Why is the optimization of production processes essential for the company?

Production process is any sequence of steps capable of generating value for the company and its stakeholders. In this context, both the manufacture of a pen and the creation of a marketing piece are examples of this. Therefore, optimizing this process is something that can be done in any segment. But why do that?

A first answer, and the simplest one, is: because it improves company performance. However, it is necessary to go deeper. What are the disadvantages of leaving the topic aside? How can a company optimize its processes? What is the manager’s role in this journey?

In the following topics, we answer these questions and offer an overview of the importance of optimizing production processes. Follow up!

What are the disadvantages of the lack of process optimization?#

Imagine one of your processes, for example, service. You can be happy with it and have good results. Despite the positive scenario, you need to remember that everything changes quickly and small problems can grow - which, in turn, cause serious losses. Therefore, preserving the status quo is not a solution. Later, we explain it better.

High rework rate#

The calculation of the rework index is simple. You divide everything that was produced by the number of errors that required readjustments. So, if you produced 1000 shoes and 100 of them needed to be redone, your rework rate is 10%. The higher, the worse.

The problem is that, to the extent that your processes are not optimized, errors, conflicts, and problems appear more frequently. You don’t learn from mistakes, machines aren’t replaced, and people aren’t trained. In the end, rework becomes the standard. Have you seen the harm that there is in this situation?

Increased customer dissatisfaction#

In every company, an elementary objective is to make and keep customers. If there are no customers, there’s no way to generate revenue, and there’s no reason to keep the business running.

The problem is that clogged processes slow down customer service and impair customer satisfaction, making the sales or post-sales experience poor. This generates a series of other subsequent problems, such as the drop in sales volume.

This cycle becomes even more damaging when dissatisfied customers act as detractors of the brand. This means that they can do negative word-of-mouth marketing of your company, speaking ill of the business. Better to avoid, isn’t it?

Reduction in daily productivity#

The level of productivity of a company or team directly depends on the quality of its processes. Therefore, the more fluid and functional the processes are, the greater the productivity. In the same way, the opposite also applies: precarious processes affect business performance negatively.

To the extent that processes are not optimized, daily processes deteriorate and lead to ever lower results. Take, for example, the sales process. If it is not perfected, it will be increasingly difficult to close deals that benefit the company.

How is it possible to optimize the company’s processes?#

Process optimization depends on a few factors. It is necessary to know how to identify and eliminate bottlenecks, in addition to involving the right people and technologies. When this is done, the manager can avoid the losses already mentioned, in addition to obtaining additional benefits. Understand!

Start by selecting the most important processes#

It is not possible to optimize all processes at the same time, after all, the company’s resources are limited. Therefore, it is necessary to prioritize the most important processes, but what are they?

To recognize them, start by defining what your company’s most important results are. For example: customer satisfaction, security, and sales. Then, check which processes lead to these results.

Map the bottlenecks affecting the final results#

Any problem that prevents the processes from being truly functional and the company achieving the desired results is called a “bottleneck”. Thus, throughout the sale, the lack of inventory control or an updated price list is a bottleneck.

In this case, engage in the analysis of the bottlenecks. Assess what they are, why they exist, and how they affect performance indicators. Once this is done, dedicate yourself to correcting the problem, in order to eliminate it or correct it so that it does not continue to affect the business.

Improve internal business communication#

One of the most important elements for process optimization is communication. If professionals don’t communicate, the number of errors, problems, and interpersonal conflicts tends to be greater. Even worse, the talents are bewildered and unable to work.

To improve your communication, act in two ways: first, make everyone, starting with the CEO, aware that the issue is really important; then, adopt technologies that make communication more fluid, transmitting the message from the sender to the receiver.

Count on technology in your favor#

Finally, team up with technology! Good software can optimize processes in several ways, for example:

• creating a functional workflow;
• automating routine tasks
• improving the alignment of professionals and work teams, etc.

Therefore, dedicate yourself to finding a good management platform. It must be functional to optimize your processes, improve work team communication, and reduce the number of errors.

Check out this post on how to convince your board of directors to invest in new technologies.

What is the manager’s role throughout this process?#

As you can see, the optimization of production processes is crucial and inhibits many losses, making the company prosperous and productive. To this end, it is necessary to eliminate bottlenecks, improve communication and adopt good technology. What about the manager, what does he do?

The manager is an elementary part of the entire process - he is the one who will coordinate all of this so that the processes are effectively optimized. Thus, your daily action can be summarized in three words: planning, execution, and control of the results achieved.

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In this sense, your first task is to plan what should be improved and how, in addition to associating this with a consistent goal. Then, you need to take advantage of the talents and technologies available to get your “hands dirty”. Finally, you must control, identify, and correct errors.

You see, now you are aware of the topic, you understand the importance of optimizing production processes, how to promote this in practice, and what is the role of managers. Remember that good technology can help a lot, both by making the workflow more fluid and by automating certain routines. So, commit to the search for good software.

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