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CPA and partner, VP finance and strategy, Diffusion Integrated Solutions


The son of entrepreneurs, Daniel Valois grew up in family businesses. Strongly influenced by his entrepreneurial experience, he devoted his career to developing consulting services for small and medium-sized businesses. In this sense, he held key positions in the design and deployment of this practice within several renowned organizations such as Desjardins, Desjardins Capital and Deloitte.

DANIEL VALOIS

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Daniel Valois, CPA and partner, VP finance and strategy, Diffusion Integrated Solutions

Whether you are an entrepreneur, an intrapreneur or a manager, chances are that one of your goals is related to digital transformation, that is, the integration of technologies into your company's operations in order to improve its efficiency. Therefore, you must find ways to create maximum results with minimum effort, means and resources.


In this sense, the value of your approach will be measured in saving time, money or improving the quality of your products and services. Unfortunately, faced with the range of solutions and information conveyed, it sometimes becomes difficult to determine the right strategy.


As obvious as it may seem, the best way to improve your efficiency is to identify your weak areas. So, when it comes to determining “where to start,” Lean Management’s 8 sources of waste can be a very effective identification tool. Here are examples of types of waste along with a definition and points for reflection.









INVENTORIES

Lean Management theory primarily considers inventory surpluses as waste. In the context of identifying inefficiencies for digital transformation, we also recommend identifying inventory shortages.

Questions to ask yourself:

  • Do you have any parts in stock that haven't been sold/used in a long time?

  • Do you have software that allows you to quickly identify inventory surpluses or shortages?

  • Do you have access to software that allows you to identify your supply risks?

 

WAITING TIME

Any person or process that must wait on something or someone in order to progress its work.

Questions to ask yourself:

  • Does your schedule allow you to optimize your travel to avoid unnecessary waiting times?

  • Do you have software that allows you to speed up, simplify and optimize appointment scheduling?

  • Do any production employees have unproductive waiting periods?

 

SHIFT

Unnecessary travel required of employees that does not generate added value for customers.

Questions to ask yourself:

  • Is it really necessary to require your employees to work from the office?

  • Would it be possible to review your production plan to reduce the number of steps your employees have to take in a day?

 

NON-QUALITY

Non-quality is identified by anything that exceeds or does not meet the customer's expectations. Over-quality, like non-quality, is in fact non-quality.

Questions to ask yourself:

  • Do your customers have the same perception as you of the quality of the service/product offered?

  • Is it possible that some products or services offered to customers generate less value than you think?

Do you have technological tools that allow you to regularly check the satisfaction of your customers about your products and services offered?

 

MISUSE OF TALENTS

Asking an employee to perform a task that is not associated with their skills.

Question to ask yourself:

  • Are you requiring your employees to come back to the office to provide “paper” timesheets or invoices?

 

TRANSPORTATION

Inefficiencies in freight transportation result in wasted energy, time, and premature wear and tear on equipment because the route used to complete its delivery is not optimal.

Questions to ask yourself:

  • Are you sure your transportation routes are optimal?

  • Do you have route optimization and sequencing software?

 

INEFFICIENT PROCESSES

Processes that take too much time unnecessarily.

Questions to ask yourself:

  • Do you still have a lot of paper in your processes?

  • Do you have access to software that allows you to eliminate paper from your operations?

 

OVER/UNDER PRODUCTION

Essentially, underproduction or overproduction involves offering products, services or features in insufficient quantities or in excess of customer needs.

Questions to ask yourself:

  • Does your detailed inventory analysis allow you to identify very slow-moving items?

  • Do you have access to software that would allow you to do predictive production analysis?







You may notice from reading these points that one of the goals of Lean Management is to eliminate operations that do not truly create value for your customers or employees. The key to successful identification is to involve your customers and employees.


Not only will you identify areas of inefficiency more quickly, but you will also focus your efforts on the real needs of employees and customers.


This way, the upcoming changes will be a source of motivation for your customers and employees.

You will quickly feel the benefits of your approach.



Digital transformation and Lean Management

2022-04-19

DANIEL VALOIS

5 minutes

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With the 20 Minutes CPA , the Ordre des comptables professionnels agréés du Québec offers advice and tools aimed at SME managers and entrepreneurs. The themes presented, in a practical and accessible format, help demystify important concepts related to accounting, finance and business management. Henkel Media offers you a series of ten articles in which you learn more about the role of the CPA as well as its many assets for the healthy development of a business.

ABOUT THE AUTHOR

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