In-Schools Productivity Campaign | Customers are demanding more than cheaper, faster and better

No matter what line of business we are in, or what we provide, all our customers want the same thing, and that is value for money.

Providers must supply the good or service that is of value to potential customers and for which they are willing to pay. In other words, providers must focus on the things in their operations or processes that contribute to the value that the customer is willing to pay, which will, in turn, make the organisation more efficient and effective.

When customers' expectations are taken into consideration from the onset, companies will be able to do things right the first time. reducing the need for rework.

This also has the benefit of reducing cost and improving quality. By focusing on value-added to the customer, organisations can provide the goods or service cheaper, faster and better.

Customer satisfaction can be achieved by removing non-value-added activities (wastes, or muda in Japanese) from the system. Studies show that in most organisations, 75 per cent of activities are non-value-added.

So 75 per cent of the day is busily spent working on activities or things that do not change or improve the product or service, and, if the customer is not willing to pay for the non-value-added activities, it means that the organisation 'pays' for it through lost profits, or it is forced back to the customer in higher prices. This highlights the great opportunities and need which exist for productivity improvement within organisations.

Reduce non-value added activities

To reduce these non-value-added activities, we first need to know what they are and where they are within our respective organisations. Measure and benchmark them, keep everyone in the know and accountable, analyse data collected to identify gaps (deviations from benchmarks), remove or reduce the wasteful activities through improvement initiatives and sustain the improvement through control mechanism, e.g., standard operating procedures.

Many organisations are struggling to provide two of the three qualities demanded by the consumer. That is - cheaper and faster, but quality is poor; good service, cheap, but not fast; or good quality and fast, but, not cheap.

As the decades passed, cheaper, faster, better was no longer enough. This is as a result of the rapid changes in innovation and increased competition. Therefore, cheaper, faster, and better has evolved to now include morale, values, safety and environmental concerns.

The willingness of a customer to pay is the sum total of the actions of the provider over time or what is repeatedly done. Therefore, the provider is exhorted to find the non-value-added actions which are embedded in his processes or systems and replace them with value-adding ones.

Leadership and management support is key for successful waste reduction or elimination. By reducing or eliminating waste, organisations will be well on their way to competing globally. Consistency is also fundamental.

Remember, productivity improvement does not mean perfection. It is about the process and the journey. Set goals, and do not confuse being busy with being productive.

- Tamar Nelson is the head of the Technical Assistance Service Unit at the Jamaica Productivity Centre