Process Optimization: 7 Methods That Immediately Cut Costs

Process optimization sounds like a consulting buzzword. But it's not. It's the fastest way to make your company more efficient – without new hires, without major investments. In this article, we show you 7 proven methods you can apply immediately.

What is Process Optimization?

Process optimization means: analyzing and improving existing workflows.

The goal:

• Less time for the same task
• Fewer errors in the workflow
• Lower costs for the same output
• Better quality for the customer

The difference from automation: Process optimization comes FIRST. Automating a bad process just means producing bad results faster.

The 7 Most Effective Methods

1. Value Stream Mapping

What is it?

You map out the complete process – every step, every wait time, every handoff point. Then you distinguish:

• Value-adding: The customer would pay for it
• Necessary but not value-adding: Must be done, but no direct value
• Waste: Neither value nor necessary

How to do it:

Document process from start to finish

Measure times (processing time vs. wait time)

Categorize each step

Eliminate waste

Example: Quote Creation Insights:

• 26h total lead time
• Only 32min actual work
• 10min pure waste (CRM search)
• 26h wait time = 97% of the time

Quick Win: Automate CRM integration, speed up approval process

2. The 5-Why Method

What is it?

For every problem, ask "Why?" 5 times – until you get to the root cause.

How to do it:

Problem: Customers are complaining about late deliveries.

Why are deliveries late?

- Because shipping happens in the afternoon.

Why does shipping happen in the afternoon?

- Because picking takes so long.

Why does picking take so long?

- Because items have to be searched for in the warehouse.

Why do items need to be searched for?

- Because storage locations aren't maintained in the system.

Why aren't storage locations maintained?

- Because goods receipt doesn't include booking.

Solution: Improve goods receipt process – not extend shipping times.

3. PDCA Cycle (Plan-Do-Check-Act)

What is it?

A continuous improvement cycle in 4 steps.

How to do it: Plan:

• Identify problem
• Collect data
• Develop solution
• Define success criteria

Do:

• Test solution on a small scale
• Pilot with one department/team
• Document what happens

Check:

• Measure results
• Compare with expectations
• What worked? What didn't?

Act:

• If successful: Roll out broadly
• If unsuccessful: Adjust and restart
• Establish standards

Example:

Plan: Support tickets should be answered in 4h instead of 24h
      → Solution: Templates for common inquiries

Do: Pilot with 3 support staff, 2 weeks

Check: Average response time now 6h
       → Better, but goal not reached
       → Insight: 40% of inquiries don't fit any template

Act: Expand templates, introduce AI categorization
     → Start new PDCA cycle

4. Bottleneck Analysis (Theory of Constraints)

What is it?

Every process is only as fast as its slowest point. Find and eliminate the bottleneck.

How to do it:

Identify: Where does it back up?

Exploit: Maximize bottleneck utilization

Subordinate: Adjust everything else to the bottleneck

Elevate: Increase bottleneck capacity

Repeat: Find the next bottleneck

Example: Customer Service

Incoming requests: 100/day
→ Level-1 Support: 120/day capacity (ok)
→ Level-2 Support: 40/day capacity ← BOTTLENECK
→ Developers: 80/day capacity (ok)

Not the solution: Hire more Level-1 support The solution: Relieve Level-2 (training, tools, redistribution)

5. Standardization (SOPs)

What is it?

Standard Operating Procedures – everyone does the same process the same (best) way.

Why is it important?

• No dependency on individual people
• Faster onboarding
• Measurable improvement possible
• Foundation for automation

How to do it:

Observe your best employee

Document their workflow

Refine with the team

Train everyone

Update regularly

SOP Template:

PROCESS: [Name]
VERSION: [1.0]
LAST UPDATE: [Date]
OWNER: [Name]

OBJECTIVE:
What should be achieved at the end?

PREREQUISITES:
What must be done beforehand?

STEPS:
[Specific instruction]
   → System: [Which tool]
   → Screenshot/example if needed

[Specific instruction]
   ...

EXCEPTIONS:
If X, then Y instead of Z.

SUCCESS CRITERIA:
How do I know it's done correctly?

COMMON ERRORS:
Error 1: How to avoid
Error 2: How to avoid

6. Eliminating the 8 Wastes (Lean)

What is it?

Lean Manufacturing identifies 8 types of waste. These can be applied to any office process.

Quick-Check for Your Process:

7. Automation (as the Last Step)

What is it?

Only after you've optimized do you automate the improved process.

Why last?

• Automated garbage = faster garbage
• First understand, then automate
• An optimized process is easier to automate

What to automate:

Process Optimization in Practice: An Example

Initial Situation: Travel Expense Reporting

Current process:

Employee collects receipts (physical)

Employee fills out Excel form

Employee prints and signs

Employee submits to supervisor

Supervisor reviews and signs

Document goes to accounting

Accounting checks receipts individually

Accounting enters into system

Finance approval

Payment

Problems:

• Lead time: 3 weeks
• Error rate: 40% (wrong amounts, missing receipts)
• Time spent: 45 minutes per report

After Optimization:

~~Employee collects receipts (physical)~~ → App photographs receipts

~~Employee fills out Excel form~~ → App extracts data via OCR

~~Employee prints and signs~~ → Digital confirmation

~~Employee submits to supervisor~~ → Automatic routing

Supervisor reviews and approves (digital, 2 clicks)

~~Document goes to accounting~~ → Automatic

~~Accounting checks receipts individually~~ → AI pre-check, only exceptions manual

~~Accounting enters into system~~ → Automatic import

~~Finance approval~~ → Rule-based automatic up to threshold

Payment (automatic at month end)

Result:

• Lead time: 3 days
• Error rate: 5%
• Time spent: 5 minutes per report

Quick Wins: Start Tomorrow

Implementable Today:

Create email templates for common responses

Remove one approval level where possible

Create checklist for error-prone processes

Identify duplicate work and eliminate it

This Week:

Document one process (current state)

Measure wait times in your main process

Ask the team: "What's most frustrating?"

Identify one bottleneck and address it

This Month:

Value stream mapping for top 3 processes

Create SOPs for critical workflows

Identify automation potential

Start pilot project for one optimized process

Common Mistakes in Process Optimization

1. Too Much at Once

Better: One process, one improvement, then next step.

2. Optimizing Without Data

Better: First measure, then improve, then measure again.

3. Asking the Wrong People

Better: Talk to the people doing the work, not just management.

4. Seeking Solutions Before Understanding the Problem

Better: 5-Why method, find root cause.

5. Treating Optimization as a One-Time Project

Better: Continuous improvement, PDCA as routine.

Conclusion

Process optimization is not rocket science. It's systematic observation, asking questions, and improving. The biggest gains are often in the obvious:

• Eliminate wait times
• Avoid duplicate work
• Establish standards
• Only then automate

Start with one process. Today. Not perfect, but start.

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Want to systematically optimize your processes? We help you identify and implement the biggest levers – from quick wins to full automation.