To the blog for small and medium sized business (SME) owners.

Thursday, January 17, 2008

How Many Mistakes Does Your Company Make?

Have you considered the impact on your businesses of making mistakes?

Possibly not.

However, as SME business owners struggle to meet the ever demanding expectations of customers regarding service and price, the cost of rectifying mistakes should be viewed as an opportunity to reduce overall costs and improve profits.

It is important to understand what a mistake is.

Examples of common mistakes include:
1. products are not manufactured to specification first time, each and every time
2. services provided do not meet the expected standard and are re-visited
3. errors or omissions in communication render additional instructions being given
4. running out of supplies/parts
5. wrong delivery times, quantities or goods
6. invoice errors
7. misfiling of documents

The impact for the business will be increased cost but may also result in lost sales and lost customers.

What actions should be taken to eliminate waste, scrap or process duplication?

A business review should be undertaken and quality management systems be implemented. This may require the environment within the organization being changed; maybe a move to a no-blame culture, staff training increased and encouraging staff to become decision makers.

In addition the introduction, or updating, of ERP systems or the like should promote the documentation of systems and processes that will provide a platform on which a recognized and structured approach in communication and data collection can be adopted.

Learn more about quality management systems (QMS) and improve your business performance and profitability.

1 comment:

delaidconsulting said...

Good blog and helpfull!