If desired, this documentation can be used to support an ISO 9000 style quality system. Re-think all procedures and systems that support the selected strategy and marketing focus. Question the necessity of each function. Develop and document the preferred operational systems. Develop and install all zero and low cost improvements that can be obtained as an interim solution.
Cost justify any identified capital improvements using the interim system as the base line.
Install any justified capital improvements. Rather than attempting to apply some nostrum to any activity that will have a significant influence on the life expectancy of the organization, managers must evaluate the drivers of each cost component identified during the flowcharting and using the drum beat of customer demand as the speed limit to establish the level of the capital investment, optimize those cost components which result in the largest net present value of the discounted cash flows. Because we are a service industry, many of us have allowed the shipping public to define our equipment requirements, and we in turn have been rewarded with far too little freight to make a profit. So, when listening to this drum beat, it is important to not add equipment to cover seasonal customer needs when the marginal revenue does not yield discounted cash flows great enough to meet or exceed the average weighted cost of capital. Rather than a formidable task that consumes many years of resources, development of many of these costs can be evolved from the flowcharts developed during the re-engineering activity.