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There are many ways to waste money on a level that will make your organization much less profitable than it should be. There are wastes that are necessary, things that have to be. These wastes are necessary because you can not run a company without them, but they have no direct affect on the actual product that is being made and shipped to the customer. These are things that are clerical in nature, office type expenditures that cannot be avoided.It's a wise idea to even look at these when evaluating costs on expenses because there is always going to room for improvement in any department, no matter if it's in the office, research and development or on the factory floor. You are not looking to just cut costs; you're looking for value in what you're doing. You are looking for areas that are taking up too many of your resources and not showing enough production for it.But even though these wastes are necessary in the daily operations and running of the business, there are still ways to make improvements if you look close enough. Things that waste time, such as overly complicated paperwork, or other things like too many steps to complete a task or not having a systematic way to complete certain procedures are all going to affect productivity. There should always be standard operating procedures, no matter how small the task is or where that task takes place.Even in an office setting that does not necessarily affect the line of production, you are going to want everyone doing things the exact same way. That way there are no questions about procedure and if there is a problem somewhere along the line, it's going to be easy to pinpoint what went wrong and verify if the procedure was followed or if there was a deviation in the method.If there wasn't, then you are going to know that something is wrong with the product or the system, if there was, then you are going to know that there may perhaps need to be more training or that the employee did not know the correct procedures. If there are steps to follow, then the likelihood of something going wrong, of being done incorrectly is greatly diminished and there is a way to trace the problem back to its source. These are ways to avoid unnecessary delays and problems before they even occur, before they get out of hand.
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