Improvement opportunities: learn to identify them in your company

Identifying improvement opportunities in a company is a fundamental process for the growth of the entire organization. When it comes to reducing expenses, optimizing processes, and avoiding unnecessary activities, identifying solutions can be complicated.

For this reason, we will show you how you can recognize the signals that will enhance productivity. In addition, reduce expenses in your business regardless of size.

Steps to identify improvement opportunities in a company

Any improvement opportunity must be taken to efficiently achieve all objectives. To do so, it is advisable to take the following steps:

Identify the problem

Accepting that the company has a problem that leads to delays, loss of productivity and resources is the first step to revealing improvement opportunities.

The Ishikawa diagram is an effective and graphic method to identify a problem in your company. This technique requires breaking down the process that takes place before, during and after the existence of the setback.

For example, if products take a long time to reach your company's customers, it is a clear indicator that something is wrong and there is an opportunity to improve.

Improvement opportunities: examining the event

After isolating the issue and identifying the root of its cause, it is necessary to examine the event. At this point, possible solutions are proposed. To do so, the following questions must be answered:

• What caused the problem?
• What consequences does it bring for the company in the short, medium and long term?
• How could the setback be solved?
• Are there other alternatives?
• How much would it cost to apply a solution?

Continuing with the example, it is known that in the packaging department there were no problems and the transport left on time. Therefore, the cause of the problem is detected to be the routes taken to the destination.

Highlight the solutions

Here, it is very likely that the solutions will be presented after analyzing the cause of the difficulty. Therefore, all possible solutions are evaluated, considering the impact of their application.

In the proposed case, turning to an external shipping company or creating new transport routes are notable solutions. Asking customers to pick up their products at the offices is not an alternative, since the company operates throughout the country.

Calculate the effect

Immediately after identifying improvement opportunities for a problem, you proceed to calculate their effect. It is essential to evaluate the impact of each measure before applying it, since working capital may be limited.

Continuing with the example, both proposed solutions are completely feasible and would solve the eventuality. However, in the long term, a logistics company will be a greater expense than planning new routes.

Improvement opportunities: addressing the primary needs

Following the previous steps, primary needs must always be prioritized. The Kaizen method can be incorporated at this point, since it deals with the optimization of all processes in a company.

For example, because deliveries are essential to the company's business model, alternatives that cause more delays cannot be evaluated. In addition, some types of contracts may cause pauses in the dispatch procedure, if an external organization for deliveries is taken into consideration.

Apply the solution

Finally, putting the solution into practice is the last step in applying improvement opportunities in a company. This conclusion is reached after identifying the problem, analyzing it, evaluating the possible solutions and addressing the primary needs.

To finish with the example, planning new routes provides customers with their products without delays. Despite the fact that the initial cost was higher, compared to the other alternative, in the long term it contributes to reaching the company's objectives.

Does everything end after implementation?

Applying the solution should not be the last step to take advantage of optimization opportunities. Continuing with monitoring of the new processes or the changes made will provide the appropriate response to know if your company is more efficient than before.

Improvement opportunities are everywhere, but knowing where they are hidden is the difficult part. With this series of steps, you will be much closer to having highly efficient processes and achieving the competitive incentives you need to continue growing.

Bibliographic References

Drew's editorial team. (2021, September 3). Detection of improvement opportunities. Drew. http://blog.wearedrew.co/operaciones/deteccion-de-oportunidades-de-mejora

Salesforce Latin America. (2022, February 9). Ishikawa Diagram: What it is and how to apply it. https://www.salesforce.com/mx/blog/2022/01/diagrama-de-ishikawa-que-es.html

Rock Content. (2019, November 9). Discover what the Kaizen method is and what its benefits are for companies. https://rockcontent.com/es/blog/metodo-kaizen