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Recession Puts Focus on Business Optimisation and Excellence to Strengthen Business Core
Date:3/24/2009

Singapore, March 24 / b3c newswire / – To cope with the most disparaging economic climate in decades, business owners are pushed to explore the different varieties of standard-issue business strategies to steer their companies through the recession. The usual strategy of following the "order of practice of the industry" would be to review headcount, freeze and reduce budgets and other radical cost-cutting measures. The consequence of overreacting to this, is that it may handicap a company’s future potential when demand recovers again. What companies should do is to leverage on this downturn to re-invent themselves and consider how best to position themselves for global recovery when it happens. In such quest of business survival, decision makers tend to overlook the one management tool that has proven its effectiveness: process improvement.

Process improvement is an activity that intensively focuses on the operations and systems of a business (production, supply chain, sales, cost control and capital expenditures) to identify opportunities to remove elements that do not add business value, or ones that create unnecessary cost. The advantages of such reengineering efforts are immediately apparent: waste reduced, productivity increased, quality and performance enhanced.

The concept of utilizing operational improvement to increase business productivity is well established in methodologies such as Lean, Kaizen, Six Sigma, Toyota Production Systems and many more of such variants. Lean manufacturing, the concept fore founded by Ford Motor Systems and refined later by Toyota Motor, managed to increase its manufacturing productivity by 51.7% and reported cost savings of up to $5 million. Six Sigma, originally developed by Motorola recorded savings of over $15 billion in the last decade of implementation.

So why is such a proven business improvement methodology being overl
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