Australia is one of the world’s leading hubs for many businesses. According to the latest Australian government reports, there is a 3.6% increase in the number of industries in Australia. The data only shows the records from the financial year 2020-21. One of the main reasons for this increment is better infrastructure and government support. These factors increase the profit of the business. But to achieve the desired growth, every company should adopt some modern management solutions like Lean six sigma. These modern business analysing methods use various methods and studies to find and isolate wastage of resources. Companies can use the data to implement changes in their work processes.
Advantages of implementation of modern studies:
- Increases profit: Increase in profit is the primary aim for any business. In large or small enterprises, several minor factors cause a lower growth rate of profit. Identifying such factors are the key to improve growth, and the best way to do it is to implement modern business analysing methods.
- Reduction of costs: In a company where several processes take place, minute unnecessary wastage of resources can occur. This wastage will increase the cost of production and wastage of labour. All these factors can add to the final product. It forces the management to increase the price of the product.
- Improves efficiency: The techniques like Lean six sigma will analyse the processes at all the levels of an organisation. This analysis will find out methods for increasing the efficiency in each process.
- Employee development: Loyal and energetic employees are the backbones of every company. The modern business analysing methods not only aim to increase the profit of the company. It also aims to provide improvement in the life and comfort of the employees. It takes various surveys from employees to understand the change needed. Understanding the needs and providing them is significant, and there are several guidelines from the Australian government to ensure the safety and comfort of workers.
The various techniques using in these studies:
- Gap assessment: The gap assessment is the study of variation in the company’s actual performance from its desired performance. All the companies will have a target in each financial year. But, everything will not always go as per the plan, and sometimes the growth will be at a much lower rate. So the chance of projected growth and actual growth will happen. A timely gap study can identify the initial deviations before things deviate irreversibly. The study will take a lot of data and use this data to suggest required changes.
- System development: Systematic functioning is the fundamental requirement for any company. For this purpose, the company should keep certain documents and registers. Also, the company needs policies, manuals, procedures, etc. These will keep the company functioning without any problems. By conducting these studies, the companies can find out what they lack and how to improve it. These documents should have ISO standards to get qualified, and so the management has to choose the right agency for conducting the study.
- Training and delivery: The agency conducting the studies will find the existing gap. Based on this data, the agency will prepare a training program for the employees and management itself. This program will improve the current work culture in the institution and provide a better aim for all the persons towards the company goal. Most of the agencies in Australia conduct these training programs in the company itself, and it avoids any interruption of work for an extended period. According to the assessment by the agency, the management can send their employees for further training. In Australia, the government provides some free training for eligible employees like immigrants. So companies can choose these training programs for further improvement of their employees and the organisation itself.
Employing modern management solutions like Lean six sigma is beneficial for the company in many ways, as mentioned. This method will streamline the process for the companies and make their work easier.
