Resource optimization is essential for any company seeking to reduce costs while increasing efficiency and profitability. When inefficient processes take over—like redundant activities or rework—the impacts are felt both financially and in customer satisfaction. Below, we’ll share a curious example that illustrates this issue and explain how to identify inefficient processes and correct them.
Imagine buying a new pair of shoes, only to find upon opening the box that the shoes are two different sizes. This real-life scenario happened with a renowned Brazilian shoe brand, where customers across the country started receiving mismatched pairs.
To address the issue, the company implemented a labor-intensive solution: assigning employees to manually check each pair on the production line and redirect mismatched pairs to another group for matching, which were then sent back for further inspection. While this approach “resolved” the immediate problem, it added unnecessary costs and consumed resources without providing real value.
The true solution lies not in fixing the consequences but in optimizing resources to eliminate the root cause of the problem.
According to studies by major consulting firms like McKinsey & Company and Boston Consulting Group, approximately 60% to 70% of manufacturing activities and 30% to 50% in the service sector do not add value. These include tasks like rework, unnecessary movements, and redundant checks—as in the shoe factory example.
Eliminating these activities requires a detailed analysis of operational processes. Key steps include:
For example, instead of manually checking shoe pairs, the company could investigate the root cause of size mismatches and correct it at its source.
When an organization adopts resource optimization practices, the benefits are clear:
In the case of the shoe company, optimization eliminated several unproductive activities, such as manual inspections and pair matching. It also significantly reduced costs associated with rework and unnecessary movements.
The first step in resource optimization is mapping existing processes to identify bottlenecks. To achieve this:
By optimizing resources, you not only improve financial outcomes but also position your company to compete in an increasingly dynamic and demanding market.
In the grand parade of corporate efficiency, do you want to walk confidently or trip over unproductive activities? Now that you know the benefits of resource optimization, it’s time to take action.
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