It’s a fact: business processes can either add value or waste to the production of a product or service. Waste can account for up to 30 percent of the operating costs of an organization. Unfortunately, waste has become a routine part of our operating environment and addressing it is often overlooked amid the push for increased sales. However, pushing more business through an inefficient system simply makes no sense.
Take a moment and think about how these seven specific areas of waste may be surrounding you:
- Inappropriate processing
- Excess inventory
- Unnecessary motion
- Defects and rework
If you could not identify any waste during this exercise, then start again. I promise you; waste is there.
A common flaw in business is dealing with the symptoms of a problem rather than addressing the root cause. In today’s fast-paced environment, it can often seem easier to address the trivial many (which require less time) than to invest the time necessary to mitigate the significant few. Major obstacles and challenges are often shuffled to the side, preventing effective change.
To help you hone in on those significant few issues in your business, click here to access the Business Waste Diagnostic Tool we’ve created, which can help you identify and quantify the amount of waste in your business.
I also recommend checking out this video that provides a brief overview of how to use an issue ranking diagnostic to address waste in your business.
How do you identify and address waste in your business? Share in the comments!