A business process defines the various activities involved in achieving a particular goal. Business processes briefly describe the chain of events that are involved in an activity or a group of activities such as- running a business, manufacturing of products or selling products or services.
Business Process Improvement (BPI) and Business Process Re-engineering (BPR) are two widely used terms while attempting to modify business processes in order for organizations to sustain and grow. As the name implies, both BPI and BPR deal with business process modification, however, they are two widely different terms.
Allow me to ask few questions to explain these terms:
If your answer to any of the above questions is ‘Yes’, then its BPR, meaning- those said processes have to be re-engineered or re-designed. BPR technique assumes that the current process is irrelevant, does not work and therefore needs overhauling completely from A to Z.
For all those business processes that do not need re-engineering, but essentially need modification for benefiting the business, it is BPI - business process improvement.
Business Process Improvement (BPI) and Business Process Re-engineering (BPR) are two widely used terms while attempting to modify business processes in order for organizations to sustain and grow. As the name implies, both BPI and BPR deal with business process modification, however, they are two widely different terms.
Allow me to ask few questions to explain these terms:
- Is your process broken?
- Does it have a high impact on your company’s strategic direction?
- Is it antiquated?
- Does it fall far below ‘best-in-class' or desired ‘state-of-the-art’?
If your answer to any of the above questions is ‘Yes’, then its BPR, meaning- those said processes have to be re-engineered or re-designed. BPR technique assumes that the current process is irrelevant, does not work and therefore needs overhauling completely from A to Z.
For all those business processes that do not need re-engineering, but essentially need modification for benefiting the business, it is BPI - business process improvement.
If you run a company that is facing a challenge to thrive in these difficult times, I would suggest that you please revisit your business processes in order to accelerate growth and bring a quick turnaround. |
Processes can be improved using various frameworks such as PDCA, DMAIC, DMADV, QbD, automation, artificial intelligence, robotics etc. However, process improvement campaigns can be successful only if-
Process improvement and process re-engineering are broadly of three main types- Breakthrough improvement, Streamlined improvement and Continuous improvement.
Breakthrough Improvement is a methodology that incorporates vital improvements to the main areas of the business. It is a quicker and more intense method of improvement. It is common for breakthrough improvements to be conducted by a few employees whose purpose is to come up with a new method of problem-solving. It is common for long-lasting and continuous problems to be solved through Breakthrough improvement technique by dedicating time and effort into coming up with a solution for a designated time. Breakthrough improvement has large and obvious advances, but the results can also be extremely varied. A popular example of breakthrough improvement is Six Sigma methodology.
Streamlined Improvement refers to the improvement of a process by reducing and shortening the number of steps in a process in order to lower its intricacy. It is beneficial since it helps cut back on costs, uses time more effectively and efficiently, as well as improves supervisory observance. A popular example of streamlined improvement methodology is 5S.
Continuous Improvement focuses on undergoing constant improvements that take place over time. These increments allow for less disruption to the organization and allow individuals to perform necessary tasks on the agenda in steady and continual stages. Many organizations find that, performing small continual improvements has a profound effect in the long run. A popular example of continuous improvement methodology is Lean.
Out of the three types of business process improvement, continuous improvement is often preferred, since the small changes end up adding more 'value' than via a breakthrough improvement. Another remarkable business improvement technique is Kaizen.
Kaizen is a Japanese technique of improvement. Translated, Kaizen means 'make better'. Kaizen is a business process improvement methodology in itself. Kaizen is also an effective change management technique. Therefore, if a company practices Kaizen alone (and doesn't go-in for any Breakthrough, Streamlined or Continuous improvement campaign), yet it will achieve efficient and effective workflows. Note that, contrary to popular belief, Kaizen is not a type of continuous improvement technique. Rather, Kaizen creates a culture of continuous improvement. Therefore, if you wish to initiate and sustain continuous improvement at your workplace, then start with Kaizen.
Kaizen can be implemented in all types of organizations viz. manufacturing, services, educational institutes, government offices, non-profit associations etc. Kaizen implementation exhibits fastest returns in both big and small companies (regardless of organization's culture or industry sector). Further, coupling Kaizen along with a continuous improvement technique such as Lean or Just-in-time, augments the ROI exponentially.
