Office Diaries: Stop Thinking Like a Dinosaur!!!

That’s’ a bit harsh but, I’m glad I got your attention. For some time, I have had the challenge of managing processes where the supervisor would say, well that just takes five minutes…. UH...NO!!!...NO!!!!!...HELL NO!!!!!!. It may take five minutes to do a purchase order on an accounting software, word or excel. BUT, what I am saying.. no to the thinking that the purchase order is all there is to the process.

In most companies to issue a purchase order you must at least complete these five steps:

1.      Request a supplier quotation or quotations.

2.      Process a purchase requisition.

3.      Request approval of the requisition.

4.      Issue the purchase order.

5.      Follow up for the invoice and

6.      Forward to accounts payables for processing.

This takes at a minimum thirty (30) minutes. Now multiply thirty minutes (30) by your total estimated transactions for the year.

For example, you have 200 purchase orders x 30 minutes, this is equivalent to 100 working hours. This is approximately thirteen (13) working days at eight hours per work day. 200 hundred purchase order is equivalent to 17 purchase orders per month.

In most cases, companies issue hundreds or thousands of purchase orders per month, thousands per year.

SO, PAUSE… and ask yourself as a business owner, manager or supervisor, “Is the current process efficient as it is? Go a little further, calculate the costs of issuing one purchase orders. Compute the costs for all persons involved to complete the process from request for quote to submission of invoice for payment, to determine the unit cost prices for the transaction. Multiply this by your total transactions for the year. Compare the salaries paid out. Also compare the time required in days or hours for the year to complete the transactions.

You may need to re-evaluate the feasibility of your existing process, software or competence level. Also, be mindful you can’t automate people. If you are placing software demands on humans, you will have a very dissatisfied and demotivated work force. It wouldn’t hurt to remember we are no longer in the stone age. USE MODERN TECHNOLOGY TO IMPROVE THE EFFECTIVENESS OF YOUR COMPANY’S PROCESSES ALIGNED TO YOUR CORPORATE VISION. Involve your staff and engage them to create a conducive work environment for innovation, business improvement and customer excellence.

*INNOVATION*BUSINESS IMPROVEMENT*

*CUSTOMER EXCELLENCE *EMPLOYEE ENGAGEMENT*