Operational Efficiency
the relationship between an organization’s output and input, that when healthy, helps businesses cut down on unnecessary costs while increasing revenue. It’s what businesses strive to do: produce a high-quality product at scale with as few resources as possible.
To decrease extraneous costs, the operations manager must be able to identify which processes in place are not needed. To do this, they need to be able to identify a baseline of operations.
Key Takeaways
- Resource utilization
- Process optimization
- Cost management
- Productivity enhancement
- Waste reduction
“Many entrepreneurs believe the constant firefighting or crisis control means their business is being run effectively. But in reality, the business owner has become a victim of that noise.”
How to diagnose operational efficiency problems?
Businesses that seek out an efficiency expert often understand they have an operational problem but are too overwhelmed with day-to-day tasks to fix it, or simply don’t know where to start optimizing their business.
Understand your current state
The first step is to get a good understanding of your company’s current state—what Ramsbottom calls “the good, the bad and the ugly.”
Develop priority projects and an action plan
The next step is to use the current-state assessment to identify a priority list of solutions that will have the greatest impact on addressing the top
Establish the right performance indicators
To meet your production goals, you’ll need performance objectives that are ambitious but realistic.
Implement the change and continually improve
Changes in a business often run into resistance from employees. It’s important to give your team the time, resources
Our Team
Dr. James Mcavoy
Michael Carter