Process Efficiency Improvement
Process Efficiency Improvement
Process Efficiency Improvement
The industrial revolution makes the world faster by discovering versatile useful products
or services. Industries are becoming agile to reach the customer with the shortest lead time and to
obtain a competitive business advantage. To get more profitability and growth in the market the
organizations are focusing on their efficiency. Because efficiency is one of the most important
performance indicators of an industry. The company with low efficiency is laggard in the
competitive market. The optimum level of efficiency reduces the cost of production of the
products or services. Nowadays, worldwide the nations are directly or indirectly dependent on
the economic contributions of industries, so it is crucial for the owners of the organizations to be
conscious regarding the proper tracking of the efficiency. As organizations are struggling for
some well-defined steps it’s possible to develop the efficiency percentage of the manufacturing
Initially, the owner of the organization can focus on diagnosing the existing scenario of
the industry. To diagnose the problems of the industry some scientific tools and techniques need
to be adopted along with the skilled employee. Without a skilled employee, the tools cannot be
operated properly. Recently, the ‘system simulation’ and ‘Lean Manufacturing’ techniques are
imitated properly to see how the system is running. For instance, by imitating the real-world
scenario using software the performance indicators can be analyzed. The throughput and the
bottleneck of the system along with the financial report can be observed through simulation. In
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this approach without a high investment, the decision-maker can analyze the system to solve
bottleneck points or problems, which are relevant to efficiency. On the other hand, to achieve a
product or service with shorter lead time and minimum cost lean manufacturing techniques are
applied. Lean manufacturing deals with the waste less production system. In reality, it is tough
to achieve zero waste from a system, but lean techniques try to obtain waste less production
process. Different cost-effective tools are implemented on the manufacturing floor to gain a
competitive advantage. For example, ‘value stream mapping’ and ‘Kanban’ are widely used for
reducing the processing time of a product. Using these two approaches the flow of goods and
services is streamlined among the desired locations. Thus, by adopting the scientific techniques
of simulation and lean, an industry can minimize the processing time of products or services,
After that, by optimizing the resources of the organizations the efficiency can be
improved. The resources that are directly engaged with efficiency improvement are man,
machines, materials, money, and information. Therefore, decision-makers have to apply some
methods for minimizing the consumption of resources. For instance, to reduce or to optimize the
manpower of the production line the line balancing technique can be practiced by the industry.
The line balancing is concerned with the layout design. During the layout design of a
manufacturing facility, the number of required manpower is declared. It is observed that in some
production or service floor the number of manpower is more, which increases the man-hour. On
the other hand, some manufacturing section produces low outputs, which hampers the throughput
rate. Both of the man-hour and unit production has a robust impact on efficiency. Therefore, to
get the optimum level of efficiency the necessity of line balancing is prominent. During line
balancing policy all the processing times are recorded in a work-study sheet. After recording the
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processing time the capacity of the workstation is calculated along with the manpower. In this
approach using the graph the lowest output point, as well as the idle man-hour of the employee,
is identified. By tracking the capacity and man-hour the workload is distributed properly among
the existing employee to obtain the required level of efficiency. Similarly, machines and
materials should be monitored in a real-time manner to get the highest volume of output that
drives efficiency a lot. Optimum utilization of machines should be ensured because a huge
amount of costs are associated with a machine. In the organizations due to the lack of
information machines remain idle or sometimes machines are hired. For example, if in a group of
the company the order is not properly loaded based on the capacity, the machines remain idle
(Grzechca, 2014). The policy makers can adopt some software like SAP and ERP to track the
uses of resources in a real-time manner. Therefore, to optimize the efficiency of the industry it is
obtain a benefit through efficiency improvement. Some motivation techniques can be applied to
achieve a high level of efficiency by reducing man-hour. For instance, a performance incentive
system can be launched to improve the productivity of the industry. In this approach, an
employee becomes motivated to do the work within the shortest possible time to improve self-
efficiency. Besides this, by improving the skill of the employee of the organization the efficiency
can be improved. The training center policy inside the industry is a vital approach to skill
development. Therefore, by establishing a training center the unskilled operator of a machine can
be transformed into a skilled one, and a skilled operator can improve the process of work that has
a direct impact on efficiency improvement. Finally, the top management of the industry is to be
concerned regarding the issues that are relevant to efficiency. The unused skill of the employee is
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to be identified by the management because it is a great loss for the organization. The
brainstorming session can be arranged by the authority to get new ideas for improvement. In this
session, all levels of employees can join together to share their views regarding a problem. By
obtaining different ideas and sharing the proper one the problem can be solved in an efficient
manner. Another important issue is the continuous improvement policy by which process value
efficiency can be improved. For example, using this approach the employee of the process or
machine can submit a structured format to the management for improving a process or machine.
Thus, incorporating some management philosophy the efficiency of the industry can be changed
maintain a good percentage of efficiency. The efficiency is directly related to the cost, and it
reduces the cost of production too. If an organization produces lots of product it does not mean
that it will be profitable. Therefore the owners of the organization are to be conscious about
efficiency. The decision-maker should not focus only on selling products or services. In addition
to this, the industry owner should emphasize the standard operating procedure that has robust
impacts on efficiency improvement. Moreover, the techniques for improving efficiency save
costs or extra investment of the organization. Finally, to get a competitive business advantage it
is essential to improve the efficiency of the organization by following the structured steps.
References
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1003.02530
25. doi:10.5437/08956308x5502011