Editor's Note: Simplifying the work process, continuously discovering errors in the work process and effectively integrating them, and improving the satisfaction of internal team members and customers are the common responsibilities of every enterprise, every manager and even every employee today. Process optimization is never-ending. This article reviews the concept of process optimization, details the benefits of process optimization to business and 9 business process optimization methods, introduces 5 steps to perform optimization and several process optimization software.
We often think that self-confident people are easy to succeed, in fact, it is more likely to be people with advanced tools.
An example of a process optimization (advanced tool): After spending an hour trying to hang a curtain rod horizontally, I've been thinking a lot about it. I was very annoyed, thinking about which link went wrong. I was holding the curtain rod wobbly against the wall with one hand, trying to keep the rod straight, finding balance with a little plastic level, struggling with a cheap drill and a Cheaper drills make holes in the plaster, but don't go in at all.
Long story short, after a failed attempt, I bought a laser level, an impact driver and better drill bits, and now the things I'm hanging, if not looking closely, are pretty much level at 90% level, completing a hang like this is about In a quarter of the time I used to do it.
The improvement of the process of hanging curtain rods above is the best example of process optimization, and the concept of process optimization can also be applied in our business.
The main contents to be introduced in this article are:
• Concept review: what is process optimization?
• Benefits of process optimization to business
• 9 business process optimization methods
• 5 steps to perform optimization
• Introduction to several process optimization software
01
Concept review: what is process optimization?
For enterprises, process optimization is to find out the inefficiencies in routine processes and correct them to improve efficiency.
Process optimization may sound simple, but figuring out how to optimize a process in practice takes a lot of time and expense. Once found, the rewards are high. Existing process optimization frameworks can help you find the holes in your business operations and fix them, saving you a lot of time and money so you can focus on your more important work.
02
Benefits of process optimization to business
Optimizing business processes includes simplifying human resources (HR, human resources) processes, saving money, and automatically generating potential customers. Every business manager needs to have these capabilities. For periodic tasks and complex process businesses, optimizing business processes will bring huge benefits:
(1) Make results more consistent: The optimized process is simpler and easier to replicate, resulting in more consistent and predictable results.
(2) Improve production efficiency: Optimized processes reduce redundancies, obstacles and steps in repetitive processes, thereby completing the entire workflow from start to finish faster.
(3) Trending risks to be smaller: By optimizing the process, we can identify process steps that represent unnecessary risks and remove them in time or take additional precautionary measures.
(4) Fewer opportunities for errors: The optimized process has fewer steps and less complexity, which will reduce the chance of human error.
(5) Make Compliance Easier: Optimize Processes Optimize compliance by simplifying monitoring and reporting procedures.
(6) Make communication smoother: Optimizing processes removes communication barriers between teams, or builds effective collaborative processes into workflows.
(7) Make team members focus on more important tasks: Optimizing processes frees up team members to focus on tasks that are worth their time by reducing repetitive, low-impact tasks.
03
9 Approaches to Business Process Optimization
If the process of "optimization" sounds vague to us, that's because it is inherently vague. Instead, you can use these established (non-ambiguous) optimization frameworks to identify and correct workflow problems.
(1) Lean project management
I am by no means saying that my framework is useful. "Lean" is a general approach to project management that improves efficiency and the bottom line by reducing waste. A broad Lean framework can encompass techniques from many different industries, but specifically, Lean Project Management can help curb:
• Time wastage
• Overproduction
• Overprocessed
• Useless transshipment
• Inefficient movement
• Inventory waste
• Errors and defective products
To achieve Lean, we need to follow these five steps:
Step 1: Create product value. We need to understand what customers expect from our products? What do our internal team members expect from the company's operations? Once we can define the expected value of our product or process, we can work to improve how it is delivered.
Step Two: Identify waste in the workflow. Start at the most basic level, listing every step of every process needed from inception to completion, exhaustively looking for any waste in each step. Value stream mapping becomes a useful tool for spotting waste at this stage.
Step 3: Reconfigure the workflow. Once we identified a point of waste in the process, we removed it and created a new workflow.
Step 4: Meet the needs. Whether this is an internal process for team members or an external process for customers, it should be driven by the needs of the end user. Creating a faster process with more hurdles or excess inventory is not a lean process.
