Reduce costs of operations through people.

The current scenario.

Many businesses in SA are approaching survival mode as pressure escalates. Options of cost cutting are mostly exhausted; rising costs, escalating pressure from socio, economic and market forces add to the challenges of survival. Shrinking revenues limit finance required to develop and grow the business.

Conventional methods have failed to sustain business competitiveness and profitability. People are the root cause of this. The challenges discussed below explain how the value drain can be recovered.

What are the opportunities and barriers?

The opportunity with the highest potential is to recover loss caused through your people. Losses stem from people error, failure to comply and failure to conform. The root causes behind people failings are; a lack of skills and expertise, negligence, attitude and behaviour (work ethic), amongst others.

Failure to comply with regulatory requirements in industries like food, mining, chemical and pharmaceutical, carry high risk of penalties and/or business closure.

If people conformed to regulatory requirements, and complied with business best practice and standards, the losses caused by them would be minimal. Recovery of these loss generating factors can be eliminated on a progressive, sustainable and cost-effective basis until the business is operating optimally.

The question is; can management recover the recurring losses caused by people throughout their working day.

What are the losses?

Typical loss generating people factors include; costs associated to the 7 types of waste, equipment down time, rework, rejects, sub-standard quality, low productivity to mention a few. The collective of loss caused through people in their day to day activities is substantial.

What is the solution?

  • Stop doing what does not work. Implement new methods and “people enabling technology”, to eliminate or minimise human error, and other human factors causing failure to comply and conform.
  • Implement an affordable turnaround package with minimal upfront capital requirement, with a strategy which solves the problems at root cause, and which will recover losses within at least 12 weeks of implementation and thereafter make the project self-funding.
  • Minimise additional demand of line management resources required for the implementation process. Line managers should be able to continue with their day today responsibilities with minimum disruption but participate in the essential inputs required to achieve the desired outcomes.

Essential components and extended benefits as part of the project.

  • Save time and cost compared to the conventional by using new technology enabling methods to;
    • Achieve and sustain the skills, (at costs significantly lower and in less time compared to the conventional) expertise and behaviour which will ensure sustained compliance and conformances to business and regulatory standards;
    • Technologically empower supervisors to become effective coaches, saving time and cost to achieve this. The supervisor’s role is essential to assist management implement and sustain the performance initiatives they require and importantly, get their teams to work according to company standards;
    • Convert line managers / supervisors, team leaders and their teams into efficient and effective productive units to accomplish and sustain the prescribed business standards;
  • Empower supervisors with effective behaviour correction ability. This is an essential ingredient when evolving to a new business culture and work ethic. Effective behaviour correction methods should be mostly done immediately upon discovery of non-conformance on the job. The supervisor must have the technological support to apply a process of behaviour correction with minimal conflict, transgression of labour laws and victimization. This can only be accomplished through technology enablement.
  • Successful implementation with sustained outcomes is essential. This intervention is guaranteed to succeed.
  • Free up managements time by reducing the repetitive occurrences of non-compliance and non-conformance. These are primary causes of direct and downstream “potentially high cost” elements causing value drain. Managers and line managers waste time and effort firefighting recurring consequences caused through failure to comply and conform.

The process.

We adopt a bottom up Micro-focus approach, using digital systems and technology enabling methods which resolve the challenges discussed above.

The impact makes the project self-funding and can be introduced into your business with minimal capital outlay.

A complete outsourced turn-key package with professional services is provided with financial assistance if required. This allows managers and their teams to focus on the business, while the process unfolds to recover the value drain elements of the business.

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