In the HR, Sales, SCM, Marketing, Financial Accounting and Central Administration divisions.
My clients often ask me how they can cut costs or how they can optimise the existing processes (apart from production) in their organisation.
Many of my clients bring up such problems as ‘overpriced,’ ‘overgrown,’ or ‘everything is taking longer’. Because such problems cannot be quantified, they are difficult to correct. With such statements, a ‘before-and-after’ consideration is not possible.
To begin with, I attempt to present the problems via the SQCDP key figures (On Time, On Cost, On Quality, etc.).
The information for the calculation of the current situation including history can often be extracted from an ERP or time recording system (‘coming and going, with or without cost unit accounting’).
For one of my clients, I was able to quantify the problem ‘overgrown’ by evaluating the information from time tracking software.
If the hours worked within the department are divided by 8 (8 hours normal workday), you get the ‘headcount development’ from 2005 to 2013. In this case, ‘overgrown’ means tripling.
My clients expect results as quickly as possible along with complete transparency regarding the procedure used.
I have thus far experienced the highest client motivation and enthusiasm when the client could monitor the problem analysis. Therefore, I use Excel and/or PowerPoint to document the results of the process analysis. This facilitates the client’s access to the intermediate results without having to consult an IT department for the installation of proprietary tools.
I use the LSS tools SIPOC, RACI and YAMAZUMI for problem analysis (actual situation) in the affected and adjacent organisational areas.
Admission process ‘ACTUAL’ within the affected departments and in collaboration between the departments.
Analyse the recorded process (results).
For the potential analysis, I categorize the recorded process activities and tasks in four categories: ‘non value add’, ‘value add’, ‘value enabling’ and ‘waste’.
The greatest challenge after categorisation is agreeing on evaluation with the relevant employees and managers of the organisational unit together with the client's management.
Different opinions or historically grown activities can complicate the conversation.
After finding a consensus among stakeholders on the existing problems in the organisation and prioritizing issues in consultation with the stakeholders, I begin to draft suggestions for improvement.
Presenting and coordinating the corresponding measures with the affected organizational units is the basis for the creation of the project roadmap for implementation of the respective suggestions for improvement.
The sequence of individual improvement projects depends on the impact of the individual measures on the desired company result.
Visualization with an Ishikawa diagram helps my clients understand the percentage distribution of the effects of the different measures on the result.
Depending on the result, PDCA or DMAIC projects are commenced for each measure.