Not the start to 2022 you were expecting?
Omicron, self- isolation, PCR and rapid antigen tests dominated our lives during the festive season.
This has caused significant stress on business, particularly those in the tourism and hospitality sectors.
Staff shortages and supply chain issues are just some of the problems currently faced by business.
That said, one of the areas that organisations can focus on during this time is the elimination of waste within the business.
Many businesses incorrectly consider the elimination of waste to be a simple exercise of reviewing the various expense lines of the Profit & Loss Statement and making cuts. Not only is this simplistic and often ineffective, the process can also unnecessarily harm the underlying structure of the business and customer service.
A better approach is to take the time to undertake a detailed review of business systems and processes, to identify inefficiencies which can be eliminated. The elimination of inefficiencies will reduce cost and maximise the efficient use of scarce labour resources.
Where and when do you wait?
An example of waste reduction is to identify all areas in the business where your teams wait.
Much of a product or service lead time is often tied up in waiting for the next operation. This could be because the material flow is poor, the production run too long or the distances between work centres are too great.
Waiting also occurs in service businesses and may include waiting to get paid, waiting for information to complete a matter, or waiting for client responses to questions raised.
Is inappropriate processing occurring?
Another area to consider, is whether inappropriate or costly processing is occurring within your business.
It is amazing how many times I see the same person performing the same role in a business for many years, with their salary increasing significantly during the period mainly due to time employed. This alone has made the relevant process more costly than it should be because the team member concerned was not developed and progressed to new roles within the business.
Next steps
There has never been a better time to undertake a waste review on your business.
Contact Munro Noon Business Advisers for your obligation free meeting to discuss ways in which you can reduce waste in your business.