Process effectiveness

Have you ever given thought to the amount of time and expenses that is spent to create value for which the client is determined to pay and the amount of time and expenses that is wasted?

 

 

Revenue and additional resources are available not only in the market. Quite substantive results can be retrieved inside the organisation. Can the performance of the same task be less resources and time consuming without compromising quality of the product or service?

 

 

Challenges faced by organisations:

Stronger competition

Organisations are pressed by the need to shorten delivery time and reduce prices of services and/or products.

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Management tools are not used to the full to improve efficiency

Organisations intend to improve efficiency by introducing new technologies, raw materials, constructional solutions. However, organisations may obtain a distinctive competitive advantage in the market by applying management solutions.

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Higher remuneration and a relatively low productivity

A lower increase in productivity as compared to increase in remuneration has been recorded in Latvia for several years in turn. This reduces a relative competitiveness of the country and prompts organisations to look for ways of keeping their business not only in Latvia.

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Lower growth of economy

Lower increase in revenue (or revenue reduction) prompts organisations to look for ways of reducing costs.

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Solutions offered by PwC:

Analysis of the value chain. Development of the value map. Identification of solutions optimising the value chain (costs, the cycle, quality, inventory management). Identification and elimination (reduction) of non-value-adding stages. Methods used - 6 Sigma, LEAN, TOC, PITBM, etc

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