COMPLIANCE
DEFECTS Defects in products or services lead to rework and are often caused by poor design, lack of training or poor communication, resulting in error, disrupting the process.
'waste'. This concept was introduced by the Toyota Production System to identify and eliminate sources of waste in its manufacturing processes. Over time, this system has been adopted by various industries and has been used to improve efficiency, reduce costs and increase customer satisfaction. This technique focusses on identifying and eliminating various types of waste. What are those wastes and what do they mean? Now, in the table to the right, we consider what examples of waste we encounter in payroll. Now it's time to review your own payroll and consider the following questions: l when was the last time you reviewed your processes? l what could be done to make those processes leaner? l when was the list time you checked whether reports you provide are being used? l how often do you face technical issues? l are there any specific people who you’re always waiting for approvals / emails / answers from? l do you reach out directly to experts with you queries or do you liaise with the team first? l do you train your team? l do you use paper documentation, or do you print documents? l do you need all the information you collect and save? l can any repeated tasks be automated e.g., by an Excel macro? l do you have standardised ways of working for your processes? Do you have instructions? Adopting a lean approach to payroll can have several benefits. First and foremost, it can help to reduce costs associated with payroll processing, including overhead expenses, staffing and technology. By streamlining payroll processes, organisations can also improve efficiency, increase accuracy and minimise errors, leading to improved productivity and reduced risk of non-compliance. n
OVERPRODUCTION
Overproduction occurs when we are producing more than is needed or required. This results in an increase in inventory costs and the risk of producing items that may not sell, eventually leading to a significant waste of resources.
WAITING Whenever people or products are waiting for the next step in the process, it's referred to as 'waiting'. This waste is caused by poor planning, scheduling and communication between the different stages of the process. Waiting results in an increase in cycle time, lead time and ultimately reduces the efficiency of the entire process. UNUSED TALENT Unused talent is the waste of human potential resulting from employers not utilising the skills, knowledge or creativity of their employees. This leads to frustration, demotivation and dissatisfaction among workers. The benefits of using employees' abilities and giving them autonomy can lead to greater innovation and higher-quality process or services. TRANSPORT Transportation is the transfer of goods or materials between two or more locations. This can be from one machine to another, one factory to another or from a warehouse to a customer. Unnecessary transportation results in extra handling, additional inventory, and increases the possibility of damage or loss
INVENTORY
Inventory waste refers to the excess stock of goods or materials in the system. This waste increases costs due to the storage, handling and management of stock, leading to an increase in cycle time, slower cash flow and a loss of value in cases of obsolescence.
MOTION The waste of motion is any unnecessary movement of people, machines or materials. This could be caused by an inefficient layout, unnecessary walking between processes or poorly designed tools or machines. Motion waste adds unnecessary time and activity to processes, sometimes causing injuries or safety risks. EXTRA PROCESSING Processing waste refers to additional or unnecessary work done to produce a product or service. This waste includes activities that provide no value to the end customer. It may be caused by a lack of standardised work procedures, poorly executed processes or poorly designed equipment.
If you wish to speak further about this topic or any other payroll-related topic,
feel free to reach out to me, at sandra.was.sw@gmail.com .
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| Professional in Payroll, Pensions and Reward |
Issue 96 | December 2023 - January 2024
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