying out the process doesn’t indicate the problem areas. There must be information on how it works in reality. A process that looks great on paper may not work as well as it should when it is put into practice.
The hard data is a powerful tool, both for the process consultant and for the team that must contribute to the process.
Do You Need a Process Consultant to Help Evaluate Processes?
There are times when a facilitator from outside the organization can help teams to evaluate and improve processes. Because people who are working at the metaphorical coalface “own” their work, they can become defensive or even angry in process improvement meetings.
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Discussions can get bogged down in minute details that don’t really contribute to the process, or people may withhold their real views for fear of causing offense. There may also be a difference of opinion as to the problem’s causes and the best solutions that lead to an impasse. The consultant helps teams to overcome these issues.
This having been said, a committed team can solve its own problems provided it is committed to doing so and has sufficient hard data at its disposal. Although a “fresh pair of eyes” can be helpful, and open mind and a desire for business excellence will go a long way towards problem-solving and process improvement.
Tallyfy: Facilitating Cooperation, Gathering Your Data
As we have seen, cooperation and data are vital to process improvement. Tallyfy has many benefits for teams who are improving workflows and processes. Managers can use it to evaluate existing processes. They can also use it to implement and test new ones.
Automated, real-time task allocation, data gathering, and analysis allows the team to surgically pinpoint just where the root of the problem lies, helping them to devise and implement solutions much more quickly than they otherwise could.
Process consulting has its benefits, but ultimately, it’s the company and its people who work together to identify and solve problems. Tallyfy provides them with the tools they need. If you’d like to see how Tallyfy can help you with process improvements, simply tell us about what you want to achieve. We’ll prepare a customized demo at no cost to you, so take the first step towards agile business process management today.
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Definition - What is Six Sigma? by Jamie Johnson https://tallyfy.com/what-is-six-sigma/
Six Sigma is a framework that was designed to eliminate waste and improve the customer experience. It was introduced to our mainstream business culture in the 1980’s when Bill Smith, an engineer for Motorola, first introduced the concept.
Today, according to many business development experts, Six Sigma is the most popular quality improvement methodology in history. It is used worldwide across a diverse range of organizations including nonprofits, prisons, hospitals, banks, and corporations. The article will look more closely at what Six Sigma is, what the benefits are of using it, and how businesses can successfully implement it.
What is Six Sigma?
So what does it mean to be a Six Sigma organization? If you are running a Six Sigma organization, then for every million opportunities there are no more than 3.4 inefficiencies. In other words, it demands results that are close to perfection.
If this sounds extreme or unrealistic to you then consider the alternatives. If a business was operating at a Three Sigma level, this would mean that for every million opportunities there would be 66,807 defects.
Or to put it another way, if a pharmacy operated at a Three Sigma level this would mean that there would be 54,000 incorrect drug prescriptions every year. At a Six Sigma level, that same pharmacy would have three incorrect drug prescriptions each year.
The ultimate goal is to improve the experience for the customer by eliminating variation. Variation is simply deviating from what the customer expects and it can cause your customers to quickly lose faith in your company. Variation tells your customers that you are inconsistent and don’t deliver predictable results.
DMAIC
Six Sigma is usually accomplished by implementing the basic methodology DMAIC. DMAIC stands for define, measurement, analysis, improvement, and control and it has helped many businesses get rid of waste.
Design: During this phase, your team will clearly outline what the problem is. You will also decide on a goal and evaluate all the tools and resources available to you.
Measurement: Next your team will look more closely at the process that is already in place and measure its performance. By evaluating how the process is performing you will have a better idea
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of what improvement is needed. Analysis: When your team analyzes the problem, you will try to discover the root cause of that problem. Improvement: Once the problem has been identified, your team is ready to brainstorm possible solutions and put a plan in place. Control: This is the final step and it involves creating systems to control the process performance. This is important because, without it, you may just end up dealing with the exact same issue in another six months.
Benefits of Implementing Six Sigma
Organizations from nearly every industry have benefitted from Six Sigma, including companies like Motorola, General Electric, and Honeywell. It can benefit the customer, individual employees, and the company as a whole. Listed below are the five biggest advantages many businesses see as a result of implementing Six Sigma:
Increased revenue
When your company improves the quality of its services and products you can see incredible long-term revenue increases. After its first year of using Six Sigma principles, General Electric saw $300 million in increased revenue.
Better quality
By operating a Six Sigma business, companies have to minimize defects and improve quality to the point that few customers will ever experience a problem. And this does not just apply to manufactured products; at Akron’s Children’s Hospital, the quality of their services increased tremendously by implementing Six Sigma. The wait times for MRI scans were cut down by 90 percent and the emergency room minimized the amount of time it took to locate supplies by 63 percent.
Reduced costs
Successful Six Sigma implementation can result in massive savings, which will allow your company to use that money elsewhere. In 2007, the United States Army implemented Six Sigma and saved over $2 billion that year by streamlining task management, cutting costs, and recycling fuel.
Improves the customer experience
When you improve the quality of your products and services and reduce variation, your customers will reap the benefits. And when customers receive a consistently positive experience, they are more likely to become loyal long-term customers.
Increased productivity
Often businesses think they are overstaffed when the real problem in insufficient training. Implementing
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Six Sigma can give your business clarity on the root cause of low productivity and help you effectively address it.
Belt Levels
When your company decides to implement Six Sigma, you will most likely work closely with a professional who will help you implement these changes. These professionals are given various “belt levels” based on their experience, past contributions, and capabilities. Working with a Six Sigma professional is an important component in achieving the success you are hoping for. Here is a list of the belt levels and what each one means:
Master Black Belts: Master Black Belts are responsible for strategizing and finding ways to apply Six Sigma principles across business structures. They also will usually provide training to other team members. Black Belts: Black Belts will also lead projects for businesses that provide solutions to high-level problems. They are also responsible for providing training for team members. Green Belts: Green Belts will collect data and provide analysis. Yellow Belts: Yellow Belts usually assist the team with process improvements. White Belts: White Belts will usually help with solving problems but they are not necessarily a part of the team.
Implementing Six Sigma
Strategies for implementation can vary quite a bit depending on the organization and the specific business goals. However, once a company has decided to implement Six Sigma there are usually two ways to go about this. They can either implement a case-by-case initiative or create a Six Sigma infrastructure.
A case-by-case initiative involves certain employees being taught specific tools that they can apply to jobs as needed. Other employees can consult with that person if they need help on a certain project. This method can result in success but rarely does this strategy result in major changes to the organization.
By creating a Six Sigma infrastructure, you will use it through projects rather than just individual tools. This is often a more focused and productive way to implement Six Sigma tools. It can also lead to a more detailed understanding of important business processes.
Conclusion
Six Sigma can help your business eliminate waste, reduce variation, and improve the customer experience. It isn’t a fad and it isn’t going away anytime soon; it is a proven business method for improving a company’s operations.
But in spite of its many successes, over 60 percent of Six Sigma projects do not achieve the desired results. There are many reasons why this happens, but more often than not, the reason is not being able to enforce the changes you've made to the processes.
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Process management software, however, can help with that. Tallyfy helps establish & enforce standardized processes, making sure that your business is running at peak efficiency.
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Definition – What is a Care Pathway? by Amit Kothari https://tallyfy.com/care-pathways/
The most successful businesses often achieve growth, reaching milestones and goals, because they often meet and exceed certain expectations held by their customers. Employees can achieve that consistently when they have a “road map” of sorts to define their role. Think of it like standard operating procedures. In health and social care, that SOP is called a Care Pathway.
On the effectiveness of care pathways in healthcare:
Care pathways are also known as clinical pathways, integrated care pathways, case management plans or care maps. The European Pathway Association (EPA) defines an ICP as:
"a methodology for the mutual decision making and organization of care for a well-defined group of patients for a well-defined period."
Another definition is that an ICP is:
"a multidisciplinary management tool based healthcare plan for a specific group of patients with a predictable clinical course, in which the different tasks by the professionals involved in the patient care are defined, optimized and sequenced."
The Role of Care Pathways in Healthcare
Hospital and care facilities utilizes care pathways to map out the palliative care journey for each individual patient. Each care pathway is unique to the individual and acts as a prompt for care. Most importantly, they are multi-professional and can be used in multi-site operations to cross organizational boundaries.
A care pathway creates a consistent standard of documentation that provide the basis for ongoing audit. Not only do these multidisciplinary tools improve the quality and efficiency of patient care, they are effective communication tools between healthcare professionals to maintain standardized outcome- oriented care.
Of course, a well-defined care pathway used properly acts as a guide to treatment, documenting the patient progress, and displaying what an individual can expect on their care journey.
Why Care Pathways Were Created
Keeping patients informed is a critical part of healthcare – think ‘informed consent’. Looking at it from an organizational/operational standpoint, healthcare as a business implements care pathways as a means
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to ensure that every patient receives the absolute best standard of care available, as defined by the care pathway.
The Effectiveness of Care Pathways
Studies have questioned the effectiveness of care pathways over the years, such as one deep dive into the care pathways used in Liverpool (Neuberger et all, 2013.) In that review of care pathways for end of life care, researchers questioned the use of care pathways. Their primary concern was a lack patient-centric care. More specifically, care pathways were compared to check lists. As such, they fail to sufficiently account for unique patients conditions such as complex co-morbidities.
Skepticism has seen care pathways questioned from a number of angles. From the patient’s perspective, there would be a marked increase in clinical outcomes. The patient would see improved levels of care, quality of life, and communication surrounding their treatment, including post-hospital care where applicable.
For healthcare administration, while also seeking to improve outcomes and palliative care for patients, the effectiveness is often measured in reduction of overhead cost as well as tracking reduced resource and personnel waste.
It’s difficult to state whether care pathways are or are not effective. Primarily because care pathways are so complex. Rather than being regional in scope, they are often developed at the local level to meet the needs of local facilities, medical control protocols, circumstances, and expectations. Even for the same type of care, pathways are likely to differ not only in their content but also in how effective they are when you consider how unique each patient’s condition is.
Because of that uniqueness, a key component indicating a well-designed care pathway is the inclusion of an evaluation or assessment process as part of the pathway. This allows healthcare professionals and administrators to continually monitor the effectiveness of the pathway.
According to Allen, Gillen and Rixson (2009), in a systematic review of care pathways, it was determined that they are most effective in circumstances where the trajectory of care is predictable.
Care Pathway: Expanded Use Over Time
Over the years, care pathways have expanded globally in adoption. In one study from Hindle and Yazbeck examining clinical pathways in 17 European countries, seen in the graph below, there’s a marked rise in the estimated levels of pathway use between 2004 and 2009.
Developing Care Pathways
Developing a care pathway should never be treated like the development of a standard operating procedure. Where one defines the duties and workflow as a standard order moving forward, with no real
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deviation and little auditing, care pathways are built on the concept of constant improvement and variance analysis.
Guidelines have been written to help hospital staff and administration develop integrated care pathways as part of the constant improvement of patient care. These guidelines generally follow an outline published by the NHS Institute for Innovation and Improvement, split into six phases.
Prepare Diagnose Design Plan Implement Refine
Refining a care pathway is key, specifically around variance analysis. It goes back to what we mentioned regarding the uniqueness of each patients and considerations for complex care plans. Variance analysis is used to measure what happens to the patient along the care pathway. This includes paying close attention to points in which the patient deviates from the expected pathway and if so, why that deviation occurred. Furthermore, measuring the results of typical and atypical progress on the pathway provides insight for improving patient care of the specific procedure to which that pathway was developed.
The Key Benefits and Areas of Improvement
The benefits of forming well-documented care pathways extend beyond excellent documentation of the care process. Here are some of the key benefits to developing improved integrated care paths:
Improved Team Work
Team work and communication among team members, departments, and facilities is encouraged as the path defines how each work together to provide the best patient care for specific procedures.
Uplift in Personnel Value
Involved healthcare professionals may not have fully appreciated how their role fits into the entire progression of patient treatment and care. As a result, they may feel undervalued or may even undervalue the contribution of fellow team members. Well-documented care paths reveal the depth to which staff interact with and support the patient along the way.
Empower Patients
Because patients are often involved in the development of care pathways, and are active participants in laying the framework and information for various stages of treatment, they often feel more empowered. This has been shown in previous studies during the 90’s by Coulter and Street to show increased satisfaction with treatment and improved outcomes.
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Deviations Tracked and Addressed
With variance analysis, it’s much easier to find issues or deviations in patient care, and see how they influence the outcome. Since the pathway predicts the standard journey, any variances may impact the end result.
The variances could be from failure to complete a task, to delays in discharge with social services or communication breakdowns. Any deviation that impacts patient care can be quickly addressed and, if necessary, the care path updated.
Workflows are Established
A key component of care pathway development is laying out staff deployment – much the same way organizations develop automated workflows to define who functions in a specific job role. In healthcare, administration identifies which member of staff can most appropriately perform individual tasks as part of the pathway, such as designating nursing staff for follow-up of care rather than physician consult.
Conclusion
Those who argue against care pathways may take the stance of being patient-centric, and there is little time to step back from real clinical work to generate pathways. However, a well-documented and refined care pathway ultimately leads to better patient care, and can improve the efficiency as each healthcare professional performs the role for which they are best suited. This results in fewer missed tasks, and far less duplication of or overlap of work.
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Definition – What is a Fishbone Diagram? by Sonia Pearson https://tallyfy.com/definition-fishbone-diagram/
The fishbone diagram or Ishikawa diagram is a cause-and-effect diagram that helps managers to track down the reasons for imperfections, variations, defects, or failures.
The diagram looks just like a fish’s skeleton with the problem at its head and the causes for the problem feeding into the spine. Once all the causes that underlie the problem have been identified, managers can start looking for solutions to ensure that the problem doesn’t become a recurring one. can also be used in product development. Having a problem-solving product will ensure that your new development will be popular – provided people care about the problem you’re trying to solve. The fishbone diagram strives to pinpoint everything that’s wrong with current market offerings so that you can develop an innovation that doesn’t have these problems.
Finally, the fishbone diagram is also a great way to look for and prevent quality problems before they ever arise. Use it to troubleshoot before there is trouble, and you can overcome all or most of your teething troubles when introducing something new.
The Fishbone Diagram: A Decades-Old Concept That’s Still Relevant
Karou Ishikawa revived the idea of the fishbone diagram to solve problems at the Kawasaki shipyards in the 1960s, and the idea soon caught on. Even back in the 60s, the fishbone diagram wasn’t anything new. In the 1920s it was seen as an important quality control tool.
The iconic Mazda Miata car was designed to overcome the issues identified in a fishbone diagram. Even details such as designing the sportscar’s doors so that the driver could rest his arm on it while driving was taken into account.
Variation = Imperfection
When it comes to quality and efficiency, variation is your enemy. Whatever your business is, you don’t want to leave anything up to chance. From the moment your client contacts you, a predictable process should be followed with its aim being complete customer satisfaction. Variation in the process will mean variation in the product.
Fishbone diagrams help you to determine the variables that may enter the equation. They allow you to make your plans so that you know how to deal with them in such a way that the quality of your final product is still up to standard and without significant variation.
Categorizing Sources of Variation
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Possible causes of variation may be numerous, but they will invariably fall into the following categories:
Find ways to ensure that people involved in a process know what to do and when to do it. Methodologies: Here, you will consider the need for policies, rules, regulations, or procedures to ensure consistent quality. Machinery: This could be anything from assembly line robots to tools or even computers. Materials: The materials needed to produce a quality product can’t be overlooked. Measurements: How is the process measured and monitored to evaluate quality? The Environment: This includes anything outside the company’s control that may impact on results.
When drawing up your fishbone diagram, you can use these six categories to feed into the “spine” of your fish skeleton drawing. The sub-factors can be indicated by similar mini-fish bones attached to the line indicating the category under consideration.
The 5 (or 8) Ms For Identifying Causes of Variation in Manufacturing
Choosing the categories that are most likely to affect your quality can be done in more ways than one. Toyota developed the 5Ms as a list of categories and later thought leaders added a further 3 Ms to that for a total of 8. These are:
Material Machine Method huMan power Measurement Milieu Management and Money Maintenance
Compare this to the more traditional list above, and you will see that this list of things that (mostly) start with “M” covers that list and adds a few more considerations to the mix.
The 8 Ps Used to Identify Causes of Variation in Marketing
The eight Ms are useful, but not suitable for every industry. For example, in marketing, you will need a different set of categories. These are based on the marketing mix.
Product Price Promotion Place People Process Packaging
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Physical evidence
The 5 S Categories Used for Troubleshooting Service Industry Issues
What if your company doesn’t produce a physical product? In this case, use the 5 S method.
Suppliers Surroundings Systems Scope of skills Standard documentation
Identifying the Problem: How to Get to The Bottom of It
Just knowing what problem arose or may arise is not enough. You need reasons, but one reason may not be enough. The 5 Whys technique can help you to dig below the surface. Here’s an example:
Problem: My car won’t start.
1. Why won’t it start? The battery is flat. 2. Why is the battery flat? The alternator stopped working. 3. Why did the alternator stop working? The alternator belt snapped. 4. Why? It should have been replaced 5. Why was it not replaced? The car did not go for its regular service.
Is the fifth why the root cause? It may not be. In reality, you could ask several more “why” questions, or you might find that you have reached the root cause before you reach the fifth “why.” Ideally, identifying root causes should be brainstormed by a team that includes some of the personnel closest to the source of the problem.
Using Tallyfy to Identify and Solve Problems
You might be wondering what a workflow engine has to do with the troubleshooting process described so far with fishbone diagrams. As it turns out, quite a lot! Sometimes, when things go wrong, finding out exactly where the problem originated can be a tricky business. However, Tallyfy’s analytics track progress and keeps records that will help you to spot the sneaky serpent in the grass that is causing all your problems.
Once you’ve spotted the issue and have investigated its underlying causes, it’s time to close the gap that allowed the variation to creep in with a process improvement plan.
Photos by Robert Higgins
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Definition – What is Business Process Redesign (BPR)? by Sonia Pearson https://tallyfy.com/business-process-redesign/
In business process redesign, vital business processes are overhauled to achieve specific goals such as increased return on investment, service improvements, or cost reduction. Any business process, be it production, sales, or financial management workflows can be reworked to achieve the desired goal or goals. Often, re-engineering one process will have a knock-on effect on other processes within the business.
Where Does the Term Come From?
BPR was pioneered in the 1990s following the publication of a book titled “Reengineering work: Don’t Automate, Obliterate.” Author Michael Hammer was a former professor of computer science at MIT, and in his controversial work, he implied that managers had been focussing on the wrong issues, automating processes that should be obliterated since it failed to add value.
Hammer felt that instead of adapting technology to existing work processes, business leaders should be adapting work processes to match technology, shedding obsolete tasks along the way. The deciding factor, he said, was that work performed in an organization should add value, and if it didn’t add value, then it should be eliminated entirely.
The concept implies a fundamental review of processes and workflows. Logical as it may sound, the concept had its critics, but it became extremely popular, with up to 60 percent of Fortune 500 companies adopting business process redesign by the mid-1990s.
The big idea behind BPR is that interlinked work processes contribute to specific outcomes and that each process should contribute not only to those outcomes but serve the overall objectives of the business itself.
You might have heard of business process redesign under several other names, such as business process reengineering, business process change management, or business process transformation.
How is Business Process Redesign Achieved?
Business process redesign or reengineering is more than just a matter of improving what is already there. It implies some form of radical change. Oftentimes, companies will gather a project team and redesign the organization, its mission, strategic goals, assumptions, and processes from scratch, often with the help of specialized external process consultants. They may be seeking ways to:
Increase productivity Reduce cycle times
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Improve product quality Achieve more efficient client service Implement new technologies Restructure and streamline teams
Thus, business process redesign is distinguished from other forms of change by being a radical intervention.
In its purest form, the process begins with the basics: what is the organization there for, what does it hope to achieve, and who will it help. Although this may sound almost superfluous, many businesses find that they have been laboring under mistaken assumptions. Once the “What should we be doing?” question is answered, it’s time to look at the methods to be implemented to achieve that.
Business processes are put under the microscope. What steps are performed to complete each process that is needed to create a final product or service offering? Even the finest details are recorded and analyzed. Each activity is measured, modeled, and then improved. Entire business processes may be redesigned from the ground up or even discarded altogether as not adding value to either the company or its clients.
Not Just “Set up and Go”
One thing is certain, significant change is never easy for organizations. It’s not the type of situation where a few people get together, make the necessary changes and then run with them forever afterward. After all, new processes may be flawed. Thus, business process redesign follows a cycle that is repeated until the desired result is achieved.
The phases of this cycle are:
Identification of processes Review, update, and analysis Business Process Design Testing and implementation
Business process redesign hasn’t always been successful. After the failure of several attempts drew attention to this, the factors required for BPR success were identified as:
The correct composition of BPR teams Accurate business needs analysis Strong IT infrastructure Active change management initiatives Efforts towards ongoing improvement Organization-wide commitment to the process
Common reasons for BPR failure were identified as:
Optimizing a department to the detriment of another department
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Lack of time to maintain the business process improvement focus Failure to recognize the extent of problems Insufficient skill Poor implementation of information technology tools Lack of the necessary infrastructure to implement change Resistance to change on the part of managers and employees Low motivation to implement change
Information Technology Plays a Leading Role in BPR
Considering that a computer science professor was the originator of business process redesign, it’s hardly surprising that information technology plays a leading role in its implementation. Back in the nineties, business thought leaders began to refer to disruptive technologies that alter the way we do work. These include:
Databases with shared access Systems that allow ordinary people to perform specialized work The rise of the mobile phone, allowing businesses to be centralized in terms of authority without having a centralized team to get work done. Support tools that facilitate decision-making across organizations. Compact laptops that act as “offices” for workers no matter where they are. Automated identification and tracking of information that allows records to show where to find information instead of having to hunt for it.
Of course, there has been considerable progress since then. Today, the mobile phone can do anything a 1990s laptop would have done, and cloud computing has made information available – worldwide if need be.
Business Process Redesign Critiques
With businesses happily divesting large chunks of work that failed to add value, the process became synonymous with downsizing and a business culture that doesn’t put its people first. Certain businesses thought leaders criticized BPR because:
Ineffective processes are not always the cause of poor organizational performance. The “clean slate” approach has been widely criticized as discarding elements that work well without due consideration. Some argue that the business should focus on constraints rather than be engineered in its entirety.
Yet others simply say that BPR is nothing new and is simply a buzzword for something that has been done for decades. For instance, when Henry Ford first automated production lines, this was essentially business process redesign.
BPR specialists say that the biggest error that businesses applying BPR processes make is to overlook the human element. It is the human element, they say, that makes a business really work, and employers
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should keep this in mind when implementing BPR.
Tallyfy as a Valuable Tool in BPR
Since Tallyfy provides a platform for setting up, implementing and monitoring business processes, it is a useful tool for businesses engaged in business process redesign. Apart from being able to lay out new business process flows, Tallyfy provides real-time monitoring, making testing and implementation responsive and effective.
If you’re considering BPR or simply want to improve existing processes, Tallyfy provides the analytics you need to determine where problem areas still exist, allowing for targeted rectification of any bottlenecks, problems or inefficiencies that still exists in process flows.
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Definition – What is Process Variation? by Sonia Pearson https://tallyfy.com/process-variation/
Process variation happens when processes fail to follow a precise pattern. It’s a leading cause of quality issues both in transactional and production processes.
Simply put, we aim to perform processes in such a way that the results are repeatable. If we don’t know how we got there, we won’t necessarily be able to achieve the same result in a predictable way. In fact, we probably won’t.
When quality issues arise, the problem is often only identified once the issue has turned into a full-blown disaster. Managers who become aware of the exception or anomaly must now track down the source of the problem. Not only that, but a smart manager also needs to determine just where things went pear- shaped and take the necessary steps to prevent the problem from cropping up again. If there is too much process variation, pinpointing areas for improvement becomes much more difficult.
Process variation is a concept of importance in business improvement methodologies such as the Six Sigma method. How do we determine whether a business process needs improving? Customer satisfaction based on the fulfillment of Critical to Quality criteria acts as a barometer.
Your customers have certain expectations. For example, if they receive a bill, they expect it to be one hundred percent accurate. If it isn’t, your company will be judged based on the Critical to Quality (CTQ) criterion of accurate billing.
Conformance is Important
Conformance is the degree to which a company’s products or services conform to the critical to quality criteria. The outputs that are evaluated by customers are achieved through business processes, and yes, everything your business does involves some process or another.
Now imagine a target. It has a bullseye. That’s the CTQ attribute you’re shooting for. There’s also an area that’s close enough to the bullseye to be acceptable. Then, there’s a “close, but no cigar” area where the conformance to CTQs isn’t acceptable, followed by the outer ring of the target which we can describe as a situation in which the results achieved are way off the mark.
Your “bullseye” must be clearly defined based on what the client wants to see. This could embrace:
Physical properties Technical specifications Service levels Timeframes
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Since the achievement of CTQs is determined by processes, process variations are likely to cause an off the mark result.
You Can Have Little Process Variation but Still be Off Target
A lack of process variation doesn’t necessarily mean that your business is hitting the sweet spot with its customers. It might just mean that everyone is following a process that doesn’t result in customer satisfaction.
When quality issues occur, the first thing to do is to determine whether they were the result of a process variation or whether the process itself is fundamentally flawed. In the former instance, lack of training, lack of the proper equipment to do the job properly, or simple negligence could all be possible causes. They’re easy enough to address. However, when the process itself is ineffective, process redesign is called for.
To make this judgment call, managers need to know whether there is a clearly defined process and whether there was process variation or not. The latter can be more difficult to determine than many may realize. Careful tracking of workflows, well-formulated standards, and clear allocation of responsibilities will make tracking a quality problem to its source much easier.
As with any conclusion, the conclusions you draw will only be as good as your data. Without accurate information, the best you can manage is a shot in the dark. Will you hit the bullseye? Only if you’re very lucky!
There is Usually Some Process Variation
Unless you are working in a very closely controlled environment where outside variables have little impact, some process variation can be expected. Let’s say you promise your clients overnight delivery, but your delivery truck breaks down. Alternatively, you use a courier for delivery, and your supplier has some kind of problem. If you have a contingency plan in place, and your customer still gets delivery within the acceptable limit, you’re still doing fine.
Think of the target analogy again. Unless you’re a deadeye Dick, you can hit the bullseye every time you shoot, but still not hit the exact same spot within the bullseye. Instead, what you have is a grouping of bullet holes within the bullseye.
Why Reducing Process is Sometimes More Important than Results
Surprised? Let’s use our shooting analogy again. We have two marksmen, Shooter A and Shooter B. Shooter A always does things differently. Sometimes, he’ll stand on his head and shoot. Sometimes he stands to the left or to the right of the target. But despite this, he hits the bullseye 70 percent of the time.
Shooter B always stands on the same spot and aims his firearm in exactly the same way, his shots almost always hit the target 100mm outside of the bullseye. Which of these two shooters can most easily improve their marksmanship?
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Because Shooter B always uses the same process, it is easy to analyze it and find out how he can hit the bullseye every time. He is consistent. Shooter A, on the other hand, is all over the place. You can’t pin down what he is doing right when he succeeds and what he is doing wrong when he fails.
Thus, by reducing the process variation, we also make improvement much easier. As a result, the seemingly counter-intuitive measure of reducing variation regardless of results can ultimately lead to significant improvement in business processes.
Using Tallyfy to Limit Business Process Variation
Business processes consist of a number of steps carried out by people who have specific positions in the team structure. Workflows should be clearly defined so that each person knows exactly what they should be doing and when they should do it.
When roles and responsibilities are clearly defined and presented, process variations are reduced. However, even when clear processes are in place, the human element could mean that a process is derailed or diverted somewhere along the line.
With Tallyfy, the allocation of roles within processes, and the alerts that tell employees it’s time to take action are all in place on a single dashboard with need-to-know information included. Compliance with business processes is therefore much easier to achieve. Now that you know that the processes you have developed are being followed, you can fine-tune them so that you hit the bullseye and end up with a happy client.
As for statistical analysis, that’s easily achieved using Tallyfy. Any flaws, hang-ups or hitches that could lead to business process variation can be identified and ironed out. Tallyfy is more than just a way of allocating work; it’s a workflow engine that helps you to analyze and improve business processes. Not sure how it works? We’re here to help. Book your free demo today. All you have to do is to define what you’d like Tallyfy to do for your business, and we’ll take it from there!
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Determine the Root Cause of Any Problem With 5 Whys by Amit Kothari https://tallyfy.com/5-whys-analysis/
More often than not, things don't really go your way. Your proven processes go awry, the machinery breaks, leading to a metaphorical fire in the company offices. Every other department is running around panicking, trying to figure out what happened.
The thing is, though, even if you manage to solve the problem for that specific issue (think, using duct tape to piece a machine back together, use a fire extinguisher to kill a spontaneous fire, etc.), your work is not really done. Unless you determine the root cause of the problem, as in, what caused it, the problem is bound to arise again.
The 5 Whys method is a popular process improvement and problem-solving technique, allowing you to determine what caused any given problem.
So What's the 5 Whys Method?
The 5 Whys, as we've already mentioned, is a technique used for determining the root cause of any given issue. The gist of it is, whenever something goes wrong, you keep asking "why?" five times until you determine what the problem really is. Here's a practical example to give you a better idea of how this works.
You're a sales manager in a software company. At the end of Q2, on a meeting with management, you realize that the sales are down significantly compared to the past year (and not hitting the KPIs, to boot). You organize a meeting with the rest of the management team and conduct the 5 Whys analysis...
1. Why are the sales down? Because the sales team isn't closing as many leads as before 2. Why? Because the leads are weaker and significantly harder to sell to 3. Why? The marketing team has been trying out new lead generation partners 4. Why? Because the finance department denied working with the old partner 5. Why? Because the old partner upped their rates by 20%
After finishing the analysis, you already have several different options on how to fix the issue. You could, for example, count the numbers and determine whether the old partner's new rates are worthwhile for you (higher sales and profits, despite the upped margin). Or, you might want to try new lead generation companies, some of which could be an even better match than the last.
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Then, you write down the potential solutions, assign a responsible person for each, and set up a meeting to report back on the findings.
The History of the 5 Whys Technique
The 5 Whys was first developed by Taiichi Ohno, an industrial engineer who is considered to be the father of the Toyota Production System. It is based on the Toyota's "go and see" philosophy, which focuses on going out on the field and figuring out what really is happening, rather than basing decisions on what the management thinks could be happening.
The 5 Whys analysis method became popular somewhere around the 1970s. Because of its simplicity and potential, however, it's still being used today a tool in several different process improvement methodologies...
Kaizen - Toyota's philosophy of continuous improvement. It's based on continually analyzing and improving company processes using scientific management Business Process Management - Methodology of streamlining, improving and managing company processes Six Sigma - A set of tools and techniques used for minimizing waste and defects in business processes
How to do the 5 Whys Analysis
If something goes wrong, first things first - you've got to put out all the fires. After the crisis is averted, it's time to figure why it happened and how to make sure it never happens again.
The step one is to get the ball rolling - invited everyone that's remotely related to the incident. Usually, this includes the members of a given team (Think, engineering for software crash). Then, you assign the role of facilitator for the meeting. This should either be department head or a specialist most knowledgeable on the issue (Think, CTO vs Cyber Security Expert). As a given, there should also be someone to document the meeting, ensuring that you don't miss out on some important point.
Then, before you even begin the 5 Whys analysis, you need to pinpoint and formalize the exact problem. If you don't have a clearly defined goal for the meeting, it might turn out that each of your team members is solving a completely different issue.
Finally, ask away! Keep asking "why?" until you manage to discover at least one possible root cause of the issue. Once you've pointed out the problem, assign relevant team members to come up with and apply the solution.
Document and Follow-up
Sometimes, the first solution you come up with might not be the best (or, it might not work at all). It's important to document the entire process, from brainstorming to problem-solving and let everyone on the team know.
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So, once the initial meeting is over, make sure that everyone has the notes and is aware of what the next steps are. The employees that are in charge of solving the problem should also document their work and in case the solution fails, report back.
If the solution isn't working, or if there's more than one root cause to the issue, you can always start the whole process all over again, conducting another 5 Whys analysis.
Human Error as the Root Cause
Sometimes, the 5 Whys analysis will determine that the root cause of the problem is some employee's mistake.
Making sure this kind of mistakes don't happen can be hard. While you can put out the fires, you can't ensure that no one will make the same mistake again. It's all too human to mess up here and there, after all.
What you can do, though, is minimize these chances the best you can.
By using Workflow Management Software, you can standardize your processes. This way, your employees will have software looking over their work, ensuring that every step of the way is carried out without mistakes.
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Everything You Need to Know About ISO Audit by Sonia Pearson https://tallyfy.com/iso-audit/
There are a lot of great reasons to undergo an ISO audit – not least of which the ability to make sales to clients who specify that suppliers must be ISO certified. You probably already know that the audit will be good for your business, but you're not too sure what, exactly, you're letting yourself in for. And we're here to help, with a guide on everything you'll need to know about the process!
Why an ISO Audit Helps Take Your Business to The Next Level
Apart from being able to meet the needs of customers who require you to have passed your ISO audit, certification gives you a strong marketing advantage. It says: “Everything we say about our products’ quality is true and has been independently verified.” That’s powerful stuff right there!
There are knock-on benefits too. Your employees will feel proud of ISO certification, and they’ll be eager to keep up the good work. Your sales force will have greater confidence in the products they’re selling too. Remember, if you can “sell” to your sales team, they’ll be passionate about promoting your products to clients.
But there’s more. Preparing for your ISO audit will help you to bring about greater consistency in operations. And it will motivate managers and employees to identify and attend to priorities that influence quality. In the process, you’ll reduce and even eliminate waste. After all, with greater consistency, there’s less chance of ending up with goods you have to trash because they’re not up to standard.
ISO Audit Basics: What is It?
So far, so good, but just what is an ISO audit, you might ask. Simply put, an ISO audit is a 3rd party examination that is intended to check on whether business activities and final products are what you say they are, and whether what you’re doing actually achieves the objectives you’re aiming for.
There are three types of ISO audit, and only one of them leads to certification...
You can carry out a first party audit in which your (trained) employees or a consultancy firm go through your business processes. Obviously, this isn’t the same as certification, but if you don’t have ISO certification yet, it’s a good place to start. This is pretty much self-audit - ensuring that from an objective, 3rd party view, the company is qualified for an ISO audit.
A second-party audit looks at your suppliers. Again, you would either use qualified staff or a consulting firm. And as before, it’s only another step on the road to certification. In most cases, you'd want this combined with a first-party audit, so that you'll know for sure whether you're ready for an ISO certification or not.
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The third-party audit is the one that actually counts. A certification body auditor comes to check out your business, and if it passes muster, you finally get the coveted ISO certification you've been working towards.
How to Prepare For Your ISO Audit
No matter how efficient you think your business is and how sure you are that your company delivers on its promises, preparing for your ISO audit presents a golden opportunity for improvement. And since you don’t get what you don’t measure, having an internal ISO audit system with regular reviews will help you to keep tabs on your performance.
Getting these systems into place long before the third-party audit ensures that your staff is ready and able to face external auditing. After all, for your employees, the audit will just mean that they should do business as they usually do. To ensure that you really are getting what you think you’re getting in terms of ISO-compliance, you will carry out internal auditing. Ensure that your staff knows just how important this is and how seriously they must take it.
In most cases, business managers will find inconsistencies during the internal audit, and the next step is to implement corrective action. This is a process in itself, and once it has been completed, you will need a follow-up process to ensure that the corrective action really did address the problem it was meant to solve.
Whether or not processes or regulations have changed, annual management reviews will help you to determine whether the business has achieved satisfactory results. It also gives you an opportunity for continuous improvement.
A management review should result in a fresh action plan that will resolve any issues your management team identified. Schedule it with your next ISO audit in mind. By the time third-party auditors get to work, you're already quite certain that the certification is a shoe-in.
Your ISO Checklist
Preparing for an ISO audit means that you'll have to re-examine each and every one of your business processes. Without the right software or methodology, this can be a bit complicated. Going through all of your processes, after all, is no easy task.
Workflow management software can help make the process audit significantly easier, as it allows you to map your processes & analyze them from a top-down view. And as an added bonus, it also provides analytics and suggestions on improving the processes, a benefit that'll last far longer than the ISO audit. So, why don't you give it a try for free?
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Grow Your Business With 7+ Lean Process Improvement Tools by Sonia Pearson https://tallyfy.com/lean-process-improvement-tools/
You’ve heard about Lean, the business approach behind Toyota’s success. Achieving more by using fewer resources is just what you want. You love the idea of Kaizen (continuous improvement), and you’re ready to implement these philosophies into the way you work. It’s time to stock your toolkit with the lean process improvement tools that have taken many a business to the next level.
The beauty of these tools is that they have been tried and tested in practice, so although you may be embarking on something new, it’s ground that others have covered before you. All you need to do is follow the roadmap.
So, let's just right in! In this article, we're going to cover 7 of the most popular lean process improvement tools, and explain how to use each.
1. Value Stream Mapping
Processes consist of a series of steps, some of which add value, and some of which don’t. Of the latter, some are necessary to support the value creation process, and others – well, they might be ready for the cutting room floor!
You can create a value stream map in order to find which steps are necessary and which ones just waste your resources.
What are you looking for?
What steps does your business follow to deliver a product or service for which people are willing to pay? Areas that may be subject to any of the seven wastes of lean.
How to do it:
Assemble a team and determine what steps you currently follow to create value. Identify information flows as well as physical process flows. Look for redundancies. If an activity doesn’t add value, does it at least support part of the process? Identify interfaces between activities. Later, you’ll analyze these interfaces to smooth the workflow.
2. Kanban
It may originally have been developed as a way of controlling the movement of inventory, but Kanban is
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also a useful lean process improvement tool.
This time, instead of using Kanban to control inventory, you use it to control effort. Your aim is to achieve the best results with the smallest amount of effort needed. When applying Kanban to process improvement, you begin with the status quo. Your Kanban board is there to help you visualize your workflows.
Now, it’s time to start switching things around and making adjustments.
What are you looking for?
Bottlenecks where work piles up and outcomes are delayed. Multitasking that results in waste and reduced focus. Waits, delays, and areas where you have excess capacity. Operational issues that are limiting efficiency. Ways to improve collaboration between employees and departments.
How to do it:
Begin by setting up the status quo. How does your process work right now? Implement continuous, evolutionary change. Redirect time and effort so that there’s always just enough to get the task done – never too much, and never too little. Focus on results from a customer perspective.
Change can be scary, but Kanban helps you to approach it with confidence. Rather than undergoing revolutionary change in which you might end up trading one set of problems for another, you change things little by little, evaluate the results, and base your next steps on that.
3. A3
If you think that A3 is really a paper size, you’re quite right! When A3 was first implemented, it used large sheets of paper. Today, we can implement A3 without the paper, but it still keeps its name.
What are you looking for?
A way to describe a problem you want to tackle. Clarification of the problem. The real cause of the problem so that you can target it. Ways to contain the problem. Causes and effects. Appropriate corrective action. Confirmation that your solution is likely to solve the problem. Entrenchment of successful solutions into work routines.
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How to do it:
Capture the theme you’re working on. Determine the background to the theme. Examine the current condition Analyze causes. Define the target condition. Implement the plan. Follow up
4. Plan-Do-Check-Act (PCDA) Cycle
When it comes to processing improvement tools, this one is easy to implement and quick to show results.
What are you looking for?
A possible solution to a problem. See how your solution works in practice. An analysis of results: did the solution work? Action: your team adopts the new method.
How to do it:
Plan: Spot an area that’s ripe for improvement and develop a plan to address it. Do: Test your new way of working, but only on a small scale. Check: Look at hard data to see whether you’ve achieved the panned results. Act: Implement the change and keep checking to be sure you’re getting the outcomes you wanted. Rinse and repeat: If you didn’t get the results you wanted, begin the PCDA cycle again. Keep trying till you get the desired results.
5. Gemba Walks
Let’s face it, most of the problems we try to solve in the boardroom don’t originate in the boardroom. This process improvement tool takes you to the coalface. A Gemba Walk is not just a casual stroll through, but a carefully planned and systematically executed process.
What are you looking for?
Opportunities to improve processes from an on-the-ground perspective. Input and information from the people who do the real work. Any of the seven wastes of Lean.
How to do it:
Assemble a team so that you can get several perspectives.
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Physically follow processes through from start to finish. Ask open-ended questions and gather information. Identify possible changes to improve process flows. Talk to your team about your findings. Implement change. Follow it up with another Gemba walk to see whether there’s further room for improvement.
6. The 5 Whys
When you’re looking to spot problems, root cause analysis might seem like a lengthy process – but the Five Whys give you a shortcut method to dig down to the real reasons why things aren’t going as planned.
What are you looking for?
The real reasons why a problem occurred.
How to do it:
Ask why something went wrong. Now take the answer and ask why that factor wasn’t as it should be. Take your second answer and find the reason why it happened. Keep going till you’ve repeated the “why” question five times. Now that you have five reasons that led up to things not going as well as they should, you can start addressing them starting with the fifth why and working back.
Make the necessary process changes to ensure that the problem you encountered doesn’t happen again and monitor the situation to see if you’ve nailed it.
7. The 5 Ws and 2Hs (5W2H)
Asking questions is the beginning of knowledge – but it’s also a great way to formulate an effective plan of action.