Step 5: Keep improving. No process can be perfect. Lean is simply an ongoing dynamic process that promotes continuous improvement of processes as people, trends, and markets change. We need to constantly look for ways to reduce waste so that we can continue to create value.
An example of optimizing a process using Lean project management methods: A publisher of nature books was looking for ways to reduce overhead. Their most popular books are hiking guides, but demand fluctuates wildly with the seasons and the market is price sensitive. Through analysis of the value stream map, they realized they could save money by reducing defective books and storage costs. They decided to offer full-color e-books for the same price, and changed their print production from color to black-and-white, and changed production to on-demand, printing books only when someone ordered them. Production costs and storage costs are reduced without raising prices.
Lean project management methods apply to: Reducing waste in workflow, production, and other processes.
(2) SIPOC high-level flow chart
SIPOC high-level flow chart creates a more understandable visual description for business processes. It can help decision makers take a broader perspective and look at areas that can be optimized, so that decision makers can better sequence processes. The letters in the SIPOC abbreviation represent the following meanings:
S (Suppliers) means suppliers: sources of resources ("inputs") that affect key results ("outputs") in the process
I (Inputs) means input: a single element (whether a resource or an operation) required to execute a process
The meaning of P (Processes) is process: after executing the input process, the steps required to run the task from beginning to end
O (Outputs) means output: the result obtained from the process, such as a product, service or behavior
C (Customers) means customers: those who will receive, use or participate in the output, including customers, partners and internal team members
An example of process optimization using the SIPOC high-level flowchart: The owner of the bakery and the cooperative butcher work together to develop a special sandwich. They create SIPOC high-level flowcharts to identify suppliers (bakery owner, butcher, ingredient suppliers), identify inputs (new recipes, specialty meats, supplementary ingredients), identify processes (ingredient procurement, ingredient preparation, cooking), Output (new menu item) and customer (bakery owner, butcher, customer). They use charts to help streamline the topping and sandwich prep process, adjust budgets, and set price points.
SIPOC high-level flow chart is suitable for: in-depth combing process.
(3) Process Mining
Similar to data mining, process mining uses existing data to discover patterns applicable to processes, draws diagrams of current business processes, and inputs real numbers to support this pattern.
An example of process optimization using a process mining approach: A healthcare provider uses data mining software to comb through time-stamped log events including calls, appointment scheduling, ticket delivery, and billing. Reveal key points where planning and billing can be improved by mining real-world data, including continuously updated current data, to increase patient retention and reduce billing time.
The process mining method is suitable for further analysis of existing business processes by applying historical data.
(4) Six Sigma method
Six Sigma is a manufacturing quality control method based on a specific number. It was originally designed for Motorola. It is also a useful lean technique that can reduce waste, improve accuracy and overall efficiency, and improve reliability. predictive. It can even be used for agile project management. The name Six Sigma refers to keeping the error rate within 6 standard deviations of the mean.
According to the two different requirements of "improving an existing process" and "creating a new process", two acronyms, namely DMAIC and DMADV, can be used when applying Six Sigma.
DMAIC process optimization method introduction:
DMAIC is a method to improve the existing process, and its letters stand for the following meanings:
The meaning of D (Define) is definition: start from defining problems, goals, processes, parameters and customers.
The meaning of M (Measure) is measure: collect data as a control to compare changes in the future.
The meaning of A (Analyze) is analysis: using measurable data to find the reasons for the inefficiency or failure of the goals we defined at the beginning.
I (Improve) is improvement: Propose and solve those inefficient or failed processes, record the specific improvement process, and compare with the initial process.
The meaning of C (Control) is control: integrate these processes into the previous processes, and put the new processes into practice.
DMADV process optimization method introduction:
If you are creating a new process, applying Six Sigma can be expressed as DMADV, and the meaning of each letter is as follows:
The meaning of the first letter D (Define) in DMADV is definition: clearly list the goals of this process.
The meaning of M (Measure) is measurement: about anything that is critical to the quality (CTQ) of customers, products or process results, we need to assign a value to it.
The meaning of A (Analyze) is analysis: based on the assignment and expected results, a design that meets the requirements is proposed.
The meaning of the fourth letter D (Design) in DMADV is design: build the process, test the process before applying it, and check whether it meets our expectations.
