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 Lean.lv shows that only 33% of Latvian CEOs know of the different ways to increase
«We have noticed some false opinions on ways to raise efficiency over the years,» says Lean.lv 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
Lean.lv 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.