Waste elimination is one of the most effective ways to increase profitability in a business.
To eliminate waste, it is therefore important to fully understand exactly what waste is and where it can be found.
We, as a firm, have just gone through the process as a team and individually to identify how we can be more efficient and effective.
Audit: Conducting a waste audit is the starting point. Go through your profit and loss items to start with, line by line, to see where there is room for improvements.
Prioritise: Setting the priority enables the most important issues/ items you have identified to be dealt with first. They can then be monitored for how you are progressing.
KPIs: Establish Key Performance Indicators (KPIs) before you start. Putting a peg in the ground at the start and measuring progress at regular intervals is essential. The cost benefit of the process can then be clearly established.
Repeat: It is good to formally audit the waste at least every six months, as the waste issues will continuously change.
Katrina Brennan, Principal, SRJ Walker Wayland Business Growth Advisors, Accountants and Auditors, Level 2/2 Innovation Parkway, Birtinya, 5301 9957, srjww.com.au
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