The affects of the process improvement to business performance

Abstract

The main aim of the businesses is to make profit and grow sustainably accordingly. The elements which enable companies to reach this aim are price, cost and customer satisfaction. While the price is determined in the competitive market, cost is shaped in the business processes. The customer satisfaction, on the other hand, is to what extent the output of these processes satisfied the customers. Process consists of the stages which start with taking an order from the customer and end with the delivery of the order. Should the business be likened to a chain, each link represents a process (a function). In order to improve the performance the weak link needs to be strengthen. Strengthening the weak links will only be possible by determining the halting points of the process and removing them. When the notion of the process and its improvement dealt with, the notion of value emerges. The value created in the process means cost in the output, quality and speed improvement for the company. Hence, creating values results with the customer satisfaction. Process value analysis, is the overall operations of the definition and analysis of some certain processes. It defines all the activities from production stage to its presentation to the customer, the inputs used in the operations. At the end of the analysis whether the activities in the process are necessary and if they create added value or not is considered Activity creating an added value adds value to the product the customer wanted, whereas the ones which didnt create added value cause cost and spent time to increase and do not add value to the product from customers point of view. The use of excessive amount of input, cause the costs of the product not creating added value and accordingly in the product costs to increase. The removal of these activities would provide a decrease in the expenses and strengthen the competitive situation of the company. The implementation focusing on the process and activities forming it, analyzing these methods and improvement efforts must be continuous. Continuous improvement works would return to the company in the end, as profit increase, shareholder, customer satisfaction. In this study, effects of the process improvement to the business performance will be studied.