This article focuses on the development of administration processes using the tactic of commercial engineering. It highlights the most differences between manufacturing and administrative processes. Then, it shows the potential that would be found within the administrative processes. the most goal of this text is to introduce the work procedure using the executive processes, during which the economic Engineering methods are getting used . the utilization of this procedure will make companies achieve better leads to the efficiency of administrative processes.
Nowadays, we encounter the utilization of commercial Engineering methods, especially within the production spheres. Concurrently, an enormous potential use of those methods is simply in administration processes. With the assistance of their application to administrative processes, companies can still increase the efficiency and competitiveness of the business and reduce their costs.
The aim of this text is to introduce industrial management methods to enhance administrative processes and show a procedure how we will work with these processes.
MANUFACTURING COMPANIES AND ADMINISTRATIVE PROCESSES
Present state of administrative processes
Current status of administrative processes points that these processes significantly contribute the value to the businesses . it’s obvious that it depends on the corporate . However, estimations normally show 60-80 percent to be assigned to administrative processes. Surveys made by API (Figure 1) (Mašín et al. 2007) show that:
- over 100 years, the labor productivity of labor in production processes has been raised by 1000 percent. On the opposite hand, the productivity in administrative processes has been raised by 150 percent only.
- Only 30 percent of complaints are caused by production processes and therefore the rest “70p” is said to the event , services and administration.
- Administrative processes render 50% of continuous-time of order (Košturiak et al. 2006).
Comparison of manufacturing and administration processes
Based on the surveys, which were conducted in manufacturing companies, the subsequent problems in administration process are defined:
Figure 1. Causes of complaints in non-manufacturing
and manufacturing processes.
- Administrative processes aren’t dedicated the maximum amount attention on manufacturing processes.
- Administrative processes generate 25–60% of costs on order, sometimes more.
- Many people performing at administrative processes don’t know the concepts and methods of commercial engineering.
- Seldom within the administration process, one can find a worker who is liable for the security , quality, shipping and price of this process.
- For workers performing administrative processes, changing their thought patterns are often difficult.
- People who work on administration aren’t familiar with performing at predetermined intervals.
In the above-mentioned lists, we will find a few of samples of the issues that occur in administration processes.
This status shows during which critical conditions the administration processes are being found. And there’s an excellent potential to extend the company’s efficiency and reduce their costs. From now of view, the corporate should start working with their administrative processes within the same way, as they’re working with their production processes.
THE WORK PROCEDURE WITH THE ADMINISTRATIVE PROCESSES
Identification of objectives of methodology
Initially, during the creation of working methods using the executive processes, it had been necessary to define the objectives which will be achieved. These objectives were supported long-term analysis and requirements from daily practice. The analysis found that the most important problem is that companies aren’t ready to identify the issues in their administrative processes. meaning if companies cannot identify their problem, then they will also not remove away this problem. This fact defined the primary objective:
1. the issues identified within the administration processes.
Based on the primary aim, the second aim was set:
2. Find solutions to spot waste removal in these processes. First, 81 sorts of waste were defined in these processes. it’s the best-known and most occurring sorts of waste in administrative processes. These 81 sorts of waste were divided into 8 areas of waste, because it is within the case of producing processes. Individual sorts of waste were determined and adjusted supported a survey that was conducted by the corporate Fraunhofer IPA, and therefore the book was written by Košturiak (Košturiak et al. 2006), and by identifying waste within the administrative processes consistent with Lareau (2012). All eight areas including the amount and kinds of waste in each area are detailed in Table 1.
In the second step, it had been necessary to seek out a tool to get rid of waste in these processes. Here, we decided to use the methods of commercial engineering because it is in production processes. One method of commercial engineering was assigned to every sort of waste, which should eliminate waste. In total, 20 methods were identified for the removal of waste from these processes in Table 2.
Methods were assigned on the subsequent basis:
1. the tactic was assigned supported its utilization for an equivalent problem in practice, i.e. its usage “regarding the given problem” is already verified in practice.
2. the tactic was assigned supported the assignment method for solving the issues consistent with Mašín et al. (2007).
3. Method was assigned on the idea of an assessment team of experts on methods of commercial engineering at the Department of commercial Engineering.
The methodology for improving administrative processes, using industrial engineering methods
The whole process is divided into three phases. These phases are handled individually, but in sequence. To achieve the desired outcome, it is necessary to go through all the three phases of the methodology.
