Functions of operational efficiency
The following are the functions of the operational efficiency:
Ensuring optimum utilization of resources: Operational efficiency focuses on ensuring that all the resources are being utilized without any wastage.
To maintain the quality of the products: Quality is the basic need of each and every customer. So, another objective of the operational efficiency is to ensure the quality of the products and services, so that customer needs are being fulfilled.
To ensure timely delivery: Customers will be satisfied only when goods and services are delivered on time. So, the operation process includes this assurance so that goods are delivered on time, and customers remain satisfied with the company’s service. Thus, ensuring sound supply chain management.
Ways to improve operational efficiency
Have excellent understanding of business operations: It is vital to have complete understanding of operations for improving operational efficiency. All the data should be available regarding KPIs and operations.
Train and prioritize employees: Employees retention is essential for any successful business. Thus, investments should be made in employees in the form of trainings and other motivational schemes for employees.
Investment in technology: Investment in latest technology should be made to bring advancement in operations. Advancement in operations helps to eliminate wastage of resources.
Customer satisfaction and retention: Customer satisfaction results in customer retention. Timely delivery of goods and services, high quality products should be ensured for improving operational efficiency.
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