Identify Weaknesses – Stop Unnecessary Spending
Antiquated, inefficient processes and structures often lie at the heart of crises. During a restructuring process, potentials for cost reduction and efficiency enhancement will be identified within the individual functional areas of the value chain. The so-called big points play a key role in quickly improving earnings and liquidity. At the same time, they provide the approach needed to make imperative changes to the organisation, management as well as information and decision-making processes. Completely reshaping all processes of a company and introducing new EDP systems in times of crisis will inevitably overpower the company and may even pose an additional threat, due to temporarily unstable processes.
Create Value without Wasting Resources
With the help of value stream mapping, the production division can be screened for potentials to increase efficiency and for spots where resources are being wasted. The company can thus get a quick overview of all value streams, from supplier to customer.
A process value analysis (PVA) serves to identify weaknesses in the administrative divisions as well as performance reserves and can assist in developing measures for optimization.
The procurement division serves a particular function within the value chain and always affects larger parts of the company. Strategic procurement processes can only gain momentum if the purchasing, technology and quality assurance divisions cooperate and do not ignore potential sources for innovation and ideas (e.g. suppliers). Similarly, this constitutes a solid basis for an ideal ratio between costs, quality and inventories.