The 5W2H method poses questions, and the answers become the plan to be followed. The 5 Ws stand for what, why, where, when, and who. The two Hs are how (method) and how much (budget).
What are you looking for?
Avoid inertia when launching your process improvement plan. Make sure there are no dropped balls or skipped steps. Allocate tasks and assign accountability. Set up a schedule that everyone understands. Be sure everyone understands the parameters within which they will work.
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How to do it:
Determine what needs to be done Ensure everyone knows why it must be done. Specify where the scene of the action is. Decide when actions will occur. Indicate who is responsible. Specify how it will be done. Indicate how much it should cost.
Bonus: Super-Charge Your Lean Process Improvement Tools with Workflow Software
Most lean process improvement tools work best if you use them in sync with workflow management software.
While you use lean process improvement tools to spot potential improvements, you can use workflow software to implement these changes and ensure that all your employees are sticking to the new processes. Tools like Tallyfy allow you to...
Map and tweak your processes on-the-go through the software. Spot bottlenecks and hiccups in processes in real time. Add, adjust, or remove process steps at will. Enforce process execution. The software automatically allocates tasks to relevant employees whenever needed. Spot wasted time and effort easily using process analytics.
Combine Tallyfy with other lean process improvement tools and methods to fast-track improvement and ensure that processes are carried out uniformly. Are you up to the challenge of adopting continuous improvement as part of your business philosophy? It's significantly easier than you'd think!
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How to Choose a Process Improvement Consultant for Your Business by Sonia Pearson https://tallyfy.com/process-improvement-consultant/
Successful businesses know how effective streamlining and continually improving their processes can be. Safeguarding your bottom line in an ever-changing market requires specialized expertise. It’s no surprise that many organizations are putting more focus on their internal workings instead of focusing solely on output and sales. Improving your processes is no easy feat, and you’re probably already considering hiring outside help, but how do you choose a process improvement consultant for your business?
Choosing a process improvement consultant for your business is no easy task when you look at it from a risk versus reward point of view. How much will they cost? Do you hire a lone wolf or do you go with a firm? What kind of improvements can you expect? Will you get a good ROI from the consultant or firm, and how will it affect your company’s ROI in general? All these questions can be answered by a consultant, but only if you choose a process improvement consultant that’s right for your organization.
Generally speaking, choosing a process improvement consultant is similar to hiring any other employee. If you really think about it, whomever the process consultant is, they need to make a significant contribution to your business the same way your employees do. Your process consultant must fulfill the same criteria as anyone else: competency, cost, and suitability.
Identifying Competency In Choosing a Process Improvement Consultant
Choosing a process improvement consultant begins with identifying their competency. The first thing you’ll want to review is their track record. Any process improvement consultant worth their salt will have quantifiable proof of what they have done for other businesses. For you, the business owner, looking at before and after snapshots of previous contracts should be the first item on your hiring checklist. Do they come to you with a proven track record or is the process improvement consultant full of bluster, promises, and winks?
You’ll likely have a natural inclination to choose a process improvement consultant with direct experience in your industry or niche, which is ideal but can also severely diminish the candidate pool. More than that, using industry experience as the sole requisite to choose your process improvement consultant is unnecessary. You have an entire company full of people who understand the minute details of your niche already, so there’s little need to choose a consultant on that metric alone. Your consultant’s primary purpose is to help your team learn how to fix and continuously improve, the processes you already have in place.
Some experience in the processes your industry uses is important though. You wouldn’t want to choose a process improvement consultant with a background finance where high-volume and low-variability
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transactions are the norms if you run an ad agency. You’d want to choose a process improvement consultant with experience in high-variabilities and flexible prioritization experience.
Cost Versus Reward
Let’s get this out of the way right now – choosing a process improvement consultant based solely on the lowest rate you can find is a mistake you’ll pay for, short and long-term. You’re looking for an expert, and experts cost money. It’s better to look at choosing your process consultant based on his or her value and ROI.
You’ll have to decide if you want to hire a lone-wolf or go with a firm. For the lone operator, you can expect their rate to be the equivalent of a high-end IT consultant. Consulting firms, on the other hand, will be more expensive but you might have an easier time justifying the expense to C-level managers or stockholders.
Whichever option you choose, ask for an estimated return on investment. Although the estimate will be more about precision than accuracy, you’ll get a good idea what the expense will be rather than opening yourself up to essentially writing a blank check. Either way, remember to take into consideration that they will need to be onsite for weeks before you balk at the cost. It’s also important to keep in mind the intangible benefits you’ll receive such as improved morale and improved customer satisfaction.
While some consultants will quote you an hourly rate, try to choose a process improvement consultant offering a fixed rate. You’ll have a better idea what your cost will be, and it also means the consultant is willing to bear some of the risks, limiting yours.
Suitability for Your Organizational Culture
One size fits all doesn’t work. Just like a good suit, choose a process improvement consultant that fits. Look for consultants who know how to adapt to your organization’s culture. Avoid choosing process improvement consultants who are stalwart about their approach to improving your processes. For example, a Six Sigma consultant who is overly confident that their method of improvement works every time, all the time, probably won’t be a good fit for you.
The human factor is not to be overlooked. Choose a process improvement consultant who has strong soft skills. You’ll be naturally inclined to hire someone with superb technical skills, but unless they have soft skills they’re likely to be a waste of time and money, to say nothing of compromising morale. The most successful process improvement consultants on the planet will tell you that their secret recipe consists of 90% communication and only 10% knowledge. They will be skilled listeners who know how to ask the right questions.
You’re looking for an educator rather than an expert in your field, so avoid choosing a process improvement consultant who has a high-priest complex. Of course, you want to choose a process improvement consultant with justifiable pride in their experience and knowledge, just not one with a huge ego to go with it. Choose a process improvement consultant who will pass on their knowledge, not just make themselves appear indispensable. Communication is key, and you want your employees to learn
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from your consultant so they can continue his or her work long after they’re gone.
On Choosing A Process Improvement Consultant
Humility, ironically, is a personality trait to look for when you choose a great improvement consultant. A competent consultant will express doubts and concerns about possible outcomes of the consulting contract if they are at all realistic and honest. Successful consultants don’t always know what the risks are, or how to avoid them. They will openly express their need to rely on your business experience and expertise to get the job done.
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How to Choose the Right Six Sigma Consultant by Jamie Johnson https://tallyfy.com/six-sigma-consultant/
Choosing to implement Six Sigma into your business is not a task for the faint of heart. Implementing Six Sigma is a huge undertaking and the reality is, most Six Sigma projects will fail to meet their objectives. That’s why it can be a good idea to hire a Six Sigma consultant to work with your company.
A Six Sigma consultant is someone who is specially trained not only in Six Sigma or Lean Six Sigma but in helping other companies implement Six Sigma in their businesses.
When it comes to hiring a Six Sigma consultant, you will definitely have your pick - there are thousands of consultants out there willing to work for you. Not every Six Six Sigma consultant will be a good fit for your or your organization, however. You'll need to put some thought into finding the consultant that is right for your business.
Why Should I Hire a Six Sigma Consultant?
As a business owner, it can be hard to delegate certain responsibilities. One of the most important decisions many business owners will make is knowing when it is time to hand over certain responsibilities to other people.
You may feel like you have the power to implement change within your organization but is there someone who could do it a little bit better? Here are three reasons you should consider hiring a Six Sigma consultant:
Lack of Bias
Let’s face it, it’s impossible for you to be completely objective about any challenges that your company faces.
When you are implementing Six Sigma, you are implementing an entirely new set of tools and way of running your business.
It can be helpful to have an unbiased, fresh perspective on the challenges that your company faces.
Six Sigma Knowledge
The right Six Sigma consultant has already successfully implemented Six Sigma in other organizations.
By outsourcing this task to someone who knows more about Six Sigma than you do, you free yourself up to focus on the more business important tasks that only you can do.
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Willing to Take the Fall
When mistakes (both large and small) happen they can lead to a lot of fallout and finger pointing within an organization.
And when you are implementing Six Sigma, some mistakes are bound to happen along the way. Sometimes it is easier to have a Six Sigma consultant to blame rather than dealing with a lot of company in-fighting.
How to Choose the Right Six Sigma Consultant
It is important to choose the right Six Sigma consultant the first time around as choosing the wrong person can be a costly mistake. Not only will it cost you time and money but it could cause your employees to lose faith in you.
On the opposite end, choosing the right Six Sigma consultant could help you transform your business and save you thousands of dollars in the process.
As we've mentioned before, consultants are removed from the office politics of an organization. This means they can approach problems with a fresh outsider’s perspective that can be helpful.
It is possible for business owners to implement changes within their organization but the right Six Sigma consultant may be the best person to lead this effort. Here are four suggestions for choosing the right Six Sigma consultant:
Define the Criteria
This may sound like obvious advice, but if you don’t know what you are looking for then you are unlikely to find it. On the flip side, you may end up with someone who is the opposite of what you were looking for.
Before you begin to interview Six Sigma consultants really take some time to think about what specific needs your company has. What qualities are you looking for in a Six Sigma consultant?
Culture Fit Matters
A good professional relationship should be based on shared values and mutual respect.
For that reason, it is important that you choose someone who can fit in well with your company’s culture. Employees are often very resistant to change so it is a good idea to hire a consultant who will be able to relate to them.
Find out what that person’s general strategies are to solving problems and approaching employee resistance. It is important to choose someone with good communication skills who will be able to effectively communicate what they are doing and why it is important.
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Interview a Variety of People
It is important to point out that this should not turn into a fishing expedition or an excuse to procrastinate.
You don’t need to interview hundreds of Six Sigma consultants and it should not take years to find the right person. You’re choosing Six Sigma consultant to maximize your time, not waste more of it so try to search smarter, not harder.
That being said, you should interview a variety of people until you have a sense of who will be the right person for your company.
Ask for References
The best way to get an idea of who someone is is to talk to other people they have worked with. Talk to other business owners that person has worked with and get their feedback. If enough other respected professionals feel that that person is reliable, honest, and trustworthy then you can probably feel good about hiring them.
Photos by perzonseo
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How to Crowdsource Ideas for Process Improvement by Amit Kothari https://tallyfy.com/crowdsource-ideas-process-improvement/
For many companies, process improvement is like that multivitamin you’re supposed to take every day, but keep forgetting – even when it’s sitting in front of you.
A lot of growing companies are often so caught up in growth that they fail to make the time to evaluate the processes they put in place as the startup left the runway.
The first thing we should consider is the importance of people actually doing the work helping you understand how to improve a process - covered in the video below.
And that continues in an ugly cycle which can create a lot of problems as companies mature. 90% of startups wind up failing, and there’s likely a fair share that went under due to mangled processes that crippled operations, decimated customer service, and sent customers walking.
One of the largest issues is when leadership is disconnected from those processes and they’re left in employee's hands. Your employees may not want to raise concern over bottlenecking processes – even if those processes are painfully obvious and creating production issues that impact the bottom line.
Process Improvement is Needed Everywhere
Every startup has multiple systems and processes in play, and at some point, those processes are going to need an audit and an update.
The most appropriate measure is to implement a program of continuous process improvement, whereby you’re constantly evaluating and tweaking processes to ensure they’re running at peak efficiency.
Unfortunately, that’s difficult to do when you have a business to manage. At least, if you’re trying to manage those audits on your own.
For effective and efficient continuous process improvement, you should crowdsource ideas and process maintenance from the people you trust to help you run your business.
Here are ways to leverage your team to keep operations running smoothly:
1. Let The Team Sample the Tools
Some businesses processes can be fixed relatively easily. Others may require a complete overhaul that involves new software or the use of applications and approval workflows to ensure that bottlenecking
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doesn’t occur in the future.
More complex processes that stretch across more than one department can be the most challenging, especially when tools and software are involved.
Rather than implementing software, you think is appropriate, crowdsource opinions from your team. This is critical if more than one department is involved, as departments may use software and tools differently.
Let them sample the software you intend to use and trial it, if possible. Give employees ample time to demo how they would use software to determine if it’s a good for them - as individuals and as a team. It won’t do you any good to revise an entire process, and onboard new software, if it winds up being too frustrating to use and causes friction among departments.
2. Create Case Studies of Process Wins
You may encounter friction with some employees when it comes time to audit and change your processes. If this is the case, even with just a few employees, then make sure they understand that their position and opinion is valued.
Some employees are just uncomfortable with change, and they’re afraid that change or a new process will make their job more difficult.
If you’re implementing processes improvement in different departments and you’ve already had success elsewhere, then draw from that department and crowdsource support. Turn them into a case study for success as well as cheerleaders who can let your other teams know how well the improved processes are working.
Bring the data if you have it; have those successful teams provide raw data on how the improvements have impacted their workflow, their performance, and helped them meet team goals.
According to Nielsen, over 90% of consumers trust peer reviews over brand advertising. In this scenario, you’re the brand. Let those crowdsourced peer reviews from coworkers help you sell it to the rest of the team.
3. Don’t Focus on What’s Broken
When you’re in the market to start streamlining processes and bring about change in operations, don’t just focus on what’s broken. Turn to your teams and crowdsource ideas for how they feel operations can improve.
This shouldn’t be limited to just the processes they feel are bottlenecked or ineffective right now. Ask them to share any ideas they’ve had for new processes that can improve the way you do business, from order fulfillment to something as simple as how documents might pass between department heads.
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4. Create a Suggestion Hub for Process Improvement
One of the best ways to crowdsource business process improvement from employees is to make it easy for them to share ideas. Even if you have an open door policy, don’t force employees into situations where personal engagement is required.
You may have the best of relationships with your team, but it can still be difficult for an employee to approach leadership with a suggestion or to bring up something they think isn’t effective.
To get around this, create a suggestion hub. There are several ways to deploy this, including:
Create a Slack channel where employees can jump in and drop suggestions Set up a tried and true suggestion box for your team Create an email address devoted to receiving suggestions Create a private group on a social channel like Facebook or LinkedIn, or within your internal Intranet (like Salesforces Chatter)
5. Put Employees in Charge of Process Improvement
A highly effective way to crowdsource process improvement is to put your teams in charge of audits and suggesting improvements. Since your employees are in the trenches, dealing first-hand with the problems and bottlenecks, they’re most likely to know what areas of the process need the most urgent attention.
They’ve also had plenty of time to consider solutions that would make their job easier if they had the ability to change a process.
Delegate the authority to your teams, along with the accountability, and designate roles as to who is in charge of specific processes as well as reporting on audits and change deployment.
This reduces the time you need to be actively involved in audits and process improvement, and you can base your future involvement on the reports you receive from your teams.
6. Create a Reward System for Change
Even with all of the above in place, you may still have a hard time crowdsourcing process improvement from your teams. When all else would fail, never discount the effectiveness of rewarding those who do well.
Consider the impact of effective process improvement on your bottom line.
For example: if one of your customer service team members identifies a problem and suggests a viable solution that can reduce the time it takes to close cases or eliminate a specific type of complaint
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completely, that could have a significant impact on customer delight.
As a result, the lifetime value of your customer goes up and churn could be reduced. That’s a positive change to your bottom line. Employees know that’s the kind of result that comes from process improvement, and expectation of a reward or recognition is common.
Acknowledge their hard work and contribution with a reward, because that’s exactly what your employees are after. In fact, one Psychometrics survey on employee engagement revealed that when asked what leaders could do to improve engagement, 58% of respondents said: “give recognition."
Another survey on employee recognition from SHRM/Globoforce found companies that spend greater than 1% of payroll on recognition are 79% more likely to see positive financial results.
7. Give the Process Time
If you run into kinks while working on process improvement, be patient. Don’t blame the tools, and don’t create a negative atmosphere by questioning team performance. The best approach is to make sure your team is documenting everything from start to finish with process improvement.
This way, if there are issues with implementation, you can look back and identify where deployment and execution may have gone wrong, or if there was some other underlying cause. Continue to crowdsource feedback from your team. Find out where they think the process went sideways and what the next step or solution might be. Identify the change requirements and keep moving forward.
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How to Do Pareto Chart Analysis [Practical Example] by Noel Ceta https://tallyfy.com/pareto-chart-analysis/
The Pareto chart analysis is a statistical graphical technique used to map and rank business process problems starting from the most frequent to the least frequent with the ultimate goal of focusing efforts on the factors that produce the greatest impact overall. To do this effectively, it utilizes the Pareto Principle, which is most predominantly known as the 80/20 rule.
The Pareto chart is sometimes also referred to as the Pareto analysis or Pareto diagram. If you hear those terms anywhere else, just know that they are almost interchangeable. In this article, we will show you how and when to use a Pareto chart analysis using Microsoft Excel or simply by hand. Mastering Pareto diagrams will help you maximize the efficiency of your business processes.
Origins of Pareto Chart Analysis
The Pareto chart is derived from the Pareto principle, which was suggested by a Romanian-born American management consultant, Joseph Juran, during WWII. The name of principle, however, is derived from the Italian economist Vilfredo Pareto.
In a nutshell, Vilfredo Pareto noticed throughout extensive observations and research that during the late 1890s in Italy, 80% of the wealth and land belonged to roughly 20% of the population. Such a relationship is so universal that it can be applied to almost any field. Here it is shown by the figure below: with a Pareto chart, there are always two variables at play which share the same ratio (80/20) in all cases.
Some examples from different industries include:
Business - 80% of the work is carried out by 20% of the employees. Software Development – 80% of the logic of a program is run using 20% of the classes or code Software Efficiency – 80% of the errors are caused by 20% of the bugs. Fixing 20% of the bugs with the highest frequency should solve about 80% of the customer issues. As the Microsoft ex- CEO stated, the 80-20 rule does not apply just to features but also to software bugs. Health – Roughly 80% of injuries and accidents happen due to 20% of the possible hazards. Crime – 80% of crimes are committed by 20% of criminals Sales – 80% of sales and revenue are gathered by 20% of the customers
Again, the main point here is that 80% of problems and events happen because of 20% of the causes and resources. Overall, the Pareto 80/20 rule is not like the immutable law of physics. It is simply a principle followed by the Pareto power law Distribution. It is based on continuous observations, and it has turned out to be applicable to almost any field in life and to many natural phenomena.
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When to use a Pareto Chart Analysis
Considering the examples mentioned above, we can notice that Pareto charts have a common function despite the field in which they are applied. This common function is optimization. It doesn’t matter whether you are trying to optimize code, a business process, workflows, documentation practices, and so on. Pareto chart analysis can be applied to any efforts for optimization.
As a rule of thumb, Pareto chart analysis can be used when trying to find a pattern that can generate the greatest impact, while employing the most significant resources and activities.
In order for us to use a Pareto diagram, our process data needs to fulfill the following two criteria:
The data must be arrangeable into categories – Some example categories can be defects, count, or cost. The ranking of the categories should matter – If the ranking of the categories does not matter, then the frequency of the data will not be relevant. In such a case, it is required to change the specifies categories.
Several companies have used Pareto charts to optimize their businesses. Zappos, for example, encourages their leaders and managers to spend at least 20% of their time hanging out and socializing with their team instead of spending 100% of their time working.
This practice has proven to be quite successful in building trust and team unity. The difference between organizing team building activities [todo: team building] periodically and applying the 80/20 rule as Zappos has, is that the Pareto Principle requires to be applied continuously and at a more frequent rate than team building activities. However, the alternation of bonding activities with actual work has proved successful for the company known for its experimental corporate culture.
In a more practical sense, Pareto charts are most useful for identifying what the biggest issues regarding your business are. They also help you analyze how to present the issues that need tackling in a simpler, more understandable manner. In addition, they also help to guide where to look in terms of figuring out the frequency of a certain problem in your company.
Components of a Pareto Chart
To construct a Pareto chart, you first need to understand its components and the relationship between them. Essentially, the Pareto chart is a bar chart. Being a bar chart, it is made of two main variables which form the x-axis and y-axis. The x-axis is used for plotting the different categories into which the data is broken down.
On the y-axis, is shown the number of occurrences or the count for each specific category. The bars are ordered from the highest frequency to the lowest frequency, starting from left to right.
After ranking the bars in descending order according to their frequency, a line graph is used to depict the cumulative percentage of the total number of occurrences. The line graph is a visual sub-tool used to
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immediately spot whether a certain set of data follows the 80/20 rule.
Below you can find a summary of the Pareto Chart components:
x-axis – categories of data y-axis – the number of occurrences ranked bars in descending order – the order in which the bars are placed is aligned with the frequency of the event cumulative percentage curve – show the cumulative percentage (on the y-axis) while traversing the categories from left to right.
In the figure below, you can see all of the different components of a Pareto diagram discussed in this section demonstrated with arrows. We will show you how to build the Pareto chart in the figure in Microsoft Office Excel.
Building a Pareto Chart
To demonstrate the components and process of building a Pareto diagram, we will use the example of a fictional business situation. Let’s assume you want to find the occurrences of certain bottlenecks in your business process.
Step 1 - Decide on the category you will use to group the bottlenecks. In our case, the categories will be different groups of bottlenecks in the workflow process. Let’s call these bottlenecks A, B, C, D, etc.
Step 2 - Establish which measurement is the most appropriate to measure the grouped categories. For example, the measurement for the different groups of bottlenecks can be the number of occurrences of the specific bottleneck.
Step 3 - Come up with a specific timeline which the Pareto chart will cover. This can be one work cycle, a sprint, one full day, one week, one month etc. For the purpose of this example, let’s assume it is one week.
Step 4 - After you have determined the first three, you have to record or organize your data in a table in accordance with the steps. The table will have two columns: Bottlenecks and Number of times Bottlenecks occur.
This requires the company to collect the data on the number of bottlenecks for each of these categories of bottlenecks if this data is not available already. If you have the data, simply organize the data that already exists according to each bottleneck category you have determined in the first step.
Pareto Chart Analysis in Excel
Step 5 - After gathering or organizing all the data, you should put everything in an Excel table.
Initially, you need to find the sum of the number of all of the different occurrences (bottlenecks). You can
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do this by using Excel summation tools or a calculator by hand.
Your table should look something like the table below at this point:
Step 6 - At this point, you have to bring together the total of all occurrences for each respective bottleneck category. This can be done by constructing a new, smaller table, or by hiding the columns for “days of the week”. After that, arrange your data from the largest number of occurrences towards the smallest (descending order). Your new table should look like this:
Step 7 - Now that you have these columns side by side, you should calculate the cumulative percentage of each bottleneck. In the figure below, you can see the formula we have used on one cell (C27). To apply the same formula to the other bottleneck categories, you can simply drag the formula down to the last row.
Step 8 - Select all the data set (without the total number of occurrences), so in our case, from A25 up until C31. After that, go to INSERT ? CHARTS ? 2D COLUMN ? CLUSTERED COLUMN.
This will create a regular 2D chart with two sets of data which will take the form below:
Step 9 - For the chart to take its final form, you should right click with your mouse in any of the bars of the chart and select Change series chart type.
A dialogue box will appear. From All Charts window, select COMBO in the far below left of the dialogue box. Here, the following changes should be made to the drop-down windows (under Chart Type column) that correspond with your data sets:
1. The number of occurrences should remain as Clustered Columns. 2. The cumulative percentage should be changed to Line and the Secondary Axis checkbox should be checked.
In all, your window should now look like this:
Step 10 - After pressing OK, your Pareto chart will be ready. Put a title on the chart and change the value of the secondary axis to a percentage for ease. Your finished Pareto chart will now look like this:
How to Interpret Pareto Diagrams
Now the Pareto diagram is available to you with all of its components. A trickier issue is how to exactly interpret the results of this chart. Drawing on what we have discussed before on the implications of Pareto chart analysis, this particular chart clearly shows the bottlenecks which the company should focus more on.
Here we can clearly see that taking care of the first two bottlenecks: Bottleneck D and Bottleneck A will take care of around 80% of the entire defects. The analysis would be the same if there were more
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bottlenecks to take care of, as the Pareto Rule of 80/20 is in play.
Pareto Chart Analysis in Quality Control
One of the greatest uses for the Pareto chart analysis is total quality control. It is used as a tool within the Six Sigma framework, a mathematical method for tracking company performance. Pareto chart analysis visually displays the data so as to make it easier to judge whether the Pareto Principle can be applied to the data.
Using charts and statistical tools for analyzing data is one of the core competencies within projects managed using the Six Sigma framework. Pareto chart analysis would fall perfectly under the Measurement and Improvement stages of DMAIC (Define, Measurement, analysis, Improvement, and Control).
Knowing whether the 80/20 principle applies to a specific process can be very helpful in Six Sigma. When selecting which project to take up, managers must focus their resources on the few projects that can deliver the most significant results.
After all, a manager has only 24 hours per day like everyone else in the company. If he or she wants to have the best results, he will have to first address the projects that have the greatest impact.
Conclusion
Pareto Diagrams (known more commonly as the 80/20 Pareto rule) are very useful for managers and figuring out problems in the workflow process. As we have demonstrated using a real-life example in Excel, you can clearly figure out which top 20% of your company’s processes are causing 80% of the problems. By taking care of the main problems, you make sure the overall processes of your business are running smoother as you take care of potential or actual bottlenecks.
Did you find this post useful and practical? Is Pareto diagram analysis a tool you are already using in your business? Let us know if you practiced building Pareto diagrams in Excel using our tips or if you learned something new today. And if you liked the article or if you think we missed something, please leave your feedback in the comment section below!
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How to do Process Improvement with As-Is and To-Be Processes by Amit Kothari https://tallyfy.com/as-is-to-be-business-process/
If you’re getting into process management, the as-is and to-be process states are a must-know. Before you can make any adjustments to a process, you should have a clear idea of how it operates now, as well as what it’ll look like after you make any changes to it.
As-Is and To-Be Processes: The Basics
The as-is state of a process is the “now” state. It’s how the process operates before you make any changes or improvements. The to-be process, on the other hand, is the future state.
To actually make your process improvement initiative work, you need to document and map both states. The “as-is” allows you to get an accurate view of how the process works. Unless you’re someone personally responsible for working with that specific process, this part is essential for understanding how to make any sort of improvements.
Once you already know how the process is, you can analyze it and propose certain improvements. At that point, you need to document the to-be state. Having a map of the new process makes it easier to implement for several reasons…
Point of Reference – You'll have something to refer to on what changes you're supposed to make. Process Standardization – No one likes change. To make sure that your employees stick to the new process rather than just revert to the old, you can use the to-be process document as a point of reference.
To help you actually understand how the two process states can help, we’ll explain how to document them and use the documentation for process improvement.
Step #1: Documenting the As-Is Process
Before you can actually document the as-is process state, you need to have a very clear understanding of it.
Unless you’ve worked the process yourself enough times, you’ll have to do some research.
There are several ways to gain an understanding of the process…
Observation – The most straightforward approach. Simply observe the process as it’s going on. Interviews – Personal interviews with employees working on the process. Questionnaires – Surveys on the process in question. More efficient than holding interviews, but
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generally less informative. Project Teams – A special team composed of individuals who are either employees working on the process itself, or process improvement experts.
In most cases, it’s usually a good idea to add “interviews” to the process research mix. The people who are most knowledgeable about the process are, as you could have guessed, the employees who actually work on it. They can be a wealth of insight – some of them might even already have ideas on how to improve the process.
Ideally, you’d want to consult with employees who play different roles within the process.
So for example, let’s say you’re working with a client onboarding process. You’d want to talk with an employee from each of the following departments: sales, onboarding, and customer service.
Once you’ve got all the information on the process, you can start mapping it.
The most straightforward way to do that is with a process flowchart. Simply draw the different steps within the process, and you’re all set. So, for example…
There are 3 main ways to do process mapping…
Pen & Paper – The most straightforward option. Just grab a pen & paper and draw the flowchart. Flowchart Software – Software made for the purpose of creating workflow diagrams. Better than pen & paper, since you can share the document with your employees. Workflow Software – Used for digitizing and keeping track of processes. This has the added benefit of making the processes run faster and smoother since no one will ever ask “who’s supposed to do X, again?”
Not sure which software provider to choose from? Check out our comparison post of different workflow management systems.
Step #2: Analysing the As-Is Process and Finding Improvements
Before you can start with the to-be process documentation, you need to figure out what it looks like.
You need to analyze the as-is process and find any inefficiencies and flaws, some of which can be a bit hard to spot. Since every business has completely different processes, there’s no one sure-fire way to do this. You could, however, ask yourself the following questions to get some insight.
Are deadlines frequently missed within the process? Are some of the process steps taking unusually long? Are some of the process steps a time or money sink? Why? What process step has the highest impact on output? Are there any ways to make it more efficient? Can you use technology to automate it?
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This step can be a bit hard if you're not a full-fledged process improvement consultant. To learn how to do it right, read up our guide to process analysis.
Step #3: Documenting and Implementing the To-Be Process
Once you’re done with the analysis, you should have several different ideas on how to improve the process.
At that point, you can start creating the to-be process map. This works just about the same way as mapping the as-is process: you create a flowchart that’s just about the same as the as-is process, with any adjustments you made present.
With the to-be process, the implementation is the harder part. Sometimes, your improvements might turn out to be not as effective as you’d thought. Others, your employees will take a while to get used to the new process.
There are several best practices we recommend to help make the implementation easier…
Start Small – While your new process might seem to be a great idea at a glance, it might turn out to be a disaster. To account for this, start the process on a small scale. Once you’re certain that the new process is empirically better, you can scale it up & apply it company-wide. Enforce the Process – You can’t just go up to your employees out of nowhere and say, “we’ll be doing things completely differently from now on.” They need to be made aware of why you’re making changes to the process and how it’s going to affect their work. Then, you need to make sure that they stick to the new process. There are 2 ways to do this: frequently check on their work, or use workflow management software to enforce the new process. Benchmark the Metrics – You have to be 100% certain that the new process is better than the old; otherwise, you’re only going to end up wasting time. Pick the right metrics to benchmark post-implementation. This way, you can be sure that the changes you make are definitely positive.
Post-Implementation
Implementing the to-be process state isn’t exactly the end of your work.
You need to make sure that the changes you've made are actually beneficial for the company. To do this, you need to make sure that the new metrics from post-implementation hold up to the old.
The simplest way to do this is by employing workflow management software. The software keeps track of your process output, letting you know whether the improvements you made are beneficial.
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How to Document and Implement a To-Be Business Process by Amit Kothari https://tallyfy.com/to-be-business-process/
The “to-be business process” is the future state of an as-is process. If, after document and analyzing an as- is process, you realize that there are potential improvements to be made, you create a to-be process map as a means of visualizing the aforementioned improvements.
How to Document a To-Be Business Process
Before documenting the to-be business process, you should already have an as-is process document at hand. You need to already know how the process works before you can actually improve it and create the to-be business process document. If you don’t have the as-is process documented and analyzed, you can learn how to do it with our guide.
Once you know what potential improvements you can make to the process, you can start mapping the to- be business process.
This is pretty straightforward – you create a process flowchart, i.e you draw the exact steps you’d need to take to complete the process. So for example...
You do this with one of the following ways:
Pen & Paper – The easiest option is to just grab a piece of paper and draw the process flowchart. Flowchart Software – Software used for creating process maps. The upside of using software for this is being able to share your charts with employees digitally. Workflow Management Software – Software used for creating, managing and tracking processes.
Once you have the documentation at hand, you can send it out to your employees and let them know that you’re making changes to the as-is process and that you’ll be doing things differently from that point on.
How to Implement a To-Be Business Process
Documenting the to-be business process is just the first step. It allows you to get a glimpse of how the new process will work, but the process won’t implement itself. You need to use the to-be process as a guide for implementing it in the workplace.
The implementation, in general, is a bit tricky, as it really depends on what processes you’re working on. Generally, though, there are some best practices we try to follow…
Pick the Right Metrics – While the new process might work better than the old in theory, the same
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might not hold true in practice. You’ll need to pick the metrics from the old process. Once you implement the changes, you'll simply benchmark the new metrics to the old ones.
Account for Potential Risks – Sometimes, your improvements might only be a short-term solution. If, for example, you manage to increase manufacturing output. This might seem like a positive change for a while, but then you realize this also leads to a higher defect rate, which brings you back to square one. By accounting for such situations, you’ll avoid a lot of headache for the future.
Start Small and Scale Up – You can never be 100% sure that your changes are going to end up being positive. It’s always a good idea to start small with the process. Think, for one specific team or one manufacturing line, rather than department or site-wide.
Enforce the New Process - People rarely like change. Even if it’s something that makes their jobs easier, they might still end up forgetting to follow through with it in a week. You’ll need to actually make sure that the changes you made are enforced. To do this, you can either manually check on the employees, or use workflow management software to enforce the changes.
Post-Implementation: Keeping Track
Once you get to this stage, you might think you’re already done with the job. You pet yourself on the back and call it a day.
Sadly, however, that’s not exactly how process management works. After implementing the new process, you need to make sure that it’s working as you predicted. Meaning, you’ll need to benchmark the new process to the KPIs and if something goes wrong, roll back to the older process.
To make process improvement and management significantly easier, you could employ workflow management software. It can help with enforcing new processes, increasing productivity, as well as measuring your process metrics.
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How to Eliminate Change Management for Business Process Improvement by Sonia Pearson https://tallyfy.com/eliminate-change-management/
When implementing large-scale changes within an organization, it’s generally considered that you need standard change management processes and procedures to ensure that key factors aren’t missed. However, as with any bureaucratic process, this can also backfire and create delays to developments that need to be done more swiftly, so you need to know what is the right set-up for your business and whether or not to eliminate change management.
For many companies, especially large corporate organizations, a change management process is essential and can work perfectly to ensure that changes are implemented in the right way to keep staff and stakeholders on-board and informed about the impacts and benefits. However, if you are finding that your change management strategies are causing most of the negative impacts, it can be time to take another look at what’s going on and whether you need to strip back the rules and regulations.
Do You Need to Eliminate Change Management?
So, what is right for your business? Firstly you need to look at what is going on there at the moment and whether it is helping or hindering your processes. Here are some questions you need to ask:
What is the purpose of your change management process?
Why was it implemented in the first place? Was there a proper investigation into whether it was needed and what the benefits would be? Of course, you need to be sensitive about the internal politics of who instigated this originally, but understanding more about what it was meant to achieve is the best way to be able to take the next step.
What impact is it having?
You’ll always need to have evidence to back up the decision to eliminate change management, so have a look at whether response times are up, and whether customer satisfaction is down. These should both be getting measured as a matter of course, so if they aren’t, you certainly need to start doing it, otherwise making a decision like these will always be a stab in the dark.
What would be the benefits be of elimination?
If you’ve got the evidence of where things are going wrong, what can you show off what stripping things back would achieve? This may all sound like more delaying stages in what you’re aiming to be completely the opposite of that, but recklessness is never the way forward. If you’re going to eliminate change management, you need to know for certain that it’s the right thing to do.
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The Problems With Change Management
So what kinds of problems can change management processes cause? The most common is with time delays due to lengthy approval procedures, unnecessary repetition of work and confusion over ownership of various aspects. If all change management requests are going to an advisory board or a member of management with sign-off duties, this can be overwhelming and lead to a bottleneck, causing frustration all around.
Another issue can be when change management processes are all about the bureaucracy and not aimed at solving issues for customers or colleagues. This is, quite simply, crazy. The whole point of change management is to make things easier for the people in your organization to deal with potentially disruptive changes and to make them quickly beneficial rather than problematic. So what can be done? You need to eliminate change management, or at the very least the aspects that are slowing things down.
How To Eliminate Change Management
So you’ve identified that change management is slowing down your business and causing more problems than it is resolving, what next? Here are some steps you can take to improve your processes and eliminate change management stumbling blocks:
Make all your processes customer-centric
By customer-centric, we include your colleagues too as they are your customers when it comes to most change that needs to be managed. Of course, any big change that affects external customers needs to be a priority as that can badly impact on sales and reputation, but the most important thing is to make sure these processes are specific to the customers affected. One size doesn’t necessarily fit all, so don’t try and shoehorn processes in where they don’t fit.
Be lean and flexible
To achieve the above, you need to eliminate change management wherever it is too rigid and/or bloated. Change management processes for the sake of processes must be stripped out to speed things up and give you a lean and agile set of procedures that do the job in half the time or less. And flexibility is key because not every change that needs to be managed is the same, so your processes shouldn’t be either. Colleagues will get sick of these processes, especially if they feel like a waste of everyone’s time for smaller changes that simply don’t need the same rigmarole as something more all-encompassing.
Better sign-off processes
How are your changes currently signed-off? If there’s a committee who meet once a week (or once a month!) to agree on things, this will inevitably cause irritation and inefficiency, so you need to scrap that right away. Sign-offs should be decided on a case-by-case basis, depending on the size and severity of the change being implemented. Too much of this kind of decision-making is done because of a culture of fear and blame, leaving individual managers unwilling to stick their necks out, but this only causes more problems.
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Empower your staff
It’s not just managers who can be stifled and encumbered by change management processes. Your staff needs to know that you have the confidence in them to achieve what they are meant to achieve, and holding them up with red tape is the opposite of this. So strip away the processes and procedures around change management that are holding your staff - and therefore your business - back.
Communicate!
One element of change management that you can never eliminate altogether is the need for clear communication with staff and stakeholders to make sure they are informed and engaged. No matter how lean your process becomes, you still need to factor this in, otherwise, you will still lose people along the way.
Change management will always have its uses because change is a part of life for any business. However, if the processes are more about box-ticking exercises than guiding through developments and improvements, you need to eliminate change management until you can finally achieve meaningful and impactful change.
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How to Improve Business Processes [4+ Practical Ideas] by Amit Kothari https://tallyfy.com/improve-business-processes/
Whatever your business is about, you probably use a lot of different business processes. A process is something a company is built on – it’s the day-to-day repeatable tasks that keep everything running. If you improve business processes, your entire organization will be more efficient and productive.
What’s a Business Process?
A business process is a series of repeatable tasks taken by either an individual or a team to achieve some sort of business goal.
The main keyword here is “repeatable.” The process is something you do repeatedly. One of the most common examples here is new employee onboarding. Whenever you make a new hire, you go through exactly the same steps…
Handling the paperwork Readying the workplace Scheduling an orientation etc.
In contrast to processes, you have one-off tasks or projects. They’re something you have to do just once.
For example, you could have a one-off project to adopt Basecamp, a task-management software, company- wide. You’d purchase a subscription for the software, onboard your employees and you’re done. You won’t have to do this ever again.
On the other hand, if your business is all about installing software for companies, you could have a process for doing just that on a day-to-day basis.
Process vs Procedure
There are 2 types of processes, formal and informal.
The informal process is called just a “process” and it’s something that is implicit. Your employees do it on a day-to-day basis, but it’s not really something you give too much thought. You haven’t documented it, improved it, etc.
The formal process is called a “procedure.” Unlike a regular process, the procedure is documented. Your employees follow a very strict set of rules on how to carry out the process, which ensures that the work they do is as efficient as possible.
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Turning your processes into procedures is very useful for your company. While some of your employees might not be happy about the lack of freedom, your organization will benefit in a number of ways…
Clear Accountability – Every employee gets a defined role and the exact list of tasks needed to accomplish. Everyone will know who’s in charge of what, making it unlikely for them to make mistakes Increased Productivity – The procedure should be the most efficient way a process is carried out. Hence, your employees will have more free time to work on what matters.
To turn your processes into procedures, you need to document the most effective variation of the process & standardize it company-wide. We’ll explain how to do both in a bit, as well as other ways of improving your company processes.
Learn more about the differences between processes and procedures with our article.
How to Improve Business Processes [4+ Practical Ideas]
Most business owners tend to have a “don’t fix what’s not broken” mentality. Unless you’ve really spent a lot of time optimizing the processes, though, there might be a lot of simple ways to improve business processes.
One of the easiest ways to start here is…
Idea #1: Process Documentation and Standardization
Simply enforcing one process company-wide might be very helpful for improvement.
More often than not, there are 4-5 different ways employees carry out a process. If you find which approach is the best, you can simply document it and ensure that all of your employees stick to it.
While there are different ways to document a process, the most straightforward approach is to visualize it and turn it into a process map.
A process map is a simple flowchart that accounts for the steps you need to take to complete the process. For example, if the process in question is employee onboarding, your process map would look like this…
As a given, before you document the process, you need to first know which approach to carrying out the process is the best. So, you’d want to interview all the employees that are involved in the process and figure out what steps they follow.
Then, you measure each of those processes. The one that is the most efficient in terms of time, output, etc. should be the one you standardize.
Once you’ve identified the best process, you need to document it. As we’ve already mentioned, you’d do
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this by using a process flowchart. There are 3 simple ways to do that…
Pen & Paper – The simplest approach is to just grab a pen, a piece of paper, and draw the flowchart. Chart Software – Software specifically made for the purpose of creating process maps. The added benefit here is that the document will be digital, so you can easily share it with your employees.
Once you’ve got the process document, all you have to do is share it with your employees and ensure that they follow the standardized model. To make sure this sticks, you can reward the employees that actually stick to the new rule, rather than continuing with work as before.
Or, to help with enforcing the new process, you can use a workflow application instead.
Workflow Application
Workflow applications help you digitize, track and manage your processes.
The gist of it is, you create a digital version of the process online (or pick a template) and assign different employees to different tasks or steps.
Then, the software keeps track of the process and helps you manage it. Specifically, it helps with…
Process Tracking – By digitizing your processes, you can track them start to finish through the platform. Everyone can see who’s responsible for what, what are the deadlines, whether there are any bottlenecks, etc. Analytics – Keep track of your key metrics for each process. Instead of having to manually measure the efficiency of a given process, you can just use a workflow application to do it for you.
