Operational systems and processes are important in an organisation because they:
• Ensure efficiency and productivity: Well-designed operational systems and processes can help streamline operations and improve efficiency; reducing costs and increasing productivity.
• Improve quality: By following standardised processes, organisations can ensure that their products and services are consistently produced to a high standard. This can lead to increased customer satisfaction and loyalty.
• Reduce risk: By having clear and documented processes, organisations can reduce the risk of errors and accidents. This can help to protect the organisation's reputation and bottom line.
• Improve compliance: Operational systems and processes can help organisations to comply with regulations. This is important for organisations that operate in regulated industries, such as healthcare and finance.
• Facilitate decision-making: By collecting and analysing data from operational systems, organisations can make better decisions about their operations. This can help them to improve their performance and achieve their goals.
• Improve communication and collaboration: Well-designed operational systems and processes can help to improve communication and collaboration between different departments and teams within an organisation. This can lead to better decision-making and problem-solving.
• Provide a foundation for growth: Operational systems and processes can provide a foundation for growth by making it easier for organisations to scale their operations. This is important for organisations expanding into new markets or launching new products and services.
A manufacturing plant may have an operational system for tracking the production of goods. This system would track the materials, labor, and time required to produce each good, as well as the quality of the finished product.
A retail store may have an operational system for tracking inventory levels and sales. This system would help the store to ensure that it has enough inventory to meet demand and to identify products that are not selling well.
A bank may have an operational system for processing loans. This system would track the application process, the approval process, and the disbursement of funds.
A hospital may have an operational system for tracking patient records. This system would help the hospital to provide timely and accurate care to patients.
• Set goals and objectives: Once the areas for improvement are identified, the organisation needs to set goals and objectives for improvement. These goals should be specific, measurable, achievable, relevant, and time-bound.
• Implement changes: Once the goals and objectives are agreed upon, the organisation needs to improve its operational systems and processes. Changes include how work is done, the tools and equipment used, or how information is shared.
• Measure and monitor progress: It is vital to measure and monitor progress towards the goals and objectives for improvement, identifying the need to make adjustments as needed.
• Continuous improvement: The mechanism for improving operational systems and processes should be continuous i.e. always looking to improve its operations.