Waste Is The Cancer Of Business, But Here’s The Chemo

Imagine if you will, you get the profits that you made this month out of the bank and have them in your hands in cash. Now walk over to a river and slowly release the grip you have on your money. Watching it fly away and get carried off by the current until all the bills are out of sight, how would you feel? Pretty sick is the estimation that anyone would make. Well, that’s what you’re doing to your business right now. You may get a little defensive which is natural, but every business large or small has needless waste. It’s like haemorrhaging money, but because it happens slowly and usually out of sight, you don’t even know it’s happening. If you don’t rein in on your waste, it would be like letting go of the reins on a horse while sitting atop the carriage. The carriage is your business; you would be letting the horse run whichever way it wants to and eventually off a cliff never to be seen again. There is no other alternative but to start clamping down on idiotic mistakes that you are innocently making.

Incompetence means incomplete

The real world and online businesses share this unfortunate trait of their day to day actions. When a customer orders a product, it has to go through your system, so you know what has been purchased and a whole bunch of other relevant information such as inventory stock numbers etc. What would happen to say if the order form or process was incomplete in some way? You would lose track of what just happened. You may as well punt the product out onto the road if you’re going to allow such incompetence to continue. To understand what the serious losses that incur when waste flies under the radar you have to go through a master lean course. Missing or incorrect information in the lean culture is referred to as defects. Having defects in your process causes issues with material allocation, rescheduling transport, having to redo paperwork and all this leads to wasted hours when you could have been dealing with improvements.

The need for renewal

You’d be amazed at how many small businesses do not have standard operating procedures (SOP). This can be for a multitude of reasons because the thing about small businesses is, they’re incredibly adaptable to almost any situation. Some entrepreneurs depend on being flexible and not tied down to any set procedure. But that’s a little too whimsically-minded because you must have ordered at the base of operations. The main reason for having SOP is to have a vice grip on quality control. Every product that leaves your factory and or has your logo stamped on it is a statement of your brand. It’s no go to not have a uniform approach to quality to ensure that almost every single product that you sell has a set standard of quality assured in it. Therefore no product must leave its place in the supply chain unless it has met a standard that you make.

Waste is the cancer of business. Wherever it is allowed to set up its tent, it will spread and infect everything closeby. Missing information causes the entire supply chain to shrug its shoulders and not know what to do. The lean culture pinpoints why this happened, and identifies the reason for the defect.