In our previous blog about Kaizen we told you how the Japanese philosophy can help increase your accounts payable department efficiency through applying the main 5 Kaizen principles. In this blog we’ll explain you the concept of waste, its negative impacts on the working process, productivity and try to give you several tips on how to avoid it.
Kaizen is based on making little changes on a regular basis: always improving productivity, safety and effectiveness while reducing waste. The concept of waste in Kaizen is defined as activity consuming resources (time, materials, money) but creating no value.
Wastes are the drivers of excess costs, delays and quality issues. The critical problem for management is not the one of knowing how to prevent a specific occurrence of waste. Instead, the critical problem is identifying the root cause of the waste and eliminating this cause.
Looking closer at a typical accounts payable department, we can identify several ordinary wastes declining the department’s performance efficiency. We can divide such wastes into the following categories: people waste, process waste, information waste and asset waste.