Profit is the ultimate KPI — but how do you know if every process truly contributes to it?
One simple, powerful tool I recommend is the Process Cost Analysis (PCA) or Cost-to-Serve approach.
Here’s how it works:
- Map your process from start to finish.
- Identify every cost driver (time, materials, labor, rework, delays).
- Quantify each activity’s contribution to revenue or customer value.
Then ask one key question:
“Does this step add measurable value or just cost?”
You’ll be surprised how many steps consume resources but add no profit.
If a process consistently loses money, it doesn’t matter how efficient, fast, or creative it looks — it does not work.
Start tracking profit per process, not just productivity per hour.
ContinuousImprovement #Lean #OperationsExcellence #Profitability #Leadership #ProcessImprovement