Not sure which application to pick? Check out our guide to picking the best workflow management system for your business.
Idea #2: Streamlining the Process
If you think that a given process is not performing as well as it could, you can try streamlining it.
By definition, streamlining a business process means improving its efficiency by taking out useless steps, adding in new better steps, optimizing certain steps, etc.
To streamline your processes, you’d start off by creating a process map (as we’ve already covered).
Once you have the map, you have a much better understanding of the process, allowing you to make accurate predictions on what you could improve.
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While a map is very useful on its own, though, it works best when combined with other process analysis methods.
There are 2 types of analysis you might need to do – one for problem-solving (if you’re trying to fix something that broke) and the other for optimization (if you want to make a working process better).
Here’s how each of those works…
Problem-Solving
These tools are meant to help you find what went wrong with a given process and how to fix it.
One of our favorites is the 5 Whys. The way the methodology works is, you keep asking “why” until you figure out what’s the root cause of the problem.
So, for example…
1. Why did the company lose Client X? Because the product wasn’t up to their expectations 2. Why? Because the product wasn’t manufactured based on client’s specifications 3. Why? Because the manufacturing director misinterpreted the client brief 4. Why? Because there were several points within the project specifications document which were not explained well enough 5. Why? Because the sales team lacks the technical background needed to convey information the right way
At this point, you already have several potential solutions to the problem.
You could, for example, create a new communication channel between the two departments to sort out any misunderstandings.
Or, you could add a team member from manufacturing to the sales department so that they’re more specific with the documentation.
Other than the 5 Whys, there are a lot of other analysis tools out there. You could, for example, use the Fishbone Diagram, a tool that helps you determine the relationships between causes and effects.
Optimization
In some cases, you have opportunities to improve processes even if they’re working fine as-is.
Business Process Optimization is a bit harder than problem-solving, though, since there isn’t a one-size
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fit all formula. Every process is different, so potential improvements can really vary.
You could, however, ask yourself the following questions to get a sense of direction…
Are some of the steps in the process costing more than they should? Taking more time than they should? Are there a lot of missed deadlines and bottlenecks within the process? Which step within the process is most critical to product output? Is there any way to make it more efficient?
Idea #3: Process Automation
While it’s very rare to be able to automate a process from start to finish, there are usually a lot of opportunities for automating the steps it consists of.
BPA is the automation of a process (or process steps) through technology or software. It should be noted, though, that process automation is not the same thing as industrial automation. The first specifically deals with the automation of a process through software, while the second is physical automation. Think, robots building cars.
Here are a couple of business functions that would benefit from BPA…
Task or To-Do Automation
A lot of the tasks you do on a day-to-day basis can be automated with a tool such as Zapier. The tasks aren’t usually anything too substantial, though. Software can’t really handle most of the work that a human can – you can’t ask the software to do an entire process for you.
What you can do, though, is automate the minor tasks that the process consists of.
For example, let’s say you’re selling some software through a website. For anyone that’s interested in the product, they fill in their email address in one of the opt-in forms.
For every lead you get, you want to transfer it to your Customer Relationship Management (CRM) software so you can reach out to them.
Instead of having to manually fill in the new leads, you can use Zapier to do it for you whenever there’s a new opt-in.
Any sort of process benefits from this type of automation – while the work you’re automating might just be 15 minutes a day, you’ll be saving up a lot of time in the long-run.
Not sure which task automation tools you can use? Well, there's are the 3 must-haves.
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Document Management
The document management process, if done manually, can be a hassle.
You send out an email to 6+ members of the management team with a document they need to fill in, and then you wait. This usually leads to a lot of follow-up emails, clarifications, and frustration, especially if you’re part of a large organization.
Document Management Software centralizes all of your document flows, making the whole process automated and transparent.
(Online) Customer Support
If you’re using an online customer support tool, there is a lot of room for automating the communication with your client.
Let’s say there are a lot of customers asking about one specific issue with the website. You’re already aware of the issue and are currently working on it. Despite this, you’re getting flooded with tickets and inquiries about the issue – and you have to answer every single one of them so that you don’t risk losing customers.
A lot of customer support tools, however, allow you to completely automate the replies. So if a customer complaint contains a certain keyword, the software automatically sends a reply.
There are a lot of other types of business automation tools out there. Check out our article to discover software for all types of automation.
Idea #4: Outsourcing
To save both time and resources, you can always outsource any non-critical business processes.
Business Process Outsourcing (BPO) means either the outsourcing of a specific business function (i.e, customer support) or a set of tasks or processes (VA in charge of lead clean-up process).
To learn more about outsourcing complete business functions, you can check out our guide.
On process outsourcing, on the other hand, we’ll get into a bit more detail.
To begin with, the processes (or steps) you outsource shouldn’t be something very critical to your company. While a lot of outsourced workers can be very reliable, it can sometimes still be a gamble.
Usually, the tasks you would want to outsource are anything that’s grunt work. Basically, that’s just about any task that takes too much time but requires no knowledge or expertise. So, for example…
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Administrative work Gathering lead contacts online Scraping information Scheduling meetings etc.
This type of work is usually done by virtual assistants (VAs). By outsourcing all the menial work, your full-time employees will have time to focus on the work that really matters.
To find the right VA, you can use either…
VA Agencies – This is the more expensive, albeit reliable, option. Rather than having to look for the virtual assistant yourself, the agency does it for you. Depending on the skill-set you need, they offer you the right virtual assistant. Outsourcing Job Boards – If you want to look for a VA yourself, there are a lot of options. Websites such as UpWork, Outsourcely, etc. house a lot of different specialists. While this option is cheaper than hiring an agency, you’ll need to put some more effort into finding the right employee.
Have you tried any of the ideas? Did you manage to improve your business processes? Let us know down in the comments!
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How to Improve Content Marketing Processes by Amit Kothari https://tallyfy.com/improve-content-marketing-processes/
Organizations typically set up processes to generate repeatable, consistent and predictable results with the least amount of friction possible. The approach to improving content marketing processes is no different, analyzing the individual workflows and steps to find the most efficient way to complete those repeatable tasks.
Over time, you'll refine those processes to run your business more efficiently. How you set up and refine those processes determines how effective your processes will become.
For marketers, content marketing is often a fairly manual process (translation: time-consuming.) But like all things, you can improve content marketing processes with a new approach as well as leveraging teams and tools to get the job done.
Improve Content Marketing Processes with Agile Marketing
The Agile approach is something common to software developed but it can also be applied as a marketing discipline. An agile approach helps you focus efforts on the customer to create more value, more often.
An agile approach to marketing also helps to improve content marketing processes by making it easier to adapt to change.
And change comes often in content marketing; consider how often Google has updated its algorithms to control the way content is shown in organic search results.
Companies need to get better at change, and adapting to what’s coming, by creating processes that are easier to manage. When everything you do is manually processed, and undocumented, the organization turns into utter chaos when change is forced.
There are 4 agile principles that need to be considered when working to change or improve content marketing processes:
1. Change for the customers to provide maximum value 2. Create cross-functional teams or tools that make production and promotion far more efficient 3. Have a bias toward action; doing is always better than not doing 4. Build, measure and learn; Get the content out the door and see how customers respond instead of getting stuck in perpetual research.
With those four principles in mind, there are a number of ways you can improve content marketing processes to stimulate growth and see tremendous ROI.
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More Efficient Ideation
Developing ideas for content marketing can be depressingly time-consuming. In my early days, I recall many an afternoon spent twirling a pen over my notes as I tried to brainstorm keyword silos along with content topics to better engage my audience.
In addition to topics, I had to determine what content formats would be ideal for the projects I was working. After all, not all audiences want to read a long-form blog post.
This is where your content marketing strategy can go off the rails almost immediately if you don’t have a documented process, which sadly is nearly 70% of marketers according to CMI’s Benchmark Budgets and Trends.
Without a documented strategy, it’s easy to flounder trying to develop the right kinds of topics or understand what kind of content you need to create.
Do you know the audience you’re writing for? Where is the content going to be posted? Where does the content fit into the funnel? What stage of the buyer’s journey are you writing for? What’s the value you’re trying to deliver? What’s the next step you want the audience take after digesting this content?
When you can’t answer those questions, it becomes much harder to generate ideas for content. This is why 60% of marketers struggle with creating engaging content. Rather than coming up with content based on a specific strategy, they start throwing out random ideas in the hopes of creating something the audience wants to hear.
To improve this part of the content marketing process, and other aspects going forward, start instead with creating a content marketing strategy to drive the direction of your campaigns and planning.
The Tools for Better Ideation
Once you have a content marketing strategy in place, ideation becomes much simpler. You know who your audience is, you know what they want and need, and you can easily create topics targeting specific phases of their journey.
I have very specific tools I use to help streamline ideation:
Buzzsumo helps me find the most shared content on any topic or keyword CognitiveSEO lets me scan competitor sites to find out which pages are ranked highest by referring domains, which can help you trail out to content that links back to their site Using the “top” tab in any Reddit community shows you the most interesting, popular content for your niche or industry Alltop provides a daily dose of the most popular articles in a variety of industries
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Likewise, I pay close attention to the influencers in the market I’m targeting to monitoring what they’re sharing.
Turn your ideation phase into a string of effective steps to quickly source content ideas.
Speeding Along Audience Research
The problem with audience research is that building a buyer persona or target audience is largely speculation.
Marketers create this picture of an ideal customer to fuel their targeting and try to establish product/market fit based on that buyer persona. Unfortunately, that buyer persona isn’t always accurate when it comes to developing content.
You may very well know exactly what your audience is searching for to find your products or services, but you know what they want from you, or how they feel? Do you understand their real needs?
A lack of clear research can be blamed on so many unsuccessful product launched and ill-conceived marketing campaigns. No matter how much you “know” the marketing will be successful, instinct cannot be trusted. Instead, you need to improve content marketing processes and strategies based on data.
The Tools for Better Research
To make the most of your time spent in research, and gathering the most authoritative data, here are tools you can work into your process:
1. Think with Google: Marketer’s Almanac – Information on how consumer behavior changes in relation to the seasons, holidays and special events. 2. American Fact Finder – A resource for searching U.S. census data with filters by age, income, year, race and location. 3. Business Dynamics Statistics – Use census data to see economic data on job creation, startups, shutdowns, business launches, expansions and closures 4. Nielsen MyBestSegments – A great tool to understand a certain regions demographic info and lifestyle habits
On top of the countless data systems out there, there’s no better way to understand your target audience than by going to them directly. When you’re planning out a new campaign and you need to improve the content marketing process, talk to your customers.
Create a survey or feedback form and ask them specifically about their concerns, fears, problems, likes, dislikes and more. Use that information to fuel your strategy going forward.
Remember to refer to your analytics as well. The content on your site receiving the most traffic and engagement can provide insight into what your audience wants to see. Under-performing content can be an indicator of topics or formats that aren't catching their interest.
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Rather than speculate, you can pull accurate data from the sources above to truly understand what kind of content – down to the topics – will bring the highest return in your content strategy.
Improving Content Collaboration
If you need to improve content marketing processes, you’re likely at a point where multiple people are involved in the production and promotion of your content.
Unfortunately, this is where a lot of processes and campaigns can come to a grinding halt. The more campaigns you have running, the greater the likelihood of a snafu, missed project, stalled campaign, or a task that gets overlooked.
The key to improving content marketing processes is to keep the work flowing, and utilizing tools that make that happen is critical to efficiency and getting campaigns launched.
Simple Tools for Better Collaboration
There are countless tools for collaboration, but I’ve found that nothing beats working in Google Docs. It’s the simplest web-based application for tracking revisions and suggestions and getting everyone involved without there being a mess. You can even work with different content formats, right down to story-boarding your videos and allow everyone a single space to work.
If you need more generalized communication, stay away from email. Several of my clients work within Slack, making it easy to keep up with conversations and attachments around a specific project. This is far more efficient than digging through endless email threads to find a single conversation.
Most importantly, you have an opportunity to use approval processes to track every phase of collaboration. A tool like TallyFy can ensure that projects move along at a proper pace, triggering notifications for approvals and next steps as content moves along.
Publication and Promotion
Producing the content is only a small part of content marketing. Honestly, I’ll spend more time promoting and repurposing my best content than I spend on writing. Without promotion, you’re greatly reducing the reach of your content.
There’s no set model for content promotion because of the variables involved (industry, audience, content format, budget, etc.). However, you should still develop and refine a repeatable process that fits your strategy and goals.
For example, when I publish a new piece of content I follow these steps almost to a T:
Follow social promotion strategy (x number of posts over the span of several weeks) to boost social engagement Paid social promotion, like a boosted post
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Post to LinkedIn groups Email subscriber list/audience segments Social bookmarking (Stumbleupon) Community engagement and sharing (Reddit) Repurposing (from blog to slide deck on SlideShare for example) Distribution (repost to LinkedIn Pulse, Medium) Paid distribution via Quuu Influencer outreach with mentions
Jay Baer, prez of Convince and Convert, follows a similar approach, with a documented process that transforms a single piece of content into 8 pieces of content.
You can replicate that same approach to improve content marketing processes and streamline your promotional efforts. This can greatly reduce the time it takes to promote your content, and also ensure that you don’t miss a step or opportunity.
What are you doing to streamline your marketing and improve your content marketing processes? Share your approach with me in the comments below!
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How to Improve Your Business With the Gemba Walk by Sonia Pearson https://tallyfy.com/gemba-walk/
When you’re looking for ways to improve a process, the boardroom may not be the best place to begin. It’s easy to overlook some important detail when you’re considering a process in an abstract way.
Toyota realized this and incorporated the Gemba Walk into its Lean and Six Sigma philosophies. And as you probably know, businesses all over the world have benefited from implementing Lean and Six Sigma. So, what is a Gemba Walk, and how can you get it working for you?
The word “Gemba” is Japanese for “the real place.” Visiting the real places where your business generates value is what the Gemba Walk is all about. In practice, it means spending time watching processes in action and asking people who are at the coalface questions about the work they do. The information you gather during a Gemba walk serves as the basis for your process improvement initiative.
Although the Gemba Walk was developed in a manufacturing context, it applies to any type of process. So, even if you’re in a service industry, it’s worth taking a closer look at how your team navigates processes.
How the Gemba Walk Works
Walking around looking at things and asking questions may sound simple, but in order to get the best value for your time, you need to follow a systematic process yourself.
1. Prepare for the Gemba Walk
Although one person can do a Gemba Walk on his or her own, especially in smaller businesses, it’s best to have a small team to help you get the full picture from a variety of perspectives. What you miss, another team member may notice, or perhaps you notice the same things but focus in on different details.
Who should you consider including in your team? Consider these people as potential Gemba Walk team members:
A manager who is relatively unfamiliar with the process you’re studying. He or she will have fewer preconceived ideas and will give you the fresh perspective you need. A supplier whose equipment or materials are used in the process. You will have the benefit of technical knowledge you don’t have. Is your equipment being used correctly? Are your materials being used efficiently? Your supplier may have valuable input to give. A customer may not be your number one choice for a Gemba Walk team but consider it nonetheless. What you think your customers want and what they value could be two different things. A sales representative has direct contact with customers and knows what they want. Besides
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giving input, it will also help your sales representatives to see how value is created.
2. Prepare Your Staff for Your Gemba Walk
You don’t want the team or teams under observation to feel uncomfortable with the Gemba Walk, so they need to know what you’re trying to achieve. Make sure they understand that a Gemba Walk aims to collect information that could make their jobs easier. It’s not about people and their individual performance. Instead, it’s about processes and making them more efficient for the good of all concerned.
When you brief your staff on the Gemba Walk, ask for suggestions. The people who physically do the work involved will often have the best insight into problem areas they’d like you to attend to. Asking for input and being receptive to the feedback you get helps your staff to feel that their opinions are of value and increases their engagement in the process improvement drive.
Essentially, the message you’re trying to get across is: “We’re taking a new look at an old process and as we do this, we’re going to ask you a bunch of questions. There are no wrong answers. Feel free to respond honestly. We’re not here to criticise you or your work, and your contribution to what we’re trying to achieve will be valued.”
3. Know What You Want to Achieve
“Process improvement” is a very broad term. What, precisely, are you hoping to achieve? For example, you may want to:
Find ways to save time Address quality issues Reduce costs Improve workplace safety Reduce any of the seven wastes of Lean Improve service and customer experience
4. Know That Gemba isn’t MBWA
Because both activities involve walkabouts, managers often get confused between Gemba Walks and Management by Walking About (MBWA). However, there are fundamental differences between the two. MBWA is much less focused, and it doesn’t involve the in-depth observation and open-ended questioning that form a fundamental part of the Gemba Walk process.
If this sounds a little intimidating, don’t worry. You don’t have to acquire the expertise of every person whose role in the process falls under observation. Instead, you will rely on the people doing the work to share their insights and expert opinions on the work they do. Asking the right questions will get you this information, and we’ll look at this aspect of the Gemba Walk shortly.
5. Follow Your Value Chain from Beginning to End
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There’s no better way to observe a process than following it from the point where your business springs into action all the way through to a finished product or service delivery.
Transfer time, the time it takes for your teams or employees to hand over to the next team or employee, and queue time after handover are often fertile ground for process improvement. The best way to spot bottlenecks or delays in a process is to follow it from start to finish.
6. Remain Focussed on the Process
Now that you’ve planned your route and have prepared yourself and your staff, your Gemba Walk begins. Remember, you’ve told your people that you’re not there to criticize them or their work. You are not gathering data for a personnel performance evaluation. Keep this firmly in mind.
This can be hard to do when you notice Johnny slacking off at the coffee machine, or catch Jenny messing around with her smartphone when she would be working. But if you intimidate your employees by finding fault, you’ve lost their engagement and can’t expect them to be open to you when questioned.
Some of the answers to your questions may not be what you want to hear, but again, the Gemba Walk isn’t the time to pass judgment on your employees, their opinions, or how you perceive their attitude. Remain focused on the process.
7. Ask the Right Questions
Remember that you are taking a fresh look at a process. Putting aside your preconceived ideas on what to do, how to do it, and when to do it may be hard to do, but it’s exactly what you should do. Some companies find this so difficult that they employ consultants to do the Gemba Walk. If you’re doing it yourself, try to approach it as if you knew absolutely nothing about the business process you’re investigating.
You may also find that the people engaged in a process have unofficially tweaked it for one reason or another. So, even if you think you’re up to speed with how a process is performed, try to forget this knowledge. Keep an open mind and don’t tackle any people performance issues you think you’ve identified.
All your questions should be open-ended. Questions that require “yes” or “no” answers, are out. Instead, you want people to elaborate. To get answers that will make your Gemba Walk effective, ask questions using the 5 W’s.
Who?
Who is involved in this part of the process? Who sets the work in motion? Who does what? Who else can do it? Who should do it?
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Who will take over when this part of the process is complete?
Note: “Who” is a people word. Beware of asking who should be blamed for any problems you pick up!
What?
What inputs do you receive? What do you do with them? What could or should be done instead? What outputs are you expected to deliver? What factors cause delays or waste?
Note: “How” questions are also open-ended, and if you think they will help to clarify the “What” questions, feel free to add some.
Where?
Where do materials or other inputs come from? Where is the work performed? Where else could it or should it be done? Where do your outputs go? Where are tools and equipment located?
Note: Movement doesn’t add value, and it takes time, so you want to limit this as much as possible. Small changes can make a big difference. Save a second, and you just saved that time multiplied by however many times the employee performs that portion of a task.
When?
When do you receive process inputs? When would be the best time to receive them? When do you find yourself waiting for something you need? When are you able to begin working on turning inputs into outputs (queue time)? When is your work complete? When you have completed your part of the process, how do you hand it over to the next staff member or department? When does the next sub-process begin?
Why?
Why do we perform this step or sub-step? Why do you do this portion of the task? Why perform tasks in this specific order? Why is it important to our customers?
8. Log Your Observations
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Your Gemba Walk will produce a large amount of information. In retrospect, you may find that observations that seemed trivial at the time impact on your process improvement strategy. Recording observations electronically is helpful because you and your team can share them, collate them, and decide where action is required. But even jotted-down pen and paper notes will be more helpful than nothing at all.
You aren’t going to even try analyzing the data you collect on a Gemba Walk and turning it into actions until after you’ve seen the whole picture. By that time, you could have forgotten crucial details. You and your team’s notes are therefore extremely valuable to the Gemba Walk’s success.
A camera can also be helpful. For instance, if you notice that there is redundant equipment that gets in the way, or if you observe that equipment layouts could be improved, you can link photographs to notes when trying to resolve the issue. Video is likewise useful on occasion.
9. Never Base Findings on Assumptions
If ten people do the same job, they can still do it in ten different ways. And even if you think there’s a cast-in-stone process methodology, people may have adapted it or interpreted it differently to you. An open mind is a prerequisite for a Gemba Walk. Assumptions are not facts. Get the facts.
10. Never Start Implementing Changes During a Gemba Walk
By all means, collect suggestions from employees, but never make any decisions or try to implement any changes right away. You first need the big picture. Then you need time to consider it carefully. What looks like a great idea for process improvement when you’re visiting sub-process one may not seem like such a good idea once you’ve reached sub-process ten.
Changing processes should never be done on an ad-hoc basis. You may find that there are unexpected impacts you didn’t take into account.
11. Give Your Employees Feedback
Before and during your Gemba Walk, you Employees gave their insights and suggestions. They deserve feedback even if you aren’t planning to make a single change. Whether you call a general meeting or send feedback in the form of a report or an electronic message, your teams will want to know what your findings were.
Although they may not have been among your Gemba Walk analysts or observers, your employees certainly took part in the process. Remember to give recognition to those who were free with information, suggestions, and opinions. Explain why certain changes were adopted, and if you decided not to implement certain suggestions, give the reasons you chose not to do so.
12. Follow up With Subsequent Gemba Walks
You’ve made changes to processes, but how effective are those changes? Your stats might look good, but
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stats can be misleading. Maybe you haven’t achieved the results you wanted after all. Why don't you see your projected results? The only way to know is to follow up, and since you’re working with practical realities rather than abstract theories, another Gemba walk is in order.
Alternatively, you didn’t spot anything that needed change, but is your process really perfect? Are processes still happening in the same way as they did before? Once again, a new Gemba Walk will help to provide you with the insights you need to answer these questions.
Beyond the Gemba Walk: Improving Your Processes
Knowing what you want to change in your business processes is a good start. The data you gathered in your Gemba walk will indicate what processes need to be redesigned or adjusted. Now, the real work begins.
How will you go about business process improvements? Once you’ve decided that, how will you capture, communicate, and implement the changes that you want to make? And given that change management is a delicate process, how will you go about making sure the changes are implemented with the minimum of hitches?
It’s not as simple as just revisiting the process areas you chose to improve your Gemba walk. Adjacent sub-processes may be impacted by your adjustments, and different, but related processes, could get into hot water too. For example, a change to a production process could affect the sales process, and you need to be on top of your game to deal with any worrying symptoms there.
At this point, you might feel as if you need to be omniscient. Is all of this humanly possible? Luckily, you don’t need supernatural abilities to design, test, and implement changes.
1.Know where the Problem Areas Are
You can analyze all your process flows using workflow software. For example, Tallyfy, a cloud-based process-flow solution, can help you to capture entire processes, implement them and analyze them at a glance.
Dashboard showing current, pending, and overdue portions of processes. In this example, shipping indicates a problem area
Where are the delays? How does each task flow into the next? Although you won’t have any preconceived ideas when undertaking a Gemba Walk, knowing what you want to improve and where you need to intervene once you’ve made those changes is the first step towards achieving a valuable result.
2. Model Possible Solutions
You don’t need to dive into implementation head-first and hope for the best. Use the same software to model ideas for process improvement before implementation. How will your changes impact elsewhere in the process? Do the changes you have in mind address the problems you identified? How do they impact
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on other processes in your business? Yes, a model isn’t the same as a reality, but it does indicate whether there are any serious gaps in your plan.
3. Test Them in Real-Life Conditions
Now that you’re happy with the model, it’s time to see whether your process improvement strategies work in real life. The time when an organization switches process flows is particularly delicate. Staff members need to understand your new process flow and their role in it. Managers need to be alert to queries, problems, and obstacles.
Tallyfy offers a way to issue instructions, remind employees of the methods and standards they now need to conform to and gives them a platform for reporting problems or delays.
Gemba Walks and Software Tools: A Powerful Combination
Gemba Walks give you new insights into how your organization navigates processes and where problems lie. The software can do that to a certain extent too, but what it can’t do is to observe as the human eye observes. For example, if a workstation’s layout is inefficient, software can’t report on that or make suggestions for improvement.
It’s highly unlikely that technology will ever be able to replace the Gemba Walk, but it can help you to find direction, test possible solutions, implement them, and monitor their implementation with much greater efficiency. It can also help you with communication and real-time troubleshooting.
Together, the Gemba Walk and Tallyfy can help you to achieve the process efficiencies you always wanted for your organization, sharpening your competitive edge, and boosting your bottom line.
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How to Map and Analyze an As-Is Business Process by Amit Kothari https://tallyfy.com/as-is-business-process/
When carrying out business process improvement, it's essential to start by documenting and analyzing the As-Is business process. This helps you gain the insight you need on the inner workings of a process, allowing you to come up with potential improvement ideas.
How to Document an As-Is Business Process
By definition, an "as-is business process" is the current state of the business process. Documenting it is essential for understanding how the process works and what the inefficiencies are so that you can later make improvements or even redesign the process entirely.
It’s usually used for 3 reasons…
Process Improvement – Understanding what’s wrong with the as-is process and figuring out how to improve it Process Documentation – Your new employees won’t know how any of the processes work. Rather than having to explain it over and over again, you can just show them the documented process. Process Standardization – Everyone in the organization is carrying out the process in a different way. You’d want to document the best way to do it make everyone aware of it
Before you can actually analyze the as-is process, though, you should create a process map.
The first step there is to actually understand the process. The most common mistake managers make here is assuming they're the expert on any process.
In reality, though, process improvement ideas rarely come from the C-suite. It’s from the people who really understand the ins and outs of the process: your employees. So let’s say there’s a problem with employee onboarding. To get a good idea on how to improve the process, you’d need to talk to everyone involved in the process: the HR, office manager, and the department supervisor.
Then, once you’ve established who’s involved, you need to get the right information. This is usually done by either observing the process or interviewing the key employees.
When you’ve gathered all the information, you can actually start with the process map.
The simplest way to do this is with a flowchart - simply putting down the steps of a process as they are. So for example...
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In other cases, if you're trying to do a specific type of analysis, there's the value stream map, SIPOC diagram, etc.
There are different ways to map a process...
Pen & Paper – The most straightforward approach. Grab a pen and a piece of paper and draw the process as a flowchart. Flowchart Software – Tools dedicated to creating process flowcharts. These are more useful if you’re planning on sharing the documented process with your employees digitally. Workflow Software – Works pretty much the same as a flowchart software. The main difference is that it also allows you to digitize and track the process. This tends to help with process standardization (no one can deviate from the best practice), as well as automation (the software reminds you whenever it’s your turn to do something in a process, as well as enforcing deadlines)
If standardization or documentation is your main goal, you’ve already done your job once you have the process map. If, on the other hand, you’re going for process improvement, then you need to analyze the as-is process.
Want to start using workflow software, but not sure which provider to pick? Check out our guide on how to pick the best workflow management system for your business.
How to Analyse the As-Is Business Process
Since every process is completely different, there’s no one-size fits all formula for analyzing it. You can try asking yourself the following questions, however, for gaining insights.
Are there missed deadlines for the process? Why? Which steps have the highest impact on process output? Think, product quality, price, etc. Is there any way to automate them? Make them more efficient? Are some of the steps taking longer than it’s reasonable? Are they costing you more than what would be reasonable? Why?
Other than that, you can also use several process analysis techniques such as the 5 Whys to gain more insight into potential improvements. The gist of it is, whatever issues you have with a process, you keep asking “why” until you find the root cause of the problem.
From As-Is to To-Be
Once you have a good idea on how to improve the process, you need to create a to-be process map. That’s the future step of the to-be process – how the process will be after you make changes and improvements to it.
The to-be business process will help you put the changes you want to make down on a map and finally implement them.
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Want to learn how to do process improvement with as-is and to-be processes? Read up our guide.
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How to Solve Any Problem With Root Cause Analysis (RCA) by Sonia Pearson https://tallyfy.com/root-cause-analysis-rca/
Have you ever had a seemingly unsolvable problem? Sure, you have! Your business is going all out trying to reach a specific goal or target, but you fall short. Someone says the equipment is to blame. So, you buy better equipment, but the problem persists. Then, your management team suggests that it’s human error, so you dive in with training interventions and performance appraisals. But the problem doesn’t go away.
What you need to do is identify the “root cause” of the problem, the less-than-obvious reason why you aren’t reaching your goals. If your Root Cause Analysis can find it, you can correct it, stop throwing time and money at it, quit putting out fires, and enjoy the success with which your hard work deserves to be rewarded. By eliminating the root cause of an issue, you can prevent it from happening again. Ever.
Sounds worthwhile? Let’s see how you’d go about doing your Root Cause Analysis as a problem-solving tool.
Many Symptoms Can Have a Single Cause
Before you even begin, it’s worth noting that you’re going to dig really deep and that by doing so, you could solve multiple problems at once. A single root cause can use can have multiple effects. As an analogy, think of an illness. It will have several symptoms. If you only treat the symptoms, you haven’t addressed the cause, and the illness won’t go away.
In the business context, solving a single root cause could solve several problems at once. For example, a root cause analysis on why a hospital patient received heart surgery intended for someone else found no fewer than seventeen reasons for why it happened. The root cause was the need for organizational change.
Things like quality issues, late deliveries, and missed targets could all come down to one, single cause. That’s the “root” you’re looking for. If you want to weed out problems, just skimming the surface will give you a temporary solution. Remove the problems by the roots, and it’s gone forever.
Root Cause Analysis: Three Steps to Root Cause Identification
Root Cause Analysis-based problem solving uses six simple-sounding steps. In practice, navigating them is more easily said than done, but the systematic approach will eventually lead you to that sneaky root cause that’s giving you so many grey hairs. Let’s unpack them:
1. Define the Problem
Now, you might think its easy to define a problem, but it requires careful thought and possibly a little
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investigation to get a proper definition. For instance, you could say: “We have an unacceptable number of product defects.” That’s not a good definition. How many defects are slipping through? What are those defects? What is the effect of the defect or defects?
Returning to the illness analogy, think about a visit to the doctor. You tell your doctor you’ve got a headache. Before the doctor starts examining you, he or she will try to get more information about the headache. When did it start? Which part of your head hurts? Are there any other symptoms that could be related to the problem? What’s your medical history? The more the doctor knows about your ailment, the easier it is to find out what’s causing it.
Spend time analyzing the problem so that you can define it in as detailed a way as possible. Don’t start looking for causes yet. That comes later.
2. What are the Reasons for the Problem?
Reasons aren’t the same thing as root causes. They’re just the obvious issues which you may already have tried to address. In some instances, you might end up with several reasons why something went wrong. That’s fine. You need the full list.
Confused? Aren’t reasons root causes? No, they are not! Here’s a simple example. You have a runny nose. What is the reason for the runny nose? The mucous membranes are inflamed. If you’re an allergy sufferer, you’ll know that the inflammation isn’t the root cause of your runny nose. A deeper cause would be an inappropriate response from your immune system, but that’s still not the root cause. The real root cause is your exposure to an allergen.
So, you can identify reasons for a problem, but just trying to deal with reasons still won’t eliminate the real cause of the problem you defined. You’re making progress with your Root Cause Analysis, but you’re not there yet. List all the reasons you found and move to the next step.
3. Root Cause Identification
There are several tools that you can use to get under the skin of your problem and down to its root cause. Expect to take more time on this step than you needed for the steps you completed so far. However, it’s worth being thorough. Finding a secondary cause might not give you the root cause.
Your Root Cause Analysis team has to dig and keep digging until they hit the bedrock of the issue.
Eliminating problems forever is a tantalizing prospect, so Root Cause Analysis is a very popular approach to problem-solving. Over the years, various tools have been developed to help businesses to identify root causes. The tool you choose will depend on how complex your problem is, how big your business is, and the amount of time and resources you’re willing to expend on problem-solving.
Here are a few examples of popular Root Cause Analysis Tools:
1.Fishbone Diagrams
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The Fishbone Diagram is a popular Root Cause Analysis Tool – and yes, it looks like a fish! Phrase the problem as a “why” question and place it at the head of the diagram. Now track possible causes using the Fishbone Diagram categories most relevant to your industry type. There are several variations, and it’s up to you to decide which ones are the most likely to apply to your problem.
Fishbone diagrams will help you to determine contributing factors that led to an issue. However, they may not immediately point to a process-based solution. To get there, try combining your fishbone diagram with the Five Whys.
2. The 5 Whys
The 5 Whys should point to a process that needs adjusting. Will you get there with just five questions? You might not. Keep asking “why” questions till you reach a point where you can identify the process you need to adjust.
Here’s an example:
1. Why could the vehicle not complete the journey?
The car broke down
2. Why did the car break down?
The engine seized.
3. Why did the engine seize?
There was not enough oil.
4. Why was there not enough oil?
It was not topped up in time.
5. Why was the oil not topped in time?
The driver did not check the oil before leaving.
Note that the final “why” points to a root cause. The driver did not check the oil. To ensure that this doesn’t happen again, the oil check needs to become part of the routine the driver follows. Even this simple example points to a situation in which you have a chance to eliminate multiple problems. Does the driver have a pre-trip checklist? What about checking tires and radiator water, and what about making sure that lights and indicators work?
3. Pareto Analysis
The Pareto Analysis is based on the 80/20 principle. Try it out. It works for both positive and negative
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results. Who buys 80 percent of your products? You’ll probably find that 20 percent of your clients give you 80 percent of your sales.
What causes 80 percent of your problems? Chances are you’ll find that 20 percent of the possible causes were responsible for 80 percent of them. You may want to address ALL the possible causes of a problem, but overkill is costly. Use Pareto analysis to determine what your priorities are and where your resources should go.
How to Address the Root Cause You Identified and Solve Your Problem
Now that you’ve zoomed in on the real reason why you have a problem, it’s time to do some problem- solving: three more steps, and you’ve arrived!
1. Design a Solution
When working on solutions, keep your Root Cause Analysis aim in view. You don’t just want to solve the immediate problem. You want to prevent the same problem from recurring. Here’s a simple example. You’ve figured out that all the defective products come down to a poorly-maintained piece of production- line equipment.
Just calling in a maintenance crew isn’t good enough. How will you make sure that maintenance schedules are followed in future? What symptoms would indicate that the equipment is due for routine maintenance? Who will be responsible for checking whether maintenance should be moved forward? What do they do, and what is their routine?
Do you notice the repetition of “routine”? That’s what you want to create: a situation in which the problem is prevented as a matter of routine. In other words, your solution becomes part of a repeatable process that is performed the same way over and over again.
Also, consider whether the changes you plan to make will impact other areas of your business. Changes to processes can have knock-on effects. Be sure you aren’t setting yourself up for a new set of problems when you implement the solution. To do this, you need to look at your process flows and how they relate to one another.
Simple example: you decide that your in-house maintenance team must check production-line equipment daily. Do they have the capacity to do this? Will they neglect other tasks if they need to do the daily check? Should you outsource a task they performed before you reached your conclusion?
Beware of overkill. You don’t want duplication slipping in just because you want to be extra-sure of eliminating the root cause of an issue.
The final part of the solution design process is to decide on checks and balances that will tell you whether your business is implementing the solution you’ve devised and whether it works as planned.
2. Implement the Solution
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Implementation means change, and change must be carefully managed. Everyone concerned needs to know about your solution and the reasoning that led you to believe that you can solve the problem.
So, explain the Root Cause Analysis process and how you arrived at your conclusion. Explain your solution and how you want it to be implemented. Ensure that everyone involved has the knowledge and resources they need to follow through and set a D-Day for testing your new system.
Keep in mind, though, that it's always better to first apply the solution on a small scale. You can never know what could go wrong. Once you're certain that the new solution brings results, you can start applying it company-wide.
3. Evaluate the Results
You’re nearly there! Now, you need to know whether you hit the nail on the head. When you designed the solution, you decided on key indicators that would allow you to see whether the solution works. Use these indicators to follow up.
In this instance, you’re going to see whether the symptoms are gone. The presence or absence of the issues that launched you on your Root Cause Analysis and problem-solving initiative will tell you whether you have successfully solved the problem. Remember to watch out for new issues that may arise elsewhere as a result of the changes you made.
4. Software Tools for Root Cause Analysis, Implementing Solutions, and Evaluation of Solutions
Although the software will never have the flexibility of the human mind, it can do a lot of the legwork for you. If you are using business process management software like Tallyfy, you can use its analytics to pinpoint your problem areas, especially if they’re time-related. At what point did the process start going awry? In other words, you can use it to help you with the all-important first step of defining your problem.
When performing your root cause analysis, Tallyfy will help you to identify bottlenecks and delays in the processes related to the problem you defined. These could be reasons for the problem rather than root causes, but if you follow the root cause analysis process through, you can figure out why they’re happening.
Once you’ve identified a solution to your problem (remember, a solution is related to a process), you can start work on the changes you want to make. Perhaps you discovered that solving your problem requires the elimination of a step in a business process. Simply go to the platform and remove the step. Now, when your employees run the process, the software ignores the step you removed, and the redundant step is out of the equation forever.
But how is your solution working? With Tallyfy, you can follow the implementation of your revised process and look for problems without ever leaving your desk. Best of all, it happens in real time, so you can respond quickly and decisively if problems arise.
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Does Root Cause Analysis Work in Problem-Solving?
There’s no arguing it: if you can identify the real root cause of a problem, you can solve it. Examples of successful problem-solving with Root Cause Analysis abound. Boeing managed to improve its safety record. Wind power company, Clipper managed to solve its wind turbine issues using Root Cause Analysis. The list goes on.
However, obstacles to problem-solving using Root Cause Analysis do exist. The biggest culprits are:
Failing to define the problem comprehensively. Failing to identify the real root cause. Poorly-designed or short-short sighted solutions. Insufficient attention to implementing and evaluating solutions.
Should you try problem-solving with Root Cause Analysis? Yes! Put on your thinking-cap, mobilize your team, and get to work! Won’t it be wonderful when you can feel secure in the knowledge that the problems your business faces now will never rear their ugly heads again?
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How to Solve Any Problem with the Eight Disciplines (8D) by Sonia Pearson https://tallyfy.com/eight-disciplines-8d/
What’s the best way to solve product and process-related problems? According to Ford Motor Company’s Team Orientated Problem Solving program (TOPS), you need to take an 8-D perspective. It’s not as complicated as it may sound. The 8Ds or disciplines, target three basic aims: identify the problem, correct it, and make sure it doesn’t happen again.
Since the eight disciplines were first defined, the philosophy has been adjusted with the addition of a "0" discipline, so we’re really looking at nine steps or disciplines to guide you on your path to problem- solving success. Don’t be deterred by the word “discipline,” the process outlined in the eight (or nine) disciplines provides a straightforward template for problem-solving, and you don’t need any special training to follow it.
D0: Prepare For Problem Solving
Nobody likes putting out fires, but preparedness can avert disaster. The D0 step is the added discipline that gives us a total of nine, and it was tacked on after the eight disciplines had already been formulated.
The need for this additional step will be apparent to anyone who has faced a potential business disaster. Panicking isn’t a solution, and since the kind of problems we address with 8D methodology aren’t predictable, its good to be prepared for the unexpected and be ready to face it with a cool head. Knowing how you’ll respond in emergencies helps you to act faster.
Once you’ve taken this vital step, you can begin working on any problems that arise without losing your cool.
D1: You Need the Right Team
You need inside information from the people best-acquainted with the process or product that proved to be dysfunctional. It’s important that they understand what role they'll play in fixing the problem. You should let them know that you're not looking to pin blame on someone - you're a project team working on solving the problem.
To complete all eight disciplines, you need a committed and knowledgeable team composed of members who are as eager to solve the problem and prevent its recurrence as you are. Communication is key. When things go wrong, those with the most intimate knowledge of the product or process are waiting for the ax to fall. They will feel responsible for the problem, but that works in your favor when you allow them an opportunity to be part of the solution.
D2: Define What the Problem Is
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Knowing what the problem you’re working on might seem obvious - but it usually isn't. To avoid miscommunication between your team, you need to clearly define what the problem (and the definition should cover all the bases). Just saying “A component is faulty,” for example, isn’t a clear enough definition. To get all the details you need to effectively define a problem, you need to use the 5W2H approach. In a nutshell, you need to figure out...
Who is directly affected by the problem? Is it your customers? Is it a problem that was picked up internally? What is the problem? Pinpoint it as finely as you can. A customer who has a customer service or technical complaint might have one or more reasons to be unhappy. Exactly what was it that didn’t work? When was the problem first picked up? Where did it happen? Your problem-solving approach is a bit like a game of Cluedo. Defining the problem means you need to know the location as well as the person, the particulars of the problem, and its timing. Why did it happen? Your team may have more than one explanation as to why the problem happened. Record all the possible reasons they can think of. How did it happen? Circumstances are important too. This piece of information is vital because it might point towards an overlooked scenario that you’ll need to take into account in future. How many / much? Quantification forms the basis of measurement. It will also help you to determine how effective your problem-solving efforts have been once you’ve implemented solutions.
