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Modernising a business does not always begin with purchasing new equipment or adopting the latest digital technology.
For micro, small and medium-sized enterprises (MSMEs), particularly those in the agro-processing sector, it can start with something as simple as understanding how the business operates and identifying where improvements can be made.
This was the advice given by Technical Services Unit Manager at the Jamaica Business Development Corporation (JBDC), Colin Porter, as he encourages businesses to first examine their operations before investing in technology.
“Before you think about going digital and getting all the automated equipment and so on, first you need to map and understand your current operations from end to end,” Mr. Porter says during a recent JBDC ‘Virtual Biz Zone’.
He says this approach can help businesses to identify inefficiencies and make better decisions about where investments are needed.
Many MSMEs, Mr. Porter points out, continue to operate with outdated equipment and manual processes while facing rising operating costs and financial challenges.
However, he encourages them to first explore ways of improving efficiency with the resources they already have.
This involves examining every stage of the business, from receiving customer orders and purchasing raw materials to production, packaging, distribution and collecting payments.
To help enhance business operations, the Technical Services Unit Manager recommends value stream mapping, as one method which allows businesses to look closely at each step involved in producing and delivering a product.
This exercise, he says, “can help entrepreneurs to identify activities that do not add value and determine whether they can be reduced, improved or eliminated”.
Underscoring his point, Mr. Porter gives the example of an agro-processor who receives raw materials containing unusable items and must hire an additional worker to sort through them before production begins.
“Instead of simply absorbing the additional labour cost, the agro-processor should examine whether the unusable items can be removed by the supplier before the raw material is delivered,” he states.
The Technical Services Unit Manager also highlights bottleneck analysis as an important tool for improving productivity.
This involves identifying parts of the production process that slow down the entire operation and finding ways to use that time more effectively.
Using sauce production as an example, Mr. Porter notes that “if a product takes several hours to boil, employees can use that period to undertake other productive activities instead of waiting for the process to finish”.
He says the approach can help businesses to reduce downtime and increase output without necessarily requiring major investments.
Mr. Porter also encourages MSMEs to move from reactive to proactive management by using documented procedures, production data and continuous improvement practices to identify and address problems before they affect operations.
He further stresses the importance of standard operating procedures (SOPs), which provide clear instructions for completing tasks and help to maintain consistency among employees.
“While a lot of us know everything from start to end about how our businesses operate, we have to think about the other people in our systems who will need clear procedures to help minimise production errors and inconsistencies in quality, while making it easier to train staff and maintain efficiency,” Mr. Porter says.
Additionally, agro-processors are being encouraged to establish quality-control checkpoints, invest in staff training and maintain accurate records to support business decisions.
Mr. Porter says the same strategic approach should be applied to energy management.
While renewable energy is becoming increasingly attractive to businesses, he cautions against investing in solar power before understanding how energy is being used.
He recommends that businesses conduct energy audits, practise energy conservation and upgrade inefficient equipment before investing in renewable-energy systems.
“Energy has to be a strategic priority for you and your business,” he says, noting that “electricity can account for up to 25 per cent of production costs for some agro-processors,” Mr. Porter states.
The JBDC’s focus on strategic modernisation forms part of its wider efforts to strengthen the competitiveness and resilience of Jamaica’s agro-processing sector.
Source: JIS
