How to make Gemba work in the best possible manner?

How to make Gemba work in the best possible manner?

Gemba can be described as one of the most popular terms in the lean community. The word Gemba stands for ‘real place’ and a comprehensive method of approach is absolutely essential to make it work in the best possible manner. First of all, a business leader or manager should have a deep curiosity to know what is actually happening and there is no place for any imagination or assumption as far as Gemba is concerned. The focus will always be on what is actually going on.

Secondly, this process demands direct observation skills to assess how the work is performed and clear cut understanding about the existing reality of a particular situation will help businesses take the right remedial steps to ensure optimal performance. Respect for workers can be described as the third aspect and the manager or supervisor goes to the floor where work is performed to engage people directly. It clearly demonstrates the theory of respect for workers.

In order to make Gemba work in the best manner, the purpose should be identified and it can be said without any doubt that getting started without a purpose will not bring the desired results. People should understand what Gemba is all about and the key is to find out the point of activity. Gemba can be applied wherever the activity is performed and this understanding will help people make it work effectively. Observation should be done with the help of a framework and such an approach will help business people digest, analyze and communicate what they observe.

Validating the conclusions is another important aspect to make Gemba highly successful and things that cannot be seen on the surface should be found out with objective observation and analysis. Such an approach will represent the reality at its best and as a resultant factor; Gemba will become highly effective and result oriented as well.

5 tips to manage cashflow and improve business costs

5 tips to manage cashflow and improve business costs

Whether planning a start-up or reviewing financial management and operation of an existing business, there are usually two questions at the forefront of the mind: how do I manage cashflow best? And how do I keep business costs low?

To list down every recommendation, trick, piece of advice, process and consideration to address these fundamental areas of business success would require an extensive textbook… so this article offers five quick tips to establish control over your cashflow and business costs, and the impact they have on your profit, survival and growth:

1. Invoice smarter

Slow-paying customers can present a huge issue for small businesses in particular – especially when those businesses are experiencing the same issues as your business and waiting for their own cash to come in. It can be a tricky cycle.

Ensure your invoicing process is streamlined, invoices are promptly mailed out and the invoice content is clear and easy to read. Simple omissions such as failure to include purchase order numbers and payment terms can bring on setbacks and delays.

Assess whether your business is able to go one step beyond and make the payment process easier and faster for your customers.  Electronic payment systems, or discounts offered for rapid payment of invoices, can speed up transactions and may also improve processing times on your side.

2. Negotiate

Just because a price has been quoted, or you have been paying the same rate for years and years, doesn’t mean that is what you have to pay.

Work hard to negotiate with your suppliers since many are willing to discuss pricing and rates (they want to retain your business after all!)

Every little bit might just help – whether addressing standard utility overheads such as energy and phone bills, or working to pay less for the office stationery  – it could have a significant impact on your bottom line.

3. Get close to your accountant 

Many businesses, particularly smaller ones, look to liaise with their accountant only at a time of need.

A solid accountant can provide invaluable advice and serve as a useful resource, sharing knowledge, insight and recommendation all year round.

Services such as cost management, profit management, investment, funding consultancy and general check-ups can help you keep things on track and optimise the health of your balance sheet.

Build a regular relationship and dialogue with your accountant to drive smarter business decisions, higher profits, reduced taxes and improved cash flow

4.  Explore alternative credit and funding options

A wide range of alternative funding solutions are available in the market – non-bank lending is now at its highest in five years as more and more SMEs recognise the benefit of short-term, affordable cash flow solutions.

Beyond the company credit card, hire purchase agreements, leasing arrangements and overdrafts – cash flow products such as crowd-funding and invoice finance could provide much-needed cash and capital to help you manage seasonal demand, or the challenging peaks and troughs of delayed customer payments. If you have followed the previous tip and have a good accountant, they will be full of advice and recommendation on the best path for you.

Overdrafts, premium funding, lease facilities and cashflow funding products such as factoring can all be excellent tools to help match cash supply with outlays. These arrangements take time to set up, so you need to be prepared in advance.

5. Plan, plan, plan – and stick to it

Heavily monitor your balance sheet and your cash flow budget.

The continual review and action planning for the credit you arrange, the bills you pay, how you pay those bills, and when your payments are coming in are all critical for the survival of the business.

It is important to revise your cash flow budget periodically which an accountant can assist with and deliver as an automated, streamlined process. Simple exercises such as payment prioritisation, strategic management of credit terms, weekly cash flow projections and payment collections all form the foundations of the dynamic accounting function of a business.

A solid system in place such as this will also allow you to plan for lean times and schedule purchases and allocation of capital when you need it most.

About the Author: Beth Nicholas is a professional writer for Plus Accounting – chartered accountants and providers of business financial services based in Brighton, England.

VOIP Technology in Call Centers

VOIP Technology in Call Centers

To those who may be less familiar, call center technology consists of automated phone systems capable of answering incoming phone calls and performing outbound autodialing. A call center is a group of telephone agents who receive incoming calls and/or make outgoing calls. Software applications usually associated with calls centers are CRM (Customer Relationship Management) programs.

VoIP is a technology that allows residential users, business and call centers to make and receive calls using the Internet instead of traditional phone lines. As a matter of fact, today, many call centers deploy VOIP technology using companies like Switch2Voip.us in a bid to reduce costs and improve operational efficiency as also employ remote call center agents. Businesses worldwide have built VOIP for call centers, because of the scalability, and VOIP enables call centers to adapt and grow along with business and technology needs.

Voice over Internet Protocol (VOIP) technology has come to stay. It has made steady progress in replacing traditional telephone lines in most businesses and even in homes. It is the technology of the future as more and more people are enamored of the features of VOIP technology and the concomitant benefits. For many businesses, reduced cost is perhaps the most compelling reason to adopt VOIP in the office. VOIP allows organizations to set up core operations in their main office, while operating at many locations across the globe.

A Voip Call Centers is a virtual communication warehouse for marketing, and to a lesser extent, customer relationship management (CRM) functions. Using software on your workstations along with a broadband Internet connection can result in significant savings on operational costs. The telephone communications through the Internet allows the VOIP staff to initiate and respond to any number of simultaneous telemarketing calls, phone orders.

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