- Both data and facts are used, with no bias.
- Organization's leadership is fully committed to the process improvement goals.
- Employees are involved and encouraged to find optimal solutions.
- Workflows are relevant, standardized and the 'improved' process is sustained .
Process improvement and process re-engineering are broadly of three main types- Breakthrough improvement, Streamlined improvement and Continuous improvement.
Breakthrough Improvement is a methodology that incorporates vital improvements to the main areas of the business. It is a quicker and more intense method of improvement. It is common for breakthrough improvements to be conducted by a few employees whose purpose is to come up with a new method of problem-solving. It is common for long-lasting and continuous problems to be solved through Breakthrough improvement technique by dedicating time and effort into coming up with a solution for a designated time. Breakthrough improvement has large and obvious advances, but the results can also be extremely varied. A popular example of breakthrough improvement is Six Sigma methodology.
Streamlined Improvement refers to the improvement of a process by reducing and shortening the number of steps in a process in order to lower its intricacy. It is beneficial since it helps cut back on costs, uses time more effectively and efficiently, as well as improves supervisory observance. A popular example of streamlined improvement methodology is 5S.
Continuous Improvement focuses on undergoing constant improvements that take place over time. These increments allow for less disruption to the organization and allow individuals to perform necessary tasks on the agenda in steady and continual stages. Many organizations find that, performing small continual improvements has a profound effect in the long run. A popular example of continuous improvement methodology is Lean.
Out of the three types of business process improvement, continuous improvement is often preferred, since the small changes end up adding more 'value' than via a breakthrough improvement. Another remarkable business improvement technique is Kaizen.
Kaizen is a Japanese technique of improvement. Translated, Kaizen means 'make better'. Kaizen is a business process improvement methodology in itself. Kaizen is also an effective change management technique. Therefore, if a company practices Kaizen alone (and doesn't go-in for any Breakthrough, Streamlined or Continuous improvement campaign), yet it will achieve efficient and effective workflows. Note that, contrary to popular belief, Kaizen is not a type of continuous improvement technique. Rather, Kaizen creates a culture of continuous improvement. Therefore, if you wish to initiate and sustain continuous improvement at your workplace, then start with Kaizen.
Kaizen can be implemented in all types of organizations viz. manufacturing, services, educational institutes, government offices, non-profit associations etc. Kaizen implementation exhibits fastest returns in both big and small companies (regardless of organization's culture or industry sector). Further, coupling Kaizen along with a continuous improvement technique such as Lean or Just-in-time, augments the ROI exponentially.
My recommendation is that organizations must invest time in process improvements in order to truly excel. In fact, I would suggest that if a company doesn't wish to go for any formal process improvement technique due to any constraints viz. limited resources, a smaller number of employees, regulations etc., then go for Kaizen. As it requires minimal cost for implementation (while giving phenomenal returns), Kaizen is especially beneficial for startups. |
Check out my insights below to learn more about how you can bring about successful business process improvement.
Here you will find articles on various process improvement methodologies such as Lean, Six Sigma, Lean Six Sigma, Kaizen, Visual Management, Kanban, RACI, Hoshin Kanri, 8D, Just-in-time, Agile, Scrum, Theory of constraints, TQM (Total quality management), TPM (Total productive maintenance), OEE (Overall equipment effectiveness), FMEA, Poka Yoke, Process mapping, Process efficiency metrices, Problem-solving approaches, tips and tools, Root cause analysis etc.
Here you will find articles on various process improvement methodologies such as Lean, Six Sigma, Lean Six Sigma, Kaizen, Visual Management, Kanban, RACI, Hoshin Kanri, 8D, Just-in-time, Agile, Scrum, Theory of constraints, TQM (Total quality management), TPM (Total productive maintenance), OEE (Overall equipment effectiveness), FMEA, Poka Yoke, Process mapping, Process efficiency metrices, Problem-solving approaches, tips and tools, Root cause analysis etc.
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What is Kaizen Approach? |
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