Effective management methods
To raise business effectiveness, optimize business processes and to simplify the process of decision making the systems of business administration have been created. The most popular modern systems of business administration are Lean production, originated from Toyota Production system, Quality Management System ISO 9001:2008, TOC, Six Sigma powered by Motorola.
- Business administration with the help of Quality Management System is based on maximum satisfaction of customers and employees, owners and the whole society. The concept of business process optimization by means of QMS is providing of a constant quality growth. The quality growth leads to the confidence in a product and, as a result, the prosperity of a company is provided. The prosperity of a company provides prosperity of its employees who, in their turn, are getting involved into the process of further improvement of product quality.
- Six Sigma is a system of business administration which is aimed to minimize the probability of defects in business process and production. The quality KPI is not more than 3,4 of defects per 1 million of procedures. Business process optimization with Six Sigma provides defining and eliminating of procedures leading to defects in production.
- Lean production is speeding-up of the value stream. Everything that isn’t valuable for a customer is recognized like a waste of time and should be eliminated. However, there is an incorrect opinion that Lean production is only a fight against expenses or economy. This leads to the huge percent of unsuccessful Lean production implementations.
- TOC is one of the most effective systems of business administration. TOC defines weak points of business processes. This means that business process optimization can be provided for certain spheres of business and excludes the fact of wasting time on unnecessary changes in a company.
System business administration is a process of continuous improvement
System business administration is administration according to a developed long-term strategy and a constant improvement, which includes a deep understanding of company objectives, its place on the market and response to external factors. The chosen strategy should let to achieve company objectives within certain time limits, that’s why while working on it is important to concentrate on the factors limiting their development.
Modern companies use various methods and approaches to business administration. They are mostly focused on business process optimization. Fortunately, nowadays there are many ways to improve business in order to make it more profitable and competitive.