The only way to improve your revenue is to cut spending. The lean project framework can be a great way to advocate for compliance technology sponsorship and reduce waste. EH&S, HR, and Compliance data are particularly prone to waste from inefficient processes.
Lean Manufacturing Elaborates on why we should remove waste.
Your company’s profit is your selling price less your costs, no matter how you think about the selling price it is very much dictated by the market not by yourself. If you charge too much then your customers will go elsewhere, even if you charge too little you may lose customers as they will perceive there may be something wrong with what you are offering. Therefore the only way you have to improve your profit is to reduce your costs; this means removing all elements of waste from your processes.
Of the 8 Types of Waste Attacked in Lean Projects
We Most Commonly Find These Three.
Spreadsheets are personal productivity tools, so the most common request we see is to get companies off of their excel dependence. As we map workflow processes with companies in the “Design and Define” stages they are always surprised by the amount of redundant data entry and tracking that is occurring across a company, and sometimes even within a department.
Additionally, we discover work that is occurring that is no longer needed. In one case review, the business requirements had changed and no one told the employee (s).
In a second case review, conversion of spreadsheet usage by a 350 driver fleet to manage their compliance revealed over 3,000 instances of missing, incomplete or inaccurate data. This is very typical for many companies and represents real areas of risk and inefficiency.
Clean data is essential for accurate analysis in a continuous improvement environment. Software enforces processes with controls in a way that spreadsheets can’t.
In a third case review, a task that took an employee 4 hours every week to complete, now only takes one hour. That is 16 hours a month saved on one task! This is time that is now spent directly on achieving company performance goals. We see many companies manually entering data from one source to another, that could easily be extracted. Data can be swapped through integrations or within the platform itself.
You see the value in eliminating your spreadsheets! But how do you convert? This is a daunting thought. Selling your project to upper management involves associating real costs. Identify the time and costs for tasks you think could be more efficiently handled. A good software provider will become your partner and work with you to evaluate your system. They will guide you to more efficient processes, and will communicate the ROI of the project.
Insight on The Lean Project Framework:
By: Nick Goodell
Nick converts inefficient safety & compliance management systems and siloed technology into a dynamic workflow with end to end client support. Through our implementation process we work with you to reveal areas of hidden risk and produce new best practices for your compliance management team.