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Process optimization - a necessary step before their digitalization

Process optimization - a necessary step before their digitalization

This article highlights the importance of the Gemba Kaizen methodology in process optimization before digitalization, emphasizing the traps of hasty adoption of digital technologies. Through continuous analysis and improvement, inefficiencies can be avoided, ensuring a successful digital transition with a positive impact on businesses.

Radu Mărgărit Author: Radu Mărgărit

Process optimization - a necessary step before their digitalization

The emergence of the ChatGPT application (and LLM technology in general) has showcased the incredible capabilities of AI (Artificial Intelligence). The ability to have almost human-like conversations with a virtual assistant capable of answering any question has shocked the world and created an “awakening” among those who believed chatbots and software robots were just cute applications with low practical value. As a result, everyone has started to take digitalization seriously and “rush to catch the train, before it speeds off without them”. However, digitization in a hurry brings some potential problems:

 

• Choosing the wrong technical solution, leading to wasted time and money when it needs to be changed later;

 

• Attempting to digitalize all processes without analyzing the impact and workload on people, resulting in stress and frustration;

 

• Failing to communicate the need for digitalization and automation correctly within the organization, leading to fear and resistance to change;

 

• Digitalizing existing processes without careful analysis, resulting in “digital garbage in, digital garbage out.”

 

In this article, we will analyze the last potential problem from this list. Let’s start with a famous example: “In a company, all documents arriving at the reception were stamped with an ‘INCOMING’ stamp and then the date was written in pen. When digitalizing the document entry process, the requirement was to insert a digital stamp on all documents containing exactly the same elements.” While this example is humorous and has limited impact, in other cases, inefficient processes are digitalized and then possibly automated. Still, their efficiency remains low (because they are not optimized and thus do not eliminate waste and inefficiency).

 

Therefore, the first step before digitalization is process optimization. A methodology with solid results for achieving this is Gemba Kaizen. This methodology increases operational efficiency, reduces waste, and improves product and service quality. To achieve this, both managers and employees need to:

 

– Consider continuous improvement as a lifestyle for which everyone is responsible;

 

– Encourage improvement ideas from everyone, especially those carrying out the processes, not just management;

 

– Implement simple and quick solutions without requiring significant resources;

 

– Observe and analyze processes in-depth to identify problems (waste, inefficient use of resources, idle times, etc.);

 

– Show respect for employees and their experience, giving them a central role in the improvement process.

 

 

 

The steps for optimizing a process using the Value Stream Design method are:

 

 

1. Analyzing the existing process: Start with a detailed analysis of the process in the field to observe the “AS IS” situation.

 

2. Identifying problems, waste, and improvement opportunities: The team will collaborate to identify current issues and challenges in the process, such as delays, unnecessary steps, or lack of resources.

 

3. Measuring performance – setting relevant performance indicators from the following categories: safety, quality and quantity, time, cost, and employee morale (SQDCM).

 

4. Optimizing the process: Based on the analysis and discussions, the team will propose solutions to improve the process. These could include measures such as optimizing routes, consolidating and standardizing response procedures, or implementing a more efficient management system.

 

5. Testing, evaluating, and implementing solutions: The proposed solutions will be tested in practice to evaluate their impact on process performance. The team will monitor key performance indicators to assess the effectiveness of the implemented solutions.

 

 

The optimization process does not end with the initial implementation of improvements. The team will continue to monitor and evaluate process performance in real-time, constantly adjusting and improving procedures to respond to changes in customer needs or the business environment.

 

After optimizing the processes, we can proceed to their digitalization and then to automation. Process data can be captured by sensors, automatically retrieved through various methods (scanning, OCR), or manually entered and then transmitted to software applications. Primary data can then be interpreted and combined with data from other processes or databases, internal or external, automatically processed, and efficient real-time decisions can be made to increase efficiency and reduce bottlenecks. Correct implementation will allow the orchestration of activities, whether by humans or robots, and a good approach is to use a Low-Code BPM. In this way, we build a solid foundation for a future digital and autonomous company that will allow for scaling and growth.

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