D3: What Interim Measures Can You take to Contain or Limit the Consequences of the Problem?
Letting a potentially problematic system run or producing potentially defective products will only amplify the problem you’re trying to solve. Interim measures could be as drastic as stopping production. This, however, is sometimes mandatory. It's better to delay shipment rather than ship a defective product.
Damage control is not a permanent solution, but at least it ensures that you’ve limited the negative effects the problem has on your customers and your business. Allowing work to continue as normal when you know that there’s a problem isn’t an option you can risk.
While you and your team search for solutions, you need to know that further harm to your business reputation isn’t happening. Decide on the right strategy to temporarily curtail the issue and implement it as soon as possible and move on to D4.
D4: What Caused the Problem?
Identifying the root cause of a problem can be trickier than it seems on the surface. There’ll usually be a chain of events leading up to an issue, and solving the problem requires you to track the chain of events that led up to it all the way back to the single set of circumstances that triggered it.
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For example, a clothing manufacturer discovers that the seams of its jackets are coming apart. It would be easy to blame the person who was in charge of the stitching, but perhaps the machine was faulty, and its just possible that the machine was faulty because of the type of cotton that was fed into it, and the wrong cotton was fed into it because there was a mix-up in the stores, but the stores only made their error because the supplier didn’t label packages properly.
Use the 6m method to help you track problems to their source:
Man or Manpower: If it seems that human error is to blame, what caused the mistake? Was the operator aware of what is required? Did he or she have sufficient training to meet the requirements of the job? What if he or she wasn’t physically up to the task? Machine: If you thought that working with machines was any easier, think again. There is a multitude of reasons why machines might fail. Is the right equipment being used? Was the equipment correctly calibrated? Has the machine been adequately maintained so that it is in good working order? Materials: As any manufacturer will know, you can’t make good quality products out of poor materials. But were the right materials being used? Did they have the right physical or chemical properties? Method: your staff could be well-trained, your machines well-maintained, and your materials of a suitable standard, but if the methods used aren’t up to scratch, you aren’t going to get the desired results. Measurement: If you ever added a tablespoon of salt to a recipe that required a teaspoon, you’ll know that using the correct, standard measurements are necessary if you want to get good results. Environment: The workplace environment: temperature, humidity, light, and cleanliness can also be to blame when problems arise.
Other than the 6m method, you could also try using the 5 Whys analysis. It's a problem-solving methodology that helps you find the rootcausee of an issue by asking "why" enough times.
D5: Decide on Appropriate Corrective Action
Now that you and your team are confident that you’ve pinpointed the cause of the problem you encountered, it’s time to start working on the determination of solutions. This could involve generating a list of possible actions and thinning it down to the ones you think likely to be the most effective. Your aim is to remove the cause of the problem, and that could entail anything from a simple intervention to a multi-faceted improvement plan.
Whatever solutions you choose, you need to be sure that the measures you implement will continue being implemented in the long-term. This may involve setting up a system of checks and balances, additional quality control measures, or extra steps to be incorporated into standard workflows.
D6: Act and Confirm that Your Action Corrected the Problem
Having come this far with the eight disciplines approach to problem-solving, you might feel that it’s time to celebrate success, but you still need to wait a little longer. This is only the fifth of the eight disciplines,
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so although you’ve come a long way, your job isn't done yet. Implementing the sixth discipline (corrective action) is even more important than deciding what ought to be done.
Communicate with affected employees so that they can understand the importance of any changes that are likely to affect them, why you’re making these changes, and what problem you’re working to eliminate. But even once they’re doing everything according to the new methods you’ve devised with your team, you still need to be sure that you’ve correctly identified and dealt with the gremlin that’s the cause of your woes.
That means careful monitoring of the “what” that started you on your problem-solving journey. Have you eliminated the problem? Keep tabs on your outputs in the long-term to be sure that you have.
D7: Prevent the Recurrence of the Problem and Entrench New Standards
So far, you and your team have hit the spot. You’ve identified why things went wrong, and you’ve successfully introduced changes that address the root cause of the problem that set you all to work. But you haven’t reached the final step just yet. By introducing new methods, you’ve effectively introduced a new standard, and you want that standard to be upheld. Your company’s reputation depends on it.
The work you’ve done has shown that you need to make changes to the way your company does things. You’ve implemented the modifications you and your team thought necessary with success. But these changes need to be incorporated into long-term business processes so that they become second-nature. There will certainly be changes to policies, procedures, and workflows even if they’re as simple as adding a new quality-control step to a process.
The Change management process can be tough, even if you're only improving or changing a single process. Be sure everyone’s on the same page and follow up. To make this step easier, you can try either documenting your new processes or adopting workflow management software.
Workflow software can help enforce any changes you make to the new process - rather than having to manually explain the change to the employee, you can simply let the software do it for you.
D8: Eight Disciplines Reached. Celebrate Success With your Team
Without your problem-solving team, you would never have come this far or been this successful. By putting your heads together, you have permanently resolved a knotty problem. That’s reason to celebrate, and it’s also time to thank each team member for his or her contributions to the process. Each of them deserves recognition, and that recognition should be formal and organization-wide.
It’s also time to renew you and your team’s commitment to continuous improvement a commitment no organization should be without. Giving thanks where they are due will encourage future efforts, both within your team and across the organization. Who doesn’t want to be a hero? The eight disciplines approach to problem-solving depends on your team, and they deserve the recognition you give them.
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How to Stop Email Overload [10+ Actionable Tips] by Amit Kothari https://tallyfy.com/stop-email-overload/
Email Overload is something most professionals struggle with, in an attempt to stay on top of their inbox. If you feel like you could spend an entire day trying to manage your emails, you’re not alone. That feeling of dreading the Monday morning inbox is pervasive – made even worse if your inbox is constantly filling with emails.
On the average work day, over half of business users check their email six or more times per day, with more than a third of users checking their email constantly throughout the day. On average, professionals spend nearly a full hour per day just trying to manage email overload.
And that hour adds up in the long-term - hurting either your personal or professional life.
Email overload can be, however, easy to manage. In fact, some companies are working diligently to eliminate or minimize internal email use.
Realizing that Emails can be pervasive, after-hour Emails were banned country-wide in France. Another example is a complete ban on internal Email usage by Thierry Breton, the CEO of Atos. Instead, he's replacing Email with an internal social network, making communication a lot less time-consuming.
If you're neither a citizen of France or an employee of Atos, worry not! There are a lot of easier ways to deal with Email overload.
Email Overload Isn’t Really About Email
Email overload is really just a symptom of a much larger issue – either on a personal level or with corporate protocols. On a personal level, not having standards with how email is managed leads to a constant review of the inbox while trying to work on other more pertinent projects. Every time you hear a "ding" on your phone, you zone off from the task at hand into something completely different.
So, your email transforms from a simple communication tool to a distraction.
For corporations with unclear communication guidelines, the inbox becomes a dumping ground for every thought, idea, meeting request, note, memo, and corporate communication – to the point where everything gets buried and nothing is important.
Can you remember the last time you lost something important in your inbox, and wasted precious time searching and sorting through email threads trying to find a simple piece of information? It likely wasn’t that long ago.
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It also creates a vicious cycle. When you get stuck trying to manage a backlog of emails then your response time drops dramatically. This leads to additional follow up emails which just adds to the chain of noise.
Whether from a lack of corporate control or personally mismanaged time, there are plenty of ways to get caught up and manage the torrential flow of email going forward.
Tip #1: Write Shorter Emails
A good way to get crushed by email overload is to spend too much time responding to each person. Naturally, you want to make sure your communication is understood, but taking the time to explain every detail assumes that your recipient won’t understand even the most basic instructions.
Save yourself a lot of time and keep your emails short and sweet. Write in short sentences, avoid fluff, and use bullet points to get the idea across quickly.
For example, instead of:
[Dear Jonathan,
I would like to express my most sincere gratitude for your last email. I found the attached document to be highly impressive, with all the insight, data and the graphs!
Concerning the document, however, I wanted to ask, if I may, could you send me more intel. on figure # 6?
Yours sincerely,]
Derek]
Try something like:
[Hey John,
Can you send me more intel on figure #6?
Thanks.]
Tip #2: Don’t Use Reply All
Hitting “reply all” when it’s not necessary just populates everyone’s inbox with unnecessary emails, especially if your response is only intended for one person, or a select segment of the group in the email.
It can also elicit a lot of unnecessary responses with people weighing in that don’t really need to reply. That fills your own inbox with additional emails that you need to waste time managing and removing.
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Tip #3: Stop with Follow Up Emails
It’s great that you want to be polite, but not every email needs to have a follow-up. Emails that contain little more than polite responses to signify that you received an email aren’t necessary. You don’t need to acknowledge every email you receive. While it may seem friendly, it only wastes your time.
Tip #4: Consider a Social Intranet
If the majority of your employees communicate via email it leads to email overload for everyone. You can replace company-wide, and department-specific distribution lists by switching over to a social intranet.
Platforms like Salesforce have social integration to make communication easier so teams don’t get buried in emails constantly. You’ll find similar functionality in many project management systems. Not only can this help control email overload, they can be used to make processes more efficient as you streamline communications.
Tip #5: Stop Flashing Your Email Address
If your email is valuable to you, and you’re aware of email overload becoming a problem, then limit who has access to your email address. If it’s readily available on your website, business card, social channels, article author bios and more, then pull it. That’s like flashing money in the street.
Give people your email address and that will be the way they choose to reach out and contact you. You can control email overload by controlling the communication channels you leave open for people.
Tip #6: Stop Being Polite
If you’re getting unsolicited emails in an already busy account, don’t be afraid to tell people not to contact you. Don’t be shy about who you do and do not want to receive emails from. A pushy sales rep will continue to reach out to you unless you make it very clear that you don’t want to hear from them.
“I am not interested in your service/product. Please don’t use this email in the future, it is for important business only.”
Tip #7: Implement Social Chat
If you don’t want to invest in a major platform like Salesforce, you can always use a simpler communication alternative besides email. A tool like Slack or Fleep lets your teams communicate with one another in archived discussions without jamming up inboxes.
It’s also much easier to follow, archive, and search discussion threads. At Tallyfy, we use Slack to communicate among our individual teams and rarely need to rely on email save for the most critical updates.
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Tip #8: Use Inbox Management Software
There are a lot of tools that'll make managing your inbox a lot easier. Unroll.me, for example, allows you to bulk up all the promotional Emails in one single Email, or unsubscribe from each newsletter with a click.
Sanebox, on the other hand, splits the Emails into two categories: important or personal VS promotional. The first kind you get ASAP, the later in daily email re-caps.
For more Email management software, check out our complete list of the best tools on the market.
Tip #9: Keep Your Work Email Work-Only
Treat your email like a locked, password-protected gate allowing direct access to you. You wouldn’t give every person you meet a key to just walk into your house and interrupt you, so don’t treat your email the same.
Setup a throwaway account you can use for any groups, lists, and general communications. This way your primary email is only used for the most important of business matters. You can check your throwaway account at the beginning or end of the day when it won’t interrupt your normal workflow.
Tip #10: BLUF
BLUF stands for “Bottom Line Up Front”. Get the main point across in your email and start working with employees to get them to practice the same formatting. This is great for detail heavy emails and makes it easy for someone to skim the email and get the point without having to read hundreds of words to understand the purpose of the email.
This will help your employees, and you, spend far less time sorting and reviewing emails.
Tip #11: Use Email Templates
Don’t waste time writing fresh responses to every email you receive. More than likely, the same email is sent fairly often to users, employees, leadership, customers, etc. Generate email templates that are stored and can be customized for the recipient.
So, create a template for any specific situation which just needs a tiny bit of personalization. This'll end up saving a lot of time for you and your employees, allowing you to focus on what's important.
Tip #12: Block Out Time for Email
If you’re the type to drop what you’re doing every time your email goes off, then you should consider designating time for email in blocks throughout the day rather than letting it constantly interrupt your workflow.
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Review it when you arrive at work, then check it a few times idea in small time blocks. Don’t sweat missing anything critical. If it’s an emergency, they’ll follow up quickly with a phone call, or bypass email and call you anyway.
To make sure you hold up to this, you can try using BatchedBox, a tool that bulks up all the non-urgent Emails together and sends them to you at specific times per day.
Tip #13: Stop Relying on Email for Workflows
It’s fairly common to drop follow up emails on projects and move to the next steps via email updates. This is a good way to lose tasks, miss events, and spend far too much time digging through email threads for details.
All it takes is one missed email to grind a process to a halt.
Use a tool that helps to automate processes and create approval workflows. With more automation, projects continue to move forward without the high volume of emails going back and forth to track the steps of each process.
For an easier way to manage workflows without Email, give Tallyfy a go.
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How to Succeed with Business Process Management for SMBs by Amit Kothari https://tallyfy.com/successful-business-process-management-smb/
Does business process management immediately make you think of large corporate structures? With armies of people working together like clockwork with each cog meshing perfectly with the others? As processes tick through to completion, workflow improves. In addition, productivity increases, overhead shrinks, and customer service improves. But why shouldn’t process management SMB style make these advantages be available for small and medium businesses too?
Size Matters, Especially When Your Business is Smaller
SMBs have similar needs to those of bigger enterprises. In some ways, SMB needs for process management are acuter. This is because they do not have the levels of resources, the granularity of resources, or economies of scale of larger organizations. Enhanced process management can compensate in many ways. Examples are:
Hiring and training. A sound process for onboarding and bringing employees up to speed offers two major advantages. You avoid mistakes and you save time and energy by not having to rethink the whole activity each time. Profitability. Good process management exposes inefficiencies. You can spot wastes of time and other resources and eliminate them. Less waste means lower costs and higher profits. Company image. Do you want to convince a prospective major account to do business with you, persuade your bank to extend financing possibilities, or even sell your company? Being able to demonstrate solid processes and process management can significantly boost the attractiveness of your company to all these entities.
The Need for Alternatives to Paper or Programming
Historically, business process management was linked to company IT systems. Specific tools were created, such as Business Process Execution Language (BPEL) and Business Process Management Notation (BPMN). Business users “talked” BPEL and BPMN to specify to IT teams how they wanted IT systems to manage processes. On-premise solutions had relatively high price tags and required consultants and specialists to get results.
The more affordable alternative for smaller companies was the use of paper-based systems. Many of these are still in operation today. However, if the paper document doing the rounds gets lost (aka buried in somebody’s in-tray), the process breaks down. When the process is in operation, there is no easy way to know how far it has progressed or to accelerate it. Indeed, the waiting time for tasks in physical in-trays or queues accounts for as much as 90% of the total time to accomplish the process.
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Tallyfy's no-code BPM software offers the same functionalities as your average BPMS without you needing to write a single line of code. Read our article to learn more.
Making Business Process Management Intuitive and Accessible
Cloud computing and easy, pay-as-you-go access to cloud-based service have radically changed the technical context. Tallyfy leverages cloud accessibility to offer process management SMB organizations can use immediately, without capital investment or specialist involvement. Features that make it easy for SMBs to start or improve their process management include:
Intuitive graphical interface. Properly simplified and streamlined BPM makes it obvious how to define a process, run it, and improve it. Most SMBs have neither the in-house expertise nor the inclination to use any kind of programming language. Tallyfy eliminates such complexity right from the start. Natural, “speed of thought” BPM. The way you think about your business process maps directly onto the way you define it in the application. Terms used for activities and objects correspond to those you use every day. So do any choices to be made within the process when it is running. Dashboards. BPM works best when businesses can easily see processes in action, track progress, and immediately resolve any issues or performance bottlenecks. Integration with other SMB tools and systems. Some SMBs function with PC-based word- processing and spreadsheet tools, like MS Word and Excel. Others use server-based systems and applications from vendors like Oracle and SAP. With Tallyfy, the same ease of use is available for business process management that uses different levels of IT sophistication, with integration to leverage existing IT resources. Mobility. BPM should also be available to employees working off-site, plus those simply using mobile computing devices (smartphones or tablets.)
Applying Process Management to SMB
One challenge in putting BPM to work effectively in SMBs is to make necessary changes to attitude and behavior of staff inside the SMB. The process management SMB mindset can be inflexible. This is especially true in companies where in-house experts feel close to the processes they know and operate. Thus, it may be difficult to change a culture or “the way we do things around here.” Patience and persistence will be your allies, plus a process itself to help bring conscious, constructive BPM into the smaller business:
Identify processes and the rules by which they work. Select one of the processes to start with. A quick win that brings visible and meaningful advantage may be a good choice. Start with a first draft and add or modify rules as required. If you find processes becoming too lengthy (double-digit numbers of steps is one indicator), try defining sub-processes. Iterate with additional processes and improvement as required.
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Leveraging BPM Knowhow and Tools
There is also a good chance that somebody somewhere has already tackled the kind of process improvement that could benefit your business. Tallyfy offers information on many of the use cases that are relevant to SMBs. Client and employee onboarding, sales processes, safety checks, project initiation, and compliance are just some examples.
In addition, whether your existing processes are as efficient as you would like, they also represent an important body of knowledge. In SMBs, knowledge about processes is often held in the company owner’s or employees’ heads. With Tallyfy, you can easily transfer and document your knowledge, by recreating the processes directly on the screen as easily as you would write them down on paper.
Scaling Business Process Management for Growth in your SMB
If profitability is the highest priority for SMBs, growth is often right behind. Thus, business process management must, therefore, scale with company operations. Ongoing adjustment, improvement, and extension should be possible at any time, without having to suspend the process or activity while changes are made. However, remember that common sense and sound business thinking must always underpin business process definition. BPM applied to bad processes will only make the poor performance happen faster. On the other hand, SMBs that apply a system like Tallyfy to build and manage sound business processes lay the foundation for solid business and growth.
Want to give Tallyfy's Business Process Management Software (BPMS) a try? All you have to do is register! The software is free for up to 5 users.
Are you an SMB or startup that's making good use of BPM? Let us know how down in the comments!
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How to Use Deming's 14 Points to Improve Quality by Sonia Pearson https://tallyfy.com/demings-14-points/
Quality management is a topic that is close to any business owner and manager’s heart. Whatever business we undertake, we want to do it well – and if we can be the best, outdoing all our competitors, so much the better. Dr. W. Edwards Deming, a respected academic, engineer, business consultant, and author also felt that quality was the key to success. He suggested what is today known as Deming’s 14 points.
Deming's 14 Points for Total Quality Management (TQM)
Dr. Deming is credited with having a profound influence on Japan’s rise to economic prominence after the Second World War, and he is still remembered through the Deming Prize for Total Quality Management. So what were these fourteen points? Let’s take a closer look at each one of them.
1. “Constancy of Purpose” towards Product and Service Improvement
Deming believed that remaining competitive in the market required “constancy of purpose” towards quality. He saw this, not as a short-term commitment or a luxury, but as a long-term philosophy that would ensure business survival. When considering Deming’s 14 points, it’s important to remember that this one is about planning for long-term delivery of quality.
Reactive, short-term solutions can only have a short-term effect. According to Deming, a more farsighted approach is needed. Doing the same things better is all very well, but Deming believed that businesses should also innovate, conduct research, and continually improve product design.
Most importantly of all, he reminds businesses that the results of their activities are for the benefit of the customer, and therefore, the customer’s needs should come first when making business decisions. After all, without customers, no business can survive.
Since customer needs change over time, it’s up to businesses to prepare for new challenges, and whatever we do, the goal of continually doing it better should be foremost in our minds.
2. Adopt a New Philosophy
Producing quality requires much more than lip-service. The constancy of purpose must be supported by a buy-in to quality that runs right through the organization. Achieving this requires more than traditional management. It requires leadership. That means that staff should be inspired to support quality rather than needing to be forced to do so.
In other words, Deming’s 14 points support building a culture of quality with a commitment from every person in your business. At the time, Deming predicted that moving from a traditional management focus
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to a leadership focus would be a change in the way we do business. That was back in 1982. Today, we see the truth of his prediction taking shape in the business world.
Just as we have a vision for the future of our businesses, we should have a vision for the quality we want to deliver. Once this is in place, we can strategize so that we can realize our vision. Reactive changes made because of competitive pressure don’t necessarily result in improvements that put the customer first. Deming encourages us to treat quality management as a strategic priority that leads to the fulfillment of customer needs.
Deming suggested practical interventions including proper training for staff, full management support when help is needed, proper supervision, and planning for management continuity.
3. Build Quality In – You Can’t Inspect it In
Deming wasn’t impressed by the idea of after-the-fact quality control. He encouraged businesses to stop depending on inspections to get quality. He pointed out that inspections can miss defects, that they are costly, and that they don’t improve quality because all they can do is find poor quality.
Instead, he recommended building quality into every process a business undertakes. Finding faults may prevent harm to a business, but it’s not good enough. Instead, we should track them down and change processes so that similar faults can’t happen ever again.
Those of us who aren’t fond of math might balk at Deming’s insistence on using statistical controls on processes and not only physical ones, but numbers don’t lie. If you aren’t that keen on learning how to generate valid statistics, don’t worry. Smart software can do the number-crunching for you; Tallyfy’s built-in analytics are an example of this.
What are you aiming for will all this? We can sum it up by saying that improving processes to eliminate errors is far better and less costly than trying to correct errors after they have already occurred.
4. Use Single Suppliers for Any Item
How often have you heard that a supplier is to blame for poor quality? Perhaps you’ve experienced it yourself. You found a cheaper supplier only to find that the quality or reliability of the materials or services you received was lacking. You can blame your suppliers all you like, but at the end of the day, it’s your business’s reputation that suffers.
Deming points out that the relationship between a business and its suppliers should be a mutually beneficial one. The business should be willing to pay more for quality. When this happens, the supplier can meet the business’s needs because it has the resources to do so. Nobody is trying to drive prices down while still expecting the best for less.
Instead, Deming suggests that businesses should build long-term relationships with suppliers. Focus on one supplier for each input, and there is greater motivation for the supplier to meet your business’s needs and even go the extra mile.
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You can also expect greater consistency. Perhaps there will still be variations in supply that you need to deal with, but the more suppliers you work with, the more variation there will be and the harder it will be to manage quality.
Suppliers can become part of your never-ending drive towards improvement, but to do so, there must be a stable relationship characterized by trust.
5. Improve Processes Constantly. Improve Them Forever
In this point, Deming encourages businesses to continuously analyze and improve the way they perform processes. He points out that by improving productivity and training its staff so that they’re able to deliver their best, a business also improves its profits.
For many busy managers and business owners, this may seem like a daunting prospect. Just when you thought everything was perfect, it turns out that something could be done better. The temptation to adopt a short-term fix is great. But Deming points out that we can fix flaws in our business processes permanently. Once we’ve done that, we can move on to the next process improvement secure in the knowledge that the last issue we uncovered won’t be a problem ever again.
Back in the eighties, it would probably have been very difficult for businesses, especially small ones, to constantly keep tabs on every process. Today, Business Process Management software makes your task a whole lot easier. And when you need to tweak a process, doing so is as simple as editing the business process you set up. The workflow automatically adjusts to the change.
6. Use On-The-Job Training
As business people, we’re inclined to view training as being costly. Apart from the expense of sending people on courses, there’s the productive time lost while they return. And unless you choose the training carefully, you aren’t necessarily going to get tangible results from it.
Deming’s 14 points return to the training theme on several occasions, but his emphasis is on-the-job training. The aim of training should be quality improvement, and that means reducing variation and getting consistent, predictable results.
You also don’t want all the knowledge of a process, or even part of it, to rest with only one or two people. If you do so, your business is at risk. Deming encourages knowledge-sharing, and he exhorts managers to let their staff see how they fit into a process rather than just giving them work to do.
In practice, there are several ways we can do this, beginning with the employee onboarding process. If people know where they fit into a team, and how the team’s results depend on their work, they are far more likely to care about the results they achieve.
The concept of training extends to management. Although you don’t need to know all the details of how to do every job, you do need to understand what people do, and what obstacles to quality your team members face. Armed with this knowledge, you can work to eliminate obstacles to quality.
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7. Use Leadership Skill
According to Deming, managers and supervisors should focus on leadership rather than the traditional management style that calls for tight supervision and a very formal organizational structure.
Instead, Deming encourages understanding, collaboration, and a coaching approach to management. You will always need a certain level of supervision in a business, but working to help people deliver their best is more effective than taking punitive action when you don’t see the results you wanted.
A well-lead team will do more than just keep their heads down and work. They become part of your quality management team. They ask for help, make suggestions, and point out stumbling-blocks you may not have noticed.
Setting and meeting targets and quotas is all very well, but is your team meeting its potential? As a leader, you empower them to do so. You don’t just talk and expect others to “do,” you listen, you understand, and you act. You create an environment in which people can realize their potential. You motivate them to want to do their best, and they deliver their best.
8. Drive out Fear
Were you ever a junior employee who was scared of the boss? Perhaps you had a teacher at school who terrified you. Could you deliver your best under these conditions?
There were probably times when you had questions you were too afraid to ask and opinions you kept to yourself. And the more that boss or teacher reacted to your mistakes, the more mistakes you made. Then you’d try to cover up those mistakes, hoping against hope that they wouldn’t be picked up. That’s what fear does. Fear is not conducive to quality.
You, your managers, and your supervisors need to share an understanding of the need to drive out fear. Your employees should feel free to report problems, own up to their mistakes without being asked about them first, and know that you’re there to make things better without resorting to punitive measures.
As a manager, always address the problem, not the person. Work with employees to find solutions, and share your quality goals so that they know what you’re trying to achieve. Remember, some of your best quality and process improvement suggestions come from the coalface – but if you don’t have open lines of communication, you’re never going to hear those suggestions.
9. Break Down the Barriers Between Departments
When people work as a team, they can achieve more than they would on their own. Although your company will have departments, they can’t work in isolation. If product designers never work with production, and if production doesn’t work with sales, your organization is never going to reach its potential.
True, your designer isn’t about to become a salesperson, but without input from the product’s designer,
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your salesperson won’t be able to sell effectively.
What are the product’s special features? How do they meet customer needs? And since your sales team is in direct contact with customers all day, every day, shouldn’t product designers talk to the sales team before they even begin work on a new product design?
Meanwhile, the production also needs to be part of the loop. Does the production team foresee any problems in producing the new design? By working together, departments can spot possible problems and eliminate them before they ever occur.
Deming recommends that departments recognize, communicate with, and serve the departments that are the “clients” of their work as well as keeping end-users of products or services in mind.
10. Ditch Slogans and Communicate With Individuals
Slogans sound so nifty, but do they have any real effect? “We put the customer first” is a typical example. It sounds great, but what is its practical meaning? How does it apply to every worker in your internal value chain?
How about “Let’s try harder”? If you’re already doing your level best, you aren’t going to be happy about being told to make some mysterious change to the way you work.
Deming is alive to the resentments that generalized catch-phrases and exhortations to ever better performance can cause. He points out that any productivity or quality problems you face won’t be fixed with a slogan. Instead, you need to look into business process improvement. If your processes work well, then your business is already delivering good quality and working productively.
We also can’t expect generalized goals to become personal ones. Deming recommends setting individualized goals for every person, and along with the new goals, there needs to be a roadmap that shows them how to achieve them.
Simply put, reducing defects means finding out where they occur and how the process allows them to occur. Increasing productivity means identifying obstacles to productivity and removing them. Use tools like Fishbone Diagrams to help you get down to root causes before you suggest solutions.
11. Quotas are Incompatible With Quality in Production
It’s true that you need to have some numerical targets, but for too many companies, setting a quota becomes a replacement for good leadership. In Deming’s opinion, high production targets make quality suffer. For instance, if you are production line worker and you get paid per piece, you will finish as many pieces as possible. You are working as fast as you can, but are you working as well as you can?
Again, Deming urges us to focus on processes. A well-designed process should deliver the results we want. If it doesn’t, then the process needs attention. He reminds us that good leadership will encourage people to feel proud of their work. They already want to perform well. It’s up to management to create an
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environment in which they can do so.
Do numbers go out the window? They do not. But instead of measuring the people who do the work with quotas, the numbers should be used to evaluate the process.
Some thinkers point out that numbers can serve as a motivating factor, particularly in sales environments, but Management by Objectives should be approached with caution. When you set a numerical target, are you encouraging people to take shortcuts that will affect quality? What behavior would you prefer to motivate? Remember, what you measure is what you get.
Finally, if you want to set a numerical goal, be very sure you know how your business can reach it. Without a plan and a method, numbers are meaningless.
12. Remove Barriers that Prevent Teams From Feeling Proud of Their Work
Deming believed that taking pride in one’s work is essential to quality and process improvement. You’ve probably experienced this yourself. When you love what you do, you do it better, and you feel good about the results. But if people are constantly criticising you and comparing you to others, you stop enjoying what you previously loved.
It’s natural that some workers will acquire skills faster than others, and it’s natural that they will get better results than their counterparts. While it’s great to recognize achievements, the rest of the team should never feel judged or be made to feel that they are valued less than others are. Deming says that the quality system will ultimately get everyone working according to the same standard.
Process problems also cause workplace frustration. You’re expected to deliver X output, but to do so, you need Y input, and Z tools would help you to get your job done more easily. If you don’t have the right inputs and the right tools, delivering X becomes a daily nightmare. Are you to blame? No, the process needs fixing so that you have the tools and inputs you need.
Let’s take the analogy further. You’ve been struggling with your job for the last year because the process you’re working in is flawed. When it comes to your performance appraisal, the numbers show that your work is barely acceptable. How much do you love what you do right now? Meanwhile, a colleague who constantly makes mistakes gets praised because the numbers look good.
Deming makes a tough call on managers. As a leader, your job is to help other people do their jobs by creating systems that work. If someone falls outside of the system, you have to correct that, but if they’re working inside the system, you need to work with them to figure out where the system fails.
13. Encourage Education and Self-Improvement
While Deming talks about on-the-job training first, he also advocates personal growth through continued education. When people are learning things that are relevant to their jobs or your business, their skills improve, and they are better able to face the challenges your business faces in the present and the future.
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Just as exercise makes a body more agile, education helps us to improve our thinking processes. It’s up to you what kind of educational programs you’re willing to sponsor in full, but if your employees want to improve themselves in other areas, it’s great if you can find ways to support them. Remember, your business isn’t always going to stay the same, and the new skills your employees gain could prove helpful in the longer-term.
The better the quality of the skills-sets your business has its disposal, says Deming, the better the overall product and service quality you can deliver.
14. Make Transformation Everybody’s Job
Dr. Deming points out that if you want to improve quality or productivity, you need to look to your systems rather than your people. But when it comes to finding solutions, he advocates getting as much input as possible from the people who carry out the process.
He suggests using business process notation such as a flowchart to capture processes as they are. Next, we can ask people to help us think about how we can change processes to improve the quality of their outputs. And since each step in a process impacts on subsequent ones, preparing for transformation becomes everybody’s job.
Finally, when the time comes to implement change, your team is ready to make it happen. Perhaps members will spot a few extras that could work better, and they won’t be afraid to share their observations. You now have the beginnings of a culture of excellence where improvement is ongoing, and the sky’s the limit!
Putting Deming’s 14 Points Into Action
Deming doesn’t go into detail about how to effect change, but his philosophies have had a profound influence on the world of business. From a practical perspective, using Deming’s 14 points as an overarching philosophy will result in change – and it will be a change for the better.
With modern workflow software like Tallyfy at our fingertips, implementing the process changes that stem from adopting Deming’s thinking becomes easier. There’s no need for staff to remember every change and every tweak when they receive full instructions for process tasks through Tallyfy. And when you and your team decides that this or that detail could work more efficiently, making the change part of the way you always work is as simple as changing, removing, or adjusting a process step.
Deming’s 14 points move from theory to practice with Tallyfy’s help, and continuous improvement becomes a reality.
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How to Use Kaizen to Continuously Improve Your Business by Amit Kothari https://tallyfy.com/kaizen-continuous-improvement/
Change and improvement is an essential part of any organization. To stay ahead of your competition and never miss an opportunity, you have to constantly be looking for different ways to improve.
There are 2 types of “change” that can happen in an organization…
Breakthrough Change – Anything that’s a major overhaul of the organization. These usually require months of planning, work, and a high budget. Continuous Improvement – All the minor changes you make on-the-go. Think, any tiny detail that, if fixed, could make your business more efficient.
More often than not, you’ll be doing the later.
Breakthrough change is something an organization does very rarely. For example, if you’re adopting some software organization-wide. Or, if you’re planning on making major strategic changes.
Continuous improvement, on the other hand, is the day-to-day stuff: making minor changes or improvements to your company processes. In a lot of cases, continuous improvement is also a major part of breakthrough change. Once you make an organization-wide change, there are a lot of small improvements to be made all around.
This isn’t as easy as it sounds, though. Just about every company manager knows that they should focus on improving the organization. The hard part here is the “how?”
One of the most popular approaches to continuous improvement is Kaizen, which is a Japanese approach to management.
What’s Kaizen?
By definition, Kaizen means change (kai) for the better (zen). The main idea of the philosophy is continuous improvement – there’s potential for improvement in just about everything.
To get a better idea of how this works, we can contrast it to the Western idea of “Innovation.” Here’s how the two concepts differ…
Innovation Effect Long-term, but no major Short-term, but drastic changes change Pace Small steps Big steps
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Change Gradual & consistent Abrupt & volatile Involvement Everyone within the Key players / technical organization specialists Concentration of People Technology Effort
Now, Kaizen does sound nice in theory, but you’re probably wondering how it translates into practice. How, exactly, do you use the power of Kaizen for the benefit of your own organization?
Well, there are 2 distinct parts to Kaizen…
Philosophy – The main idea behind Kaizen is that improvement should be everyone’s responsibility, whether they’re the C-suite or shop floor employees. Helping improve the organization should be both encouraged and rewarded. Action - Even if you achieve a culture of continuous improvement, it doesn’t mean that the actual improvement initiatives will happen on their own. You’ll need to organize Kaizen Events, which is the execution part of the methodology.
In a way, the philosophical aspect of Kaizen leads to real action
If your company has a culture of improvement, your employees will show initiative and organize Kaizen Events.
If it doesn’t, though, your initiatives are more likely to fail. Unless you have buy-in from the employees, they’re not going to be very proactive in helping improve the company.
For a company that does manage to get both aspects of Kaizen right, though, they’ll end up reaping countless benefits…
Efficient Processes – Since the staff will constantly be focused on improvement, your processes will be as efficient as possible. Satisfied & Engaged Employees – Everyone likes to be valued in a company. By making your employees' opinions be heard, considered and implemented, they’re significantly more likely to be happy with the job. Better Product or Service – As a result of the first two points, your product or service will be better in terms of either quality or price.
Using Kaizen to Improve Your Company
Getting started with Kaizen can seem daunting. There’s no one-size-fits-all solution to changing company culture – every organization is unique in its own way.
Nor is it easy to organize Kaizen Events. Unless there’s a lot of engagement and hard work from your employees, the initiative won’t go far.
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There are, however, several best practices that can make the adoption of Kaizen easier.
Since the two aspects of Kaizen are interconnected, we’ll cover how to make each happen.
Establishing a Culture of Kaizen
The first step to making a real change to company culture is actually making the announcement.
Let your employees know that from now on, you’ll be doing things a bit differently. Make it clear that any kind of suggestions for process improvement will be valued and rewarded.
This should, however, be reflected in the behavior of your management team. They should never dismiss offers of help or suggestions for improvement.
Then, you’ll need to figure out a way to actually receive process and analyze these suggestions.
According to Masaaki Imai, a Japanese management consultant, one way to do this is by implementing Kaizen Corners.
A Kaizen Corner is a place where your employees can go to submit their ideas.
If you’re old-school, you can make it an actual place. Or, you could always do it online through software or email.
For the implementation part, Maasaki recommends doing it in 3 stages…
Stage One – All the submitted suggestions are considered and evaluated. If they’re not put into practice, the employee gets feedback on the “why.” This stage ensures that your employees know their opinion is valued & won’t be discouraged. Stage Two – You train the employees on how process improvement works, allowing them to contribute better. Stage Three – Create a rewards system for employees that really work hard to help with process improvement. This way, the entire initiative isn’t just a phase that your employees will get bored of.
In some cases, though, your average employee can’t help too much with process improvement. While they do know their job, they can’t help with anything overly technical.
For any such task, you would want to employ a group of experts with a technical background.
Once you’ve got the ball rolling & already have a handful of ideas on how to improve your organization, you can start organizing Kaizen Events.
Improve Processes with Kaizen Events
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Past all the theory and philosophy, Kaizen is composed of a bunch of tools or methodologies that help put all that into practice.
The tools are part of “Kaizen Events,” which in layman’s terms, means a process improvement initiative. That’s when you pinpoint a problem and start working towards a solution.
Some of the methodologies in the Kaizen toolkit include…
Kaizen Methodologies Definition Suggestion system The Suggestion System is a methodology for communicating improvement suggestions from the employees to the company management. One of the most common ways of doing this is by putting “suggestion boxes” around the office. If you’re more tech-savvy, you could also use some sort of software for this Quality Control Circle While all of your (QCC) employees can propose improvements, not everyone can actually implement them. QCC’s are a small team of specialists who work on finding problems & proposing potential solutions Total Quality Unlike the rest of the Management (TQM) Kaizen tools we’ve mentioned, TQM is more of a general approach to management. The “Total” part means that everyone in the organization, from shop- floor workers to C-suite, should be involved in
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the process of company improvement. The “quality control,” on the other hand, means the process of measuring and improving your processes. In a nutshell, TQM is the Japanese equivalent of Business Process Management (BPM) Plan-Do-Check-Act The PDCA cycle is the (PDCA) steps you need to take to keep your processes functioning as efficiently as possible. “Plan” means identifying the process to be improved & creating an action plan. “Do” is the implementation of the aforementioned plan. “Check” is, well, double- checking whether the plan actually brought about the expected improvement. If this phase has negative results, you start the cycle anew. If it works, you move on to “act,” which is the implementation of the new process company- wide Business Process Process mapping is Mapping more of a hands-on approach to process improvement. You create a workflow flowchart, which is essentially the exact steps your employees need to take for any given process to be
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completed. If you have the process visualized, it’s significantly easier to come up with potential improvements
Once you’ve pinpointed a very specific problem, you can organize a Kaizen Event to solve it.
The usual steps here are…
Organize the Team – You’ll need a Quality Control Circle (QCC) to help solve the problem. This team usually consists of several shop-floor employees, process specialists, and someone from the management. Pinpoint the Exact Problem – You need to be very specific on this. What’s the exact problem you’re trying to solve? What’s the expected outcome? To make this easier, you can use Business Process Mapping. Find Key Metrics – If you don’t know what you’re improving, the entire initiative will go to waste. Figure out what metrics to track & benchmark so that you have something to compare with the new process. Create Potential Solutions – This step, as a given, varies depending on what process you’re improving. It could mean anything: removing steps from a process, adopting new software, etc. Test the Solutions – Compare the new metrics to the old. Is the new process performing better? Keep in mind that sometimes, the solution can be short-term. You could, for example, improve product output and defect rate at the same time. The first can be seen from the start, but the later might take a while to pop up. Implement the New Process Company-Wide – Once you’re sure that the new process is functioning better than the old, you can start scaling it.
Want more practical tips on how to improve processes? These 4+ methods might help.
Process Management with Workflow Software
As we’ve already mentioned, one of the key parts of Kaizen is improving company processes.
Back in the old days, this was done manually. You find a process to fix, draw it out on a piece of paper, and implement potential improvements.
Today, this isn’t exactly the most efficient option. There are, after all, software solutions available for just about everything.
Business process management software (BPMS) is the best companion you can have on when it comes to implementing Kaizen in your workplace. Such tools help you with…
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Changing Processes – Once you’ve come up with improvements to a process, you need to communicate it with your employees. Unless you only have a handful of employees, though, this can be very hard. Some employees might not fully understand how the new process is done; others might often forget the new changes. With BPM software, all you have to do is change the process within the platform. From that point on, the system will make sure that everyone sticks to the new process. Process Enforcement – People hate change. In some cases, your employees will disregard or forget the changes you’ve made to the process, reverting back to the old way of doing things. Once you change a process with BPMS, though, it’s set-in-stone. Process Analytics and Improvement – Process improvement should always be based on data and metrics. You can’t improve a process without knowing if you’re doing the job right. Process management software comes with inbuilt analytics, keeping track of any given metric. This way, it’s extremely easy to keep track of your improvements.
And you know what the best part is? Starting with process management software is completely free. Sign up and see how the software can help improve your processes.
Not sure which BPM tool to use? These 5 are some of the best on the market.
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How to Use PDCA Cycle to Improve Process Efficiency by Amit Kothari https://tallyfy.com/pdca-cycle/
The PDCA (Plan-Do-Check-Act), also known as the Deming cycle, is an essential technique for process improvement. It’s a framework that helps you change and improve your processes.
What’s the PDCA?
PDCA is a methodology for achieving continuous process improvement. It’s essentially a feedback loop of improvement – you establish how the process operates as-is, figure out how to improve it, and finally, implement the changes.
The concept was first developed by Dr. Williams Edwards Deming, a management consultant, in the 1950s.
PDCA consists of 4 phases…
Plan – Identify what the problem is and analyze it. Find process inefficiencies. Develop potential solutions. Do – Implement the solution on a small scale (for minimized risk). Check – Benchmark your new process to the old. Is it more efficient? Were you right about the problem / solution? If the solution is less than satisfactory, go back to the “plan” phase and come up with better options. Act – If the solution was helpful, implement it company-wide.
