Revenues are down [for whatever reasons], what steps will your company take to fix your balance sheet?
Your options are to increase revenues and/or cut costs or some combination of both. Most companies can find ways to improve both, but I will address cutting costs.
One way to uncover costs is through Value Stream Mapping.
Wikipedia describes Value stream mapping as a lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer. At Toyota, it is known as “material and information flow mapping”.
All companies have processes in place to move from a quote to the customer to delivering a product or service to collecting cash.
The idea is to go through all of those processes to look for ways to become more efficient. Maybe you can eliminate an activity that doesn’t appear to add any value to the process. Maybe you can find activities that can become more efficient. Maybe you can automate some activities. Maybe more control over your processes can improve efficiency.
Managing Processes to Cut Costs
Some alternatives include:
A paper based solution – These are hard to manage and don’t provide good visibility into what is going on within a process.
BPM [Business Process Management] software – These provide control and visibility over your processes. A few of them even allow for document management [information flows].
PLM [Product Lifecycle Management] software – These products have process management features providing control and visibility over your processes. Adding to that, they do a good job of managing documents [information flows].
Contact me to learn more about Value Stream Mapping – Let’s see what makes sense for your company…