Business process optimization
Modern approach to creation of a management system is performed based on maintenance of business processes in an actual condition constantly, instead of during definitely short period.
Implementation of the process approach will allow to increase considerably efficiency of company activities, its competitiveness and to optimize costly part.
The system of key performance indicators (KPI) is one of the main tools, giving the chance for management to concentrate attention on limited quantity of really important questions for business.
The process approach is based on the concept according to which management is a continuous series of the interconnected actions or functions (business processes), which final cause of accomplishment is a creation of products or the services which are of value for external or internal consumers.
Business process modeling (BPM):
- allows us to analyze not only how the company operates as a whole, how it interacts with external organizations, customers and suppliers, but also how organized an activity at each individual workplace;
- a description of business processes enable managers to know how work ordinary employees; and ordinary employees — how work their colleagues; and on what end result all their activity is directed;
- this is an effective tool of opportunities search for improvement of the company activities;
- his tool allowing us to expect and minimize the risks arising at various stages of company activities reorganization;
- it is the method, allowing to give a cost estimate to each process taken separately, and all company business processes, taken in total;
- it always a certain way of identification of the current problems in the company and anticipation of the future.
Modeling process involves four basic steps:
1) Model Development and Design,
2) Model Start,
3) The Analysis of the Received Performance Indicators,
4) Assessment of Alternative Scenarios.
Business processes are too difficult and dynamic. They can’t be understood and analysed, using only one flow diagrams and spreadsheet.
High-quality documentation — important part of business processes management. Documentation of all processes in your company promotes effective interaction at all organizational levels. Documentation shall contain all latest changes and to be available to the persons involved in process. Access to documentation often is implemented through a corporate portal (Internet).
The main benefit in organization orientation on process consists on an accurate picture of all events in the organization, with all existing problems and weak points which could remain unnoticed in the typical organization which at least superficially similar carries out the functions.
- Restructuring of the Company and/or change of business ownership, implementation new approaches to management;
- Development of the Company, which is accompanied by increase in number of unrecorded rules of works performance;
- Decrease in efficiency of activities and company management or separate activities;
- Lack of transparency in the implementation of business processes and assignment of responsibilities for the result;
- Problems of operational nature: demands for a growth in volumes of production, considerable expenses, decrease in quality, high duration of transactions;
- Preparation for Quality Management System;
- Significant uncontrolled growth of staff number;
- Preparation for ordering of information flows and automation of the Company activities;
- Improvement of Document Management System (DMS).
- Company competitiveness increase. Optimal ways of implementing the basic strategy of the company, taking into account the growing competition and developing technologies.
- Increased Company manageability by achieving transparency of business processes and improve the reliability of information about their implementation.
- Improve the quality and speed of production commercial or domestic product with simultaneous cost reduction.
- Increase of efficiency in use of material, financial and human resources.
- Increase investment prospects of Company.
- Decrease in loading of CEOs on the «current» questions, growth of professionalism of employees, interaction improvement of quality between employees and company divisions.
- Increase in speed and reliability of information exchange, decrease in terms and development costs on implementation of IT systems.
- The business process optimization, as a rule, conducts to increase in loading of employees and connected with these problems of social and psychological nature. Works on a business process optimization need to be combined with carrying out purposeful work in change of corporate culture.
- Work on the optimization of business processes is not recommended in the company, employing up to 30 people, due to their inexpedient Cost /Result criterion.
- Business processes optimization is not recommended in cases of extremely uncertain market position and / or absence at the highest management strategic reference points in development of the Company.