Before knowing how the business process can be improved let’s understand what exactly is a Business process, and time management. So, Why there is a need to improve business processes?
A sequence of activity performed at work to complete the task.
Business process definition
So let’s understand by splitting the two words business and process. Usually, a business is an organization where a group of people works for achieving a common goal and manage time and hence process states the flow or sequence of work which has some start and endpoint and series of activities in between where each activity creates or change something or add up some value
Any value before the process is input and the result after adding up the value is output.
So, in a nutshell, we can say that a sequence of activities is designed to create something of value or can say time management.
Types of Business process
There are 3 types of business process, in general
Operational Business Process
Meanwhile, It is a business process that includes the core activities of a business. For example, in the Bakery shop, the operational business process is making cakes and this work is allocated as per time management to different people according to their skills that are preparing cake sponge, preparing the icing for the cake, etc.
Supporting Business Process
So, Here, the business process includes the work which supports the core activity like recruiting the best chef, technical assistance, etc.
Management business process
Consequently, The process includes managerial work like managing the budget, Time management, managing the employees, etc.
Business process Example
So, The business process is a sequence of logical steps that need to be performed for achieving the goal of the business.
For hiring, a business needs to perform these steps
- First, they give advertisement in the print media or job portals about the vacancy,
- After receiving sufficient applications the HR calls the selected candidates to come for an interview or pre-placement examination,
- Also, The exam or interview is conducted, a candidate needs to clear it.
- Hence, The most suitable candidates are selected based on their performance,
- After this, the candidates are asked for documentation and verification,
- A joining letter is given to the selected candidates.
- Required training is given to the new employee.
So, this is the procedure of hiring new employees in the business and wherever the business needs to hire new employees they go through this process only as this is standardized and efficient in time management.
Business process improvement
Business process improvement is a managerial activity where organizations use different methods for analyzing their process to find out the gap between actual and standard, and fill that gap by improving the process, ensuring proper time management.
So, After knowing what the business process and its types are, let’s move forward and know what the need of improving it is.
Meanwhile, As the business process is the activity that an organization does in sequence to achieve its goal and there is always a scope for improvement. Hence, attaining more efficiency which ultimately leads to attaining more productivity or profitability.
One business doesn’t need to be improved or redesign its business process in case of low performance, it can be done in normal situations also to achieve high performance.
ADVANTAGES OF IMPROVING BUSINESS PROCESS
By improving the business process and time management the time of production or manufacturing will decrease as the process becomes efficient much earlier.
Increase in quality of output
So, As the product or service becomes standardized the quality of output enhances under time management. Hence, no confusion exists between the employees regarding their work or role.
Also, This will lead to an increase in efficiency as the process becomes standardized. For example, during the process of manufacturing goods, the laborers know their work how to optimally utilize the resources which lead to less waste material.
Increase profitability and lower cost
Improving the business process ultimately leads to an increase in profitability as due to optimum utilization of resources the resources are well utilized and at a lower cost.
How to improve the Business process at work
Determining Objectives and framework
Objectives are the desired results of the improvement process which the management and organization attempt to achieve. Hence, this will provide the required focus, direction, and motivation for the improvement process.
Identify Customers and determine their needs
Need to understand customers, their profile, their steps in acquiring, Using, and acting on disposing of a product as per Time management. However, hence the purpose is to improve the business process that provides more value to the customer.Study the current process
In short, the existing processes will provide an important base. The purpose is to know the “ what” and “why” of the aimed process. However, some companies go through improving processes with a clean perspective without emphasizing past processes.
Formulate improvement process plan
The information gained through the earlier steps is translated into an ideal improvement process. So, Customer-focused improvement concepts are identified and formulated. Thus, in this critical step options of processes are considered and the best is considered.
Implement the new improvement plan
It is easier to formulate new processes than to implement them. Implementation of the improved process and application of other knowledge gained from the previous steps is key to achieve dramatic improvements. Hence, It is the joint responsibility of the planner and management to operationalize the new process.
Methods for improving Business process
Here there are some methods for improving this i.e
- Six Sigma
- Total Quality Management
To begin with, six sigma means continue with the desired quality in processes and end products. Hence, It means taking systematic and holistic approaches toward improving efficiency and lowering the cost and Time management.
It gives almost perfect goods and services to strive to meet and improve organizational goals on quality, cost, scheduling, manpower, new products, and so on. This works on the path of improving standards continuously. six sigma said that 99.99968% of the products produced are error-free while ensuring Time management.
SIX Sigma Efforts target three main areas
Improving customer satisfaction
reducing cycle time
Six Sigma Methodology
1) DMAIC- DMAIC is an acronym for five different steps used in six sigma directed towards the improvement of an existing product, process, or service. In short, the 5 steps are defined, measure, analyze, improve and control
2) DMADV- it’s again an acronym for the steps followed in implementing six sigma. It is a strategy for making new products, services, and products. Hence the five steps are Define the product, Measuring it, Analyzing it after analyzing Designing and lastly Verifying.
TOTAL QUALITY MANAGEMENT (TQM)
It is a system where people focus on a continuous increase in customer satisfaction at a continuous lower cost.
TQM is a system approach strategy and an inner part of a higher level of strategy. Thus, it works horizontally across all functional departments, involves every employee, top to bottom and include supply chain and the customer chain, Time management, which extends backwards and forward
TQM emphasis learning and being adaptive to continuous change.
Principle Guiding TQM
1.A sustained management commitment to quality
2.Focusing on the customer
3.Preventing rather than detecting defects
4.Universal quality responsibility
6.Continuous improvement and learning
7.Root cause corrective action
8.Employee involvement and empowerment
9.The synergy of teams
The root of the method is from japan which focuses on small but continuous improvement of a process. Here the organization is more into believing that the change and improvement should be continuous.
In short, it is an approach where the industry sets its target and measures productivity based on best industry practices. Hence, It helps businesses in improving performance by learning from others.
Thus, Here company practices against their competitors
Process of benchmarking
- Assess the need for benchmarking
- Clearly understand the current process
- Identify the best framework
- Comparison of the process from others
- Prepare report and implement the steps found necessary in filling the performance gap
A software than can be used to improve business process
The software that an organization can use for improving business processes is HELFO. It is an amazing tool for the improvement process. It has a good interface and can operate easily. Here diagram can easily work just by a click drag and drop button. And this document easily generates in a well professional form.
Although the software is free and doesn’t charge any cost for documentation and process modelling, you just need to have an account on the platform.
Hence, It provides a visual interface of all the steps of the process that we discussed in the methodology
How to choose which method to improve your business process efficiency
It wholly depends on the type of people you have as only people are the one who is the part of your business process and also the environment surrounded your business.
Hence, choosing the right method is very important as it involves lots of time, energy, and expertise.
Analyzing the current situation then understanding the target customer, outline the plan then implementing it, and lastly filing the performance gap is not a one day work that requires lots of hardware.
In short, the decision ultimately affects business profitability, Time management, productivity, and efficiency.