Business process management
Business process management (BPM) encompasses a handful of different process improvement strategies.All of these processes focus on reducing waste, and improving customer satisfaction. Manufacturers are implementing Business process management, in an attempt to curtail costs, and improve productivity and profits.There are several different methods that fall under the category of business process management. These include but are not limited to:
- Six Sigma
- Total Quality Management (TQM)
- Business optimization
The main purpose of BPM is to change the way you do business. BPM focuses on stepping back and taking a look at the big picture and assessing a manufacturing business for solutions to current problem.Like any other method you want to implement to solve problems, you will need to diagnose the problems, analyze them, and look for ways to implement change. However, BPM is designed to hold your company to a higher standard of quality. This means that no longer are you able to just toss aside defective products, you will need to find the reason why the product is defective, and stop future problems from happening. BPM also affects other aspects of the business like:proper budgeting techniques, operational systems, and administrative processes. BPM functions by using measurement tools, along with performance statistics, metrics, and assessments to determine the inputs and outputs for your company.
Studies show that manufacturing businesses that tend to follow BPM methods find a productive and practical way, to bring structure to a company. They also help companies plan for success. Companies that have implemented BPM include:Toyota, General Motors, and Boeing. Records show that within the first year, each of these companies reported savings totaling over $1 million. This works because BPM is a problem-solving philosophy. You must 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 much faster rate. When this is successful it takes businesses into a new realm of growth and product potential.
One of the biggest benefits of BPM is that employees that work, for companies that have implemented BPM, typically report are happier in their jobs because communication is open and effective, and their job duties are clearly defined, from the start. BPM companies also spend more time on training, so employees know exactly how to perform their job. This way when customers 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 are as follows:
- A 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, this means that production doesn't fluctuate. This best utilizes both employees and machinery.
- A focus on the customers-Another principle of BPM includes focusing on the needs of the customers. Your entire company should be customer-driven, and take into account the customer's needs at every level.
- A focus on smoothing out the process-By implementing BPM you can incorporate efficient, smooth-flowing systems into the company.
- A focus on measurement-There is a frequent benchmarking and measuring to ensure your products is living up to company standards and customer expectations.
- A focus on employee involvement-This brings about ownership for employee roles and responsibilities.
- A focus on saving time-Manufacturers who use BPM understand that you are saving money by saving time. This means you need to get rid of useless meetings, unnecessary planning and standardization.