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Process Profitability Checklist


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Process Profitability Checklist Process Profitability Checklist is created for managers who wish to ensure the best possible level of profitability for their business processes – this can be done via continuous process optimization, control and management (improvement, trainings, etc) – all these is explained in this checklist.

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1. Process Optimization (to secure profitability):

  • Simulate processes to develop the alternate scenarios under variable conditions within the same process domain – anticipation of alternatives will enable you to secure profits;
  • Optimize process on-the-fly: monitor process run and shut down steps or systems which are not demanded throughout current scenario – lead the workflow by appropriate schema;
  • Develop a methodology for managing abnormal situations or technological overloads – the goal here is to prevent severe process upsets due to abnormal conditions;
  • Consider avoiding certain impactful risks by reducing or re-arranging riskful steps or operations – if some threat with potentially high loses cannot be avoided, then consider insurance;
  • Inspect all process risks and make sure they all have acceptable level of probability and severity – consider whether all of them are controlled by appropriate mitigation technology;

2. Process Control (to monitor profitability):

  • Establish process control that has costs-focused tools: control delivery of supply into operations, measure hidden loses, such as protractions, control costs incurred by spoilage and overhead, etc;
  • Consider intangible benefits earned by the process: assure the process works for strengthening of your corporate image and reputation, increase of customer satisfaction, etc – these aspects, if failed, can cause serious profit loss;
  • Assign costs and revenues to particular segments of the process to obtain insights into how each step of the process contributes into the final outcome (how it incurs cost and generates revenue);
  • Supervise activities of process operators, and measure efficiency and impact of their interaction with the process – monitor if they do everything right to not create additional costs;
  • Set certain norms for expenses upon every process segment and separate operations (where this makes sense), and continuously monitor actual results against the planned ones;

3. Process Management (to ensure profitability):

  • Carry out continuous process improvements or consider process reengineering (for more see this Process Redesign Checklist) in order to boost up results by the process key operational metrics;
  • Seek for careful and accurate utilization of materials during the process performance in order to prevent their wasting. If your process mainly deals with information, then increase security level to prevent data leaks at critical points;
  • Implement energy-saving options and refine all operations to enable them dealing with materials and objects in the most efficient manner – elevate practical methods to increase profits;
  • Provide trainings to the process operators to ensure their knowledge and skills complying with the growing level of process technology, quality improvements, and profitability requirements;
  • Always plan project outcomes (products) in terms of their profitability......

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