09 March, 2014

3-3-6 improving systems: Automation

One of the best ways to reduce friction is automation

-          Human factor are great and essential for certain professions and businesses, but they have a lot of disadvantages:
-          They make a lot of errors
-          They are slow
-          Their work quality is not consistent
-          Their overall quality over time gets worse with time and exhaustion …etc.
Meanwhile, automation overcomes all these mistakes, but it has one restriction >> you must have a pattern, a system (process) to apply "automation". If you have to make different decisions every time in the process; you can't apply "automation"


So, each time you think of reducing "friction", think of "automation"  

06 March, 2014

3-3-5 improving systems: Friction

For any system to continue running you have to keep adding input into it. Without input the system slows down with time till it finally stops.

Why we need to add input all the time? For the same reason we have to hit the ball more than once to across the field to reach the goal: Friction

Friction is another universal concept that applies to the business like anything around us

Most of the time friction is a bad thing and hinders you from reaching your goal, so you have to do 2 things

1-     And the most important thing: is to get rid of this friction as possible as you can. Pave the way to your goal so that you spend less energy, time, power to get to your goal
2-     Keep pushing and adding input, increase the power of your shots to get faster and to add more inertia to every input before it loses its effectiveness

-          The more energy you have to expend to do your work, the less efficient is the system
-          The less energy, time and the better design of the system; the more efficient the system is
Lessen friction is most important with things you do on a regular basis in the system

Notice that friction is not always a bad thing. Think of it like a tool; it can be used to make some good to your business. How?

-          Confirmation and tasks review are made to decrease errors
-          A lot of papers and operations to go through when returning goods
-          Processes you through when you apply to a scholarship or a good job- are used to decrease and filter out some of the enormous number of applicants

Always keep in your mind the friction theory, and use it in your favor all the time to either slow down process or removing it to make things go smoother and faster with less energy and time 

3-3-4 improving systems:Diminishing effectiveness

Imagine that you have 1$ …then you earn another one … that would be great looking at the initial input you have ...but with time when you have like 600 dollars and you keep increasing them by one dollar; that wouldn't give you the same feeling

This is called "Diminishing Returns": with time and incremental increase in the output, the input no longer has the same effect as before

 You have to understand this universal concept; that everything even the 100% perfect static system will eventually come to satisfaction and the challenge is to be responding to the ever-changing environment and to figure out new ways to keep gaining money 


And you will use this concept a lot, everything lose its effectiveness with time