PDCA, as a framework, can be extremely helpful if combined with just about any process improvement methodology.
There are 2 common use-cases for PDCA:
Problem-Solving – Whenever something breaks down or isn’t functioning as it should be. PDCA can be used as an analysis tool for uncovering the issue and coming up with a solution.
Process Improvement – The fact that something is “working” doesn’t mean it’s functioning the best it could be. You can use PDCA as a means of finding potential improvements to existing processes.
The 4 Phases of PDCA Cycle
To help you use PDCA for your organization, we’ll dive deeper into each of the steps and explain the exact steps you’ll need to take.
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Plan
Before you can make any change to the process, you need to pinpoint the exact issues you’ll be addressing.
If there’s an explicit problem you’re trying to solve, you could use something like the 5 Whys analysis to find it. The gist of the methodology is, you keep asking “why” until you uncover the root cause of any problem.
So for example…
1. Why are the sales down? Because the sales team are underperforming 2. Why? The new leads are uninterested and cold 3. Why? The marketing department started working with new affiliate lead generation partners 4. Why? The finance department rejected the tender from the older partner 5. Why? The partner company raised their rates by 15%
Once you know what the root cause of the problem is, you can start coming up with solutions. In this case, if the company revenue is taking a significant hit, it might be a good idea to switch back to the old partner (despite the rates). Or, the company could always look for new potential partners.
If the process is working as it should & you’re simply looking to improve it, you should consider process mapping instead. For this, you’ll need to figure out how the process works as-is and then create a flowchart diagram. As an example, the following is a client onboarding flowchart...
You can use the diagram to pinpoint inefficiencies within the process and come up with improvement ideas.
Not sure how, exactly, you could improve the business process? The diagrams not helping too much? These 4+ methods might help.
Do
Once you’ve found the right solution to a problem or a new way to optimize a process, you can start the implementation.
This should, however, be on a small-scale. You can’t know for sure whether your fix is going to be successful, and running it company-wide can be extremely risky.
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The “small-scale” depends on what the process is. More often than not, though, this means a single team, department, or a manufacturing site (as opposed to the whole plant).
Check
Now that you have empirical data on how well your new process works, you can benchmark it to the old.
It’s crucial to be very critical of this part, though. At a glance, your solution might be working as planned. Later, however, you might discover that it only works in the short-term.
For example, with your new process, you might be able to increase product output. While this sounds amazing at first, you might later realize that the new process also has a significantly higher defect rate, bringing you all the way back to square one.
So, unless you’re 100% certain that the solution you’re using is the best option, you might want to consider other possibilities. If you’re not, you can always start all over from the “Plan” phase.
Once you’ve found the best potential solution, you can move on to the final phase.
Act
You can finally start applying the solution company-wide. You should consider, though, that PDCA is a loop, not a one-time initiative.
While your process is functioning better now, you can’t really know if that’s the best it can be. Maybe you’ll discover a better way of carrying out a certain process step? Or, some new software could help automate the process?
Your new process has now become the baseline, which you should always try to improve. You can repeat the PDCA process as many times as needed until you’re certain that the process is as efficient as it can be.
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How to use the 5w2h Method to Get Things Done by Sonia Pearson https://tallyfy.com/5w2h/
Have you ever had a plan of action that somehow turns into a plan for inaction? Or perhaps you’ve been to a meeting and received pages of minutes that don’t seem to have anything to do with real results. You start wondering why you ever went to that meeting in the first place! The 5w2h Method is a great way of making sure everyone’s on the same page and getting things done on schedule. It’s also a great guideline for effective meeting minutes that actually mean something!
Use it to implement new ideas, as a business process improvement and problem-solving tool, or even as a format that keeps meetings efficient and productive. By the way, 5w2h was developed for business process improvement, but it’s also a great way to record and plan any series of actions.
Turning Ideas Into Action With the 5w2h Method
Without action, ideas don’t serve any useful purpose. Whether you’re brainstorming a new course of action on your own or with a team, the 5w2h method is a great tool for getting things going.
Set up a table with seven columns or else create a list with subheadings. Answer these questions, and you’re well on your way to an action plan that works!
What has to be done? Why does it have to be done? Where should it be done? When will it be done? Who will do it? How should it be done? How much is the budget for doing it?
It’s simple, right? Well, perhaps it’s not as simple as it seems on the surface.
Break Down the Tasks to be Completed for a Single Result
If you’re launching a marketing campaign for a new product, “Launch New Product, Because I want to sell it, in Texas, by the 23rd of August, I’ll do it, Properly, for $1,000” isn’t going to be very helpful even though it answers all the questions we’ve listed.
Your task will likely consist of a great many action steps that all have to work together before you get the results or the process improvements you want. And since you need your team to be coordinated, with one picking up the ball as soon as the last player has done his or her share, those tasks need to be well- orchestrated.
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The What, Why and Who of Things
The steps you decide on will fill the “What” column while the reasons they need to be done fill the “Why” column. Make a single person (or “Who”) responsible for the completion of each action even when whole teams will be involved. That makes accountability clear and makes it hard to shift blame if a task isn’t completed on time. And the time-bound element or “When” is important if you want to avoid procrastination and ad-hoc down-prioritizing!
To make responsibility-assignment for any sort of project, you might also want to try giving the RACI matrix a shot.
Wheres, Hows, and Budgets
Decide for yourself whether you need the “Where” column. It could come in very handy if you’re working across several geographical locations, but if you’re working from a single one, it may be less useful. However, do remember that it can be used to indicate preferred supplier names or places where your team will store information.
“How” might also be a field that you leave blank at times. After all, you’ve presumably hired people who know how to do their jobs and there’s no real point in micromanaging or stating the obvious. Nevertheless, it does make a good place to indicate any methods you specifically want to be followed or to list the standards you want your team to adhere to.
The budget or “How much” column may also be left open at times. For example, if Johnny is going to bring you a report, the cost of doing so is of less interest than it would be if he were spending $10,000 on new stock!
How to Use 5w2h in Business Meetings
Meetings shouldn’t just be talk shops. Ultimately, all that matters are actions to be carried out, feedback on previous actions completed, and decisions made. It’s worth remembering this if you’re chairing, and using the 5w2h method to record actions to be taken is just perfect.
When scanning through minutes, delegates will know what they must progress with and give feedback on by the next meeting without having to wade through pages of blurb first.
Feedback on previous actions can be noted for the benefit of anyone who was unable to attend, but the next steps are the real “meat,” so keep them at the top of the document. Finally, decisions will usually result in some form of action, but it’s still worth recording them as decisions under a separate subheading. This allows you to review decisions for consistency every so often.
Making 5w2h Work for You
Just making a great plan isn’t the same as sticking to it. If you want your carefully-formulated 5w2h plan to be worth more than the paper its written on, follow-up is important. This may or may not call for a
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meeting, but whether it does or not, you need to fix a date for review.
Project management software like Tallyfy can make this a lot easier and save you and your team a lot of time in the meeting room. In fact, you can dispense with the 5w2h document altogether by capturing the same elements in the form of a process flow. That eliminates the “I forgot” excuses on the part of your team because they’ll receive a notification on the start date. It also means that you can pick up on areas that are going off schedule on an ongoing basis instead of waiting for the next meeting or review.
Whichever method you choose, ongoing or fixed period reporting, you do need to follow up. After all, even the best-laid plans often need a little adjusting. And if everything is going according to plan, you can have the satisfaction of knowing that it’s all coming together.
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How to Write a Project Proposal That'll Get You Noticed by Sonia Pearson https://tallyfy.com/project-proposal/
When it comes to trying to get yourself noticed and listened to in the world of business, you'll probably end up having to write a project proposal every once in a while.
Project proposals can be relevant in a lot of different situations and are an essential part of project management as a whole. Let's say you're working in a big corporation - you might have an idea or two on how to make your department run smoother. You can't just go up to the management & say, "guys, I have the most amazing idea ever!"
Or, let's say you're a marketing agency. If a potential client approaches you and asks how'd you'd handle a project with them, you can't just eat up all their time and start talking for hours.
For both cases, what you'd need is a project proposal - a document that describes what, exactly, the project entails, what's the budget, timelines, etc. So as you could have guessed, nailing a project proposal can be what stands between you and a promotion.
If you're wondering what's the difference between a winning and losing project proposal, we're here to help!
The First Steps Towards A Great Project Proposal
Before you even start writing a project proposal, you'll have to put a lot of thought into the preparation. You've probably had a conversation with your boss or client until that point, and they might have even liked the idea.
That is, however, just the first step in your project proposal. You'll have to turn your vague idea into something extremely detailed - with information on the scope, budget, steps, goals, etc. So before you dive into the writing, you should...
Ask The Right Questions
If you're working with a client, you'll need all the information you can get about their business. So if you're a marketing agency, the questions could be something like...
1. What marketing strategies have you tried before? 2. Did you succeed? Lost? What was the ROI? 3. What are your current sales metrics, and what are your goals for the campaign? 4. What's your budget for ad spend, and what type of ROI do you expect?
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Or, you could be an individual working in a corporation, with an ambition to improve the efficiency of the department you're working on.
For the sake of the example, let's say you're carrying out a Business Process Reengineering (BPR) initiative. BPR means that you're going to take an old, inefficient process & re-create it from scratch using some sort of new methodology or technology.
In that case, you'd want to question the employees working with that specific process. They might have a lot of insight on how you could go about the entire project.
What to Include in a Project Proposal
Once you have a good idea on what you'll be doing with the project, it's time to put that down on a project proposal. This, of course, depends on what kind of project you're working on. Typically, however, a project proposal tends to include:
Organisation Name Project Title Brief Summary - This should be no more than a couple of lines about the scope of the project Time Frame -Make sure to be specific but also realistic Prepared By - Who has the lead on the creation of the proposal? Attached Documents - Any supporting documents for the project. Projected metrics, budgeting, etc. Project Leads - Other company employees that'll take part in the initiative. Project Summary - General information on the background of the project, goals you're trying to achieve, etc. Of course, this has to be a summary, and thus concise, mentioning only the most essential information. Methodology - In this section you need to start off by describing the overall approach you will take, followed by a step-by-step guide to the methodology being used, how potential problems will be addressed, etc. The section should also include a breakdown of the work with estimated completion time in the form of a schedule. You could use some project management methodology to help with this, such as the PERT chart. Finally, detail the deliverables that the client will receive and the delivery dates. Risk Management - This needs to include an action plan for how risks will be identified and minimized as well as what the potential cost to the project would be. Costs - Here you need to detail the budget line-by-line with accompanying narrative when required to ensure clients understand the reasoning behind your costings. Conclusion - This needs to be a concise summary of all of the key points from above, focusing on the positives and what you can deliver. Appendix - Any additional documentation required as part of the proposal and listed in Attached Documents
Project Proposal Best Practices
While the preparation is the most important part of a project proposal, the way you write it and what information you'll include is also very much essential. So, here's a couple of best practices you should follow...
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Get the Timing Right
This is an area of the project proposal that is critical to get right. When talking about timings, you need to balance the desire to impress the client with the speed at which you’ll be delivering, with the need to not immediately put yourself under pressure to deliver to unrealistic deadlines.
If you allow yourself too much time you will look like a rank amateur, so the balance is key. You need to give the estimate of your time for the project but should also break it down into a timeline to give the client as much information as they might need to help them pick you.
Solve the Problem (And Make Sure It's Clear How)
This is where you really need to do the hard sell in your project proposal, as you explain why you are the right person or company to deliver the project and what you will do differently, beyond the timescale and price tag.
You need to focus on the objective, what problem it is solving, what the potential is of it to change their business for the better, and it’s important to combine the practical with the aspirational. If you can estimate what the outcomes will be, both in the short term and long term, you will have the chance of capturing the imagination of the decision makers.
Remember Your Audience
At this point, it’s essential to take stock of what you have written so far and assess how fit for purpose it is. Think about who you are writing for, what kind of business it is and what kind of relationship you have with the key figures.
This will dictate the way you write and how you present your proposal, so revisit the crucial information you have written so far and re-assess whether there is a better or more appropriate and engaging way of doing it.
Get The Ending Right
When you have laid out what you will do, when you do and how much you will charge, you need to make your closing arguments for why you are the right choice.
You may well get the chance to make this final pitch in person, in which case what you write here is a dry run for how you’ll present it (or a transcript to look back to). You should, however, have a clear vision in your head before you can hope to sell it to a prospective client.
An important thing to include in your conclusion is a call to action, explaining what they need to do to kick things off with the project, offering positive affirmation without sounding over-confident about your chances of winning the job.
Check & Double Check
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When you’ve finished adding to your proposal, it’s time to thoroughly sense and spell check. Make sure there are no typos or clumsy spelling mistakes and take out anything that reads like jargon or unnecessary padding.
Make sure it is laid out in a professional and easy-to-read layout and it represents you in the best way possible. When you are happy with it, you will have a project proposal that will not let you down.
Conclusion
If you followed all the steps correctly, you probably just landed yourself a new project. Congratulations!
Before you start carrying out the project, however, you might need to work out a new document - the project charter.
The main difference between the two is that the charter goes into much more detail about the hows and whys of the project and acts as a guide for the execution of the project, while the proposal is mainly used as a "pitch."
Or, if you need help actually carrying out the project, Tallyfy is a perfect workflow management tool to track your employees, their works, to-dos, and deadlines. Schedule a chat and learn how the software can work for your business.
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How to Write a Standard Operating Procedure [5 Easy Steps] by Amit Kothari https://tallyfy.com/write-standard-operating-procedure-sop/
Procedures are essential for making your business as efficient as possible.
Your business already has processes – they’re the repeatable work your employees do every day. Think, approving an invoice, fulfilling orders, etc.
A Standard Operating Procedure (SOP) is, on the other hand, the documentation of the process. It helps establish things like what are the different steps, what’s the scope, who’s in charge, etc.
SOPs are helpful for 2 things…
Onboarding Employees – It’s hard to remember the exact step-by-step of every process. Documentation makes it easy for your employee to get up to speed on how to execute processes Enforcing Best Practices – There’s always an instance of a process that is more efficient than the others. You can establish this process as the “best practice” with a standard operating procedure, making sure that all of your employees follow the best variation of the process.
Both of these benefits can have a significant impact on your business, making the work of your employees more efficient.
Now, you’re probably wondering – where do I start? Well, in this guide, we’re going to explain…
What sections to include in your standard operating procedure How to create standard operating procedure documents (in 5 simple steps!) How to map and document your business processes How & why document your SOPs using business process management software
How to Write a Standard Operating Procedure in 5 Steps
Before we dive into the nits and grits of how to write an SOP, you should have a good idea of what the document includes.
Of course, this depends on your specific business needs (making the document meet ISO-9000), for example. Usually, though, the SOP would include…
Title Page – This can include the name of the process, the name of the department that the SOP applies to, etc. Table of Contents – If the document is too long, you can always make a table of contents to make it easier to navigate. The Procedure(s)
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Scope – Some processes can span different departments, teams, etc. To make sure you don’t make the SOP document overcomplicated, specify the scope of the procedure you’re documenting. Terminology – Define any complicated term. Think, abbreviations, acronyms, etc. The Procedure – Process documentation, map, etc. Supplementary Information – This can be just about anything, depending on the process. For example, Information on the machinery & equipment (where’s what), health and safety warnings, etc. Metrics – Being able to measure process efficiency is always useful. By defining the metrics in your SOP, you can always check back on whether the process is efficient over time. If, for example, you discover that a process is not as efficient as usual, there might be something wrong with the machinery.
Most of the information we’ve mentioned is pretty explanatory. You don’t need to be a rocket scientist to create a title page, table of contents, etc.
Documenting the procedure, however, can be hard for someone that’s not skilled at process management.
Here’s how to do it right…
Step #1: Gather the Team
Before you can even document the process, you’ll need to pinpoint all the important information.
Chances are, you’re not the one who carries out the process on a daily basis. While you may have a good general idea of what the process consists of, you probably don’t know all the small details that can really affect the outcome.
So, to really get the procedure down correctly, you need to consult with the employees that do it on a regular basis.
Set up a meeting and call all the relevant employees. Ask them to take you through the process step-by- step, explaining every little detail.
Step #2: Define the Scope
Sometimes, processes are interconnected. They can span different teams, departments, etc.
If you start documenting the process without really defining the scope, the end result might end up being too long & complicated.
For a real-life example, we can look at our procedure for publishing content…
1. The writer creates a draft of a blog post 2. The editor reviews it & gives feedback
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3. The process is looped until the article is ready to be published 4. The editor uploads the article on WordPress & optimizes it for SEO 5. The marketing team gather relevant contact information for backlink outreach 6. The marketing team send out emails for outreach
Depending on what the purpose of the Standard Operating Procedure is, you’d probably divide the process into 2 parts.
The writing team really don’t need to know what the marketing team does for steps #5 and #6, and vice versa.
If you’re hiring a new writer, they only need to know steps #1 through #4, while marketers would need #5 and #6. So, depending on which department you need the SOP for, you'd limit the scope accordingly.
Step #3: Documenting the Procedure
This is the bulk work of writing a standard operating procedure – actually creating the documentation.
The most basic option here is using a checklist. This tends to look less like a SOP and more like a grocery list.
Basic publishing process checklist using Todoist
You write down the exact tasks needed to be completed for the process to be successful. Then, you either print it out and keep it at the office or publish it somewhere online for your employees to use as a reference.
Checklists, however, are very limiting. For more complex processes, you have different events & outcomes, so you can’t really fit all that into a simple to-do list.
In that case, you’d want to use a workflow diagram.
Client onboarding procedure flowchart
The gist of it is, you create a flowchart (or any other flow diagram) that details the different steps of the process, as seen in the example above. The simplest option here is a process flowchart, but you can also go for other map types, such as a Swimlane Diagram or SIPOC.
Finally, you can also use business process management software.
Instead of creating a physical (or online) process map, you can use the software to do it digitally. This has several added benefits as opposed to the conventional options.
You can, for example, also use the software to keep track of the procedure online. Rather than having to check on your employee whether they’re doing their job right or not, all you have to do is look at the dashboard.
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The software lets you know of any problems that might come up – missed deadlines, bottlenecks, etc.
As a result, your processes become much more efficient.
Step #4: List Relevant Information
In most cases, simply looking at a process flowchart isn’t enough to give you all the information about how to carry out the procedure.
You might, for example, need to know where a certain piece of equipment is located. Or, you might need to know the login credentials for some online software.
Hence, you should list out any information that’s necessary to finish the process.
This can be things like…
Methodology – What is the right way of carrying out a process step? This can be just about anything. For example, let’s say you’re onboarding a new employee. The process step could be “input employee information to HR software.” The additional information would be the type of information – name, last name, date of birth, etc. Necessary Tools – If you need to use certain tools to complete a process step, you should mention how to do that. For example, “use machinery in room 201” or “use madeupcrmsite.com and use the credentials provided at randomlink.com” Health and Safety Warnings - If the procedure can be hazardous to someone's health, you mention that in the SOP, as well as any necessary precautions needed for working on the process.
[BONUS] Step #5: Define Metrics, Improve the Process & Update the SOP
At this point, you’ve already got the standard operating procedure down. At this point, you can call it a day, skip this step and start implementing the SOP.
You might have, however, realized that there are several potential improvements you could make to the process.
This is pretty standard. Most organizations don’t look back at their processes after defining them, having a “don’t fix what’s not broken” attitude. More often than not, though, there are a lot of benefits to be gained from improving the process.
First, you need to define the right metrics. You can’t really improve something you can’t measure. For manufacturing, it could be product output. For marketing, leads generated per month.
Then, you can try using either one of the following process improvement techniques…
Streamline the Process – Are there any steps within the process that are taking too much time or resources? Is there any way to cut them out or replace them?
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Process Automation – Is there any way to automate certain parts of the process? Most of the time, this can be done with software. You could, for example, automate customer support with Intercom Auto Messages. Process Outsourcing – Are certain parts of the process grunt work? If it’s something just about anyone can do, you could outsource it to a Virtual Assistant through UpWork.
Implementing the SOP
First off, congrats!
At this point, you know everything on how to make a standard operating procedure. Your work, however, isn’t done just yet.
You need to implement the SOP. Meaning, you should make it easily accessible for all of your employees.
The best option here is to make it online. You either put the document on your favorite file-sharing software like Google Docs, or use process management software like Tallyfy if you’re going digital. As a given, all of your key employees should have access to either software.
Or if you’re more old-fashioned, you can always just print out the document and distribute it around the office. It’s usually also a good idea to keep a few extra copies lying around, in case someone needs to find the SOP document in case of an emergency.
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Improve Company Efficiency by Streamlining Business Processes by Amit Kothari https://tallyfy.com/streamline-improve-business-process/
Every company is built on business processes. They're the repeatable tasks you have to carry out on a regular basis - anything from shipping out a product to onboarding a new employee. How well these processes operate can be the differentiator between a good and a great company. By streamlining your processes, you're making sure that they're operating on maximum efficiency, which improves company performance.
What's a Business Process?
A business process is a series of repeatable steps carried out by an individual or team that accomplish a certain business goal. It's something that every business does, whether they do it consciously or not.
What differentiates a process from a task is the fact that it's repeatable - it's not a one-time thing. To clear that up a bit, let's look at some examples...
Process - When onboarding a new employee, you need to have them sign certain documents, show them around the office, introduce to other employees, etc. You go through this exact process (with minor variations) each time there's a new hire.
Task - Can be an individual part of a process or a single one-off to-do. Think, having the new employee fill in a W2 form (part of a process) VS follow-up a potential client (one-off task with no concrete follow- up).
A process can both be formal or informal. The difference between the two is documentation. A formal process is called a procedure and is documented in some form (on paper, software, etc.). Informal, on the other hand, means all the processes that exist but have not been documented.
As you could have guessed, how well these processes perform will determine how well your business is doing. Efficient processes can help your business in several ways...
Higher Profits and Productivity - The end-result of process improvement. This is achieved through lower defect rates, higher output per input, etc. Improved Employee Morale - By streamlining your processes, you'll be getting rid of any steps or tasks that don't contribute to the businesses bottom line. Meaning, your employees will be able to spend more time on work that actually helps your business grow (as opposed to waste time on useless tasks). Happier Customers - Through lower defects, faster delivery time and so on, your products and services will improve. This, of course, strengthens the image of your brand.
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Streamlining Business Processes to Improve Efficiency
Company processes are rarely as efficient as they could be. Not a lot of companies practice continuous improvement - most are simply contempt with how they operate. They start off doing something one way and never actually consider that there might be other options.
Streamlining business processes, however, will ensure that you're doing the very best you can be.
By definition, streamlining a business process means improving its efficiency by either removing any unnecessary steps, adopting other methodologies, or using new technology.
To streamline the process, you need to start with...
Step #1: Process Mapping
Unless you know what, exactly, the process consists of, you can't really streamline it. Putting it down on paper makes analysis significantly easier, as it gives you a top-down view of the process. Depending on what you're looking to improve, there are several different process mapping techniques you'd use. The list includes the flowchart, value stream map, SIPOC, and so on.
There are 3 ways to do process mapping...
Pen & Paper - The simplest option is to just grab a piece of paper and draw the process map. The fact that it's a physical document, however, makes it harder to share, get feedback on, etc.
Flowchart Software - Dedicated software for creating online process diagrams. This can be extremely helpful if you don't want to remember different symbols used for process mapping.
Workflow Management Software - A tool that allows you to create a process diagram and enforce it at the same time. You can use it to track work in real-time, as well as make modifications to established processes..
Want to learn more? Check out our step-by-step guide to process mapping.
Step #2: Analysis
Unless the process being analyzed has some very obvious flaws, you might have to dig deep to find inefficiencies.
So, ask yourself...
Are there any steps in the process that are too time-consuming? Are they taking more time that you'd consider to be reasonable? Does the process often result in missed deadlines or delays? What could possibly be the reason?
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Are certain processes or process steps more expensive than what would be reasonable? What could be driving the price up? In every process, there are key steps which determine the output. Is there any way to make such steps faster or more efficient?
To help you with the analysis, you could also use some of the business process improvement tools, such as the 5 Whys Analysis (asking "why" 5 times until you find the root cause of any problem) or the Fishbone Diagram (a graph that helps pinpoint the relations between causes and effects).
Feel stuck with the analysis? These 10+ process improvement tools might help.
Step #3: Streamline the Process
Once you determine what the root cause is, you can focus on coming up with a solution & streamlining the process accordingly. To get this right, make sure to pick the right metrics for comparison. You'll need something to compare benchmark your new processes with.
In most cases, one of the following 3 solutions is used to streamline processes.
Removing Useless Steps - Are there any steps within the process that don't contribute to the end goal or product? You can figure out a way to cut them out. Adopting Other Methodologies - Meaning, changing the way you do things. You could, for example, adopt Using New Technology - Technological developments have always been a game changer. With the right tool, you could fundamentally change the way the process works. Think, adopting CRM software rather than having an excel sheet with contact information.
There are other ways to improve business processes than just streamlining them. Check out our article to learn 4+ different methods.
Step #4: Implement
The fact that the process works in theory doesn't mean that it's going to work in a real business environment. For example, your solution might increase product output, but it might also 2x the defect rates. This puts you back in square one - maybe even further back if you count the time & effort wasted.
So, during the implementation phase, it's a better idea to start small & scale up from there. Rather than implement the solution company-wide, do it site-wide and see how the new process measures up to the old one.
Ask yourself...
Is everything going as it should be? Are there any details within the process that weren't accounted
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for during planning? Is the solution as effective as it was meant to be? Why or why not? Does it come with any problems or defects? Is there a chance that there might be some long-term?
Enforcing New Processes
If everything goes as planned, you might think it's time for celebration. Not exactly - coming up with a more efficient process is one thing, enforcing it is another. Your employees are used to the old way of doing things, and as you probably already know, changing habit is hard.
In some cases, this will be a breeze - if you're making their lives easier for them, for example (think, removing a time-consuming step in a process). It others, your employees might need to put a lot of work into learning the new way of doing things. So, how do you ensure that once you look away, the employees won't go back to the older process?
The key here is adopting workflow management software. Rather than having implicit processes within the company, you document & track them with the software. You can see how the process is going in real- time, whether there are any holdups if someone's missing a deadline, etc. To learn more about workflow management software, head over to our homepage or try Tallyfy now.
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Key Ways to Significantly Improve Business Process Management by Jamie Johnson https://tallyfy.com/improve-business-process-management/
Every time you contact a client, develop a new product or deal with a customer complaint, you likely follow a certain set of steps. These steps are known as business processes and they not only save you time, they help your organization run more efficiently. As the market continues to evolve and expectations continue to shift, it is important to regularly improve business process management within your organization.
Business processes can easily become ineffective, wasting time and resources. And ineffective business processes can lead to disgruntled employees, higher costs, and missed opportunities for growth. If you want to see your organization continue to grow, operate efficiently, and have a greater source of impact on customers, it is important to continually evaluate and improve business processes. The information in this article will look at how you can accomplish this and the benefits it can bring to your organization.
Understanding Business Process Management
Business processes are fundamental to the ability of a company to successfully execute business strategies. Technology, the right employees, and supporting structures can all help make this happen. But having the right processes in place is the best way businesses can deliver value to their customers and continue to remain competitive. So the question becomes, how do companies develop high-performing business processes?
Business process management examines and evaluates the processes that are present in an organization. It ensures that any processes in place are effective and cost-efficient. It identifies and improves existing processes so the entire organization can continue to find better ways to get things done.
These processes can be both formal and informal. Formal processes will have well-established steps, such as creating and receiving invoices. Formal processes are important when there are safety, legal, and financial reasons.
Informal processes are general processes you have created yourself and they may not be documented. You may have informal steps for finding new prospective clients or leading meetings with your team.
The easiest way to document and improve your processes is by using Business Process Management Software (BPMS). Give our platform a try - it's free for up to 5 users! Alternatively, if you're not sure which software provider to go with, check out our complete guide to BPM solutions.
Why it is Important to Improve Business Process Management
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Business process management is designed to making daily workflow more productive. But when processes are inefficient or dysfunctional they can lead to a number of problems in the organization. They can affect the quality of service you provide to customers. They can lead to employees that are frustrated and unhappy. And costs can increase as resources are wasted.
Here are the 3 benefits of improving business process management:
1. Efficiency: Many business processes can become inefficient due to poorly monitored progress or manual effort. Improving business processes will increase efficiency and get rid of activities that waste time and resources.
2. Effectiveness: As business processes become more efficient, they also become more effective. This will lead to better-informed decisions, better execution of necessary tasks, and improved customer experiences. This will make the organization more profitable and competitive within its industry.
3. Greater Flexibility: It is important for the business to have tools that are flexible and easy to adjust. Businesses that have out-of-date, inflexible business processes are more likely to be left behind. New opportunities, regulations, or partners can all require flexibility in order to accommodate different ways to doing things.
How to Improve Business Process Management
The first step to improve business process management is to identify what areas need change. By evaluating what is working well and what areas could use improvement, you will be able to prioritize your focus for business improvement. You can also review how each process affects your organization and customers.
Once you have decided what process you are going to improve, you need to analyze the current procedure. You can do this using a Flowchart, which will give you a visual model of the steps. Keep in mind that some processes may contain sub-steps you aren’t aware of, so it is important to study this thoroughly.
By fully understanding the process you can set objectives for real improvement. Consider what steps in the current process are broken and if there are any steps that cause costs to increase. Speak to the people who are directly affected by this process and find out what they think is wrong with it and how it could be improved.
Once you begin redesigning the process, it is a good idea to include anyone who is directly involved in the process. Not only will they have good ideas to contribute, but if they are more involved from an early stage they are more likely to be open to change.
Interested in improving business processes, rather than BPM? Check out our guide with 4+ practical ideas.
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Implementing the New Business Process
When you improve business process management, it will likely involve changing current systems or processes. Implementing a new process can be a cumbersome task so it is important to plan and manage this step carefully. Remember that people are often resistant to change, especially when it involves a process they have been using for a long time and are comfortable with.
Few things work the way we want them to, so monitor closely how things go in the coming weeks and months to ensure the new process is meeting expectations. Monitoring progress will also allow you to address problems as they crop up.
Continue to include everyone who is involved in the new process and gather their feedback on how they feel it is working. Being open to hearing their frustration or resistance can eliminate bigger problems down the road.
Continue to stay flexible and make small improvements regularly so you can ensure the process stays relevant and efficient. And if you are just beginning to come up with solutions and looking for guidance, Continuous Improvement Tools can help you begin to develop strategies.
Conclusion
Business processes are a set of steps used repeatedly to reach a certain goal or provide a certain product or experience. When these processes work well they can improve efficiency, effectiveness, and reduce waste in your organization. Ineffective process cause frustration, delays, and increased costs.
Business process management is a fundamental tool businesses can use to keep their organization running smoothly. Because the market is always changing, it is necessary to improve business process management to avoid have outdated, inefficient processes. In order to remain successful and competitive, the business must constantly improve business process management.
The key to improving business process management is to understand the current performance of a process, identify what level of performance is desired, and come up with a plan to achieve this level of performance. Using an app like Tallyfy can help you define your workflow, execute improvements, and measure process improvement along the way.
Do you regularly improve business process management in your organization? What stages do you follow? Let us know in the comments section below.
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Lean vs Six Sigma: What's the Difference & Use Cases by Jamie Johnson https://tallyfy.com/lean-vs-six-sigma/
In the business world, there has been some debate when it comes to Lean vs Six Sigma. Most people have strong opinions about which method is more effective for cutting costs and eliminating waste. Lean manufacturing is a systematic way of eliminating waste and creating flow in the production process, while Six Sigma is a set of techniques that strive to greatly reduce the rate of defects.
Every business has areas that need improvement and sometimes it can be hard to know where to start. And as the debate over Lean vs Six Sigma continues in the business world you may not be sure if either method is right for your company.
Although many people compare Lean vs Six Sigma, they can often be more powerful when used together. This article will look more closely at the differences between Lean vs Six Sigma and the benefits of both.
The History of Lean Manufacturing
Lean manufacturing is not new, the ideas behind it were originally introduced by Henry Ford. He liked to keep the production standards incredibly high so that each step flowed naturally into the next, thus resulting in very little waste.
Toyota then accommodated this process and developed the Toyota Production System, which became one of the most efficient systems in the world.
The biggest difference between Lean vs Six Sigma is that they view the causes of waste very differently. The ultimate goal of lean manufacturing is to reduce waste by eliminating bottlenecks and improving the quality of your products.
Lean identifies seven areas of waste that are common in most production systems. Let's look at each of the “seven deadly wastes” in more detail.
The 7 Deadly Wastes
Overproduction: This occurs when products are being produced that there is no customer demand for. Waiting: Waiting is the lag time in between each step in production. When employees are left waiting no value is being added. Transport: This type of waste occurs when materials or products are moved inefficiently. Motion: Motion refers to poor work standards and employees moving inefficiently between tasks. Over-processing: Over-processing occurs when you spend too much time producing a product or produce it in a very inefficient way. Inventory: This happens when your inventory levels are too high and you have too much work in
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progress at one time. Defects: Defects are the number of time employees spend identifying and fixing production mistakes.
Implementing Lean will allow employees to move materials less frequently which will improve the quality and require less overall inventory. It also allows quality issues to be dealt with during the manufacturing process, which saves both time and resources because employees aren’t scrambling to fix mistakes later.
All of the improvements listed above will result in a more successful manufacturing process. As the products are being produced and delivered on time, the customers will have a more satisfying experience. And because the products were produced to a higher standard of quality, there will be fewer customer complaints.
Want to learn more about the 7 wastes of lean? Check out our article!
The History of Six Sigma
Another main difference in Lean vs Six Sigma is that lean is used primarily in production while Six Sigma can be used to reduce errors in production as well as nonproduction environments.
Six Sigma looks to reduce waste and it defines a defect as anything that doesn’t meet the customer’s expectations. It focuses more on eliminating any variation in the customer experience. A Six Sigma company will produce no more than 3.4 defects for every million opportunities.
Six Sigma was introduced in the 1980’s by an engineer for Motorola named Bill Smith. Smith believed that by getting rid of variation you can improve the customer experience and increase your overall savings.
Six Sigma has helped Motorola save millions of dollars in revenue. After witnessing Motorola’s success, other companies have adopted Six Sigma and seen dramatic savings as well. General Electric, Toshiba, Bank of America, and Intel have all adopted Six Sigma principles and seen dramatic improvements.
DMAIC
One of the main differences between Lean vs Six Sigma is each method implements process improvement. Six Sigma does this primarily by using DMAIC. DMAIC stands for define, measure, analysis, improvement, and control. Here is a more in-depth look at each step of the process:
Define: In this first step, you will define the problem and how it is affecting the current process. Measure: During this step, you will measure the current data. By examining the process that is already in place and identifying what isn’t working you can begin finding ways to make improvements. Analysis: Now that you have measured all of your current data, you can begin analyzing it to get
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to the root of the problem. Improvement: This is the step where you will come up with solutions, test your solutions, and make improvements as needed. Control: Once you have implemented a new process you must continue to make improvements over time. These changes will only last if employees continue to refine and maintain the process.
Want to learn how, exactly, you can carry out each step? Check out our article on DMAIC
Lean vs Six Sigma
Although we are comparing Lean vs Six Sigma, the truth is they both work toward the same ultimate goal: eliminating waste and creating efficient processes. They simply take different approaches on how to accomplish this.
Lean focuses on analyzing workflow to reduce cycle time and eliminate waste. Lean strives to maximize value to the customer while using a few resources as possible. Six Sigma strives for near perfect results that will reduce costs and achieve higher levels of customer satisfaction.
To summarize the main difference between Lean vs Six Sigma, lean looks at ways to increase flow while Six Sigma focuses on achieving consistent results.
One similarity between Lean vs Six Sigma is that both have demonstrated that it is possible to dramatically improve the quality of your products and customer experience by improving processes. And as this article points out, when most companies set out to improve inefficient processes they feel like must choose only one method going forward.
Ultimately, the issue may not be whether you should choose Lean vs Six Sigma but how you can take the elements you like from each and apply them to solve problems in your own business.
Conclusion
We often hear about the exciting transformations businesses have seen using with either Lean or Six Sigma. However, the reality is that most companies that adopt either will fail. 60 percent of all Six Sigma projects fail and 40-60 percent of lean projects fail to achieve the desired results. Why does this happen?
Whenever a new Lean or Six Sigma project is started there is always an initial wave of momentum and excitement. But over time, most businesses simply don’t have the ability to sustain the changes made from and often they revert back to the former inefficient processes they had when they started.
Using the right process tracking software, however, can significantly increase your chances of success. Tallyfy's Business Process Management Software allows you to create digital processes which you can track, automate and improve.
And the best part? It's free to use for up to 5 users.
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Want to learn more about process management software? Check out our comparison article of different BPM tools.
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Maximizing Efficiency Through Multistep Approval Processes by Amit Kothari https://tallyfy.com/multistep-approval-process/
You would expect that in the most advanced and growth-centric organizations that each department would be humming along with carefully-calculated efficiency to the point of meticulous autonomy.
You could paint a picture of booming Fortune 500’s with refined multistep approval processes and carefully plotted workflows that drive endlessly like an automotive assembly line.
Truthfully, even in the most structured organizations and Fortune 500’s workplace processes are – at best- disorganized and inhibiting growth. At worst, they cause complete bottlenecks that force employees to circumvent the established processes in order to get anything done. In some cases, the fastest growing companies can completely fail due to a failure to adopt more mature processes.
Not only is that costly for the company but it’s a tremendous amount of stress on employees.
Those team members are faced with a daily challenge of carrying out simple processes in slightly different ways, case by case. That kind of chaos is what leads to costly human error, customer churn, and even employee retention issues.
Where Processes Go Wrong
Companies generally don’t start out this way, and nor do the processes they create. Early on, those processes were implemented with a goal of making specific tasks and workflows more efficient.
Unfortunately, over time, businesses change. Rather than taking the time to rework the process to match the course correction employees or leadership will band-aid the issue.
Small, subtle changes are made to a process to adapt it. Workarounds develop where software ages or departments restructure. That approach is often seen as easier than a complete overhaul. In many cases, a process is forgotten and departments piece together some new workaround specific to the individual tasks without giving any real long-term strategic process a second thought.
In those cases, employees are searching for an immediate solution rather than thinking about how this seemingly small shift will impact the big picture of operations. That’s the nature of people – we’re adaptive. We’ll take an inefficient process and modify it enough to ‘make it work’.
The real culprit is our human nature and the concept that “done is better than perfect.” That mentality might work for getting a product launched, but it can cause problems when patching up processes.
This is typically triggered when there’s a shift in personnel; a restructuring of departments as mentioned
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above or when employee leaves, taking knowledge with them that hasn’t been shared with others. When new employees come on board they need to be trained on all aspects of existing processes but no one is able to provide a complete picture.
It’s a bit like Jurassic Park when they have incomplete DNA and just fill the gaps with what they could find to complete the sequence. What’s created might seem functional but never goes according to plan.
Now take that cobbled process and mix in the frustrations of employees, growing errors, unskilled new workers, and a demand for results from leadership and you have processes which quickly begin to smoke and break down.
In that situation, employees will drop a bottlenecked process before trying to adapt further and deal with increased frustrations.
Principles for Process Improvement – Lean Optimization and Multistep Approval
There is motivation throughout every organization to improve processes and that motivation exists on multiple levels. While it might not be apparent, the employees are typically most interested in finding ways to improve processes because they are in the trenches. They are handling the majority of the workload, correcting errors, and are held accountable when bottlenecks occur. They would rather work efficiently but it’s hard to stay motivated when frustrating processes dominate their day.
Sometimes it’s just easier to turn a blind eye to the problem when they don’t feel like they’ll be listened to.
With opportunity in every organization to improve, and while implementing process improvement or restructuring for things like multi-step approval processes can get fairly involved, the basic approaches typically remain the same.
1. Analyze processes point to point
In many cases, the processes that we think should work well simply don’t. Sometimes it happens over time, other times the process was faulty from the point of deployment. What looked good on paper just didn’t work once it was put to test.
This is often missed when organizations don’t immediately test a new business process or perform routine audits to analyze processes from point to point.
Employees aren’t likely to push back, especially on a new process that took considerable resources and cost to put into place. They’ll simply struggle along to make it work.
Analyzing and tracking processes is the first step to making any improvements.
2. Empower employees involved in every process
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The best people to improve processes and bring about change once audits are completed are not the engineers, executives or leadership that oversee the teams or processes. Instead, the employees who are directly involved in carrying out the process should be empowered to bring about appropriate change.
That means leadership should utilize the full skill set of employees and trust them to help identify and eliminate bottlenecks throughout the process. Since processes often involve multiple employees this can be streamlined by introducing autonomy and creating teams that are in charge of quality control for their segment of a process.
If you implement multi-step approval processes, those who make the approvals at each stage should regularly communicate with others working within the processes to investigate any kind of slowdown or change in delivery from point to point.
This will raise red flags and make it easy to identify the segment of the process at the employee level. Those teams can then suggest improvements to leadership and, when necessary, make the changes.
3. Eliminate waste
When an audit is completed and employees are empowered to assist in managing their own multi-step approval processes the areas of waste begin to become apparent. Any steps in your processes that do not directly create value for your customer or improve the bottom line through added efficiency should be considered a waste. That can be a number of things including:
Wasted time Wasted movement Wasted inventory Customer delays Delays in processing Delays waiting for approvals Delays caused by process batching Duplication of work due to common errors
Empower team leaders or employees to cut these inefficiencies out and improve the process before they create massive bottlenecks.
