Business Process Management Improvement – Knit Factory
Business process management (BPM) is a way of looking at and then controlling the processes that are present in an organization. It is an effective methodology and systematic approach to use to make certain that the processes are efficient and effective, as this will result in a better and more cost-efficient organization.
The term “business process management” covers how we study, identify, change, and monitor business processes to ensure that they run smoothly and can be improved over time. This makes an important contribution to long-term revenue and profitability.
Challenges
A company, with office in Hong Kong and 3 factories in China, manufactured knit products. With over 20 years of experience supplying knit products to brands, the company felt pressure on pricing and production coordination. Due to current tight production schedule per market demands and difficult timing control, the company sometimes needed to pay for air expenses to catch up the delay.
Upon discussion and investigation with all the related departments heads and the owner, recommendations were made to improve process and business vision.
Solution
Shared with the owner of the company as below:
a) Based on given account information, customer financial contribution and business volume were analyzed. Certain customers fell into the 80/20 rule. So the 2 merchandising managers were assigned to concentrate on these customers.
b) Recommended to have weekly merchandising, procurement and production team meeting ensuring production schedule as planned or contingency plan needed to be established (meeting in Hong Kong every Saturday, joined by production manager from China)
c) Recommended to hire a senior merchandiser in China to manage one important account and acted as liaison for urgent issues as and when it is necessary.
d) The owner needed to discuss with all the department heads and production managers to ensure they understand that the consequences of air expenses will impact their year end bonus and the importance of team efforts.
e) Mapped the process and agreed by all departments during the first weekly meeting to recognize clearly who is responsible for what.
f) Developed proper record of air expenses incurred and found out what was learned from each instance and avoided same happening in the future.
Result
After putting weekly meeting into implementation and hiring senior merchandiser stationed for 3 months, no further air expenses incurred and delivery timing control was improved.
Samantha Lee is currently the Head Consultant of a boutique consultancy. She has over 20 years of management experience. She worked in big brands like Polo Ralph Lauren, DKNY, adidas, as well as thriving SMEs. Her footsteps treaded across Asia, and went as far as Africa. Her expertise brought the lecturing opportunity in a government-funded VTC institute.
(guest post from my earlier blog in 2017)
