Why We Require Formal Process Improvement Structure?

Formal process improvement methodologies have been around for decades. From Total Quality Management (TQM) to Business Process Reengineering (BPR), Lean and Six Sigma, companies have strived to improve their bottom line by streamlining their business processes. There are various reasons to need the formal process improvement structure:

  • Defects and delays are usually because of scrappy process. So, it is required to prevent defects, errors and mistakes in advance before it becomes the reason for problems.
  • Customer Complaints: There are certain customers who complaints against product and services we produce. So, we require a formal process for future improvements.
  • Supplier Complaints: It happens that supplier complaints against last minute delays. This is the condition which must be improved.
  • Employee's whining: What's stopping your employees from doing a good job? "I could do my job better if ____".
  • Blaming People: It is better to find problems in process as there are fewer faults found in people because they work according to process structure. Six Sigma is process focused.
  • Immediate Reactions: Sometime, organizations follow the same steps from decades as we were doing this from long. This strategy needs to be improved according to change in time.
  • Margins are low, expenses are high, and our growth is stalled: Defects and delays eat away at profits, and lack of a strategic focus inflates expenses.
  • Field failures: How many customer service personnel do you have? How large is your warranty and repair efforts?
  • Too many inspectors: You cannot inspect quality in, but you can build it in.
  • Turnover: It is usual that employee tries to perform better job but we must know our internal systems is not preventing employees from doing a good job.

Where we focuses on achieving organizational objectives regarding profitability, customer satisfaction and optimal resource utilization and alignment has often meant changing the way the organization operates and is managed. Whether following a formal methodology or implementing an internally driven initiative, many companies today are taking a process-centric approach to realize organizational efficiencies. That's there is first requirement to establish formal process improvement structure.

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