4. Focus on the customer
Not every process is directly related to a specific customer or customer interaction. Still, many of the processes in your organization are related to the customer whether you’re processing orders, delivering a product, manufacturing something, handling cases, etc.
Ultimately, every customer you work with wants value. Customers feel the value is present when the quality of the services they received, or the product, is high compared to the cost they paid. If you want to improve your processes, consider looking to the customer. What is it that they want most? How can you provide it to them better, faster and cheaper than they’re already getting it?
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How can you improve operations, leverage autonomy or implement multi-step approval processes in a way that brings the customer more value?
5. Automate processes, reduce steps, or add approvals
We often have a lot of assumptions about how work gets done, and that’s not just referring to leadership. Employees directly involved in the workload don’t usually think about what is involved in their grind from day to day. They don’t think about how they work.
They just work and get the job done.
When you’re working to improve processes either for operational efficiency or to improve customer delight, step outside of the current process and record the steps. Ask employees to detail what they have to do during the process. Compare their response with how you record the actual steps of the process.
If employees aren’t able to easily recall how to work from point to point in a process, then you need to look into refining it. Either automate some processes to reduce the workload on your team, reduce the steps that are required to complete processes, or implement multi-step approvals.
If the current process is sound, but human error is the primary factor for bottlenecks, then adding approvals at various stages can ensure that progress continues at common choke points where errors occur.
6. Make it easy to collaborate
When you need to improve efficiency but processes aren’t always an issue, consider making it easy for collaboration to take place. This can often lead to a more efficient flow from process to process, especially where multiple parties are involved. Effective, interactive collaboration between your teams, partners, suppliers and even your customers is a guaranteed way to boost efficiency and reduce costs. Sometimes it’s just a matter of more effectively using resources you have readily available.
You can often achieve this by streamlining communications. Few things can reduce efficiency between departments, partners and vendors like communication drops and waiting for responses. Communication tools as simple as email, to more robust applications like Slack, can bring in-house and off-site teams together.
For example, the team behind the Mars Curiosity Rover uses Slack to keep thousands of people communicating and more productive. If having the right tools can make a project like Curiosity a success, imagine what they could do in your organization.
Conclusion
Communication is often at the heart of process failures and bottlenecks, but there’s responsibility at multiple levels to ensure that aging processes are monitored and newer implementations – like multi-step approval processes – are tested to ensure they are functioning at every stage. Start with an audit of your
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processes and use the principles above to start making a positive change in your operations.
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Process Architecture: Definition and Examples by Sonia Pearson https://tallyfy.com/process-architecture/
Process architecture refers to the hierarchal design of processes and systems that are applied when transforming inputs into outputs. The term can be applied to computing, the processes businesses undertake, and project management to name but a few. In fact, it can describe any process or system of processes.
Now that we’ve seen that mouthful of a definition, we can easily understand why we find this term being used in so many contexts. But is it just a buzz word, or can you reap real rewards by capturing and analyzing current process architecture? The answer is a definite “yes.”
In this article, we’ll use simple, generic examples of process architecture, but as you read, do remember the breadth of the definition.
Why Process Architecture is More Complex Than It Seems on the Surface
When capturing and considering process architecture of any kind, it’s important to remember that no process, no matter how simple it may seem, exists in isolation. There are always factors that contribute to the process. Without these, transforming inputs into outputs would be impossible.
For example, making hot dogs may seem like the simplest process imaginable. The chef heats up a sausage, puts in a bun, wraps it, and hands it to the client in exchange for money. It’s easy, right?
But if we think about it in a little more depth, other processes are essential to the core process of making a hot dog. For example, before our hot dog vendor can get started, he has to undertake a purchasing process during which he buys hot dog rolls and sausages, packaging, and sauce.
He also needs to undertake processes that ensure an acceptable quality standard, and he needs to keep his hot-dog stand hygienic. And that’s not all. He also must take care of many other processes, such as ensuring he has the right change on hand, and so on.
If a hot dog vendor works with so many interdependent processes, you can be sure that more complex operations will involve even more processes – and if one of them isn’t working as it should, the final output will be flawed at best, impossible to attain at worst.
Why Understanding Process Architecture is so Important
We’ve already seen that interdependent processes are vital to producing an output from inputs. But processes also require energy, time, and space.
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In the business context, the process architecture results in one output without which there is little point of being in business at all: profit. If we fail to understand the full process architecture that goes into making that profit, we are very likely wasting at least some of our inputs, energy, time, and space. And, of course, these wastes will have a negative influence on profits.
The same example could apply to almost any other type of process. The ultimate output is not only what we come up with after completing a process or set of processes. Rather, it is the benefit to ourselves that we are trying to accrue by undertaking it.
By picking up the flaws in sub-processes, we can fine-tune the overall process architecture, helping us to move towards the fulfillment of the goal we had in mind when we embarked on our undertaking.
The Benefits of Defining and Analyzing Process Architecture
The potential for maximizing profit is the primary reason why businesses undertake the study and analysis of process architecture. However, there are additional benefits that could be realized. Once again, our examples will focus on process architecture in the business context.
A full overview of all activities and how they relate to one another: When capturing all the processes that your business undertakes, you will be able to see which sub-processes or tasks add the most value. Any adjustments that can enhance these value-adding steps will have obvious benefits. You’ll also see how support functions enable the value-add – and which aspects of their activities have the least impact or even impose a burden on the value-adding activities that matter so much.
This allows for simplification: For example, when capturing an existing business process architecture, you may find that the administrative tasks that accompany value-adding activities are excessive. While some admin tasks and record-keeping activities are certainly necessary, you may spot unnecessary ones that are just diverting energy and financial resources away from the business.
This is particularly true of older businesses where systems and procedures have been added on top of others over the years. There may be duplication or steps that, while they seemed like a good idea at the time, now have no functional use.
Cutting costs: Needless complexity costs time, energy, and money. Cutting costs improves profit. Thus, simplification is a very worthwhile exercise.
Improving response times: When analyzing the process architecture, bottlenecks and resulting delays become apparent. Apart from saving time and money, businesses are able to improve the time it takes to move from one process element to the next.
Aligning regular activities with overall business strategies and goals: When surveying business process architecture, executives will constantly be asking themselves how various activities contribute towards organizational goals and strategies. Very often, they will identify areas where a few tweaks can improve that contribution.
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Identifying opportunities for automation: Although automation will imply investment, the returns can range from the substantial to the astounding. Repetitive, highly uniform tasks that are seldom if ever open to variation are the most likely areas to explore automation options. The process of compiling payrolls is an excellent example. Instead of manually calculating hours worked and remuneration due, most businesses use some form of payroll software.
Easier training and onboarding: Whether appointing staff at executive or lower levels, helping them to see the way in which different processes or parts of processes contribute to what the business does is a big help. Not only does it provide a roadmap showing what must be done, and when, it also highlights the reasons why task performance is important to outputs.
Strategizing: Knowing where energy is being exerted helps with SWOT analysis and may influence strategic direction. For example, if a manufacturing concern with a diversified product range discovers that niche products are using up a disproportionate amount of effort and resources, the company can strategically redesign its product range. More resources are then diverted towards processes that yield better profits.
Predicting the impact of systems changes: When viewing a process in isolation, it is easy to make the mistake of implementing changes that will negatively affect dependant processes. Knowing just how each process affects subsequent ones limits the chances of this happening.
Capturing and Testing Process Architecture
Pen and paper are the old-fashioned way of capturing process architecture. As you can no doubt imagine, even relatively simplistic business models can generate files packed full of flow charts that are a chore to go through and piece together. Plus, there’s a massive gap between having process architecture for an entire organization on paper and seeing how it works in practice.
Digital tools simplify the process, and few of them are as useful as Tallyfy. Simply put, Tallyfy is a workflow engine, and since processes consist of workflows, it becomes a powerful tool for capturing and evaluating process architecture.
When you use Tallyfy, you not only set up processes and automate the transfer of tasks between one person or department and the next, you can also evaluate how it is working in real time. You can also model and test new processes before implementing them. With one of the benefits of studying an organization’s process architecture being opportunities for simplification, choosing a user-friendly, time- saving tool is the sensible thing to do.
Would you like to see how Tallyfy can help you to capture, adjust, and monitor the practical outcomes of process architecture? It’s as easy as getting started.
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Process Improvement Methodologies – Complete List [6+ Tools] by Amit Kothari https://tallyfy.com/process-improvement-methodologies/
To stay competitive in your industry, it’s essential to constantly analyze & improve your business processes. This allows your business to operate as efficiently as possible, minimizing your expenses and maximizing profits.
Process improvement, however, isn’t all that easy. Around 50% to 70% of all initiatives end up failing. This can be for a variety of reasons…
Not getting support from senior management Failure to get employee buy-in Failing to adopt a culture of continuous improvement And many more.
To make sure your initiative isn’t just another number in that statistic, you can use some of the tried-and- tested process improvement methodologies.
Process Improvement Methodologies - Complete Guide
There are a lot of different ways to approach process improvement.
In this guide, we’re going to explain 3 of the most well-known process improvement methodologies - Six Sigma, Lean Manufacturing, and Business Process Management - and arm you with the right tools to get started with each approach.
Six Sigma
Six Sigma is one of the most popular process improvement methodologies out there.
It is, essentially, a set of tools and techniques that help your organization with process improvement. The main goal of this methodology is minimizing defect rates and variability in business processes.
For a process to be “Six Sigma,” it has to have almost non-existent defects (3.4 defects out of 1 million opportunities).
Since Six Sigma is mostly about using the right tools, let’s cover some of the most popular ones…
We’re only covering a handful of tools in this guide. To get the complete list, check out our guide to Six Sigma tools.
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DMAIC
DMAIC (Define, Measure, Analysis, Improvement, and Control) is a tool that helps with process improvement. Whenever you’re working on any given process, you can use it as a framework.
DMAIC is divided into 5 steps. Here’s what each of them means…
1. Define – Define what, exactly, is the problem and how is it affecting the company. Then, use the aforementioned information to define the goal of the process improvement initiative. 2. Measure – This is the stage where you collect all the relevant data. You need to find empirical proof that the existing process isn’t working, which you’ll later use as a benchmark for any improvements. 3. Analysis – Find the possible causes for the inefficiency of the process. You can use several other Six Sigma tools to help you with this, such as the Fishbone Diagram. 4. Improve – Now that you know what the problem with your process is, you can start coming up with solutions. Brainstorm with your team and determine which ones might work. Once you have a couple of ideas, you can move on to the last step. 5. Control – Before implementing the process improvement company-wide, you need to make sure that it works as intended. Give it a couple of trial-runs and benchmark the new data to the old collected in the “measure” stage.
Want to learn more? Check out our primer to DMAIC!
5 Whys Analysis
Before you can make improve any given process, you need to figure out what’s wrong with it. What’s the root cause of the inefficiency, and how can you fix it?
The 5 Whys is a very straightforward (but useful) methodology for determining the root cause behind any issue. All you have to do is keep asking “why” until you’ve found what the issue is.
To conduct the analysis, first, you need to figure out what’s the issue you’re trying to solve. Let’s say, for example, you’re head of sales at a SaaS company & your team isn’t hitting the KPIs.
You need to conduct a meeting with the rest of the management team and carry out the 5 Whys analysis…
1. Why are the sales down? 1. Because the sales team isn’t closing as much as they used to 2. Why? 1. Because a big chunk of the leads are cold & uninterested 3. Why? 1. Because they’re sourced by a different company 4. Why? 1. Because the finance department rejected working with the original company
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5. Why? 1. Because they raised their rates by 20%
At this point, you’ve discovered the root cause of the issue (Partner company raising their prices). Now, you can figure out how to deal with it. You could, for example…
1. Decide to work with the original partner company again (if that leads to higher profits even with the price change) 2. Try out other lead generation partners
And done! You have your solution to the problem.
You can use the 5 Whys analysis for all sorts of problem-solving - it can even come in hand in your personal life. Check out our article to learn more about the tool!
Lean Manufacturing
Lean Manufacturing is a process improvement methodology that aims to maximize company output by eliminating bottlenecks and improving product quality.
This is done by eliminating 7 types of company waste (also known as 7 Deadly Wastes). Here’s what each of them means…
Overproduction – Creating too much product when there’s no real demand for it. Waiting – When there’s too much time between steps in production. If your employees end up sitting around because they don’t have anything to do, you end up wasting a lot of value. Transport – When materials or products are moved inefficiently. Motion – Lack of employee productivity. When there’s too much time wasted between an employee finishes and starts a new task. Over-processing – Wasting too much time or resources on producing a product. Inventory – Having your existing inventory much higher than needed. Defects – The amount of time your employees spend fixing production mistakes.
To eliminate each type of waste, you can use either of these Lean tools…
PDCA
PDCA (also known as the Deming Cycle) is a framework for improving any given process. In the context of Lean Manufacturing, you use it to identify any of the 7 Deadly Wastes in a process and use PDCA to figure out how to solve it.
The cycle consists of 4 steps…
Plan – Find what the issue with the process is. Analyse it and start coming up with potential solutions.
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Do – Implement the solution for a single process. It’s always a good idea to start doing this on a small scale to minimize risk.
Check – Compare the new process to the old. Is it performing better? Did you improve output? Lower input? Decrease production time? If the solution is effective, you move on to the next step. If not, you start the PDCA cycle all over again.
Act – Once you’re sure that the process improvement will be beneficial long-term, you can implement it company-wide.
Want more in-depth information on the Deming Cycle and how you can use it to improve processes? Check out our guide to PDCA.
Kaizen
Kaizen is a Japanese word and means change (kai) for the better (zen). The goal of this methodology is to eliminate waste and achieve continuous improvement in your business by involving all of your employees – all the way from C-suite to assembly-line workers.
Unlike PDCA, Kaizen is a bit less practical. It focuses more on instilling a culture of improvement in your organization rather than telling you the exact steps you’d need to take to improve a process.
To adopt Kaizen in your organization, you need to enable all of your employees to participate in process improvement. Their contribution and ideas should be both encouraged and rewarded.
There are a lot of practical ways to do this, but one of the most straightforward ones is the adoption of “Kaizen Corners.” The idea here is to create a space where all of your employees can go and leave their ideas for improvements. Then, you should analyze each suggestion and potentially implement it.
If you make it clear that improvement and innovation are rewarded in your organization, you’ll see a lot of initiative from your employees.
The Kaizen Corner is only one means of achieving Kaizen at your workplace. To get more in-depth information about the topic, check out our complete guide!
Business Process Management (BPM)
Business Process management is a methodology for continuous improvement. The main idea behind it is that you should be constantly analyzing and optimizing business processes.
Unlike the other process improvement methodologies we’ve mentioned so far, this one’s a bit more hands-on. It involves repeating the following cycle (called the BPM Lifecycle) as many times as needed on any given process.
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1. Analyze – Find potential improvements in the process. Is it as cheap as it can be? As fast as possible? Can it be, partially or fully, automated? 2. (Re)Design – Once you’ve found the improvements in step #1, you can now redesign the process completely, or just make a change or two to the existing process. 3. Execute – Start using the new process at a small scale. This is more of a testing stage – you don’t want to make company-wide changes until you know they’re really beneficial. 4. Monitor – Keep track of the KPIs of the new process and benchmark them to the old. Keep in mind, though, that it’s a good idea to have the test running for a long time. You want to make sure the improvements are long-term. You might, for example, end up improving process output, but at the time, increasing defect rate. 5. Optimize – Now that you have the data, you can make further improvements to the process until it’s performing to your expectations.
This is, as a given, not something you do just once or twice. You do it continuously throughout the years. This ensures that your processes are as efficient as possible.
For your BPM initiative to be successful, though, you need to use the right tools…
Business Process Management isn't the easiest of methodologies to master. Want to learn how to use BPM effectively? We have a guide for that!
Process Mapping (Software)
To get the analysis phase right, you need to have a very good understanding of the process. Unless you’re the one in charge of carrying it out, though, you probably don’t know everything that it consists of.
The best way to get the right know-how is to create a process map. In most cases, this is done in the form a process flowchart. Meaning, you create a flowchart of the exact tasks that need to be completed for the process to be finished.
Before you can start with this, though, you should pick the right tool. You could simply use pen & paper, but that’s not all that useful. You want the process graph to be digital so that you can share it with other employees, save it, use it as an SOP, etc. So, you’re better off using an online process mapping tool such as LucidChart or Draw.io.
Once you’ve picked the tool, here’s exactly what you have to do…
1. Identify the process to be mapped. In this case, it should be whichever process you’re improving using BPM. 2. Bring together a project team. This should consist of employees related to the process, someone from senior management, and a process improvement expert. 3. Gather the information about the process from the employees that are familiar with it. 4. Create the baseline process map using your favorite tool.
The end result should look something like this…
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process flowchart example for employee onboarding
Want to master business process mapping? There's a lot more to learn! You can, though, learn everything you'll need to get started with our step-by-step guide to process mapping.
Business Process Management Software
One of the biggest issues with process improvement is making your changes stick. Sure, you spend a lot of time and resources in order to make the process better. All your efforts, however, will be in vain unless everyone uses the new process on a regular basis.
While your employees are all in favor of improvement, they’re not big fans of change as a whole. As is the issue with most company change initiatives, you need to ensure that the employees are on-board.
The easiest way to get them used to new processes is by using Business Process Management Software (BPMS).
The gist of the software is that it helps you create digital processes. Here’s a quick example of Tallyfy’s own BPMS…
Instead of having to go around telling your employees about the new changes and how they’re supposed to do things differently now, all you have to do is make the edits online.
The software notifies the relevant employees about the changes and starts enforcing the new process rather than the old.
BPM software has a lot of other capabilities in addition to what we’ve mentioned so far. Want to learn more? Check out our guide to BPMS!
Conclusion
Now that you know about the most important process improvement methodologies, it's time to put them into practice. Start experimenting with your business processes & you'll start seeing improvements in no time!
If you want to learn more before getting started though, you might want to head over to our complete guide to process improvement tools.
Let us know if you found this guide helpful. And if you have any comments, make sure to leave them below.
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Process Owners: Key to Process Improvement by Sonia Pearson https://tallyfy.com/process-owner/
No matter how efficiently your business carries out its processes, there’s always room for process improvement. Efficient processes can make your business more profitable, help you to improve quality and customer experience, and ultimately, enhance customer satisfaction and loyalty. To successfully improve your processes, you need to appoint process owners.
To understand the key role that process owners play in process improvement, let’s take a closer look at who they are, what they do, and how you should work with them. Finally, we’ll sum up the reasons why your process owners are the key to successful process improvement.
Process Owners and Processes
A process is a set of activities that turns inputs into outputs. Those inputs come from another process and are passed on to the next process until a final product is achieved.
The beauty of processes is that they are repeatable. You don’t have to reinvent the way you work every time you have something to do. In fact, variation is the one thing you want to avoid. Variation makes your results unpredictable. As a result, your business runs carefully plan processes and tries to ensure that they’ll always be carried out in the same way.
As a business owner, however, you have more important things to do than micro-manage your employees & make sure they're efficient with their processes.
What you can do, however, is appoint process owners.
They ensure that processes are carried out as planned and that the results are passed on to the next process smoothly. When you decide to improve a process, the process owner becomes all the more important.
A process owner can’t have tunnel vision. He or she has to see the “big picture” and how their process fits into it. Being able to design, implement, and improve processes is part of the task. Knowing how the process interacts with other processes, and improving on that when possible, goes with the territory too. Finally, process owners choose measurements or Key Performance Indicators that will show whether process improvement plans are working out as they should.
All the elements of management: planning, organizing, leading, and controlling are therefore part of a process owner’s work. At the same time, the process owner may not be the person in charge of every staff member who engages in a process. However, most of the activities should fall under the process owner’s control, and he or she should be able to influence any parts of the process that are not.
What Process Owners Do
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“Plan, organize, lead, and control,” is a simple way of summing up a complex concept. So, what type of tasks do these four words embrace?
A process owner must be able to:
Formally define an entire process. Explain how the process links and interacts with other processes. Choose an appropriate system for documentation. Know what is required to train staff so that they execute their part of the process well. Communicate any instructions on procedures to be followed. Ensure that the desired level of quality is achieved by those following the process. Provide staff with the resources and information they need. Keep processes running efficiently, improving them whenever possible. Solve problems and prevent them from recurring. Implement any changes to the process effectively. Work with the internal suppliers of the process about what’s needed from inputs. Meet the needs and requirements of the process receiving outputs. Use performance information to set process improvement goals. Follow up to see whether performance goals are being reached. Identify and mitigate process-related risks and explore process-related opportunities. Develop and suggest process improvements.
Process owners, therefore, develop and run processes, but they also constantly look for ways to improve them, and since you’re embarking on process improvement, you can see where process owners enter the picture.
How Process Owners Improve Processes
When a need for process improvement is picked up, the process owner plans carefully first. They answer the following questions in the process:
What are we trying to achieve? How can we perform tasks so that we achieve it? When will we do it? What data do I need to track progress, and how will I assess it? What’s the final plan? How will I communicate it?
Now that your process owner has worked on a plan, presented it to you, and has received approval, it’s time to put the plan into action. By now, everyone affected by the process will know what they’re meant to do and what they’re trying to achieve. But plans aren’t yet practice. The process owner needs to move to the next step
Is the plan working in action? It’s time to check the results. During planning, the project owner decides on what information he or she needs to analyze to gauge success. Now the measurements are used to see
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whether the results match expectations.
Can the process improve next time around? The process owner decides what actions to take to make sure that it does and starts the cycle again, beginning with planning.
Who Should You Appoint as a Process Owner?
The whole point of having process owners is that you have one person who is in charge of making a process work well for you. A process owner may have a team to help with process improvement, but the responsibility remains with a single individual.
Usually, a process owner will be a manager, but choosing the right person for the task takes a little thought.
Experience with the process in question will help, but the willingness to drive change and make improvements rather than just maintain the status quo is a prerequisite. If process improvement is going to solve a problem a member of your management has raised, you might have the perfect candidate for process ownership.
But just as a process doesn’t exist in isolation, a process owner also has to have the people skills to work with process owners from preceding and subsequent processes. And they may need to work with people who are responsible for parallel processes that impact the one they’re to own.
Needless to say, you need a rational but creative thinker who has a knack for spotting areas in the process that could do with improvement. Finally, your process owners need to keep their fingers on the pulse consistently – even once the process improvements are entrenched and are running smoothly.
How to Work with Process Owners
Once you think you’ve identified a process owner, you want his or her full cooperation. As the term says, you need an “owner.” For process owners to be passionate about business process improvement, they must be involved as early as possible.
Without early involvement, it’s difficult for process owners to feel as if they’re part of a team that’s aiming for exciting results. Instead, they may feel that they’re being dragged along by the initiative rather than actively participating.
As soon as you know that there’s a process-related improvement you’d like to work on, it’s time to appoint the process owner and inform him or her of what you have in mind. If you have trained Six- Sigma Black Belts, one of them will share the responsibility for process improvement with the process owner. Whether you have Six-Sigma Black Belts or not, your process owner is likely to need a team, and once again, he or she should be involved in the selection process.
As your process improvement project progresses, you will have meetings at which feedback must be given and presentations made. Even if you have a Six-Sigma Black Belt on the case, most of the
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communication should come from the process owner. The Black Belt is there to help with Six-Sigma- related specialist knowledge on process improvement, but the process owner is still in charge.
By giving process owners real ownership and by getting feedback directly from them, you foster their engagement and keep it alive.
Process Ownership - A Quick Recap
So now that you know the "hows" and "whys" of process ownership, let's do a quick recap...
A process owner works with a process in which they have specialist expertise and in-depth knowledge that you don’t have. The ideas and advice you get are highly relevant. Process owners give you a single point of contact for any part of a process they are in charge of. You need only work directly with one person. Process owners take responsibility for process results and work to improve efficiency, quality, and customer satisfaction. They don’t stop owning the process after process improvement initiatives wind down – they make sure you’re still getting the improved results. Process owners work with the owners of adjacent processes to coordinate and improve workflows. They monitor work within their process and come up with new ideas for ongoing improvement.
Of course, just appointing a series of process owners isn’t enough to ensure success. To really get the most out of them, you'll need to arm them with the right tools.
Business Process Management Software (BPMS) is a must-have weapon in every process owner's arsenal.
The tool can help capture new process designs or adjustments, test out possible solutions, communicate requirements to process teams, and monitor implementation.
And to put the icing on the cake, Tallyfy's BPMS is free to try. Give it a go & see how the software can help with process improvement initiatives.
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Six Sigma Process - A Brief Introduction by Amit Kothari https://tallyfy.com/six-sigma-process/
In an ideal world, companies would be able to run their business with no waste and no customer attrition. Without these bumps in the road, companies could significantly increase their profits. Alas, the world is not ideal. But that doesn't mean weighty waste reduction and improved customer retention isn't a possibility. Enter the Six Sigma process.
In fact, in 1986, Motorola was so confident that they could make these changes to their production and customer satisfaction that they designed an initiative to reduce their product defects down to 3.4 defects per million products. This initiative was so successful that Motorola expanded it to their other business processes and they branded it as their Six Sigma process.
What Is The Six Sigma Process?
In simplest terms, the Six Sigma process is a quality control program. When it was developed, its purpose was to reduce manufacturing defects and improve cycle time. Over the past few decades, the program was adapted to address a wider range of general business needs, such as sustaining and improving business products and services, improving customer retention, and better meeting customer requirements.
In more advanced terms, the goal of a Six Sigma process is to make statistical improvements to business processes. It reduces focus on qualitative markers, in preference of qualitative measurements of success--think project management, financial analysis, and statistics. Success is seen as efficiency, which is recognized as a business process that has less than 3.4 defects or problems, anything that does not satisfy the consumer, per one million chances. At its core, a Six Sigma process advocates the idea that all business processes can be optimized through measurement.
How Does The Six Sigma Process Work?
A Six Sigma Process is a five-step process that goes by the acronym DMAIC. The 'D' stands for define. This first step is where a team of people, who are often led by a Six Sigma certified professional, define the fault. This is where their focus will be and it is landed on by analyzing the organization's requirements and goals. During the define step, the team outlines the specific problem or fault, their goals, and the project deliverables.
The 'M' stands for "measure." During this step, the team takes a look at the current process and measures its initial performance. These measurements come from the list of inputs that are potentially causing the problem. They also enable the team to get a clear picture of the benchmark performance of the process.
The 'A' stands for "analyze." The team isolates every input that could be causing the defect. They then test each input to see if it's the root of the problem and analyze the results. The team then identifies the
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problem input.
The 'I' stands for "improve." After identifying the problem input, the team makes a plan for improving the system performance and puts this plan into action.
Finally, the 'C' stands for "controls." The team creates controls and integrates them into the process. This ensures that the defect doesn't become an issue again.
How Does The Six Sigma Process Benefit Organizations?
Employee and Customer Satisfaction
The benefits of a Six Sigma process go beyond increased profits and increased customer satisfaction. It helps to develop a more stable and strong organization as a whole. One of the most surprising benefits of this method is increased employee satisfaction. This is mainly because Six Sigma processes can be applied to employee queries. Whether queries are about company regulations, terms of contracts or pay entitlements, they frustrate and confuse both employees and HR, as well as wasting time. When the Six Sigma process is applied to this area of business, errors are removed, time is saved, and morale is boosted. Employees have a clear understanding of how much overtime they qualify for, how much vacation time they can have, and exactly how payroll works.
Increased productivity
A second potential benefit of a Six Sigma process is increased productivity. Utilizing your staff to their full potential is a major challenge. It can be difficult to pinpoint the root cause of low productivity, especially when you need to measure the time that is spent on both indirect and direct work activities. You might need to hire more staff. Or it could be that they just need more training. Alternatively, the major issue might actually be with your supply chain. Six Sigma's methodological process can provide clarity on what the real issue is and how you can address it.
Reduced waste
A third possible benefit that a Six Sigma process offers is the reduced waste. Resources can be severely drained by any work process that adds no value in the eye of the consumer. And this doesn't just mean overproduction or wasted materials, costs and time. It also includes waste such as untapped employee skills, ideas, and creativity or the unnecessary movement of products, people and information. A Six Sigma process helps an organization dig down deep into why this waste is occurring, understand how to cut the output of services or manufacturing of products that aren't being immediately utilized, and implement controls that slim down unnecessary processes.
Improved market share
The fourth benefit of a Six Sigma process often offers businesses is the possibility of an improved market share. For every Sigma process shift, organizations that have implemented a Six Sigma process will often see about 20% profit margin growth annually. Most companies sit around 3 Sigma or 66,807 defects per
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million opportunities. Even just one Sigma shift, to 4 Sigma, represents a serious amount returned to the organization's bottom line--down to 6,210 defects per million opportunities. These type of improvements mean companies can invest that saved money into the creation of new services, products, features, and functions, which will, in turn, result in an even larger share of the market.
How Can Organizations Make Their Six Sigma Process Controls Stick?
While the Six Sigma process can look like magic. It's not. It's hard work. After an organization has finally isolated the causes of defects, they then have to figure out how to avoid those causes--and stick to it. One of the biggest reasons organizations fail to make a Sigma shift is that their controls aren't adhered to. But this doesn't have to be the case. Controls aren't difficult to keep in place if they are implemented and tracked carefully.
One of the most effective ways to keep controls in place is through the use of outside guidance, such as Tallyfy's SaaS app for workflow. This app is ideal for a process that needs to be repeated over and over again. It moves controls over from flimsy spreadsheets or paper to interactive software, which ensures that they are done on time, consistently and accurately. Tallyfy also allows for the process or control to be tracked and audited, whether it's a human-intensive process, internal support process, or customer-facing process. This means that not only can you improve the process, but you'll be able to easily meet all compliance requirements as well.
The true beauty of Tallyfy's workflow application is that it was built with the Six Sigma process in mind. If an organization doesn't have the time to complete process mapping and improvement, Tallyfy has outsourcing services available to their Six Sigma partners and consultants. This way companies can be sure that they have a clearly defined and communicated 'who', 'what', 'when', 'how' and 'why in their process mapping. In addition, the process maps are easy to follow, track, measure and improve. No more hoping that the final stage of your Six Sigma approach sticks. Once you have it mapped out, you have all the accountability and clarity that everyone involved needs.
Want to learn more about workflow software? Read up our guide to different workflow management tools.
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Six Sigma Software: Definition, Types and Uses by Sonia Pearson https://tallyfy.com/six-sigma-software/
One of the best ways to optimize your business is through the use of Six Sigma software.
Six Sigma is a set of techniques/tools that aim to improve company output, which is typically done by finding and eliminating inconsistencies or defects in service or product processes.
Six Sigma is especially important if in charge of a large corporation, or are operating in a very competitive market.
Whichever the case may be, a small boost to your business might mean a giant leap over your competitors or a boost in profit.
Six Sigma software and certification also acts as a status symbol - it proves to customers that your business is serious about quality and consistency of the product.
What Is Six Sigma Software?
Six Sigma has been around as a business methodology since 1986.
As a concept, however, it dates back to the 196th century. Its early versions can be found within Carl Frederick Grauss’s bell curve and Carl Shewhart’s analysis of the three sigma deviation from the mean.
In the 1980s, US mobile communications giant Motorola made a lasting impact on the way businesses operate by introducing the Six Sigma methodology.
Motorola’s work in this area began a decade earlier when executive Art Sundry realized that he was dissatisfied with the consistency of quality in their product. This led to an internal search for a solution.
Two years later, Motorola had won the Malcolm Baldridge National Quality Award, with the methodology spreading to other major firms like General Electric, AlliedSignal, and Citibank.
Some of the main principles of Six Sigma include:
A focus on achieving measurable and quantifiable financial returns from any project. An emphasis on strong management leadership and support. A commitment to making decisions on the basis of verifiable data and statistical methods, rather than assumptions.
Types Of Six Sigma Software
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There are several pieces of software out there that promise to help you incorporate Six Sigma methodologies into your business processes, but there are four main types that they all fall into, which are:
Analysis tools - These are used to perform statistical / process analysis. Program management tools - They can manage and track a corporation's entire Six Sigma program. DMAIC and Lean online project collaboration tools - As the name suggests, these are used to Define, Measure, Analyze, Improve and Control processes. Data Collection Tools - These feed information directly into the analysis tools and reduce the time spent gathering data.
Six Sigma Methodologies
5 Whys
The 5 Whys Six Sigma methodology was introduced by the executives at Toyota: their approach was to keep asking questions until they'd find weaknesses in the processes.
The way it works is, you need to start from the problem and ask "why is it happening?"
If the answer doesn't get you close to the solution of the problem, you just keep asking "why" until you get there.
For example:
1. Why was the company in the red last quarter? Because there were a lot of charge-backs. 2. Why were there a lot of charge-backs? Because the customers were dissatisfied with the product. 3. Why were they dissatisfied with the product? Because some of the products were defective. 4. Why were the products defective? Because there were a few malfunctions on the assembly line. 5. Why were there malfunctions? Because the hardware is starting to get outdated.
As you probably guessed, the name comes from the idea that you're going to find your problem after asking "why?" five times.
CTQ Tree
If you find workflow diagrams helpful in laying out process issues, the CTQ (critical to quality) tree can be vital in identifying client needs and creating solutions.breaks down the process into different components.
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The way it works is, you first identify the critical needs of your customers. Then, you add highly-specific drivers to each need. Meaning, a factor that the customer uses to identify whether or not their critical need is solved. Finally, you add measurable performance requirements to satisfy the driver.
For example: let's say you're launching an E-commerce store selling winter coats.
1. The critical requirements could be for the coats to be warm and comfortable. 2. For it to be comfortable, it has to be made out of special materials. 3. The special materials have to be made out of 80% wool, at least.
CTQ trees can be used outside of Six Sigma software, but they were initially created as part of this methodology.
How Six Sigma Software Will Solve Your Problems
We’ve already established that Six Sigma software is aimed at improving the consistency of business processes, but utilizing it has a wide range of likely benefits for your business.
Increased Efficiency
Each process within a workflow is analyzed as part of Six Sigma to seek out weaknesses that are affecting efficiency. These weaknesses are then eliminated or mitigated, leaving the business processes measurably more efficient.
The ability to measure and quantify the benefits - particularly financial ones - makes Six Sigma software as popular as it is amongst businesses large and small, both of which need to be able to justify changes to processes.
Better Customer Service
Any process improvement has to be not only about improving efficiency and delivering financial benefits, but also ensuring that customers get a better service and end product.
In the case of Motorola, Six Sigma was used to deliver a more consistent product. This also helps with customer service - by freeing up the staff that has to take care of defects and complaints, you end up with a bigger focus on customer care.
Improved Staff Morale
There are many things that can affect the morale of your staff, which in turn affects every aspect of the way your business runs. One of these is forcing them to spend their working lives dealing with inefficient processes that increase their workload at the same rate as increasing their frustration levels.
Eliminating the processes that are causing this frustration, and freeing up time for more constructive and rewarding work is a big step towards ensuring you have a happy and more productive workforce.
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Conclusion
Six Sigma software and the methodology behind it has revolutionized the way businesses operate by putting the focus squarely on delivering what the customer is expecting more consistently than before.
The limit on acceptable ‘defects’ in products and services when utilizing Six Sigma is 3.4 per 1 million and its root-and-branch approach to improving processes ensuring that your business will be eliminating problems not just reactively but also proactively.
For small-to-medium sized business, the benefits of Six Sigma software are clear. Gaining the certification will help you stand out from your competitors in the market, while the process improvements will make your product or service one that keeps satisfied customers coming back time and time again. If your product or service is in a marketplace where quality is critical, not using Six Sigma software is setting yourself up to fail.
If your product or service is in a marketplace where quality is critical, not using Six Sigma software is setting yourself up to fail.
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Skyrocket Productivity with Business Process Transformation by Amit Kothari https://tallyfy.com/business-process-transformation/
Digital Transformation has been taking the world by storm. Two-thirds of the CEOs of Global 2000 companies will have digital transformation in the center of their company strategy by the end of 2017.
Business process transformation is a digital transformation – it means changing and improving your business processes by using new technology. Transformation isn’t your average business process improvement (BPI) initiative, however. With BPI, you’re usually making minor changes to any given process. For example, that could mean removing a step, changing process structure, etc.
With business process transformation, you’re using new tech to fundamentally change how the process is carried out.
3 Tools for Business Process Transformation
There are a lot of ways to achieve business process transformation. This, of course, depends on what your company does, what kind of processes you’re looking to digitize, etc.
You could, for example, digitize your sales processes by using SalesForce to manage everything.
Or, you could adopt accounting software, such as QuickBooks, to simplify your accounting processes.
There’s countless software out there to help transform any given business process. For the purpose of this article, we’ll cover 3 such tools for different must-have processes (project management, process management, and accounting), as well as a case study on how Ford Motors transformed their accounts payable division.
Project Management Software
Without the right software, the process of project management can be hard and time-consuming.
While a physical Kanban board is useful, it’s not helpful with accountability. The same goes for physical project management tools as a whole – the Gantt chart, for example, helps set out a timeline. It doesn’t, however, make sure that your employees are doing the right work.
Project management software completely transforms the process of running a project team.
Offline, the project manager would have to constantly check in with his or her team, ensuring that the right work is being done. Project management software does this for you.
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Rather than having to systematically check on different deadlines, you get a top-down view of all the tasks (and information on whenever they’re due).
One of our favorite tools is Basecamp. The software is easy to start with, even if your employees aren’t that tech savvy.
Business Process Management Software
Every company is based on business processes, whether they’re implicit (they’re just there) or explicit (strictly defined procedures).
Business Process Management Software (BPMS) is an essential tool for business process transformation. In a nutshell, it helps take your workflows online.
The software can be used in a number of different ways…
1. Introspection – The software stores your process maps. Meaning, you can look down on your processes and figure out how to improve them. 2. Automation – BPMS automates the task-communication between your employees. So for example, an employee finishes a given task. The person who’s supposed to do the next task is automatically notified by the software. 3. Process Enforcement – It’s hard to make new processes stick. The software ensures that your employees are following the best-practice process and not deviating from it.
All this can lead to more efficient processes, something that has an impact on both company productivity and bottom line.
And to put the icing on the cake, modern BPM software is significantly cheaper than what’s been available until now. Until recently, BPM used cost six-figures to install, as well as taking several months.
Now, you can start off for free and see the benefits of process management in your own organization.
Want to learn how to pick the right BPM software for your business? Learn what features make certain BPM solutions stand out from the rest!
Accounting Software
For any organization that has an in-house accounting team, using the right software is essential.
Specifically, accounting software helps with…
Accuracy – You can always mess up a manual calculation. In the world of finance, a minor mistake on the accountant’s part can turn out to be very costly for the organization as a whole. The software does all the number-crunching for you, completely minimizing any chance for
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human error. Speed – Accounting software can automate a big chunk of an accountant’s menial work. So let’s say, for example, you want to calculate sales tax on all of your transactions. Your average accountant would spend hours, possibly days, doing this. The software, on the other hand, can do it almost instantly. Easier Reporting – Creating any sort of report can be very time-consuming for an accountant. Most accounting software allows anyone from the company to automatically generate most types of reports they could ever need.
So, if you want to completely transform your accounting processes, give it a try.
At Tallyfy, we prefer to use QuickBooks; one of the most reliable and popular tools out there.
Case Study: How Ford Transformed its Accounts Payable Department
In the 1980s, the American automobile industry was in a depression. Most organizations were taking a big hit, having to lay off a lot of their employees & cut on their spending.
Ford was no exception – the company was desperate to minimize their spending. So, the management decided to really dig into their processes and root out any inefficiency.
One of their key findings was that their accounts payable department was overstaffed - it consisted of over 500 people. For a point of reference, the same division at Mazda (Ford’s partner company) had only 5 employees.
The reason for this, as the company eventually found out, was that their accounts payable processes were extremely inefficient.
The way their existing system worked was as follows…
Whenever the purchasing department makes an order, they send a copy of the order receipt to accounts payable. Once the material control receives the shipment, they send a copy of the shipment receipt to accounts payable. At the same time, the vendor sends out a receipt for the goods to accounts payable The employees at accounts payable would then be tasked with matching the three separate documents (order, shipment and vendor receipts), and only then would the shipment be considered complete. As a given, this ended up taking a lot of manpower, since matching was done manually.
To fix this, Ford used business process transformation – they started using an internal database to streamline the process. The system they put into place was as follows…
Whenever the purchasing department makes an order, they submit the receipt to the database. The material control receives the shipment. Then, they cross-reference the shipment receipt to the order receipt through the database.
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If there’s a match, material control marks the order as complete.
This way, there was no need for a lot of manpower in the accounts payable department. Once the order is marked complete, there’s no need to cross-reference 3 different types of receipts.
As a result of the new process, Ford managed to reduce their total number of employees within the department by over 75%. This allowed the company to survive the rough times without much trouble.
Conclusion
Now that you have a good idea of how business process transformation works, you can start applying it to your own business.
Whatever processes you’re working on, there’s always a tool out there that can help (even if it’s for something that we haven’t covered).
Have you done business process transformation in your own company? Is there any software that you’d recommend? Let us know down in the comments!
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The Biggest Problems with Process Improvement by Amit Kothari https://tallyfy.com/problems-with-process-improvement/
Problems with process improvement can pop up in any organization. That’s because every company has opportunities to improve processes, but not every company takes a well-thought and measured approach to process improvement.
