Express method of business process optimization

How to use the method

Nowadays express method of business process optimization is widely used by lots of enterprises of large and small business. Let us consider the basic stages which an enterprise should go through during the usage of express method.

Creating of improvement team

For urgent business process optimization so-called improvement team is created. Managers and division specialists who know the ropes in most problematic areas of work of the enterprise should be included in it.

The leader of the team should be one representative of the management of the company who has the authority to make orders to all employees of the enterprise, otherwise successful usage of express method will be impossible.

Defining of key business processes

Improvement team should write the scheme of the work of the enterprise, where all basic business processes will be described and correlation between them will be specified.

After the scheme has been done, ABC analysis is provided. This analysis allows detecting the number of most significant business processes which should be paid attention on. For that end, all business processes are divided into A, B and C groups.

Group A is processes which take the biggest amount of expenses. Usually, there are 5-10% of processes which take 75-80% of all expenses.

Group B is 20% of processes which take 10-20% of expenses, and, group C is the rest 60-75% of processes which take only 5-10% of expenses.

Any activities directed to improvement of the work of an enterprise should start from optimization of the processes of group A.

Optimization

After the analysis is provided, the stage of improvements can be started. First of all, it is necessary to regulate management of liquid assets and to optimize business processes of group A. It is necessary to mention that express method can be used only for those processes which can be improved within three months.

Reporting

The system of daily reporting should be arranged at the stage of improvement. This reporting should include the information on spending of all types of resources (including working time).

Forms of reporting are developed by improvement team, then coordinated with division managers and confirmed by the management. Thanks to implementation of daily management reporting and regulating of document flow a company immediately gets a number of profits. 

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