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Business Performance Improvement
Corporates increasingly face more complex business issues and need to rapidly change to keep pace with today's dynamic market. As competition grows and a larger number of industries head for a shakeout, improving business performance (efficiency and effectiveness) is a survival imperative. Meeting the rising expectations of key stakeholders in companies has led to a greater focus on ensuring better returns on investment.
Having addressed all obvious areas of improvement, companies are now increasingly looking to develop more innovative ways to improve performance on lead-time, cost, quality and service related parameters.
KPMG's BPI product addresses the following issues that are often the focus of senior management attention:
- Improving customer satisfaction
- Improving throughput performance
- Reducing process cycle time
- Reducing process cost
- Enhancing quality of delivered service
- Incorporating flexibility in processes
Most Management teams realise that developing and implementing improvement initiatives take up a significant amount of their time and effort. By engaging an external consultant, they are able to ensure that the initiative does not lose steam after the initial hype, as so often happens when these initiatives are taken up internally.
BPI offers typical business benefits include the tangible and the intangible. Profitability improvements range from 50% improvement to over 150% improvement. This may be the consolidated outcome of (amongst others):
- Cost reduction 3 - 10%
- Inventory levels reduction 20- 30%
- Process lead time reduction 30 - 40%
- Increase in capacity utilisation 10 - 20%
- Service level improvement 20 - 50%
- Decrease in overhead expenses 20 - 30%
- Productivity improvement 30 - 50% (capital and manpower productivity)
- Delayering 10 - 40%
- Setup / changeover time reduction 20 - 75%
- More time for customer contact 15 - 20%
- Appropriate control mechanisms which do not hinder process flow
- Reduced need for reconciliation
- Job enrichment due to empowerment and measure of effectiveness, beyond efficiency
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For further details contact us
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