Optimal Lean Organizational Structure | Small business
Optimizing organizational structure has the power to increase revenue, reduce expenses, and improve earnings per share. In order for this to happen, managers and frontline employees must eliminate waste from their daily routines. This is accomplished through diligence and a conscious effort to continually improve products, processes, systems and an optimal organizational structure.
Bottlenecks and other delays in operations reduce customer satisfaction and an organization’s revenue-generating potential. Delays occur for a variety of reasons, but are almost always the result of poor organizational design. Through flowcharts, lean waste reduction techniques, and value chain mapping, business leaders can redesign systems to remove bottlenecks and improve efficiency. The less delays in operations, the better for internal and external stakeholders and the overall productivity of a business.
In manufacturing and office environments, overprocessing is a common occurrence that prevents employees from performing value-added activities. It is up to organizations to assess work routines using lean methodologies to eliminate overprocessing and streamline operations. Otherwise, systems and organizational structure suffer in the long run. The greater the over-processing performed by employees, the less competitive an organization is. It does not add utility to end products or services for employees to needlessly repeat tasks.
Rework slows down operations and causes employee frustration or distraction in performing income-generating activities. In a lean organization, redesign is removed from systems through a scientific approach to workplace structure. In regular organizations, rework occurs for multiple reasons, including a lack of understanding of customer requirements. Employees may not know the proper procedures, making it difficult to produce products or provide services. Lean organizations use quality management systems, which use a series of standard operating procedures and standard operating instructions to help prevent rework and other types of waste.
Excessive transportation can occur in a production facility when raw materials, work-in-progress inventory, or finished goods are unnecessarily moved. This is due to poor system design and is not compatible with an optimal and lean organizational structure. On the contrary, it wastes time and energy for employees who would be better used for other tasks. Bringing workstations closer together in a production environment or going digital in an office are ways to improve the optimal and lean organizational structure and improve employee morale at the same time.
Biography of the writer
Joseph DeBenedetti is a financial writer with experience in business accounting and quality assurance. He writes extensively online with a focus on current trends in finance. As a Quality Assurance Analyst, he honed his technical writing skills by creating standard operating instructions for a consumer credit organization.