While intentions may be good, it’s incredibly easy for processes to become cumbersome and costly, which is the opposite intention and can be incredibly frustrating for the employees who have to work within those processes each day.
For example, a company might decide to upgrade its IT infrastructure to improve security and make certain processes more efficient, but the addition of multiple IT systems only exacerbates the problem when the systems aren’t made to communicate with one another.
When a company purchases new tech and tries to implement it without understanding how it impacts all the processes it touches, the majority of the time it creates problems with process improvement.
Here are some of the biggest problems with process improvement and mistakes the companies make most often.
Key Problems with Process Improvement
Not Problem Solving
One of the biggest problems with process improvement is when operations get tunnel vision, locking onto efficiency. While efficiency is important, you can’t neglect effectiveness and the act of solving a problem.
A process is slowing or has become inefficient, because of one or more underlying issues. Part of process improvement is identifying the source of the problem and addressing it. If you don’t aim to identify and fix the problem, then you haven’t made any improvements. You’ve simply changed a process without creating a benefit.
Workshops Are Not Process Improvement
Rather than tackling a process at the root cause, some organizations hold workshops in hopes of training up their teams, improving efficiency, and essentially trying to manage the problem by managing the people. Unfortunately, workshops for process improvement are rarely effective.
This is one of the biggest problems in process improvement because gathering people from different
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departments never really addresses the finer details that are the root of process issues.
Likewise, workshops are often held far apart from one another. With wide-spread workshops, the ideas people come up with on a daily basis are forgotten. And because you’re dealing with a larger group, you’ll rarely dive into finer details.
It’s nearly impossible to identify the key components to improve processes from workshops. Which brings me to the next point.
Making Decisions by Consensus
Like workshops, you can’t make process improvement decisions by consensus. Your processes are never something that should be adjusted based on a popular vote or group decision. While you certainly want to include your team in identifying problems, and hosting group ideation to find solutions, the end improvement should be grounded in fact – not popular opinion.
If there are competing choices which are both attractive, use the data to make your choices.
Averaging the Data
Data is a key part of process improvement, but one of the biggest problems with process improvement occurs when data is misused or the wrong data is applied. Placing too much stock in the law of averages can get you into trouble when working to make improvements.
For example, the average size of a part or component might make it look like you’re producing within tolerances when in fact the true output has a high defect rate. Likewise, the average ship time compared to your target time tells you virtually nothing about making on-time delivers to customers.
Avoid averages when measuring data for process improvement, and instead look at the spread of data to compare on your own.
Not Pulling Enough Data
A common issue with process improvement is when those in charge take in too little data or pull input from stakeholder groups that are too small.
Many times, an aging process has been “Frankensteined” over time to work with more than one group or touches a larger number of stakeholders than originally intended. To avoid this problem, expand the audience from which you’re gathering data. This way you ensure no department or individual perspective is overlooked.
Comfortable Process Improvement
When your team comes together to talk about issues and work to make improvements, a lot can be lost to memory. As you work on ideation and formulating a plan, it’s also not accurate to assume that the sketch
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of your processes is going to flow properly.
A lot of mistakes can be made from the comfort of a conference room where things look good on paper. Even with process maps created by people who handle the process every day, you’re still likely to find mistakes and omissions.
Instead, go out and get involved in the process. Work it from start to finish as you pinpoint ways to improve it. Solid improvements take accuracy, and you’ll be making improvements based on guesswork if you’re constantly refining processes from the comfort of the office.
Language Changes Process
A process that needs improvement is likely one that involved multiple teams or departments. Unfortunately, this often means a difference in language or terminology. Each group will have its own way of describing the problem, the process, and ways for improvements to be implemented.
One of the biggest problems in process improvement is when departments aren’t on the same page, and language use creates confusion. Don’t assume that everyone understands the process, or improvements to be made. Take the time to speak with everyone involved and really listen to how they describe the issue and define the process in their own words.
Taking the First Solution
Enthusiasm to finally see improvement and change an aging process can sometimes lead to jumping the gun. This happens when you or your team is too focused on the problem, and you’re hell-bent on finding a solution as quickly as possible.
When this happens, it’s less about process improvement and often more about beating the clock to get a solution in place. If you try to solve a problem instead of watching and listening, you could miss critical data and info that would help you understand the process and what is needed to make appropriate improvements.
Relying on Technology
Like the example I made above with new IT infrastructure being added as a solution, technology doesn’t solve problems. Technology is a tool, whether it’s a restructure of your intranet or as simple as using a tool like Tallyfy to help automate some processes.
Technology only amplified the process, it is not a solution. You still need to improve the process and map out what part technology will play in that. Otherwise, the random addition of technology is likely to only make the problem worse.
As a general overview - the video below covers ways in which your process improvement initiative can be more successful.
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Stalls in Implementation
There’s typically more than one small group involved in process improvement. Process improvement often involves a series of improvements, like chapters, as things roll from one team to another – where one set of actions is completed, the new team starts another series of actions to improve the process.
When the next team doesn’t do what they’re supposed to, implementation can stall. Insufficient transition happens more often than you think between solution development and implementation. This is where a strategy and documented, a tracked process is necessary to move things from one team to another seamlessly.
No Ownership
This is most often a manager slip-up and occurs when there are numerous teams involved in process improvement but no ownership has been set up for the improvements. Teams work in their own segmented parts of a process but aren’t effectively communicating because there’s no one individual owning the process improvement.
Accountability and ownership are two different things. The manager is accountable for improvement and the results. The person who owns the process is actively engaged, and manages the project from start to finish. They drive communication and tie the teams together to ensure continuity with the new process. You need to create ownership among your teams, but you also need someone to own the overall project to keep it moving.
Have you experienced problems like these with implementing new processes? How did you and your team cope? Let us know down in the comments!
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The Process Collaboration Pair Makes Great Organizational DNA by Amit Kothari https://tallyfy.com/process-collaboration-pair-makes-great-organizational-dna/
There’s nothing like a double helix to animate an entity, breathe life into it, and help generate objectives and actions. It’s true for fruit flies, human beings, and enterprises. Now, decoding the DNA of animals is immensely complicated. On the other hand, identifying the critical strands that make an organization function effectively is much simpler. Better still, the process works in reverse too. In addition, we can build better, higher performance enterprises, if we make the effort. The process collaboration pair, correctly intertwined, gives an organization much of the basic structure it needs to succeed.
How Collaboration Helps Enterprises
But why should this be so? Isn’t the ideal enterprise a well-oiled machine that executes processes without missing a step or skipping a beat, steam-rolling its way over competitors and relentlessly raking in profits? Not quite. Enterprises depend on people to succeed. People depend on each other to move in the right direction at the right time. In other words, collaboration is a key part of the mix. As a result, the advantages to organizations are multiple:
Access to skills and know-how. Everybody has individual strengths and weaknesses. Good collaboration reinforces the former and cancels out the latter. Learning. Collaboration gives people the chance to see how their colleagues think and operate, and to learn and improve their own capabilities accordingly. Innovate and solve faster. The personal silo of one has no place in most of the today’s enterprises. Collaboration between people can solve a problem in hours that would have flummoxed an individual for months.
Bite-sized chunks of work. Collaboration can put an end to task indigestion, allowing work to be chopped up into chunks that are easier and faster to handle overall. Scaling up activities. The best collaboration is scalable without limit. Bigger projects simply need more people with the right collaboration. Constructive differences. Collaboration doesn’t necessarily mean people immediately agree on everything. However, a little creative abrasion in collaboration, as it has been called, can yield better performance and results than groupthink where nobody dares to be different. Job satisfaction. When more things get done with better results, employees can say “I was part of that.” As a result, job satisfaction and loyalty are both likely to benefit.
Process Management Makes Collaboration Effective
Examples of collaboration stories include sales teams at GE Aviation reducing task time from a week to a
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matter of minutes by sharing documents and accessing knowhow. Also, employees in the CEMEX alternative fuels program reduced CO2 emissions and saved the company hundreds of millions of dollars, thanks to experience sharing and process collaboration.
However, collaboration on its own lacks the backbone to bring in meaning, order, and progression. The right business processes provide a framework. Within this, the collaborative muscle can move an organization to desirable results. The aim is to achieve two things:
1. Embedding of collaboration methodologies within business processes 2. The shaping of collaborative efforts by business processes to direct them towards results.
Practical Steps Towards Process Collaboration Pairing
These practical steps help organizations to move towards this process and collaboration pairing:
1. Understand business objectives. Obvious though it may sound, many enterprises skip this critical initial step. First, you must know what you want to achieve. Only then can you map out the process to get there, and build in the collaboration to get there faster and more efficiently. 2. Understand how work is done. Visualization of process steps easily and rapidly in Tallyfy lets you see which information must be available where, when, and by whom. 3. Help managers achieve the embedding. The Tallyfy process management platform provides valuable support for the use of suitable collaboration tools, such as enterprise social networks. 4. Empower employees to work better. Flexible process definition and a process management platform let an enterprise and its staff smoothly handle different outcomes at different stages. That means that employees can get on with their jobs and their collaboration without being unnecessarily blocked.
3 Common Process Collaboration Problems and How to Avoid Them
Conversely, three major pitfalls to avoid in bringing process and collaboration into play for the benefit of an organization are:
Lack of clear goals. Check with managers responsible for setting up processes and fostering collaboration. They must be able to correctly articulate the key business objectives of the organization.
No transparency in decision-making. Processes often require a decision to be made at one point at least, even simply if it is a go/no-go decision. It should be clear what the criteria for the decision-making are. Then employees can trust the process and accentuate their collaboration, without having to worry whether decisions are being made properly. Management uncommitted. Management support for a process and collaboration within that process must be clear and unambiguous. Moreover, managers themselves must also abide by the same rules whenever the activity is to be carried out.
Conclusion
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In summary, this process collaboration intertwining can propel an enterprise rapidly along the road to success. By respecting a few fundamental principles and by using the right tools for collaboration and process management, staff can build the organizational DNA to get an enterprise and its workforce functioning effectively and efficiently, day in and day out.
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Top 5 Benefits of Automating Manual Processes by Sonia Pearson https://tallyfy.com/benefits-automating-manual-processes/
For businesses wanting to survive in ever more competitive markets, where technological solutions are changing faster than many businesses can keep pace with, it’s difficult to take advantage of the benefits of automating manual processes, because by the time a new software solution has been committed too, the technology has moved on. Under this frenetic pace of innovation, many business owners are becoming paralyzed by fears of making the wrong choices for investment.
The truth is, however, that staying abreast of innovation is no longer a ‘nice to have’ but is vital to competing with the early adopters in your niche who are reaching out to your audiences with automated marketing solutions or achieving operational efficiencies with automation of business processes which formerly involved greater staff time.
Whilst going through solution analysis paralysis, or seeing the risks of where other companies are failing, it is worth reminding yourself exactly why you are enduring the angst of seeking to automated elements of your daily business.
According to research undertaken by McKinsey, less than a quarter of organizational redesign projects are successful. Forty-four percent don’t complete and a third fails to meet business objectives or achieve improved performance after implementation.
If you are a CTO, then, keeping a list of the benefits of automating manual processes in the forefront of your thinking will mean that you can persuade colleagues in procurement teams and your CEO of the value of your technical recommendations, despite the bumpy record of similar tech-based projects.
What follows is a closer look at why automating business processes needs an organizational mindset shift from viewing technological solutions as merely a future goal of current core business strategy.
#1: Your Teams Will Thank You
Automation of back-end processes frees up staff time. Apart from the obvious benefits of efficiencies achieved, staff released from mundane tasks can focus on more creative jobs or up-skilling. One of the most cited issues for employees seeking a new job outside of their current workplace is a lack of training and professional development. Enhanced job roles, where mind-numbing responsibilities are removed means improved job satisfaction for your teams. This fosters greater loyalty in staff, who feels valued, which in turn reduces staff turnover.
Discover how to improve your team's job satisfcation using these 3 Task Automation Tools.
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#2: Your Partners Will Trust You
Stability of employee resources consolidates in-house expertise and has the knock-on effect of building knowledge and experience within your company. Where customer facing staffs communicate with your customers, suppliers, investors, partners and other external stakeholders, their authority establishes you as an industry leader who can be relied upon for the best advice and service delivery.
This is particularly important where you are seeking any external business investors for scaling up elements of your business. Confidence in your organization’s competence and capacity for competitive longevity is more likely to seal any collaboration with you from potential investors.
#3: Virtuous Circle Benefits of Automating Manual Process
Remaining on the topic of business development and freeing up staff time, workers who have time to become pro-active, together with financial savings achieved from automating manual processes, means that you can push forward your Research and Development plans.
Success breeds success and when automation is part of this process, your investment in the efficiency building technology creates a virtuous circle with many other benefits to be accrued. Automation of daily routines means the focus can be shifted to strategic forward planning and even further innovation on the part of the senior staff, or operatives who may be more inspired to improve your business.
Overall, your company will go through a complete business process transformation.
#4: Building Resilience
Automation offers unexpected cost efficiencies, such as risk mitigation. The technology minimizes human error across a wide array of activity. For instance, recording data becomes more accurate, payroll mistakes will be minimized, and inventory management can become smoother, customer care management enhanced and so on. Minimizing risks associated with mistakes that are inevitable in inefficient processes and getting staff commitment to accept change and learn new processes builds in the resilience of your organization and builds confidence in your stakeholders.
Where mechanization of manual tasks involves investment in heavy machinery driven by sophisticated software is concerned, this minimizes health and safety risks faced by your company. One of the greatest threats to an SME is a costly insurance claim made by a former employee who has been the victim of outdated factory-floor or field-based processes.
Better quality control of products also means that potential losses incurred from wastage associated with poor quality of production or processing become negligible. Standardization of products and/or service provision is key benefits of automating manual processes.
This creates its own virtuous circle, where more accurate measuring of outputs, where there is like for like, means that more meaningful business insights can be achieved. Automation allows for greater accuracy in measuring results in new business processes, potentially adding value to the testing of new
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products or services.
#5: Customer Loyalty
Technology can add value in ways that your customer or clients will appreciate. Whether this becomes a better quality of product or service, positive customer experiences engender return sales and customer loyalty. Where your marketing processes are increasingly automated, this enhances the customer experience of your brand and inspires engagement.
Social media is the new digital referral system, where new audiences can read other customer reviews of your company’s offering and be inspired to find out what makes you the ‘go-to’ provider.
Both new audiences and return custom are vital to the longevity of your business. With the adoption of innovative business processes, you establish yourself as an industry leader because this inevitably makes products and services better for your customers.
The Future Is Now For Automation
One of the first steps to feeling the many benefits of automating manual processes is being prepared to make that business transforming leap of faith, based on sound research of your options, knowing that the technology provider you choose is professional enough to build in future proofing and risk mitigation into the solutions they offer.
The antidote to ‘paralysis by analysis’ of technological solutions to business challenges is to talk to your preferred tech provider about how they propose to ensure that the technology you are prepared to invest in will not become obsolete within a reasonable business cycle.
Many cloud-hosted software service providers, for instance, can guarantee that whatever changes come along in their industry, a software solution can be programmed in which will not create downtime disruptions, leave you open to risk of hacking or obsolescence, or leave you at the mercy of some other unforeseen limitation on your capacity to thrive in the future.
Waiting for the dust to settle in automation solutions leaves you at risk of your business folding because you have forgotten how important it is to take informed chances in your business. A business that fails to innovate is a business that will fail to stay ahead of their competitors.
The future is here. Your guarantee of reaping the benefits of automating your manual processes lies in a high-quality Service Level Agreement (SLA) with your technology provider. When researching your options to innovate and make technical efficiencies, a key consideration for any business aside from how fantastic the new widget is, is how well you will be served after buying.
Look for companies providing solutions who have a strong reputation for excellent after service and an SLA that protects you against future change. If a company’s automation impacts look likely to provide measurable ROI, then it’s time to make the switch.
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Total Quality Management (TQM): Definition and Principles by Sonia Pearson https://tallyfy.com/total-quality-management-tqm/
Total Quality Management is an approach that covers everything your business does, whether it’s for an external client or an internal one. Since that sounds pretty vague, we're going to dive in and explaining how to use it for your organization.
Total Quality Management (TQM) Definition
TQM is an approach to quality in which every person in an organization is tasked with contributing to process, product, and service improvement and quality control. It becomes part of the working culture of the organization and contributes to continuous improvement.
Like most definitions, this one says quite a lot in just a few words. But what are the guiding principles you need to consider when implementing TQM in your business?
1. The Customer Has the Final Say
Isn’t it frustrating when you invest tons of time or money into improving quality, and your customer shrugs and says: “So what?” All the same, we know that the customer is always right (even when we might think he or she is wrong). The start and end point of any total quality management initiative is the internal or external customer.
Essentially, you need to walk a mile in your customer’s moccasins. See the customer experience from the customer point of view. No matter how much we tell our clients that they ought to be pleased with what we do, they’ll still make up their own minds as to whether they’re happy or not.
Remember Coca Cola’s new recipe? The company thought they were onto a big improvement, but in the end, it was the customers who decided – and they wanted Classic Coke. The moral of the story? It doesn’t matter if you think you’ve made an improvement. Your customers have the final say.
2. Every Employee Involved
Every employee becomes a quality controller and has a voice in the company’s ongoing drive towards ever-greater excellence. There’s no such thing as going home at the end of the workday to bluster about the way management could be doing things better.
Instead, every employee feels safe and comfortable with reporting issues and making suggestions for improvement. And they get feedback on what management has decided and credit where credit is due.
From the floor sweeper to the general manager, every single employee is quality focused. There are eyes
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and ears everywhere, and people at the coalface can discuss the quality issues they face in their daily work without being seen as complainers and bring suggestions without being seen as pushy.
This can make the company significantly more efficient - the management might not have that good of a look at company processes. The field-employees, however, live and breath their work, so it shouldn't be that surprising that they have an idea or two on how to improve things.
3. It’s Process-Focused
A strong business is built on solid, standardized processes. Total Quality Management means looking for ways to improve and tighten up and improve business processes for greater efficiency and a better-quality result. It may mean developing new ways of working, new standards to govern work, or even complete restructuring of processes. However, the goal remains clear: business process improvement that targets customer satisfaction and quality.
4. Integrated Throughout the Organization
To deliver the best results, Total Quality Management should be embedded into every part of the organization. The horizontal interfaces between departments and teams are of particular interest. Smoother, more economical, and more effective process flows mean greater efficiency and greater customer satisfaction.
5. Continuous Improvement
Total Quality Management is not a once-off or periodic drive. It becomes part of a business culture in which every staff member contributes to continuous improvement. Who better to look at ways of improving the sales process than the people who do the job day in and day out every day?
Who better to suggest production improvements than the people who are engaged in the production process? Small improvements could have big results.
Continues improvement also implies lifelong learning. Relevant training that can help employees to perform their functions better is part of the deal.
7. Based on Performance Facts
TQM employs real data to make decisions. And following the principle of continuous improvement requires real-life data on which management can make decisions and measure results. That means gathering and analyzing data and then acting on any inefficiencies or quality problems you spot.
The more comprehensive your data-gathering, the more likely you are to see the full picture. For example, if you’re producing an unacceptably high percentage of faulty products, where does the problem lie? The more data you have on the processes that are leading to these results, the more likely you are to be able to target the problem area quickly and effectively.
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Total Quality Management Tools
While TQM seems to be something extremely beneficial for any business, it isn't that easy to implement. It's one thing to say, "let's make our organization process & improvement focus" and another to thing to actually do it.
Using the right tools, however, can make this much easier. Workflow management software allows you to digitize and track your business processes, making process improvement accessible to an organization of any size.
Learn more about how Tallyfy can help your business take advantage of TQM by scheduling a free consultation.
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Types of Business Processes Explained: A Full Guide on Business Processes by Sonia Pearson https://tallyfy.com/types-of-business-processes/
The word business process is used everyday in various business scenarios. Business after all, has such a wide variety of applications. As such, the range of business processes has become vaster and vaster each day.
When you decide to examine your business processes and formulate strategic priorities for business process improvement, you’ll find that even a seemingly simple business implements a lot of processes. Getting them organized so that they’re coherent can be complicated. However, once you categorize them into types of business processes, it’s a lot easier to prioritize the elements of your business improvement strategy.
In this article, we’ll look at the types of business processes, and what they mean to your business. As we’ll see, this theoretical knowledge has important practical implications!
Why Bother About Processes?
The reasons why process thinking benefits your business are easy to grasp. Your business is there to do something for its clients. They don’t see your business as a collection of independent entities that all do different things, and nor should you.
If you organize your business along purely functional lines, isolated “silos” develop. Production doesn’t integrate with sales; accounting doesn’t talk to purchasing, and so on. Everybody performs their function, but the end-to-end process, the real inputs-to-outputs task, is not well-orchestrated
From a customer perspective, dealing with your business becomes cumbersome. From your business’s perspective, you get a situation in which, as the saying goes, “one hand doesn’t know what the other is doing.”
Since different business functions will have roles in processes, and the results of processes are what matters, managing functional departments as if they were individual entities won’t give the best results. The solution is to break away from functional silos and manage processes rather than departments.
There are Three Broad Types of Business Processes
Every business is different, and the categories into which business processes fall will depend on what your business does. A specific type of task could be a support process in one business and a core process in another.
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We’re breaking away from function-based thinking, so instead of trying to list functions and the processes they might fall into, we’re going to look at outputs. What they do for your business determines the type of business process.
Here are the three types of business processes along with some tips for spotting which processes fall into each category.
1. Core Processes: How You Deliver Value
To identify core processes, ask yourself: “How does my business generate value and make its income?” Core processes are also known as primary processes, so another way of looking at it is to ask: “What does my business primarily do?”
Every task that directly plays a role in producing your business’s outputs to its clients is part of a core process. To get outputs, you need inputs, and you follow a process to move from inputs to outputs. Don’t get confused if you notice that several departments are involved in the end-to-end process. After all, you’re trying to get away from departmentalized thinking.
You will notice that there are several sub-processes within each core process. Some add value, some (for example, storage) don’t, but all of them contribute directly to the products or services that your clients get from you. Because these processes are at the heart of your business’s value, they’re often referred to as the value-chain. They include:
Developing and creating a product or service Marketing the product or service and conveying it to the buyer After-sales service and support also add value and are part of core processes
To deliver excellence, all three of these elements need to work together as one. And since core processes are at the very heart of your business, getting them working as efficiently as possible is a strategic priority that has transformed many organizations.
2. Support Processes: Making Value Delivery Possible
On the surface, it may seem that there’s a fine distinction between generating value and enabling value generation, but there’s a world of difference between the two concepts. Core processes directly serve external clients and generate income. Support processes serve internal “clients” and do not generate income in themselves.
That’s not to say that support processes are unnecessary. For example, your HR activities have nothing to do with your customers, and they don’t directly make you money, but without them, your business couldn’t function. Your IT department doesn’t directly make you a cent, but without the systems it oversees, your value-generating functions could grind to a halt.
As soon as we start looking at functions alongside processes, we can see that certain functional departments will be involved in both support and core activities.
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Your financial department keeps track of client accounts – an important part of customer service that is directly involved in the value chain. However, it also generates the management accounts you use to determine whether your investment in the business is bearing fruit. That’s a purely internal service with you as the “customer.”
The bottom line? Support processes make it possible to carry out core processes effectively and are also of strategic importance – as long as they’re fulfilling their supportive role.
3. Management Processes
Processes, be they core or support processes, require planning, coordination, monitoring, and control. Management processes also include measuring overall results and dealing with opportunities and threats that could help or harm your business.
It’s also up to management to ensure that regulatory compliance needs are met and that financial targets and budgets are met.
Although management processes don’t directly generate income, they optimize income generation and ensure the continued survival of the business as a whole.
Why Understanding the Different Types of Business Processes Helps You
All activities in which your business engages should be aimed at optimizing the core processes. Support and management contribute to this, but redundancies can creep into any of the three types of business processes.
In a business with a diverse product and service offering, it’s possible that extras that don’t really fall within your core business are draining resources without adding value to your clients.
In older businesses, support tasks that made sense at the time may have lost their relevance. For example, you may have added a reporting duty to gather data a few years ago. You used the data, don’t really need it anymore, but your staff is still faithfully generating the reports. If any task isn’t adding value to or enabling core processes, you should consider pruning it away.
That’s one of the reasons why mapping your core business processes is so important. If you find yourself asking: “Why do we even do this or that task?” it’s probably time to streamline your business processes.
Understanding the types of business processes can also help you to make outsourcing decisions. Although it certainly is possible to outsource parts of your core processes, it can be risky.
However, support processes can more easily be, and often are, outsourced. Even large businesses are outsourcing support to firms whose core business is the provision of support functions. Many of them are finding opportunities for cost-savings in this way.
Finally, if you’re moving to process-oriented management to improve efficiency, you need a starting
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point. The best place to begin examining your business process architecture is with the core functions. After all, they are the functions on which everything else in the business should focus.
Track and Map Your Business Processes Using a BPMS
Mapping business processes and tracking them can become very hard as your business starts to scale. At some point you find yourself going through piles of papers and countless folders to find the right implementation design for a certain process. That's when you realise your processes are scaling faster than your business.
In order to avoid facing such problems, businesses have started adopting business process management software to simplify anythign that has to do with business processes tracking, improving, analyzing, automating, and so on. This is essentially ready-made software that can help you keep track of all your processes from a single screen. You won't have to go through piles of documents again. Instead, you'll simply receive an email whenever something is done.
And if you want to map out your existing processes which are not documented, you can do that with a few simple clicks.
The issue with using BPMS before was that they were only adopted by entrerprises due to their high costs. Nowadays however, with the rise of SaaS businesses, that is not the case. There are many BPM tools that are cloud-based web applications. They scale alongside your business and are perfect for any size company. Including startups.
One of the best BPM tools available in the market at the moment is Tallyfy. It was crafted by BPM experts and has been improving businesses all over the world in improving their business processes for the past 4 years.
You saw a screenshot above representing Tallyfy's website. That is just a tiny peak into what Tallyfy really is. In order for you to get the real experience, you should give it a try. Just like you'd take a car for a ride before purchasing it. Tallyfy provides you with a free trial, allowing you to experience the full potential of this business process management software.
With Tallyfy, you can create re-usable blueprints (templates) so that creating a new business process can be done in a few minutes. How cool is that?
Getting Started with Mapping Business Processes
Now that you know where to get started, it’s time to start mapping your business processes so that you can analyze them and look for areas you can improve. Traditionally, people used flow-charts or business process notation for this. But these methods are cumbersome and have their limitations.
Business process management software can help you to overcome these, but Tallyfy goes beyond that. Task allocation, monitoring, and analytics that show problem areas are all included or integrated nicely.
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Tweaking and touching up processes becomes the work of a few minutes. Did you find redundant tasks? Simply remove them from the process flow. Are there areas where work piles up and processes become delayed? Spot them at a glance, investigate the root cause, and make the necessary adjustments.
The road towards greater customer satisfaction and improved efficiency is open to you and understanding the different types of business processes is one of the first steps on the journey.
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Value Stream Mapping: Definition, Steps, and Examples by Sonia Pearson https://tallyfy.com/value-stream-mapping/
Value stream mapping is a lean management tool that helps visualize the steps needed to take from product creation to delivering it to the end-customer. As with other business process mapping methods, it helps with introspection (understanding your business better), as well as analysis and process improvement.
Source: wikipedia
The inputs for a values stream map include all the resources you leverage to produce goods or services. The route you follow consists of value adding steps, as well as their attendant non-value-adding steps. And your map will also follow information flows.
Want a more in-depth explanation on what value stream mapping is? Check out our video: What is Value Stream Mapping?
How to Use a Value Stream Map?
As we've already mentioned, a value stream map allows you to see a top-down overview of your business processes. Then, you can analyze the process or workflow, identifying wastes and inefficiencies. Typically, here's a couple of things you'd want to be on the lookout for:
Delays that hold up the process Restraints that limit the process Excess inventory that ties up resources unproductively
While value stream mapping is usually used for manufacturing processes, the same principles can apply to other industries too.
What You Need to Get Started
First up, you need to decide what you want to map. In some businesses, one value stream map can cover just about everything the company does. This is especially true if your company produces a single product.
If you have a complex mix of products or services, however, then you'd have to draw a separate map for each. With which process you'd start is, of course, up to you. Generally, though, you'd want to start off with the highest value areas.
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To actually carry out the mapping, you'd want to gather a small project team consisting of representatives from different departments. They have a first-hand perspective on how things are done, and how well the current system works. You might even figure out several ways to improve the processes without even consulting the value stream map. Next up, you need a facilitator. This could be a senior manager who understands value stream mapping, or you can get an external consultant to help you.
As you work, you will create your map – but be ready to make changes as you go. Someone may just remember a missed step somewhere along the line, and that can change the whole picture.
To actually draw the map, you can use:
Pen & Paper - the simplest solution, just grab an A3 paper & a pencil and get to work. Flowchart Software - dedicated tools used for all sorts of business process mapping. Workflow Management Software - custom solutions for managing company workflows. In addition to simple mapping capabilities, you can also keep track of and manage the workflows.
Value Stream Mapping Symbols
Symbols help with your visual overview. They show exactly what kind of step you are dealing with. While you could always come up with your own symbols, it's usually easier to find an already established style and stick with it.
The symbols are usually pretty intuitive - a simple line drawing of a pair of spectacles, for example, indicates that someone has to “go and see,” while a truck indicates transport.
7 Steps to Value Stream Mapping
Now that you know the basics of value stream mapping, here are the exact steps you'd need to take to carry out the initiative...
Step #1: Decide How Far You Want to Go
Typically, you would start your mapping by indicating a start and end point. This would show where your internal process begins and ends. Some companies, however, prefer to map out the entire value chain. This, of course, has it's pros and cons - while it does give you a better idea of the whole process, there's usually not much you can do about any external processes.
Your average value stream map begins with the delivery of materials from direct suppliers and ends with delivery to the customer. Place the icon you have chosen to represent your starting and ending points on the left and right of your map.
If your production processes are complex, you might decide to map each of the value-adding processes in greater detail after completing your overall map. In this case, you would start with the process that allocates the work as “supplier” and the process that receives it as the “client.”
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Step #2: Define the Steps
Now determine what processes are involved in order to get from point A to point B.
As a simple example, a nursery producing ornamental plants begins with seed from a supplier and delivers plants to a customer. Intervening steps that add value along the way might include:
Sowing Transplanting Growing Grading Shipping
Step #3: Indicate the Information Flows
One of the advantages of value stream mapping is that it includes information flows. To continue with the example above, our plant nursery needs to place orders for its suppliers and its customers will place orders for delivery. How often is this done and how? Record it on your map.
The teams or individuals responsible for each process that takes the product from input to output also need information. Where does it come from and how is this information passed on? Perhaps our flower grower has a centralized planning department which receives sales information and places orders with the seed supplier. It then uses this info and provides a weekly or monthly schedule for each of the processes.
Add this department in the middle of the sheet between the input and output blocks, draw another block below it to indicate the weekly plan, and draw arrows from the plan to each of the departments it informs.
Step #4: Gather the Critical Data
You now have the basics, and it’s time for an in-depth look at each process. To do so, you need real data and some of your mapping team might have to spend a little time collecting the information you need. Typical points to look at would include:
The inventory items held for each process The cycle time (typically per unit) The transfer time The number of people needed to perform each step A number of products that must be scrapped The pack or pallet size that will be used The overall batch size that each step handles
Step #5: Add Data and Time Lines to the Map
Once you have all the information, you can start adding it to your map. Draw a table or data box under each process block to do so. If you’ve used historical data, be sure to verify it using the current inputs and
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outputs for each process.
Indicate the timeline involved in each process beneath your data blocks. This shows the lead time needed to produce products and the actual time spent on producing each unit, pack size, or batch. Don’t be surprised if a product with a lead time of weeks takes just a few hours to produce.
Step #6: Identify the Seven Wastes of Lean
Just creating a value stream map without using it would be a complete waste of time. Now that you have one, it’s time to start looking for the “seven wastes” that could be eating up your profits.
Transport doesn’t add value to your final product – unless you’re in the transport business! See if you can reduce steps involving transport of materials or information that don’t add value. Inventory of inputs and finished products costs you money which could have been earning income elsewhere. The lower your inventory levels can be without stonewalling production, the better it will be. Motion costs time and time is money. As an example, our nursery worker has to move her transplanted seedling 10 feet from the potting table to the tractor wagon. That’s wasted time. Waiting because there’s a bottleneck in a previous process or sub-process is another clear waste of valuable resources. Over-processing can be hard to gauge, but if an item can move from one process to another in an acceptable condition with less input, it should do so. Overproduction is an additional pitfall to avoid. Even if your product isn’t perishable, storing it and monitoring it until such time as a customer buys it is clearly a waste. Defects mean reworking or scrapping and are clear money-eaters. How can you reduce defects in each step of the process you’ve mapped?
Step #7: Create the Ideal Value Stream Map
You know how things are if you maintain the status quo, but how would you like them to look? Use your team to help you map out an ideal value stream map that eliminates, or at least reduces, all the wastes you spotted when analyzing the results of your value stream mapping exercise.
It’s unlikely you’ll be able to get there in one step, so you can create a series of intermediate future state maps. Your business would aim to reach these milestones at specific dates, and ultimately, they’d reach the goal you identified when you drew up your ideal state map.
What should you do now? Start the mapping process all over again! Few processes are so perfect that there’s no more room for improvement! Your aim is nothing less than operational excellence.
Conclusion
The one drawback of value stream mapping done the old-fashioned way is the time that elapses between report-backs and meetings. For those hoping to slim down process flows fast, this can be frustrating.
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There’s also the matter of monitoring the effects of changes you’ve decided to implement. Unforeseen, and possibly unwanted, consequences can flow from new parameters – or people could simply be getting it wrong because they aren’t used to the new work method yet.
The best way to have that fix and speeds things up is adopting the right technology. Tallyfy is a workflow management tool that can help you with process mapping and data gathering. To boot, it can also help enforce your new processes. So, why don't you give the free demonstration a try?
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What is a Business Process [2+ Practical Examples] by Amit Kothari https://tallyfy.com/business-process/
A business process is a series of repeatable steps taken by a team or company to achieve some sort of business goal: managing deliveries, assembling products, onboarding employees, etc.
The key aspect of a business process is repeatability - a process is not a one-time thing.
Let's say the process is employee onboarding. To onboard an employee, your organization would have to...
1. Prepare & hand out the right paperwork 2. Assign them a role in the company 3. Prepare all of their tech - access to communication, project management tools, etc. 4. Prepare the workstation 5. Introduce to their team & colleagues 6. etc.
Every step here is structured and repeatable. No matter how many employees you hire, you'd have to go through the exact same steps. If a step is missed, it might lead to a very disoriented employee & an unproductive day. On the bright side, the process is very easy to map out or organize using software, maybe even turn it into a checklist.
The main benefit of business processes is that they streamline your business. You can, for example, tell your manager to go "onboard this new employee," and maybe get some results. Or, they might forget to have them sign some critical document & end up getting sued within a year. With a structured business process, on the other hand, the manager knows exactly what they have to do step-by-step.
This, in turn, makes your business much more efficient...
Clearer Responsibilities - Everyone knows what task they're supposed to be working on. So, you won't have employees working on the same task, for example, or a task being left undone because no one thought it was their job Fewer Errors - Since everyone's on top of their work, there's much less room for human error Higher Productivity - With the tasks communicated properly around the organization, your employees will end up being more productive, as less time is spent on organizational issues Lowered Costs - With the added productivity, employees will have much better "output," as they spend less time on useless work and more on the tasks that really matter
Business Process Examples
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There are countless business process examples all around - it's something that can be found in every organization. Whether you're a small startup doing content marketing or a giant corporation manufacturing state-of-the-art smartphones, you're doing all this through business processes.
Client Onboarding Process
When onboarding new clients, an agency has to display professionalism, courtesy, and expertise. If you end up acquiring a big client, the last thing you want to happen is your team sitting there and wondering, "Ok, so what next?"
If you have a clear, defined client onboarding process, however, that'll be a thing of the past. For the sake of an example, let's look at the case with a marketing agency.
1. Schedule an initial meeting. Get to know the client's business, how the industry works, how's the competition, etc. 2. Assess company goals & assets. Know what your client wants from you, and how you can use their strengths to achieve those goals 3. Define KPIs. The client will want to have a way to measure your progress, making sure that you're bringing in results 4. Create an action plan. What your team is going to do within the week, month, year, etc. 5. Pitch the client. See if they like the proposed strategy. If not, start over. If they do, assign all the tasks to the right team members.
Content Marketing Process
Content marketing can be a very hectic mess unless you organize it into clear business processes. Unless you work on this, you'll end up having 20 work-in-progress articles lost in limbo, a very confused designer, and a confused follower-base - desperately waiting for their weekly article.
Depending on your strategy, there are a lot of different ways to establish content marketing workflows.
For the sake of an example, let's go through a very basic publishing process...
1. The content writer takes up & finishes the first draft of an article. Includes descriptions of any custom images that are to be used in the article 2. The marketer gathers influencer contact information, to be used for advertising and marketing once the article is done 3. The editor proof-reads the article, makes points on grammar, style, spelling, etc. 4. The designer creates custom images as asked, sending them over to the content writer 5. The writer takes the comments into consideration, fixes any mistakes, and adds the images to the article 6. The SEO expert makes sure that the article meets the right optimization best-practices & publishes the article 7. The marketer uses a combination of advertising & email outreach to make sure that the article is read
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Want to learn how to structure, improve and automate your content marketing processes? Check out our step-by-step guide!
Business Process Mapping, Improvement, Re-Engineering & Automation
Business processes are, essentially, the building blocks of any organization.
The thing is, though, that for a lot of businesses, the processes are unorganized and implicit. Everyone has a general idea of what's going on and what needs to be done, but it's not on paper or is not tracked through software.
To get most out of your business processes, there are 4 things you could do.
Business Process Mapping
Business Process Mapping is pretty straightforward - you probably have a pretty good idea of how your business works. If you've been doing it for a while, then you definitely know the ins and outs of it!
So, you'd want to put down all your processes on paper. You could either use actual paper for this, a flowchart software, or workflow management software. From then on out, you can use the graph to analyze or keep track of your processes.
As a given, the more advanced your tool is, the more benefits you'll get. Workflow software, for example, in addition to allowing for mapping, also lets you keep track of the process in real time.
Business Process Improvement (BPI)
Once you have all the processes down, you'll get an even better idea on how your business works. That would eventually lead you to initiate a business process improvement (BPI) campaign - from a top-down view, it's very easy to spot weaknesses in your processes. Sometimes you'll find tasks that are completely useless, others, you'll find more efficient ways to do them.
In some cases, you'll find that some tasks are completely useless and can be skipped. In others, you might find a much better, faster way to do them.
Business Process Automation (BPA)
One way to improve your business processes is to just put technology into the mix - and that's where business process automation (BPA) comes in. Any task that is extremely menial - that is, too much manual labor - there's a chance that software can do it much better and faster.
Say, for example, a team member has to email the person who's responsible for the next step of a process. Rather than having to manually do it, business process management software (BPMS) could do it for them.
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Want to learn more about BPMS? Check out our comparison post of some of the best BPM tools out there!
Business Process Re-Engineering (BPR)
In some cases, you'll realize that your processes are just completely out of date. Rather than take something old and add up on it, it's going to be much easier to just completely re-do them.
Business Process Re-Engineering (BPR) means taking your old processes and finding new ways to carry them out. This can be with the help of technology, for example. Instead of manually doing accounting in the form of a physical ledger, you could adopt some accounting software that makes the old process completely redundant.
A more recent example is using smart contracts for BPR. DNN, decentralized news network, powers it's publishing system through smart contracts. The submitted articles need to be reviewed by different readers in order to select the best one and push it to the editors and ultimately to the publishers. Smart contracts can help you move the articles through the publishing pipeline, stage after stage, while reducing biases and increasing efficiency.
Conclusion
Now that you have a good idea of how business processes work, you might want to start mapping them out and possibly carrying out a BPI or BPR initiative.
And the best way to do that is through Workflow Management Software. Map, optimize, and streamline your processes with Tallyfy - simply by adopting software, you're already taking the first step in making your processes more efficient.
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What is a Process Flowchart and How to use it [5+ Examples] by Amit Kothari https://tallyfy.com/process-flowchart/
A process flowchart is a graphical representation of a business process through a flowchart. It’s used as a means of getting a top-down understanding of how a process works, what steps it consists of, what events change outcomes, and so on.
How to Use This Guide
If you want to learn just about everything about process flowcharts, just read through the whole thing - we've got you covered. If you're looking for specific sections, though, just jump over to whatever's relevant!
What's a process flowchart & what is it used for How to draw a process flowchart 3 process flowchart examples (in different industries)
What’s a Process Flowchart
A business process is a series of repeatable tasks your business needs to carry out in order to achieve some sort of business goal.
Flowcharts, on the other hand, are a means of visualizing the process.
Process flowchart example: content marketing
Process flowcharts are an essential part of business process mapping. They help visualize your processes, making them significantly easier to fully comprehend.
Other than that, process flowcharts are usually used for…
Understanding how a process works Improving the Process – Once you know how the process works, you can figure out potential improvements. You could, for example, remove or automate certain steps. You can even completely re-engineer the process and fundamentally change how it works. Standardizing a Process – Unless you’ve documented your processes, your employees will figure out different ways to carry it out. With a process flowchart, you can ensure that everyone’s on the same page about how the process should be done.
