A Companys Inefficiencies Need: Appropriate Strategies to Combat them and Improve its Productivity - Case Study Example

Eliminate Waste Introduction A company’s’ waste’ refers to incapability of a system to, fully, utilize its resources and perform its processes efficiently. These inefficiencies need appropriate strategies to combat them and improve a company’s productivity. It is, therefore, necessary to highlight these problems before finding their right solutions. Types of Wastes The first problem is an accumulation of inventory. Accumulated inventory may arise out of lack of proper marketing. Poor transport and production of goods beyond demand levels also causes unmanageable stock. It leads to reduction in production in response to easing the stock. It is also responsible for increased time in production processes. Another waste points to over-production. This means that goods are produced beyond whatever customers require. Slow movement of goods usually marks it, and it is directly responsible for high inventory. Over-production is a waste because the costs used for production of excess goods are not compensated for. Such inventory increases costs of storage. It amplifies the duration taken in production thus complication the detection hitches in the production process. Closely related to this, there exists a waste in the form of waiting. This refers to slow shipment of commodities. This is exemplified below. In addition to that, efficiencies usually arise out of the transport system in a company. This is because it enhances the chances of insecurity thus might lead to goods being damaged. When commodities are spoiled, the revenue received from the products reduces incredibly. However, finding a solution for the almost inevitable problem remains a challenge (Hub pages). Apart from that, companies face inefficiencies arising out of manufacturing processes. A hitch in the manufacturing process affects the turn out of the inventory. It might cause either underproduction or overproduction of which both translate to higher costs. Additionally, if a highly functioning machine is used to perform a small task, it might root for unmanageable generation of stock. Another common form of waste related to this point would be unnecessary movement arising out of certain machines. The personnel concerned with the machine’s operation find themselves in postures that would otherwise affect their health (Hub pages). Similarly, employees’ potential can be wasted. This exists in a situation where employees are not selected carefully. Inefficiency may also arise where employees are not given a job according to their unique gifts and talents. Solutions The management of a company should analyze their inefficiencies and determine what problem is affecting the particular company. The first step in this should be designing appropriate work practices for a company or a department. This stage involves creating workflow systems whereby available resources are exploited to ensure customer satisfaction and minimization of cost (Tennant 35). To identify what a customer needs, customers should be contacted so that they express their problems and compliments for the company. The next step from here would be to strengthen the company’s strong points and seek solutions for the inefficiencies. In the process, the company knows how to communicate with its customers. The company should also find right ways of reacting to customers demand and retaining the same. Essentially, the management companies should come up with safe work practices and safe job procedures for their employees. These are methods and order of worker that ensure reduced risk to people, environment, equipment and environment. Employees, therefore, are obligated to follow these rules strictly. The second step should involve performance management whereby members of a company are involved in strategically achieving overall goals and mission. The company, should first, formulate its policies, vision, mission and goals. It is at this stage where the management and employees design standards of measuring their performance (Tennant 21). We refer to this as planning. The second stage involves monitoring. Here, performance of employees is constantly checked and, the results are communicated back to them. Essentially, employee development is taken care of, in terms of training and technological exposure. In the performance management, an employee’s performance is summarized and compared against the earlier set standards. We refer to this method as rating. Lastly, hardworking and well-performing employees should be given rewards in order to motivate them to work harder. In a concept termed as mindset and capabilities, employees’ feelings and views about the changes should be sought (Abele 221). The diagram below summarizes the steps involve in performance management (Performance management) (US office of personnel management). Some individual company problems can be sought solutions that are aimed specifically at them. A feasible solution to transport would be tracking the flow of a product in order to through the transport chain in order to find the cheapest remedy to the crisis. Some companies use visual aids in transporting their goods. They include information showing container capacity and terms of sale. A Problem in Case An example of these described efficiencies exists in our company. Our company deals in beauty products and hence there is much direct customer-company communication. Whenever a new beauty product is launched, we do witness a surge in customer visits to the company headquarters. The main problem has always stemmed from the customer service team during such times. This is because we use old and inefficient computers in our department. The computers are used to record customer complaints and compliments. The information obtained is usually directed to the management whereby responses about the same are sought. Unfortunately, long and slow queues are normally generated due to the slow systems. Consequently, the personnel concerned are burdened with a huge backload of work. Moreover, customers end up dissatisfied when they take a long time in the queue. The Solution to the Problem I have recommended that our management should improve on the existing software. This is to enhance the speed and enable to withstand more work. An alternative would have been to buy new computers, but this is much more expensive. Employees and management may complain of data loss in the process. In response to this, software companies usually ensure data back up during computer system overhaul. Additionally, the change in system takes a shorter time than buying of new computers, which involve saving the old information in them. Conclusion In summary, there exist situations where inefficiencies occur in company, whereby they are easily ignored. The management, therefore, in charge should involve employees and customers in providing solutions to these problems. It should be noted that it is feasible if all parties become part of the process. A flexible set of standards should then be laid and worked upon. These processes, as noted earlier, should be monitored to meet the expected goals. Works Cited Abele, Eberhard. Global production: A handbook for strategy and implementation. Chicago, IL: Springer. 2008. Print. Tennant, Geoff. Design for six sigma: Launching new products and services without failure. Burlington, VT: Gower publishing company. 2002. Print. Hub pages. The seven wastes. 2011. Web. 30th October 2011. US office of personnel management. Performance management. 2011. Web. October 30, 2011. Read More