Survey

In spite of high inflation some cost savings were obtained. How much net cost changes in the last 6-12 months did you obtain over or under the budget?

More than 10% under.
1 to 10% under.
No change.
1% to 5% over,
6% or more over.

Check Your Department's Efficiency

Date: 03/01/2017

It is easy to assume your operation is efficient if you are encountering few serious problems. But that doesn’t mean you can’t make life easier by improving the way you conduct business from day to day. In fact, being complacent could result in a major cost or failure of one kind or another.

For example, we have seen a situation at a large company where a time consuming lengthy report continued to be issued on a regular basis throughout the organization even though there ceased to be any benefit for the information. The cost of preparing and sending the report amounted to many thousands of dollars.

There are various ways an operation can be improved. Here are a few you can use.

Eliminate duplication.

Discontinue unnecessary tasks.

Improve accuracy by using built in checks.

Automate processes.

Develop standard terms and conditions.

Use pre-written clauses and form letters for purchase agreements and to communicate with suppliers.

Update hardware and software.

Update policies and procedures.

The effects of inertia prevent us from doing things differently. We all tend to resist making changes that upset our normal routines. Overcome your reluctance for change and you are likely to profit by improving your operation and making your life easier.