3.2.1 Preparatory phase Preparation phase can be described as the actual state in which the company is located. The worker, who performs the implementation at this stage, will develop a complete picture of a company’s administrative processes and get an idea of the condition of the processes. Also, he will know whether it will be necessary to implement any of the methods of industrial engineering.
The second step of this phase is to determine the region and deadline for creating the questionnaires. The area is defined as follows: the number of employees who will fill out the questionnaire. These workers must perform the same administrative processes. The questionnaire must be evaluated individually for each different position in the administrative processes. The distribution and filling out of the questionnaire are the last step of this phase.
3.2.2 Calculation phase This phase is used to obtain calculated data, based on data input. Defined problematic processes are based on the evaluation questionnaires. The next step is the measurement of these problematic processes. It is the most important part of the first two phases, because the final result depends on the accuracy of data input. It is necessary to know the value of the problematic process before it is improved. Evaluation in the next step allows us to obtain the necessary feedback on the changes. For the evaluation of these problematic processes, it is recommended to use the following tools.
1. Method Value Stream Design in indirect Areas (VSDiA)
2. Method and tool for modeling ARIS
3. Method Activity-Based Costing
4. Motivational interviewing
5. Method Visual Office Kaizen
These tools will help us obtain the necessary input information about problematic processes.
3.2.3 Evaluation phases
At this stage, they are implemented methods of industrial engineering at problematic processes. As mentioned above, for each type of problem, one method is assigned, which will help remove the problem. That means after the identification of the problem, we assign a method for elimination based on the given table.
The next step is to present the results of the implementation of the employees. The evaluation step of the implementation is very important for the company. The management of the company will receive the information about what kinds of implementation methods are applied.
• How much time was reduced in this process (time).
• How many of funds were spared (finance).
• How to increase the efficiency of the process.
• How the number of workers has changed in these processes.
• The time spared for individual workers at this process (time).
• How to reduce the cost of office supplies (CZK).
Thanks to this information; in this way, we get the feedback on the real changes. Evaluation of the process after the implementation of the methods must be through with an equivalent tools as finished the problematic process at the second phase. The last step of this phase is permanent control and improvement of of these processes at company. Phases and main steps are outlined in Table 3.
EXAMPLES OF USING THE METHODS OF INDUSTRIAL ENGEENEERING
In the below section, two simple examples are shown about the utilization of methods of commercial engineering in administrative processes.
4.1 Use of the tactic 5S within the office
At the auto company , the tactic 5S is implemented to all or any secretariats (Figure 2). an equivalent system was introduced to every of the secretariats due to fungibility. Furthermore, within the context of implementing this method, the system for print was found out . it had been determined which documents should be printed and which documents should be saved on the shared disk.
There was a saving of up to 50 bales of paper per month. Of course, office supplies were reduced.
4.2 Use of the tactic kanban in office
Kanban within the office are often used, for instance , for ordering of office supplies (Figure 3). the most important advantage is that it are often used when the corporate has not saved funds for office supplies. Another advantage is that the staff have always the office supplies they have and it doesn’t extend their work. Responsibility is just too designated for these needs.
Figure 3. Area of the printer before implementation of
the Kanban method.
Figure 4. Implementation of the Kanban system.
An example is given below for the ordering of paper using the Kanban method. so as to save lots of the employer’s decision that thanks to the very fact that color printing isn’t as frequently used, there’ll be just one printer for the whole department located within the corridor. Every office will have just one monochrome printer. After the implementation of the colour printer, these two situations arise:
1. round the printers, packages of papers were scattered, which were ordered by the secretary.
2. Paper for printers wasn’t available
Neither of those situations is clearly not desirable. Therefore, the Kanban system was implemented (Figure 4). As a part of the introduction of the Kanban system for office supplies, the worth of office supplies was reduced by about CZK 150 000 at the department.
This article discussed the utilization of commercial engineering methods in administrative processes. The samples of waste occurring in administrative processes were mentioned. Then, a comparison between the executive and manufacturing processes was made. because it are often seen, these processes still have the potential to be improved. When companies begin to affect all its processes, they will increase the efficiency of their processes, reduce their costs and increase their competitiveness completely. Therefore, they ought to start and improve their administrative processes as soon as possible, even using industrial management methods, as noted within the above examples.
This article gives only an overview of how companies can work with their administrative processes and the way they will achieve their improvements. the chances and therefore the use of commercial engineering methods in administrative processes require further research.