Nowadays, companies aim to optimize their management system by improving processes to achieve more efficient and effective results, thus gaining a competitive advantage over other companies in the industry. However, it is not easy to identify the variables that alert area managers about the type of improvement their processes need.
Process improvement is the continuous optimization of processes within organizations. By implementing process improvement, companies can reduce errors and avoid the loss of both financial and time resources. Ultimately, process improvement seeks to make work more efficient and effective.
Depending on the process, different variables need to be considered. Nevertheless, there are some common variables in most business processes that can facilitate continuous improvement work. The purpose of this article is to explain the main variables that manifest themselves when managing process improvement.
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There are different variables to consider in process improvement before initiating its execution. Below, we will discuss what these variables are and how they can help us along the way.
Time is a complex concept with various interpretations. However, we all agree that it indicates the duration of an action or activity from start to finish. The time variable is relevant both in project management and process management. It allows determining the duration of any process execution to take appropriate actions to reduce the time and difficulty involved.
Since humans have sought to control time since they became conscious, the factor of time is significant when carrying out any action. The less time spent on a task, the more time we gain to invest in other equally or more relevant activities. Therefore, process optimization depends on using time efficiently to generate value not only in the quantity of executions but also in the quality they demonstrate.
The production variable refers to the actual execution of processes, indicating the stages and tasks involved and the expected results at the end. It represents an analysis instance where the course of actions leading to the transformation of raw materials into a product or a value proposition into a service needs to be followed.
Cadence represents the production-to-time ratio. Regardless of the process at hand, we can measure the time and the amount of work possible within that time. Considering this variable aims to obtain records of the time-production relationship and, based on that, find ways to improve that relationship in favor of increased production and reduced time usage.
Based on what will be obtained at the end of the process, we can have either good or non-conforming results. Consequently, the productivity of the process can be measured, i.e., the quantity of good deliverables out of the total number of deliverables. The closer the number of good deliverables is to the total standard, the higher the percentage of process improvement achieved.
Productivity measurements in processes can be obtained through performance indicators. This allows you to assess the state of your processes, both before and after improvement, to verify the successes and mistakes generated by the improvement efforts.
Cost represents how much it costs to execute the process and what budget is needed to carry it out efficiently and with good results. In process improvement, success in this variable is achieved when the cost is significantly low compared to the results obtained.
This variable is not synonymous with productivity, as productivity refers to good processes out of total processes, while robustness refers to completed processes out of total processes. We can have total processes and completed processes, and from those completed processes, we can determine how many are well-executed and how many are not.
As for how to improve your processes, there is no key framework because it will depend a lot on the type of problems and improvements you need. However, you can start by considering the following points, which we will delve into in subsequent articles.
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These were the 7 main variables in process improvement implementation that will help you analyze the state of your processes based on the identification of a moderately intuitive problem. From that point, the objectives of an improvement plan should be formulated, designed to optimize the previous results. Indicators will allow you to measure the progress of the improvement and the final results in relation to the initial ones.