Lat­vian busi­ness­men’s opin­ions on rais­ing ef­fi­ciency

It is no se­cret that any com­pany would gladly raise work ef­fi­ciency, re­duce re­source con­sump­tion and op­ti­mize pro­cesses to help raise com­pet­i­tive­ness. A study per­formed by shows that only 33% of Lat­vian CEOs know of the dif­fer­ent ways to in­crease

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«We have no­ticed some false opin­ions on ways to raise ef­fi­ciency over the years,» says CEO Vi­das Pe­traitis, adding that many do not use the op­por­tu­nity to raise ef­fi­ciency, wrongly be­liev­ing that it does not suit them.

1st myth: ef­fi­ciency-rais­ing meth­ods ap­ply only to man­u­fac­tur­ing com­pa­nies

The ex­pert com­ments on the first myth: «Each com­pany has its own area of ex­per­tise. Find­ing prob­lems with the man­u­fac­tur­ing process is eas­ier in com­par­i­son with ad­min­is­tra­tive pro­cesses. The idea is the same for both, how­ever: sort­ing out loose ends and stan­dard­iz­ing pro­cesses. There is no doubt that mea­sures aimed at rais­ing ef­fi­ciency first ap­peared to help re­solve prob­lems in man­u­fac­tur­ing.»

At the same time, the ex­pert men­tions: «For ex­am­ple, Lean sys­tem was orig­i­nally used at Toy­ota man­u­fac­tur­ing plant in Ja­pan. How­ever, the sys­tem’s range of ap­pli­ca­tion soon ex­panded to other in­dus­tries. The largest com­pa­nies in the world have been us­ing it for decades and con­tinue us­ing it for ad­min­is­tra­tive pro­cesses. It has ex­panded to state in­sti­tu­tions as well.»

2nd myth: if a com­pany has few em­ploy­ees, im­prove­ment of ef­fi­ciency is not pos­si­ble

There is a wide­spread be­lief that small com­pa­nies lack the hu­man re­source to cre­ate a sys­tem to raise pro­duc­tive­ness. It is a whole dif­fer­ent story with large com­pa­nies.

«It is a myth – the num­ber of em­ploy­ees in an or­ga­ni­za­tion is ir­rel­e­vant, be­cause the em­pha­sis is put on em­ploy­ees’ work, not their quan­tity. It should be said that it is eas­ier to ob­serve pro­cesses in large or­ga­ni­za­tions. Some­times a small num­ber of em­ploy­ees is an ad­van­tage,» says the spe­cial­ist.

3rd myth: rais­ing ef­fi­ciency in a com­pany re­quires a great deal of re­sources man­ager Pe­traitis says the goal of the process-man­age­ment sys­tem is not re­plac­ing old equip­ment with new – such changes re­quire not only money, but also proper plan­ning. Lean phi­los­o­phy is based on the idea that it is nec­es­sary to use all re­sources a com­pany has and use them ef­fec­tively. «It helps save money in the long run. It also sim­pli­fies the em­ployee train­ing process. Money saved us­ing this sys­tem can later be used for more devel­op­ment, as well as pro­cure­ment of new equip­ment,» says the ex­pert.


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