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Writing a Standard Operating Procedure – A process flowchart is just that – a flowchart. SOPs on the other hand, are a full documentation on how that process functions, how to carry it out, what tools or tech to use, and so on.
To really get the most out of your processes, you’d want to go for all of the options we just mentioned.
How to Draw a Process Flowchart in 3 Steps
At a glance, this sounds pretty simple – just about everyone can draw a flowchart.
Really making it accurate, though, isn’t all that simple. It’s one thing to look at the process from a management point of view; it’s another to actually understand what it consists of: the steps, methodologies, tools, and so on.
So, to draw a process flowchart, you should start with…
Step #1: Decide Whether You Need a Process Flowchart
Before you can even start learning about the process, you should make sure that a process flowchart is the right tool for the job.
If your aim is process analysis from a more top-level perspective, you might want to use other tools. While process flowcharts are perfect for detailing the step-by-steps of a process, they’re not as useful for gaining a deeper understanding.
SIPOC diagram, for example, analyses the entire process of product creation and delivery. It’s divided into 5 parts – suppliers, inputs, processes, outputs, customers.
If you're looking for more top-level analysis tools, check out our guide on business process improvement tools. If not, read on!
Step #2: Gather the Right Information
Unless you’re the one working on the process on a daily basis, you probably need to catch up on the details.
Even if the process seems simple or straightforward at a glance, there are a lot of small details that add up to it. You’d want to know, for example…
What the exact process steps are Variables and events. In which situations do you deviate from a process Who’s in charge of what process step
So to really understand the inner workings of a process, consult shop floor employees. Set up a meeting
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and pick their brains. Who knows, maybe they’ll even have ideas on how to improve the process.
Step #3: Create the Process Flowchart
Once you have the information on how a process works, you can actually start drawing the flowchart.
If you want to keep it simple, you can use the basic process symbols…
A better (but more complicated) option, though, would be to use BPMN2.
Business Process Modeling and Notation (BPMN) is a standardized methodology for documenting processes. Following the BPMN model makes it easier for your employees, management, as well as external consultants to understand the process map.
If you’d like to go that route, you keep read our guide on BPMN here.
Whichever methodology you choose, you’ll then need to actually draw the flowchart. There are 3 ways to do this…
1. Pen & Paper – The simplest option is to just grab a piece of paper, a pen and just draw the flowchart physically. 2. Online Graphing Software – Chances are, you’re going to want the process flowchart to be digital. This makes it easier to make edits, share it with employees, and so on. To create an online flowchart, you can use a tool like LucidCharts. 3. Business Process Management Software (BPMS) – While BPM software rarely helps create flowcharts, it does something even better. You can use BPMS to create digital processes, which you can either analyze or simply execute through the system. The software automates the process execution. Meaning, when a process step is completed, the next employee in line is automatically assigned the right task.
How BPMS works can be pretty hard to understand for someone new to process management. Learn about how different process management systems function with our guide to BPM solutions
3 Process Flowchart Examples
You can create process flowcharts for just about any business process, whether it’s onboarding, sales, document approval, or anything in-between.
To give you a better idea of how these look, we’ll cover 3 examples of process flowcharts of different business processes.
Employee Onboarding Process
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Just about every company ends up hiring new employees. Onboarding is an essential step in getting them up to speed & educating them on how the company or department functions.
Hence, it’s always a good idea to have a clear, structured process for this.
While the process varies from company to company, here’s a basic example…
1. The HR gets the new employee to sign up the documents or legalities 2. The documents go through an approval process between the HR and company management 3. HR lets the company employees know about the new hire through email 4. Office manager prepares all the necessary supplies or handouts 1. Tech – software access, personal computer, etc. 2. Welcome swag – Gifts, company t-shirt, etc. 3. Onboarding materials 4. Entrance ID
Or, as it would look in a process flowchart form…
Need help creating your own onboarding process? Learn how to get employee onboarding done right!
Document Approval Process
Getting all the right approvals for any document can be a major hassle. It involves a lot of emails back and forth, some of which end up getting lost or delayed. Having a procedure makes approvals significantly faster & more efficient.
The following is a basic document approval process, and it can apply to just about any type of document (legal, hr, etc.).
1. The document is submitted 2. If the document is disapproved, process canceled. 3. If approved, the document is stored in a relevant folder 4. Automatic email sent to any relevant party
Or, as it would look like in a flowchart...
To make this process even smoother, you can use approvals management software. Instead of having to shoot emails back and forth, you’d just start the process through Tallyfy & the system will make sure everyone's signs at the right time.
Incident Response Process
Any company should have a contingency plan for potential incidents. While you can’t always predict what’s going to happen, you can have a strategy on how to react in such situations.
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The following process flowchart example is for a cyber attack.
1. The emergency is reported by a company employee after discovering an identified USB plugged into their computer 2. The threat is evaluated by the security team. If false alarm, the process ends 3. Emergency email sent to relevant company executives 4. The company management and security team hold an emergency meeting 5. The solution is proposed and applied 6. If the solution didn’t work, the process rolls back to step 4. If it does, the process is completed
And of course, as a flowchart...
If you want to learn more, read up our article on incident response management processes.
Process Flowcharts: An Essential Start to Business Process Management
Creating process flowcharts, while useful for introspection, is only a start.
You need to analyze the process, figure out potential improvements, implement them, and so on. After all, you really don't get much by simply drawing the flowchart.
To learn how to do all this and more, check out our guide on Business Process Management. And no, it's not just another buzzword-definition article - we're going to explain how, exactly, BPM can help you optimizes your processes.
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What Is an End to End Process [Real-Life Examples] by Sonia Pearson https://tallyfy.com/end-to-end-process/
You’re looking into process improvement, and BPM (Business Process Management) sounds like a great idea to fine-tune the way you work. But now, you discover a whole lot of buzzwords and terminology, and one of these is “end to end process.”
You've probably worked out what, exactly, the term means - the act of defining a process from start to finish. The moment you start trying to do this in practice, though, you'll realize it's not as easy as it sounds. We’ll look at why you need capture end-to-end processes, and how it can be done.
What’s the Point of Capturing an End to End Process?
Capturing an end to end process allows you to monitor and evaluate everything that your company does to achieve a certain result. Your goal is to make the entire process work as efficiently as possible.
This could take you on a journey of continuous improvement or Kaizen and that, in turn, could give your business a stronger competitive edge, increase profits, and enhance your company’s reputation.
Once you have found the way you want a process to work, you can even automate it. How much of your day is spent allocating work, following up tasks, and putting out fires?
How often do you find that something went wrong because someone decided to do their work in a non- standard way? Did you even set a standard? Are certain departments or functional tasks overburdened while work piles up holding up entire processes?
To make your processes function significantly better, you need to start somewhere - and mapping your processes end-to-end is the perfect first step.
Where does a Process Begin?
You might ask yourself where a business process begins – and if you aren’t asking yourself this question, it’s worth devoting thought to. The answer isn’t always as obvious as it seems.
Let’s look at the process of making tea. Does it begin when you turn on the kettle? No, it does not. The process of making tea begins when you go to the supermarket to buy teabags – or, we could even say it begins before that because before you went to the supermarket, you realized that you needed to add tea bags to your grocery list. If you’re a really big tea maker, it might even begin with choosing the farmer who produces the tea leaves!
To find the beginning of a business process, look for the trigger that sets it in motion. Manufacturing may seem to begin on the factory floor, but it begins long before that. How do you decide what to
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manufacture? When and how do you decide how much to manufacture?
These questions may be less relevant if you manufacture a reasonably standard item with predictable demand. In that case, you could consider beginning your end to end process at the point where you select suppliers of raw materials. The concept of “end to end” process thinking allows for some flexibility in how you view it.
Where Does a Process End?
Now that we’ve looked at where an end to end process begins, you’ll know that you need to look beyond the obvious. You’ll also know that the way you do business will influence where the end may be.
Using the example of manufacturing, you might decide that the process isn’t complete until your customer pays for and receives your products. After all, what’s the point of a manufacturing process if it doesn’t result in sales and satisfied customers?
In businesses using JIT (just in time) thinking, you might even make the sale before you begin manufacturing. In that case, delivery and a final contact point with sales to gauge customer satisfaction might be the last steps in your process.
You might even find that a business process is cyclical, feeding back in a circle so that the “last” step becomes the trigger for the “first” one.
Mapping Processes End-to-End with Software
Today, there's software that helps with just about everything - and business process mapping is no exception.
Workflow management software can help you create digital versions of your processes. Other than the obvious benefit of getting a top-down view of the process, the software can also keep track of it and make sure your employees are doing everything right.
If you want to get the very best out of your business processes, give Tallyfy a try - it's free to start!
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What is Cost of Quality (CoQ) and How it Works by Sonia Pearson https://tallyfy.com/cost-of-quality/
In a way, Cost of Quality (CoQ) is a confusing term. To anyone new to it, it sounds like a term that refers to the cost you incur to produce a quality item. However, the simplest definition of the term would be “The cost of failing to produce quality.”
Any manager or supervisor will identify with this – and it covers both internal and external products and services. If your accountant fails to get the books right – he or she has to go back to look for errors. If your production staff fails to adhere to standards, the products must either be trashed or reworked. If your service business fails to deliver according to expectation, it will have to make it up to the client – and possibly face damage to its reputation.
Expensive? You bet! It applies to ALL businesses and business functions, be they large or small. Correcting quality deficiencies means redoing, reworking, retesting, or correcting. You’re doing twice the work for the same result: quality.
How our Perception of Cost of Quality Has Evolved
The common perception is that producing better quality will increase costs. But thinkers like Joseph Juran and Armand Feigenbaum questioned this notion. Juran was an engineer, and Feigenbaum is the father of Total Quality Management (TQM). Despite their differing backgrounds, they came to the same conclusion: the benefits of quality exceed the costs of quality.
Feigenbaum put forward the idea that producing quality is the responsibility of every single person in an organization. This expanded the concept of quality to include more than just products and services that a company delivers to outside parties. Entrepreneurs quickly realized the validity of the notion that every single activity a business engages in should be of a high standard.
In 1979, businessman and author Phillip Crosby published his seminal work “Quality is Free,” forever changing the way we look at quality. So, how should we perceive the cost of quality? As with so many questions, the answer is: “That depends on the situation.”
There are Three Ways of Perceiving Cost of Quality
It should be noted that quality isn't an objective, defined measurement. Rather, it's completely subjective - everyone has their own view of what counts towards a product's quality.
The following are 3 popular ways of perceiving quality - while the three can be contradictory towards each other, they can still all be right at the same time.
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“Quality Costs More”
There certainly are instances where this is true. If you were to buy solid wood furniture, it would cost more than furniture made of chipboard with a wood veneer finish. The former is durable and would be handed down through generations. The latter may look almost as good, but will only last a few years. But the makers of solid wood furniture must compete with the makers of chipboard items, so although their product is better, they may be making less profit than their counterparts who produce cheaply and sell cheaply.
“You Save More Than You Spent When You Spend on Improved Quality”
This is a very widely held belief, and although it seems to contradict the first point of view we cited, it can be perfectly true. Let’s return to our furniture manufacture example.
No matter whether you are producing solid wood or chipboard furniture, there are certain standards that are non-negotiable. Wonky tables and chairs just aren’t up to standard, and if your firm were to produce them, three expensive scenarios might ensue:
You supply the product, but your clients are not satisfied. They return it and demand credits or replacements, and your reputation suffers. You scrap the product and start from scratch. All the materials that went into the first attempt are utterly wasted. You re-work the product to make it acceptable to your clients. It costs less than scrapping, but extra hours are needed to fix the problem.
“Quality Only Costs More If You Don’t Get It Right the First Time”
This view of Cost of Quality is also true – at least, under the right circumstances. For example, although both our furniture manufacturers use different materials, they have a quality standard in common: a functional piece of furniture. If either of them were to make errors during production, the furniture they produced would no longer be functional.
This brings us back to the three scenarios previously outlined: supply the product and risk your reputation, scrap it and lose the materials, or rework it and spend time. All of these options have costs.
How are Quality Costs Categorized?
At this point, we’ll depart from our example. Let’s ignore the difference between using good, high- quality materials versus lower-quality materials. We’ll assume that both our companies are trying hard to produce an acceptable product. What are the costs they incur if they fail to do so?
1. External Failure Costs
The client receives a faulty product. Now, the manufacturers must spend time handling complaints, and time is money. They may find that its necessary to replace the faulty item. That’s an additional cost. Then
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there are warranty claims and, in a worst-case scenario, lawsuits and product recalls.
Unquantifiable costs are also part of the package. You may have replaced a faulty product, but what will the initial failure cost you in terms of new business and referrals?
2. Internal Failure Costs
Internal failure costs are those that are picked up before the product goes to the consumer. Bear in mind that this covers services and functions where the end customer is another person or department who works in the business.
Before the person or department responsible for the product can hand it over to end users, it must scramble to rework, remake, or correct.
3. Inspection Costs
Because quality isn’t always quite what it should be, the business incurs extra costs to check, test, inspect, or audit. You may need to recalibrate equipment, and again, that means additional costs that eat into the bottom line. The better the finished task, the lower inspection costs will be. Just think about it: finding a fault is easy enough, but tracking it all the way back to the source and correcting it takes much more effort.
4. Prevention Costs
You’ve found a fault! The next steps are to find out how it happened and prevent it from happening it again. Sounds easy? In practice, it could mean a full review of a product and how it is produced. You might have to re-evaluate your suppliers. You may need to retrain your staff. Or perhaps the process is at fault and should be unpacked and revisited.
The Bottom Line: Quality-Related Workflows Matter to You!
All a business’ outputs are the product of workflows. And with a TQM approach, every task and every workflow must contribute to quality. Any hitch, hang up, or bottleneck could prove costly in terms of quality – and if everything seems to run smoothly until you hit a quality issue, the workflows may need to be revisited and redesigned.
Analysing and improving workflows is part of an ongoing journey towards improved quality and efficiency that ultimately contributes to profit. It’s a process of continuous improvement, and there is no business that doesn’t have room for at least some improvement.
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What is Define, Measure, Analyze, Improve, Control (DMAIC)? by Jamie Johnson https://tallyfy.com/what-is-dmaic/
Many people are familiar with Six Sigma, a set of management techniques that helps companies minimize the likelihood of errors and improve the customer experience. Your company may have even chosen to implement Six Sigma and if this is the case, they probably implemented it using DMAIC.
If Six Sigma is the methodology, then DMAIC serves as the roadmap for business to solve problems and improve their processes. DMAIC is an acronym that stands for define, measure, analysis, improvement, and control.
This article will look more deeply at each of the five steps involved, the history behind it, and the benefits of using it to implement Six Sigma.
What is DMAIC?
Companies choose to implement Six Sigma so they can reduce variation and waste in their organization. This can be accomplished through three different strategies: DMAIC, DMADV, and DSFF. For this purpose of this article, we will only be looking at DMAIC.
DMAIC is often considered to be the building blocks of the Six Sigma methodology. By using it, businesses can begin to make improvements without unnecessary experimentation.
The acronym stands for define, measurement, analysis, improvement, and control and it has helped many businesses reduce errors. Here is a closer look at each of the five steps involved:
Define
In the define phase you should ask yourself two very important questions:
What is the problem? How has the problem affected my company?
Once you have the answer to those two questions, you can begin defining the goals of your project. Then you can evaluate all your available resources, support, and create a plan. Helpful tools to use during this phase are a project charter or a workflow diagram.
Measurement
During the measurement phase, you need to look closely at the system you already have in place so you can see what is and isn’t working. Once you have measured all the data you can determine the root of the
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problem and start figuring out ways to fix it. A data collection plan is a helpful tool to have on hand during this phase.
Analysis
In the analysis phase, you need to analyze your findings from the measurement phase. By analyzing the data you can narrow down the root cause of waste and error. A cause and effect diagram is a good tool to use during this phase.
Improvement
Now that you understand the problem, it’s time to brainstorm possible solutions! During this phase, you can come up with possible solutions, test and implement these solutions, and make any necessary changes.
Control
Your work has only just begun when you implement a new process; now it’s time to maintain that process. This final stage in DMAIC involves making continuous improvements and coming up with strategies that will maintain the effectiveness of your process.
Businesses can implement many positive changes by using DMAIC but these changes will only last when employees do the work of constantly improving them. It is helpful to create a control plan and to clearly define the roles and responsibilities of everyone who will help maintain the process.
The History of DMAIC
You may not realize that DMAIC was not part of the original development of Six Sigma in the 1980’s. Originally, when Six Sigma was developed at Motorola it was called the “Six Steps to Six Sigma”. Those steps can be summarized below:
1. Identify the product or service being provided. 2. Define who the customer is and what is important to them. 3. Identify what you need to provide that product or service. 4. Describe the process for completing your work. 5. Improve the process by eliminating variation and waste. 6. Continually improve the process by measuring, analyzing, and controlling the process.
While there are similarities to DMAIC it was actually introduced later. DMAIC is now a core component of Six Sigma and has helped many businesses achieve meaningful, long-lasting results.
The Benefits of DMAIC
Many businesses have implemented Six Sigma and experienced massive transformations in their revenue and the customer experience. Six Sigma can help companies improve their bottom line and improve the
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quality of their product or service. Here are three key advantages of using DMAIC to implement Six Sigma:
Higher revenue
When companies streamline their processes through DMAIC they will have higher levels of productivity. As they begin to increase their production with fewer defects they will typically begin to bring in more revenue.
Decreased Cost
Many companies don’t realize how much time and resources they are wasting. DMAIC helps companies reduce the amount of wasted time and resources which will save them money in the long run.
Increased productivity
The sole purpose of implementing Six Sigma is to reduce waste. This will increase an organization’s productivity as they are able to produce more while using fewer resources.
Conclusion
DMAIC is a five-step process that focuses on improving quality while minimizing defects in a process. It has helped Six Sigma to become a process that delivers effective results for many businesses. DMAIC serves as a roadmap for helping businesses find solutions and produce better results.
By using DMAIC, businesses can improve the quality of their products and services, increase their revenue, and decrease their overall costs. However, even though it is a proven strategy its effectiveness depends mostly on how well it is implemented and maintained.
The truth is, over 60 percent of companies who use DMAIC to implement Six Sigma do not achieve the results they were hoping for. This can happen when companies stop implementing each of the five steps and fall back into the old habits that created the original problems.
Tallyfy’s workflow app gives businesses a way to sustain the progress they made by using DMAIC. By using our interactive software you can create and run your processes in just minutes and then track your processes. This will ensure your workflow processes are done correctly and with consistency. For more information, you can look at our case studies or sign up for your free 30-day trial.
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What Is Inventory Management Process? (& How To Implement It) by Noel Ceta https://tallyfy.com/inventory-process-management/
Inventory management is at the core of each business’ trading activity, a key component of supply chain management. It is a vital process of monitoring, managing, and controlling the stock items of your company.
It won’t be an exaggeration if we claim that it is the center of all trading activities within a company - from buying non-capital assets to creating goods, managing the stock, to shipping the end products to clients, resellers, and distributors. In order for you to navigate and monitor this process, however, you need to understand inventory management process and how it works.
This is a comprehensive guide on inventory management process. To make navigation easier, you can follow the links below directly:
How to Use This Guide
What's Inventory Process Management? Benefits of using IPM and IPMS What are the limitations of Inventory Process Management How to implement inventory process management for your business (step-by-step) Automate your IPM using automation software
What is Inventory Process Management (IPM)
IPM is the process through which you can monitor and oversee purchases, in order to streamline your operations, maximize your return on investment (ROI), and minimize your cost. This is usually achieved by using specialized Process Management Software which aims to optimize and simplify your processes.
No matter how big your business is or how much profit you make annually, if you don’t manage your stock inventory from delivery of parts to developing end products, you’ll be out of the game before you can say “Yahtzee!”.
Benefits of Using Inventory Process Management
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Some of the most prominent benefits of using inventory process management:
Reduced risk of overselling
Overselling will obviously have a noxious effect on your business, your brand credibility will diminish, and you might even get suspended from some marketplaces due to poor evaluation from customers.
With an IPM, however, you can easily configure and synchronize your orders and inventory across each of the online platforms you’re using as marketplaces. That way you can rest assured that your stock will be automatically adjusted and updated each time someone makes a purchase.
Improved employee efficiency
With such a solution, you and your employees won’t spend time on inventory updates. Consequently, you’ll be able to focus on more significant tasks such as executing deals without worrying about the stock inventory.
Cut redundant costs
An effective inventory process management can help you decrease inventory holding costs and even result in lower inventory write-offs, thus, diminishing the chance of overbuying.
Having an excessive amount of extra production units can be pretty inefficient for your company because (1) they depreciate and amortize with time, and (2) the demand for your end products can be low and they may never sell. Therefore, through IPM, you can cut such costs.
Increased customer loyalty and stronger brand recognition
Well-organized IPM can increase customer loyalty towards your brand and make clients purchase more products from you. We, as customers, demand ethical and responsive actions from the brand we trust.
Thus, if an inventory is well-organized, its ordering process is not confusing, and it has the right products on hand as soon as we need them, this will most likely prevent us from switching to a competitor.
Long-term inventory planning
By keeping track of your inventory through an IPM, you make your production process management easier and are able to make long-term plans based on the number of products available.
Limitations of Using Inventory Process Management
Like anything else, IPM also has drawbacks which many have pointed out as pitfalls for users. Here are the most ubiquitous disadvantages:
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Risk is diminished but not fully eliminated
Even though IPM software can be a real lifesaver, it cannot fully eliminate risk. Even with the software, if left unchecked or not managed correctly, your process can still malfunction and you can still end up with overselling/overbuying.
Additionally, since most IPM software is not AI-equipped, it cannot fully guarantee that it will adequately respond to incomplete data. Despite these drawbacks, IPM is able to minimize risks.
The complexity of such systems
An IPM system carries out a wide variety of activities making it a significantly complex solution. As a result, it is mandatory for your employees to go through training sessions, manuals, and step-by-step guides.
It is important to note that such training should be given a meticulous touch, since mistakes which might occur due to poor preparation, can lead to great financial loss. Even though IPM simplifies the inventory management process, it still remains a complex solution for many employees to master.
Inventory process management software are expensive
The main reason why IPM software can be expensive is due to their enterprise focus.
Most small to mid sized companies can’t afford enterprise level prices. But there is a work-around. Several startups and growing companies have started employing business process management software to manage their inventory process. There is more on this below.
Quality control problems
Inventory process management can help you manage and control your stock inventory but cannot guarantee anything about the quality of these products. Since the focus of an IPM is based mainly on inventory and not production, you can easily ship or dispatch malfunctioning or incorrect items along with the right ones.
Although there are many tools out there being implemented to alleviate workload and help you monitor and manage inventory, such drawbacks still remain as issues to many.
How to Implement IPM for Your Business
In order to implement IPM in your business, there are a couple of steps to be considered first:
Review your budget
As mainstream and ubiquitous as it may seem, organizing your budget and meticulously reviewing it is the ABC of inventory process management, the sole pillar of this system. It is as vital due to the fact that
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it determines the scope of your IPM and the extent to which you can afford to invest in raw inventory.
This can be done in two ways: The first is through manual budgeting and activity-based costing (ABC costing) which identifies and assigns a cost to raw materials so that you can plan accordingly in the long run. The second way is through specialized budgeting software. Through it, you can automate this process and let the program help you manage your budget in a more time-saving and effective, yet costly, manner.
If you’re looking to implement the latter solution, there are many available tools on the market. One of the most preeminent ones is FreshBooks. It is highly renowned since it has a wide range of features, is cost-effective for both small and big companies, has a downloadable app for Android and iOS, and it also provides a free trial.
Plan your warehouse
The second step after reviewing your budget is planning your location. The warehouse where your products will lie and wait for their dispatchment is of vital importance, since some businesses have several facilities.
Additionally, it is important to pick the perfect storage for your products. Different industries and raw stock materials require a different kind of warehouse. As a result, considering this in advance might save you a lot of trouble.
Obviously, the type of warehouse determine where your raw products with the highest demand will go, how often they will be transported and dispatched, and how much lead time you’ll be able to give to your clients.
Once you decide on the facility, you’ll be able to manage the logistics of products. This can be done either manually or by using an inventory process management tool. With the latter, you’ll be able to automate tasks and simplify the process of transferring stock between warehouses or arranging it in specific order.
Whether you’re a small, mid-sized, or a large company, choosing an IPM software for such executions would prove to be less menial and more cost-effective than tackling the task manually. With it, you’d be able to (1) automatically transfer products from one facility to the other, and (2) meticulously manage the current state (expiration rate, per se) of your products.
Make a preliminary order list to ease cycle counting
Based on the previous amount of demand for your products, you need to create a preliminary order list. This is vital as you’ll be able to foresee what portion of your stock might be depleted soon and act decisively to avoid such misfortunes. Additionally, if you implement this strategy, you’ll ease the creation of cycle counting.
Ideally, once you figure out the budget, the location, and the most important products, you will be able to proceed to implementing the IPM software.
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Choose and implement the right software
This is the step where you should put most effort, as picking the right tool for you can be a daunting task. Due to the abundance of tools on the market, it gets more and more difficult to choose IPM software with each passing day. Therefore, you should consider the following steps when picking it:
1. Select a price range
Remember what we talked about above in the budget planning section? This is where it would come in handy - there are many great options on the market but picking the perfect one for you would strongly depend on your budget constraint. Because of this, you should have a predetermined price range based on which you’ll be able to narrow down your search.
2. Understand your real needs
Prior to implementing software, you need to understand what you’ll be using it for. Different tools on the market can satisfy different needs and wants.
Are you going to use it for making customized product pricing? Do you want it to make predictions based on current inventory? Or to track orders and micromanage each activity in your warehouse? You need to answer these questions prior to picking an option for integration, as the purpose might solely affect the efficiency of the implemented tool.
3. Determine how you’ll track inventory
Are you going to track your stock inventory with the help of barcodes, RFID tags, or even serialization? This is a question which you will need to answer prior to looking for an inventory process management solution. Note that not all available systems have the capability to use any tracking, especially in smaller or mid-sized office markets.
So, better not force your inventory processes to fit a system which they’re not compatible with by default - otherwise your IPM solution can turn out to be more inefficient and costly then if you had not employed anything in the first place. Thus, to avoid this negative effect, define your tracking method in advance and, based on it, check out other options.
4. Decide what integrations you would need
It is of vital importance to choose a system which you can integrate with your current applications and tools. Otherwise, you’ll have to enter all this data manually, or else, you will suffer from data time delays and data loss, which will make the effort of getting an IPM unnecessary.
Therefore, you need to understand that various IPM software tools are applicable to different scenarios - are you using an Enterprise Resource Planning (ERP), a Customer Relationship Management (CRM) system, or another tool? Well, your decision heavily relies on these systems and on their ability to complement each other.
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By following all these steps. you’ll be able to evaluate your internal needs and see what you need to do before diving into the deep world of supply chain management.
However, implementing such software as stated above, can prove to be costly. Thus, even when reviewing the budget, you should note that although it is an extremely beneficial solution, it might not be for all smaller or mid-sized companies.
Keeping in mind these points, you can consider automation software as a complementary service.
Using Automation Software for Inventory Process Management
A great trick to still get the full extent of IPM’s power but without worrying about repetitive tasks or high costs would be to integrate automation software into your inventory management. With its help, you’ll be able to automate menial tasks and let the tool take care of their execution.
Software which you can consider is Tallyfy due to its abundance of features, easy-to-use interface, and low costs.
Tallyfy is a business process management software (BPMS) specially designed to assist its users in diminishing repetitive workflows by automating time-consuming tasks. Moreover, this automation tool can be a really useful assistant in identifying new market trends, improving employees’ productivity, and meeting customers’ expectations and demands.
This cloud-based workflow management software is useful for companies of all sizes and can help you scale with your business. Even though it is a paid tool, it provides a free demo for you to try out and see if this is what you were looking for. Then, if you like Tallyfy, you can easily upgrade your subscription to unleash its full potential.
Simply put, you can use Tallyfy to automate complex workflows, such as management of your inventory processes. Some of the best practices you can use for your IPM are:
Creation of a blueprint for repeatable work
Tallyfy’s blueprint is essentially a form of a genetic template which users can utilize to create an automated flow between their applications through the help of connectors.
A connector is a tool which connects two or more external applications to one another. For example, with a connector, you can easily connect your Outlook to your Google Drive. That way, when somebody sends you an important file on your email, the flow will automatically download the data and store it in your drive. Voila!
As a result, with Tallyfy, instead of creating flows from scratch, you can borrow a ready-to-use template to automate processes. Let’s consider the following example:
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You want to keep your inventory organized and balanced (neither overstocked, nor understocked) but you lack the time to keep track of this process manually. You can create a blueprint to automate this task for you. Therefore, you can program the BPMS to notify you each time your inventory is diminishing, and to automatically send an email to your suppliers to order more raw materials, if necessary.
That way, instead of having to deal with that menial and recurring task on a daily basis (or to hire people to take care of that), you can directly assign tasks and triggers to Tallyfy and let it take care of your inventory process management.
Even though the tool doesn’t provide a lot of free templates for you to borrow and use, it's very easy to create implement and re-use new blueprints.
Want to create your own blueprint using Tallyfy? But don't know where to start? Learn more about Tallyfy re-usable blueprints.
Creating and adding custom fields to tasks
Tallyfy’s other greatly valued feature is its ability to show the status of tasks in order for employees to be able to prioritize assignments and to avoid missing something important.
As workloads can sometimes be overwhelming, employees tend to forget about deadlines or face difficulties deciding where and when to put most of their effort. With Tallyfy, however, you can set alerts and deadlines for your employees.
For example, you can set an alarm to notify you each Monday about your inventory’s status. That way, you’ll be able to diminish the possibility of forgetting to restock or accidentally to oversell. Similarly, you can use this feature to schedule meetings and calls with your suppliers or resellers and to keep track of the communication process.
Even though Tallyfy doesn’t have an Android or iOS application, making the platform less mobile, it surely is a solution worth noting, especially when it comes down to managing your inventory and improving your business processes.
Wrapping it up
To wrap it up, inventory process management is a must in the fast-phasing contemporary industrial world. No matter what your business activity is, you need to manage your inventory in order to bring value to your clients, cut extra costs, build your brand reputation, and alleviate your and your co-workers' lives. However, having a well-organized IPM system isn’t that simple - it can be a very time-consuming activity when done manually, and a very expensive one when conducted with specialized software.
Save Time Using a Workflow Management Tool.
And the best way to enter the world of automation through BPMS is with Tallyfy.
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Not only does this tool automate processes for inventory process management, but it is also extremely user-friendly, efficient, and provides a wide diversity of integrations to be used. Last but not least, its free trial does NOT require a credit card registration.
Ideally, Tallyfy serves as the perfect bridge between Business Process Management and Supply Chain Management through automation of tasks in Inventory Process Management.
Give it a try here and let Tallyfy help your business scale through automation while successfully managing your inventory.
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What is Process Documentation (And How to Do it) by Sonia Pearson https://tallyfy.com/process-documentation/
When it comes to introducing a new process or refining and improving an existing one, there is no better way to begin than to create process documentation. It is a common part of Business Process Management - you can't really optimize your processes without having a clear, top-down view.
What Is Process Documentation?
Process documentation is a flowchart with the exact steps needed to carry out a process. The term was first used in the late 1970s in the Philippines by the National Irrigation Agency as part of a project that saw social scientists document the processes used by rural farmers. Since then, it has spread worldwide and become an important business process optimization tool.
A business process document works as a guide for employees at all levels of the business (or potentially also outside contractors or consultants) can utilize to see how the process should be undertaken.
This allows you to use it as a reference for training new employees as part of their on-boarding induction, but even seasoned workers can benefit from having the process documented and available for them to access.
It’s more than an instruction manual, of course, as process documentation can be extremely helpful in determining how the process itself can be refined or improved.
There are three ways in which you can produce process documentation:
1. Pen & Paper - Down to the very basics, you can always use pen and paper to graph out your processes. While this is probably the easiest way out, it's far from being the best. 2. Graphing Software - There's dime a dozen graphing software out there, most of which do exactly that - allow you to create any kind of graph with ease. 3. Workflow Software - Workflow software, on one hand, allows you to document your processes to help with business process improvement (BPI). On the other hand, it also keeps track of them - you can see in real-time at which step each process is, and whether or not there are any delays.
Other than acting as a guide for your employees & as a tool for BPM, process documentation has several other benefits...
Uncovering inefficient processes Enables the continual improvement of processes If utilized properly, allows for timely improvements and corrections Ensures that knowledge of processes can be shared and isn’t lost due to staff turnover
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If applied company-wide, documentation ensures consistency on how the process is carried out Engages staff with the way processes work and encourages them to proactively seek improvements Makes it easier to outsource work without loss of consistency or efficiency
How To Create Process Documentation
Depending on the scale of the process, this might either be extremely complicated or simple. If it's small- scale, you can probably create the entire documentation yourself. If on the other hand, it involves work between a number of different departments, then you'd have to create yourself a small team of different experts.
They should, of course, come from across the business with a range of responsibilities, to ensure that all perspectives are being taken into account. This will also help with changing the process sometime down the line, if it comes to that, as you'll have the input of the people working on the process themselves, which helps with employee buy-in.
The Stages Of Process Documentation
Define the scope: In order for any documentation to succeed, it’s crucial at the start to determine what the scope of the project is; which processes will be covered, what is the scale of the changes being recommended, etc. Define the inputs and outputs: Make sure you are clear what will be included in the information being gathered for the documentation and what format the outputs from the project will take. Be aware of the audience: Documentation is only useful if it is understood by the people it is being created for, so make sure you are aware of your audience and their expectations and requirements. Gather the information: This can take the form of the team brainstorming the steps required to complete the process being documented, or it can also include wider sessions with staff and stakeholders to gather as much data and information as possible. Organize: When the information is all in and the steps are defined for the process, you need to organize them all into a sequential list, ensuring that it accurately reflects how the work is done to complete the process and isn’t too complicated - otherwise it will be of little value. Visualize: Presenting the list in a workflow diagram is the key output of the process documentation, making it easier for everyone involved to see how the process works, so care and attention needs to be taken to ensure clarity and practicality. Share and get feedback: The brainstorming and feedback sessions as part of the creation of this documentation were important, but further sessions afterward will be even more useful because those involved will have the visual aid to stimulate discussion and debate. This may take the form of correcting any errors in how the process has been mapped or potential improvements to the process that have already been inspired by the project. Optimize the Process: If any improvements have been suggested as part of the project, test them and if they prove to be successful, apply them to the process documentation. It is intended to be a living document that remains active and used for as long as the process is active. Monitor: Now that there is process documentation in place, a key part of Business Process
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Management is to continually monitor the efficiency and outputs of the process to see whether the implemented changes are having a positive impact and also to see what else might be causing issues. The documentation should form a core asset in this monitoring. Share again: Once the process documentation is signed-off by whoever needs to sign it off, it should be shared as widely internally as possible. If this is the first time you have been through this procedure, it should be used as an exemplar for documenting other processes.
Conclusion
As we've already covered, process documentation is something that any business or corporation can benefit from. At the very least, it makes sure that the know-how of the process isn't lost due to an employee quitting. At best, it can be essential in carrying out a business process improvement initiative.
If you're looking for the right tool to help document your processes, you might want to give Tallyfy a try. In addition to simply laying out the processes, it can help keep track & manage them, ensuring the efficiency of your team.
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Workflow vs Business Process Management - What's the Difference? by Amit Kothari https://tallyfy.com/workflow-business-process-management/
It’s not uncommon for people to use workflow management and process management interchangeably. After all, there are some fundamental similarities between the two that makes it easy to confuse the terminology.
In the grand scheme of business, whether you call it a workflow or business process management isn’t going to necessarily impact the project itself.
Unless you’re actually trying to achieve a specific goal, like improving efficiency. Then the distinction is very important.
In this piece, we’ll talk about the similarities and differences between the two so you can accurately plan your projects, recognize where each is applicable in business, and know which resources are most appropriate going forward.
Understanding Workflow Management
Workflow management is typically done through a tool that allows project managers or leadership teams to create and oversee a specific sequence of tasks that are all part of a specific workflow. This is usually done through some kind of a diagram that shows the flow of work.
The workflow diagrams tend to be fairly basic; it’s typically the most rudimentary set of instructions which provide enough information for someone to take action and move on to the next step.
What’s important to note about workflow management is it’s less about the process and more about the people who are involved as well as their specific role.
For example: A workflow might start with a customer with split options that show them booking a taxi by phone or online. This connects them to a live operator on one branch or through an agent online. Both branches might converge to a specific server where the next step is a booked ride with one of the several drivers available in the workflow.
It’s not typically an automated process, but the workflow shows the flow of the customer and the structured path to booking along with the specific people involved.
Another example of a workflow is one that can be credit for a specific role and includes a specific set of instructions or next steps based on yes or no questions. In the following image, you can see the workflow
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begins with Reading an article. The workflow includes instructions on what to do based on yes or no answers, ultimately leading to one of two conclusions.
Again, with the workflow, you’re dealing with people-centric tasks.
Applicable uses for workflow management
While some workflows can be automated with more costly tools, typically around a workflow that is executed several times simultaneously, most are not. They’re merely there to define key steps in a specific task where multiple people are involved and they outline each individual’s role.
Here are some examples of where workflow systems are commonly used:
Sales Departments -When representatives at different levels may be going through a similar sales cycles across a portfolio of clients, where each of those clients is at a different stage of the sales funnel. This is similar to the booking example above.
Customer Service - Workflows are often used in customer service and technical support when you have varied tiers of services. A workflow defines which agents handle which tasks. Based on the inquiry from the customer or their specific issue, the workflow provides instruction on how the issue should be routed and assigned
Manufacturing - In manufacturing, a workflow would define the specific steps to completion of a step in production and those who are involved. This is often seen in segments of a production line.
Organizational Workflow - Larger workflows can be created that show a 30,000’ overview of the general flow of business. For example, it might show the flow in a B2B business starting with a purchase order that goes to receiving, to manufacturing, then moves to the warehouse, to packaging and finally to distribution. In this example, there are no specifics to the processes but instead, it shows the overall workflow, which might even include other incoming branches from customer service or a sales department.
Again, it focuses on the people/departments and not on the detailed processes.
Understanding Business Process Management (BPM)
If workflows focus on the people performing the tasks and their individual roles, then business process management focuses on defining the individual processes of an organization in an effort to improve the efficiency of those processes.
With the approach, a company would typically define the current processes being employed from end to end. Those processes would be detailed to include the actions and steps that are part of each phase of the process. This can be done for a specific project, for individual departments, or for an organization as a whole.
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This initial process map allows you to see where things begin to bottleneck and where the seams may be starting to give way and reduce the efficiency. When matched with data it provides clear insight on the changes you can make to improve individual segments to make the process more efficient.
Businesses seeking to grow typically use process management to streamline efforts across multiple departments and teams, and ultimately reduce costs or provide a better quality of service to customers.
In the previous segment, there was an example in manufacturing where workflow defined specific steps in a production line. With business process management you would map out detailed instructions of every step that takes place. Then, using data, you could identify the most critical bottlenecks to make that production line more efficient.
How Business Process Management (BPM) Is Typically Deployed
Virtually every business can benefit from process management as they work to accomplish their goals and objectives. Even a drop shipping business can clearly define the processes that involve sourcing goods, how those goods get listed on the website, how they’re marketed and promoted, how orders are fulfilled and how post-order engagement takes place to improve a customer’s lifetime value.
Here are a few examples of what process management can be used for:
Healthcare organizations – Healthcare systems like hospitals have a lot of different teams working to care for patients. The processes are complex and there’s a lot of opportunities for problems to occur. Process management helps reduce inefficiencies and bottlenecks to provide a better quality of care for patients.
Financial – Banks and other financial institutions, like Hedge Funds, use business process management to ensure each step in their processes are followed closely in order to comply with federal regulations.
Creative – Design agencies that work with multiple teams and contractors use process management frequently. That ties provide accurate details and next steps as projects move from ideation to design, coding and development, copy production, quality assurance, review, and deployment. Creating approval processes maximizes efficiency and eliminates bottlenecks.
Workflow VS Business Process Management (BPM): Key Differences
If your workflow is the instructions, the process management creates the strategy to ensure the people and the steps work as intended. Think of your workflow like the playbook for a football team. It defines where a player should be during a specific play. In that scenario, the team’s coach is the process management. He has everything mapped out in terms of who goes where, how they get there, what they need to do make each play successful, etc. He is there to deploy each play in the most efficient manner, monitor it, make corrections and keep the team efficient.
Remember, workflows focus on organizing people or departments, and in some cases resources and documents. Once a workflow is created it’s often followed like a map until someone deems that a change
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is necessary.
Business process management, on the other hand, is an ongoing monitoring and analysis of the overall process once it has been defined and deployed. Rather than just making sure the right person is on the right task, or that a specific document has been sent.
With that said, it’s quite common to create workflows that manage and even automate individual segments within larger processes.
Conclusion
What you choose is largely determined by your goals. If you need to create a detailed map of the processes in your organization with the goal of improving efficiency and reducing costs from errors or bottlenecks then business process management is the most suitable option. It’s scalable, and with an approval process system in place, you can ensure that your processes are running efficiently and consistently.
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Tallyfy
Beautiful Workflow Software, Business Process Management (BPM) Software
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