Process Optimization of the Selected Business Using a Process Approach

Milena Kajba () and Borut Jereb ()
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Milena Kajba: Faculty of Logistics University of Maribor, Slovenia
Borut Jereb: Faculty of Logistics University of Maribor, Slovenia

European Journal of Studies in Management and Business, 2022, vol. 23, 1-17

Abstract: The aim of our research was to optimize the existing process approach of the selected small business (SME), due to the desire for long-term effectiveness, cost-efficiency, and market competitiveness. SMEs have several specific characteristics related to their limited size, lower level of diversification, low capital strength, limited market, and higher risk. On the other hand, they are more flexible, as they can adapt quickly to new conditions, have closer contact with customers and are very important for economy employment. Due to inevitable need of business management improvement and performance optimization, a process snapshot was performed to obtain the existing process approach. Based on the snapshot, identification of critical points was perpetuated, which enabled obtaining basic decision-making information. Based on the latter, a critical analysis of necessary furtherance’s was carried out: improvements of specific activities and elimination of redundant or unnecessary activities. For the purpose of real SME environment improvement of performance, we made a proposed problem solution, which represents an improved and optimized process approach for all of the fundamental processes of the company, based on the ISO 9001:2015 standard. Proposed optimized process approach was implemented immediately but gradually. The results were measured based on the overall number of proposed improvements (through the implemented renewed process approach) and the number of improvements that had been implemented by the time this research was conducted. It is estimated that the proposed solution has already been implemented (certain activities completely, others partially) in 62%. Even due to the partial implementation of optimized process approach, the business’s results have improved. This is reflected in increased market demand by 7% due to more efficient, faster order fulfillment and increased income by 3,5%, compared to the previous two years. The latter emphasizes the importance of a process approach implementation, which affects the improvement of productivity and efficiency, increases knowledge sharing amongst employees, enables collaborative workplace, flexibility and agility of the company, easier compliance with regulations, improves customer experience, reduces costs, and enables higher revenues.

Keywords: Process Approach; Logistics Processes; Business Management; Performance Optimization; ISO 9001:2015 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:bco:mbrqaa::v:23:y:2022:p:1-17

DOI: 10.32038/mbrq.2022.23.01

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