Operations encompass a network of processes and business rules that guide what needs to get done. As the business environment changes over time, new tasks and guidelines are layered onto the existing ones. Many become buried in standard operating procedures. While employees diligently follow what they are supposed to do, little do they know many tasks might not be necessary.
This unnecessary work is overhead that impacts productivity and slows down operations. To eliminate the frivolous work, review the following three areas to free up capacity and improve efficiency.
- Applicability of business rules
Rules are meant to ensure tasks are done following certain standards.
For instance, rules related to purchases via select suppliers are often set to attain consistent quality and achieve economy of scale. These rules make sense as long as the suppliers are able to deliver the products when and where they are needed in a timely manner.
In remote areas where a supplier is not set up to meet business needs, there needs to be flexibility in purchasing the same products from other suppliers. Otherwise, delays are inevitable.
The rule restricting purchases from select suppliers does not work for remote locations and hence, it is not suitable for all business needs.
- Logic in how rules are executed
While a rule sets boundaries on what needs to get done, how it is executed makes a difference.
For instance, expense reimbursements usually require a submission of details on itemized spend, receipts, and other documents. The manager reviews and approves the submission before forwarding it to Accounting for reimbursement. The manager could become a bottleneck.
In most cases, there are prior discussions on the purpose of the expense. If so, is it necessary to have the manager review all submissions? Would it be adequate to do audits or review those that exceed a certain threshold?
The rule about what needs to be submitted for expense reimbursements is sound but whether all reimbursements require the same scrutiny could be revisited. The adjustment would reduce workload for the approver and expedite the process.
- Overly detailed work tracking
The ability to see where time and effort are spent enables managers to have a more holistic view of operations. The information is useful for work planning and budgeting.
In many organizations, the Book of Accounts is set up to record costs at various levels of details.
For instance, field workers are required to book their time against certain labour accounts. When there is long list of accounts, it becomes a chore to scan through the list and select the proper account. Subsequently, the accounts close to the top of the list are often selected.
Incorrect account selections defeat the purpose of work and cost tracking. Practicality determines how well the desired intent could be achieved. When a process usurps efforts in the eyes of the doer, the task unlikely would be done properly. Instead, consider using a combination of the related data elements for reporting needs and simplify the task for the workers.
Despite the necessity of operations standards, examine closely whether the rules and processes are counter-productive. Speak with those who are doing the work and they would reveal what’s not working. There are ample opportunities to eliminate impractical rules, simplify workflows and boost efficiency.
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