Boosting Operational Efficiency: A Comprehensive Approach | Bigham Consulting

Boosting Operational Efficiency: A Comprehensive Approach

Published on 30 August 2024

In today’s competitive business environment, operational efficiency is more than just a buzzword—it’s a critical driver of success. Companies that excel in optimising their operations can reduce costs, improve performance, and increase profitability. At Bigham Consulting, we help organisations achieve operational excellence through a comprehensive approach that focuses on identifying inefficiencies, streamlining processes, and implementing sustainable improvements.

This article explores a recent case study where we partnered with a manufacturing client to boost their operational efficiency. We’ll take you through our approach, the challenges we faced, and the significant results we achieved.

Operational Efficiency Dashboard

The Challenge

Our client, a mid-sized manufacturing company, was experiencing growing pains as they scaled their operations. Despite strong demand for their products, they struggled with inefficiencies across their production processes, leading to increased costs and delays in meeting customer orders. The company’s leadership recognised the need for a more streamlined approach to maintain their competitive edge and sought our expertise to optimise their operations.

Our Approach

A Process Map Example

This is a sample of what a process map looks like. They are very useful for visualising the complexity of your business operations at the process or task level and can be as detailed or high level as you like. This is a summarised high-level model. Once detailed steps are modelled, it becomes possible to use the information for time and cost allocation. We can identify who is doing what task, how long it takes, and how much that task costs. We can also identify who the task is serving, and allocate costs to the appropriate cost centre. This is an accurate method of allocating costs, but whether the effort is worthwhile will very much depend on the business.

Our approach to improving operational efficiency is holistic, focusing on all aspects of the client’s operations. For this project, we followed a structured process that included the following steps:

1. Process Mapping and Analysis

The Bigham Consulting approach aims to classify processes into categories that are useful for making finance transformation decisions. We have identified seven categories that are helpful in decision making: Long or Short, Broad or Narrow, Manual or Automated, Onshore or Offshore, In-House or Outsourced, Value-Adding or Non-Value-Adding, and Regulatory Compliance or Mandatory. Once we have done this, we can diagnose process issues such as cost, bottlenecks, etc. Such modelling facilitates smarter process transformation decision-making. For instance, when a process is broad and spans multiple functional areas, it can create bottlenecks within a specific function. If we find that this function isn't contributing value, we may choose to bypass it altogether.

We began by conducting a thorough analysis of the client’s existing processes. This involved mapping out each step of their production workflow, from raw material acquisition to finished product delivery. By closely examining each process, we identified bottlenecks, redundancies, and areas where resources were being wasted.

2. Identifying Key Efficiency Levers

Once we had a clear understanding of the client’s operations, we identified the key levers that would have the most significant impact on improving efficiency. These included:

3. Implementing Sustainable Changes

With a plan in place, we worked closely with the client’s team to implement the recommended changes. This included integrating new technologies, reconfiguring the production floor for better flow, and providing targeted training programmes for staff. Throughout the implementation phase, we focused on ensuring that the changes were sustainable and aligned with the company’s long-term goals.

The Outcome

The results of our efforts were remarkable. Within six months of implementing the efficiency improvements, the client saw a 25% reduction in production costs, a 30% decrease in lead times, and a significant improvement in product quality. These gains not only enhanced the client’s profitability but also improved their ability to meet customer demands, leading to increased customer satisfaction and loyalty.

Process Cost Dashboard

Key Lessons

This case study underscores several important lessons for companies seeking to improve their operational efficiency:

Conclusion

Operational efficiency is not a one-time project; it’s an ongoing journey that requires continuous improvement and adaptation. At Bigham Consulting, we are committed to helping our clients achieve operational excellence by providing the insights, tools, and support they need to succeed. Our experience with this client demonstrates the tangible benefits that can be achieved through a focused and strategic approach to operational efficiency.

Looking to Improve Your Operational Efficiency?

If you’re ready to take your operations to the next level, contact us today for a consultation. Let Bigham Consulting help you unlock the full potential of your operations and drive sustainable business growth.