The meaning of V (Verify) is to verify: execute the process, ensure that it is consistent with expectations and can meet the goals, and ensure that the process can run under any constraints.
Example of process optimization using a Six Sigma approach: A printing company had to find a way to cope with increasing material costs in a market sensitive to prices. That's when DMAIC came in, and they discovered they could save money and increase revenue by updating their equipment to reduce printing errors.
The Six Sigma method is suitable for: providing conceptual solutions for improving processes or designing new ones.
(5) Value stream mapping (VSM, Value stream mapping)
We can use value stream mapping to package the currently running process into a convenient flowchart. Like the SIPOC high-level flowchart, this lean-friendly visualization helps us see things for what they are so we can identify opportunities for improvement. VSM transforms complex processes with abstract costs and resources into concise processes with clear values.
We create a VSM by listing each step in a given process. For each step, indicate the time required and any associated costs, and whether it adds value to the end user (and if so, by how much). Once we can see the process identified with a clear value, we can design a better model that removes steps that take too long or are prohibitively expensive.
Example of process optimization using the value stream mapping approach: A marketing company wants to reduce lead times for customers. A manager used VSM to map production from production to delivery and found that by realigning their preliminary design phase, communication across departments could be streamlined, saving 10 non-billable hours per project.
Value stream mapping is useful for: Visualizing complex processes, discovering wasteful steps.
(6) 5 "whys"
The core idea of "5 whys" is to use theory to guide facts and finally achieve the goal of solving problems. Once we've identified a problem, applying the 5 "why" technique seems straightforward: Ask "Why?" five times, a strategy familiar to parents of I have a headache.
This approach works because it forces us to base ourselves on facts and evidence: Instead of first reacting to what happened, we think about what happened to cause the problem.
Every time we answer a "why", we get closer to the core of the problem. Once we have a definitive answer, ask ourselves why that answer is true. This process is repeated until we get to the last matryoshka answer. With that last question resolved, we can also address the 4 broader "whys" that were raised earlier.
An example of process optimization with the 5 "why" approach: A productivity app isn't selling badly in the back of school. The developers used this 5 "why" approach to find possible reasons why students might not want to sign up for free. The reason found after asking the first "why" is: low signups for the free trial. After asking the second "why", I found out that the conversion rate of the landing page is very low. The reason found after asking the 3rd "why" is: Many users abandon the registration process. Here's the reason after asking the 4th "why": Over 60% of users leave after seeing the first page of a signup form. The reason after the 5th "why" question is: The second page of the registration form requires credit card information. After a comprehensive analysis of the reasons, they decided to eliminate the credit card entry requirement and restart the registration activity later in the semester.
The 5 "why" approach works for: Get to the heart of complex problems.
(7) 5S
Let's not confuse 5S with the 5 "Y's" proposed in the previous method introduction, 5s is a practical lean pattern that can create a more efficient and orderly physical workspace. Each "S" is based on a Japanese term that also happens to start with an "S". The meanings of the 5 "S" in order are:
Sorting (Seiri): Separating necessary and unnecessary items and removing anything that is not needed for the current process.
Seiton: Once we are left with only the items we need, we organize them so that they are easy to find and ready to use.
Seiso: Give our newly decluttered space (virtual or physical) a deep clean to set a new standard.
Standardization (Seiketsu): Continue to keep the space clean by hiring professionals or rotating specific positions internally.
Sustain (Shitsuke): Create a plan to maintain the new standard of our bright, shiny, orderly new office.
Example of process optimization using the 5s approach: After moving into a new workplace, a growing start-up company quickly updates the place with new equipment, new workstations and new employees. They throw out obsolete equipment (decluttering), store office supplies in newly vacated closets (sorting), hire a cleaning company to do a deep clean on weekends (polish), schedule cleaners to do weekly cleanings (standardization), And implement a biennial "item review" to reduce clutter (maintenance).
The 5s apply to: Creating an orderly work environment.
(8) Plan-Do-Study-Act
"Plan-Do-Study-Act (PDSA, Plan-Do-Study-Act)" is sometimes called PDCA (replace "study" with "examination"), which is A lean methodology for measuring the effectiveness of changes. It doesn't help us find new solutions or identify problems, but it can demonstrate whether our process optimization solutions are having the desired effect. The four steps of this approach are:
Plan: Clearly define a specific problem, measurable goals related to the problem, specific changes to address the problem, and quantifiable indicators that can demonstrate the effectiveness of the change. To strengthen this step, it can be defined in conjunction with 5 "whys" (locking the question) or a SWOT analysis (clarifying the goal).
