Workflows: The heart of every company
Workflows consist of repeatable processes that are required to complete a specific task. They are a fundamental factor in the organization and management of processes within a company – from project start to completion. The result of an efficient workflow is increased productivity and improved efficiency within the company.
How efficient a workflow is can be measured by how well it utilizes resources to complete regularly recurring tasks. A workflow is considered efficient if it helps to reduce operating costs and increase employee productivity at the same time.
One way of measuring workflow efficiency is the value added ratio (VAR). This ratio calculates the time it takes to directly add value to a product or service compared to the total time it takes to complete the entire process from start to finish. The total time also includes both value-adding and non-value-adding phases. This metric can be used to clearly evaluate the efficiency of a workflow and derive targets for improvement.
In addition to the value-added ratio, there are other key figures for measuring the efficiency of workflows:
- Resource utilization
- Production capacities
- The expertise of employees
- Operating costs
Error rates
In the following, we will outline seven practical steps that can be used to optimize workflows and, as a result, increase efficiency and productivity.
Mapping existing Workflows
The first step towards optimization is to clearly visualize the existing processes. Flowcharts that show each individual step and the people or departments responsible are suitable for this. A visual representation can help to illustrate and identify bottlenecks and inefficient work processes.
For example, when processing documents such as delivery bills or customs documents, it can be found that manual steps can be automated with the help of IDP platforms. This can greatly reduce processing time, resulting in faster processing and fewer errors.
Evaluate existing Workflows
Once the workflows have been visualized, they can be evaluated. Particular focus should be placed on the factors of time, costs and susceptibility to errors, as well as employee and customer satisfaction. In logistics, delays or errors in document processing, for example with consignment notes, can lead to significant disruptions in the supply chain.
The Theory of Constraints (TOC) concept can help to identify the critical bottleneck. A process is only as efficient as its weakest link. TOC makes it possible to find and eliminate precisely this weak link in order to improve the entire process.
Tip: Use tools such as Kanban boards (e.g. Trello or Jira) or process mining tools (such as CeloniS) to identify bottlenecks based on data.
Prioritize Work Steps
Not every work step is of equal importance. Some tasks have a direct impact on subsequent steps, while others are less urgent. It is therefore crucial to prioritize the individual steps according to their importance. This is often done using the concept of the “critical path”, which describes the longest sequence of tasks that affect the completion of the entire process.
Why is prioritization important?
If high-priority steps are not completed on time, they can delay the entire workflow. By prioritizing critical tasks, you can ensure that resources and attention are allocated where they will have the greatest impact
How can this be implemented?
- Analyze the critical path: Use tools such as Microsoft Project or Smartsheet to identify the critical path.
- Reallocate resources: Make sure you allocate enough staff and resources to the critical tasks to avoid bottlenecks.
- Prioritize automation: Automate repetitive tasks with little added value to free up resources for more important tasks.
Analyze the Results
After mapping, evaluating and prioritizing the workflows, it is important to analyze the results. The analysis aims to identify unnecessary and lengthy steps that lead to delays or high costs.
What should be analyzed?
- Long waiting times: Where do bottlenecks occur because tasks are blocked by other departments or people?
- Error-prone steps: Which tasks are prone to errors and how often do they need to be reworked?
Cost-intensive processes: Where do unnecessary costs arise that can be reduced through optimization?
A helpful framework for the analysis is “Process Cycle Efficiency” (PCE), which measures the proportion of value-adding time in the total throughput time of a process. The higher the PCE, the more efficient the workflow.
endless possibilities.
ExB is an Intelligent Document Processing platform that transforms unstructured data from any type of document into structured results. Our AI-based software can not only extract all relevant information from your documents, but also understand them. This allows you to automate your processes and save both time & money, while improving your customer experience and employee satisfaction. Win-win.
Collect Feedback
To ensure that the changes made to workflows actually bring improvements, regular feedback from employees should be collected, as they often have valuable insights into how processes can be improved.
Why is feedback important?
- Direct experience: Employees work with the workflows daily and have a deep understanding of their strengths and weaknesses.
Acceptance of changes: Involving employees in the optimization process increases their acceptance of the changes introduced.
How can feedback be collected?
Use tools like Google Forms or SurveyMonkey to create simple and quick surveys. Ask not only about issues but also about potential solutions.
Optimize Workflow Steps
After gathering feedback and analyzing the workflows, it’s time to optimize the workflow steps. Automating repetitive tasks is one of the most effective ways to increase efficiency.
Why should tasks be automated?
- Repetitive tasks: Automate simple, repetitive activities that don’t require high complexity, such as data entry or sending confirmations.
- Error-prone steps: Tasks that frequently cause errors should be prioritized for automation to reduce error rates.
Using an IDP (Intelligent Document Processing) platform can fully automate many processes, minimizing errors and significantly reducing processing times.
Measure Results and Further Refinement
Optimizing workflows is not a one-time project. It’s a continuous process where regular measurement of results is essential. This helps ensure that the optimizations introduced remain successful in the long term.
What should you measure?
- Value Added Ratio (VAR): This metric measures how much of the time invested in a workflow actually contributes to value creation.
Throughput: How much output (e.g., processed documents) is generated by the workflow in a given time?
Regular monitoring of these metrics can help detect potential setbacks and continuously improve workflows.
Conclusion
Systematic analysis and visualization of existing processes quickly reveal where bottlenecks and inefficient workflows are hindering progress. Prioritizing key workflow steps ensures that resources are deployed where they have the greatest impact. Employee feedback provides valuable insights into daily challenges and helps identify opportunities for improvement. Automating repetitive tasks minimizes errors and frees up time for more value-added activities.
Modern technologies like Intelligent Document Processing (IDP) from ExB offer a comprehensive solution to automate document-based workflows. Especially in highly regulated and data-intensive industries like logistics and finance, IDP opens up new possibilities for making processes not only more efficient but also more secure. By combining Artificial Intelligence (AI), Machine Learning (ML), and other advanced technologies such as Optical Character Recognition (OCR), ExB enables companies to process documents in seconds, tasks that previously took days to complete.
In short, a well-thought-out and optimized workflow strategy, supported by modern automation technologies like the ExB platform, leads to sustainable process improvements, reduces operating costs, and increases productivity. Companies that continuously improve their workflows and leverage modern technologies create a long-term competitive advantage and remain flexible for future challenges.
