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A guide to business process management

creditreport26256311.jpgBusiness process management (BPM) encompasses a handful of different process improvement strategies that focus on reducing waste and improving customer satisfaction. When people talk about lean manufacturing, Six Sigma, TQM, and business optimization, it all falls under the category of business process management.

The purpose of BPM is to change the way you do business. If you currently have a lot of manufacturing problems, BPM focuses on stepping back and taking a look at the big picture. You need to diagnose the problems, analyze them, and look for ways to implement change. BPM holds your company to a higher standard of quality. No longer are you able to just toss aside defective products, you need to find the reason why the product is defective and stop future problems from happening.

BPM also refers to other aspects of the company like proper budgeting techniques, operational systems, and administrative processes. BPM uses measurement tools along with performance statistics, metrics, and assessments to determine the inputs and outputs for your company.

Manufacturing companies tend to follow BPM methods as they productive a practical way to bring stricture to a company. They also help companies plan for success. Companies that have implemented BPM include Toyota, General Motors, and Boeing. Within the first year, each of these companies reported savings totaling over $1 million. How is that possible? It works because BPM is a problem-solving philosophy. You work at minimizing waste to the point where you have little or no waste whatsoever. You then work on optimizing efficiencies to produce higher quality products at a faster rate. It takes businesses into a new realm of growth and product potential.

Employees that work for companies that have implemented BPM typically are happier in their jobs because communication is open and effective and their job duties are clearly defined from the get-go. BPM companies spend more time on training so employees know exactly how to perform their job the second they are done with training. Disney is just one of many BPM companies that strongly emphasizes the importance of employee training. They spend 3 months on training for general positions. This way when people ask the employee questions, they have several different solutions for them and they don't need to call a supervisor or find another employee to provide them with an answer. If employees are improperly trained, it can lead to confusion, which decreases employee morale. When morale is down, employees are less productive and more likely to cause errors.

The principles of BPM:

  • Focus on the "right". This means you need to be in the right place at the right time doing the right job. When everyone is doing what they should be doing, production doesn't fluctuate and everyone has something to do.

  • Focus on the customers. Another principle of BPM includes focusing on the needs of the customers. Your entire company should be customer-driven.

  • Incorporate efficient, smooth-flowing systems into the company.

  • Frequent benchmarking and measuring to ensure your products are living up to company standards and customer expectations.

  • Ownership for employee roles and responsibilities

  • Saving money by saving time. This means you need to get rid of useless meetings, unnecessary planning and standardization.

  • Quick response to problems or times when the manufacturing process gets off track.

  • Immediate response if failure is imminent

  • Constant supervision and maintenance of the system to track its success

  • Accurate metrics uses to measure results

BPM is a great way to respond to the needs of your customers and cut down on the excess waste you have. This frees up more money for growth and expansion. BPM helps companies achieve a positive, proactive working environment that is beneficial for everyone involved.

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