Implementation: Putting plans into action. Because the purpose of this process is to demonstrate the effectiveness of the change, a performance baseline is marked against which future results can be compared. Then, determine a timeline and continue recording data until you see measurable results from changes over time.
Research: At the end of the defined timeline, the changed performance is compared to our marked baseline. Review the goals we set early on to see if the changes we made had the desired effect.
Action: If the change we made successfully addresses the issues listed in the "Plan" step, then the change is valid! Integrate changes into our ongoing processes. If the change doesn't fix the problem, start the process over with the new solution.
Example of process optimization using the PDSA approach: A travel company whose marketing email view rates have been declining wants to increase user engagement as summer approaches. The company decided to shorten the subject line and add emojis, which might help increase view rates, with the goal of at least a 15% (planned) increase in view rates. Over a period of three months, they randomly split half of their contacts into groups A and B to receive the same emails, except that group A's email included a longer plain text subject line, and group B's Emails include short subject lines with emoji (implemented). After three months, the company saw a 23% increase in viewing rates for group B (the study). Going forward, they set a maximum character limit for subject lines and a policy that all marketing emails contain at least one emoji.
PDSA applies to: Demonstrating the validity of a specific change.
(9) Total Quality Management
As its name suggests, Total Quality Management (TQM) adopts a holistic philosophy to improve performance, deliverables and customer experience by identifying and correcting problems and empowering employees. Total Quality Management is an evolving process that reduces errors, increases efficiency, and ensures that employees at all levels have the resources they need to do their jobs. When implementing total quality management, there are some general guiding principles to keep in mind:
Quality is constantly improving: The meaning of "quality" may vary from business to business, but we can measure it by our customers' expectations. In any case, quality determines whether our product or service meets value expectations.
Quality improvement is everyone's responsibility: Total quality management holds everyone in the organization accountable for success. In order for non-management personnel to perform all their essential functions, they should be properly trained and equipped, and management is responsible for identifying training and resource gaps and then addressing them.
Quality improvement is a continuous process: we cannot expect quality improvement to be perfect, but we can expect it to get better over time. Total Quality Management is not a one-off solution, but a philosophy of continuous improvement and perfection.
Quality improvement should be demonstrable: if we want to continue improving, we need to see quantifiable progress. Apply quantifiable indicators to specific attributes of product quality, set goals, and make targeted changes to help achieve Key Performance Indicators (KPIs, Key Performance Indicators).
Example of process optimization with a TQM approach: An edtech company's main competitor has similar software with more powerful features and a similar price, and the company gradually loses its competitive advantage. The company uses a total quality management process that conducts a full audit of every department to identify opportunities for internal growth. The management team attends process optimization workshops, the sales team receives monthly training from outside professionals, the marketing team makes a budget to revamp the website, and the product team meets with university faculty to learn how to better meet customer needs and transform themselves The product.
Total Quality Management applies to: Establishing a framework for continuous improvement.
04
5 Steps to Executing Optimization
Regardless of which of these process optimization techniques we choose to explore, there is generally an overall structure that we expect to solve a problem and perform process optimization:
Step 1: Find the problem. If we don't know what's wrong, we can't do better. Process optimization must first clarify the problems that need to be solved.
Step 2: Define our goals. "Better" is not a specific enough end goal. Even if we can't expect to create a perfect process, we can set achievable, quantifiable goals to demonstrate our progress.
Step Three: Make a Change. Take steps to achieve optimization goals through incremental changes from problem discovery to solution.
Step Four: Quantify progress. Applying analytics to changes allows us to monitor progress towards our goals and see how effective (or ineffective) optimization efforts are.
Step 5: Keep improving. If a strategy doesn't work, try again. If it does work, integrate it into the process and move on to the next inefficiency.
Written at the end
Just like home improvement, process optimization is endless. In a house, there is always a wall to paint, a piece of furniture to replace, a crack to mend, a mirror to hang. With any business and organization run, like this house, there is always something to change. The point is, we are always striving for better, more efficient workflows through smarter workflows, deep analytics, thoughtful changes, and ideally automation.