Maximizing Business Performance: Identifying Waste and Key Metrics

Posted on Jan 6, 2026 in Other subjects

Categorizing Organizational Waste (Muda)

Identifying Waste Across People, Process, Information, and Assets

Type	Subtype	Definition
People	Goal Misalignment	Tasks not aligned with organizational goals.
	Skills Misalignment	Employees working below their skill level.
	Time Waste (Idle Workers)	Workers waiting for instructions, materials, or tools.
	Lack of Training	Insufficient training causing inefficiencies.
Process	Overprocessing	Adding unnecessary steps to a process.
	Overproduction	Producing more than needed or earlier than required.
	Waiting	Idle time due to delays in workflows.
	Motion	Unnecessary physical movement in processes.
	Transportation	Moving goods, materials, or equipment unnecessarily.
	Rework (Defects)	Correcting errors in processes, causing delays.
	Lack of Standardization	Variations in processes leading to inconsistencies.
	Bottlenecks	Slow points in a process that cause delays.
Information	Inaccurate Information	Incorrect or incomplete data causing rework.
	Information Overload	Excessive or irrelevant information shared unnecessarily.
	Information Duplication	Handling the same information repeatedly or redundantly.
	Information Delay	Delayed access to crucial information.
	Information Mismatch	Misaligned or contradictory data causing inefficiencies.
	Lack of Communication	Poor communication leading to confusion or errors.
	Data Loss	Loss of important data due to inadequate storage practices.
Asset	Underutilized Assets	Equipment or facilities not used to their full potential.
	Downtime	Idle equipment due to breakdowns or delays.
	Excess Inventory	Holding more stock than required, wasting space and capital.
	Poor Space Utilization	Inefficient use of physical spaces like offices or warehouses.
	Deterioration (Perishables)	Loss of goods due to spoilage or expiration.
	Unused Technology Features	Paying for tools or systems that are not utilized.
	Financial Waste	Mismanagement of budgets or unnecessary expenses.
	Asset Duplication	Redundant or unnecessary assets in use.

Performance Measurement: Strategic Objectives and KPIs

Balanced Scorecard Metrics for Organizational Success

Perspective	Strategic Objectives	Key Performance Indicators (KPIs)
Financial	Increase the Number of Financial Donations	Percentage of Financial Donations Received
Financial	Optimize Expenses	Cost of Partnerships and Activities (€)
Customer	Customer Loyalty and Satisfaction	Customer Satisfaction Rating and Customer Retention Rate
Customer	Community Engagement	Number of Community Events Hosted
Internal Processes	Event Success Rate	Percentage of Events Executed to the Highest Standard
Internal Processes	Compliance Incidents	Number of Health and Safety Incidents
Learning & Growth	Build Culture and Encourage Innovation	Percentage of Activities Covered in Local News or Cultural Sources
Learning & Growth	Develop High-Performing Employees	Employee Satisfaction Percentage

Foundational Tools for Quality and Efficiency

The 5S Methodology for Workplace Organization

The 5S methodology is a system for organizing workspaces to improve efficiency and reduce waste:

Seiri (Sort): Classify and separate unnecessary items from the work area.
Seiton (Set in Order): Ensure everything has a designated place and is easily accessible.
Seiso (Shine): Clean and inspect the workspace regularly for visual control and maintenance.
Seiketsu (Standardize): Create procedures and visual controls to maintain the first three steps consistently.
Shitsuke (Sustain): Maintain the system over time through training, discipline, and regular audits.

Poka-Yoke: Mistake-Proofing Systems

Poka-Yoke, or “mistake-proofing,” is a method designed to prevent errors from occurring, or to make them easy to detect and correct before causing defects. This technique ensures that mistakes do not result in a loss of quality, significantly improving overall product or process integrity.