8 ways to improve operational efficiency

Published on : 2nd February 2023

8 ways to improve operational efficiency

In a tough market, you will always be looking to improve your competitive edge. Streamlining workflows, minimising wastage, managing costs, improving quality, and nurturing value to your customers, are all key to this.
 
Improving operational efficiency is a term that covers all of the above and many companies are turbocharging their focus on it.
 
We look at 8 steps on how to improve operational efficiency in your organisation.

 

To hear the podcast, click the link below:

 

https://anchor.fm/vineresources/episodes/8-ways-to-improve-operational-efficiency-e1vc2p6

 

Or read on!

 
1/ Goals and performance measurement
 
Before any improvement, it is recommended to establish a performance baseline. Creating key performance indicators (KPIs) and regularly measuring the performance goals against the baseline will identify areas of improvement and gaps left to target.
 
2/ Technology and automation
 
Investing in new technology is arguably the most important element in improving operational efficiency but it is essential that it is implemented effectively. Some areas where technology can help include automating processes, reducing lead times, improving communication, and streamlining operations.
 
3/ Process redesign
 
As you work on improving efficiency, take a step back to assess the way your business operates as a whole. Chances are that bottlenecks are occurring within multiple processes. Analyse current processes and look for ways to streamline workflows or eliminate unnecessary steps.
 
4/ Lean methodology
 
Lean practices identify which working processes are valuable and which are inefficient. This strategy aims to eliminate waste, streamline workflows, minimize wastage, manage inventories, mitigate redundancies, improve quality, and nurture value-added working processes.
 
5/ Standardisation
 
Standardising processes and procedures can help ensure consistency and reduce the need for constant re-training. It also improves quality and also helps in ensuring the safety, interoperability, and compatibility of goods and services produced.
 
6/ Employee empowerment and collaboration
 
Giving employees the authority and tools they need to make decisions and solve problems can help improve efficiency. When employees are encouraged to freely engage with one another, that collaboration often leads to them working together to find innovative solutions to challenges.
 
7/ People and training
 
To be efficient, it’s important to have the right talent on board. Individuals who lack the particular skill sets necessary will slow down a team and drain resources. Adding a key staff member can often increase a project’s productivity, giving your existing team the extra boost and support they need to be successful.
 
8/ Create Open Lines of Communication
 
Clear, frequent communication about the company and individual goals, and how they fit in and understand their purpose, can help employees feel valued and appreciated. These efforts can improve your company culture, increase staff performance, and keep your team motivated and invested in your business.