BPR for boosting business efficiency

1. Lean Management

The growing popularity of the Lean principles comes from the fact that they actually focus on improving every aspect of a work process and involve all levels of a company’s hierarchy. There are a few major advantages that managers can benefit from.

Benefits of Lean Management

1. Focus:- By applying the Lean methodology, you will be able to reduce waste activities. Therefore, your workforce will be focused on activities that bring value.
2. Improving productivity & efficiency:- When employees are focused on delivering value, they will be more productive and efficient because they won’t be distracted by unclear tasks.
3. Smarter process (pull system):- By establishing a pull system, you will able to deliver work only if there is actual demand. This leads to the next one.
4. Better use of resources:- When your production is based on actual demand, you will be able to use only as many resources as needed.

As a result, your company (team) will be much more flexible and able to respond to consumers' requirements much faster. In the end, Lean management principles will let you create a stable production system (Lean system) with a higher chance of improving overall performance.

2. Theory of Constraints (TOC)

The Theory of Constraints is a process improvement methodology that emphasizes the importance of identifying the "system constraint" or bottleneck. By leveraging this constraint, organizations can achieve their financial goals while delivering on-time-in-full (OTIF) to customers, avoiding stock-outs in the supply chain, reducing lead time, etc.

Other common benefits of implementing the Theory of Constraints include better control over operations, less inventory, reduced conflicts between team member and drastically reduced firefighting. Often, additional capacity gets exposed without further capital investment or hiring additional workers.

The Core Idea – Every system has a limiting factor or constraint. Focusing improvement efforts to better utilize this constraint is normally the fastest and most effective way to improve profitability.

Benefits of Theory of Constraints:

When Theory of Constraints is applied well, it provides a visible change in an organization. Its effectiveness is not limited to manufacturing, and can bring benefits to banking, healthcare, sales, and other industries. Some of the specific benefits of TOC include:

• The concept of a constraint makes it easier to find what is slowing the advancement of the whole company.
• Constraints focus improvements on where they can have the most impact on profit.
• TOC provides a structure for continuing improvements.
• The holistic view of the company and the continuous search for constraints gives you better control over your process, so that you can anticipate backups.
• TOC exposes additional capacity without further investment. In other words, TOC forces you to use what you already have, instead of immediately spending money for things such as new equipment or bigger facilities.