OE | Productivity
Operational Excellence | Productivity
In our most recent blog we look at the thirteenth (of 15) main KPA that forms part of an Operational Excellence programme - Productivity.
Productivity
Productivity is one of the main concerns of business management and engineering. Practically all companies have established procedures for collecting, analysing, and reporting productivity data.
Simple Changes
Many companies have formal programmes for improving productivity via existing control systems. Companies are constantly looking for ways to improve quality, reduce downtime, and increase inputs of labour, materials, energy and purchased services. Simple changes to operating methods or processes can increase productivity. The biggest gains often come from adopting new technologies or concepts, which requires capital expenditure for new equipment, computers or software.
Assessing Productivity
When assessing your productivity, the cycle time of product through the process needs to be defined and recognised, as does the cost to produce a part and the cost of downtime. Lost opportunities need to be recorded. Mean Time Between Failures (MTBF), Mean Down Time (MDT) and Mean Time to Repair (MTTR) need to be monitored. The Overall Equipment Effectiveness (OEE) needs to be calculated by the production team. Measuring OEE is a manufacturing best practice. By measuring OEE and the underlying losses, you will gain important insights on how to systematically improve your manufacturing process. OEE is the single best metric for identifying losses, benchmarking progress, and improving the productivity of manufacturing equipment (i.e. eliminating waste).
Improve Competitiveness
Productivity growth is important to any organisation because increased income means the company can meet its obligations to customers, suppliers, staff, and shareholders while remaining competitive or even improve its competitiveness in the marketplace.
If you are looking to transform your productivity to improve quality and reduce downtime, then you may need help in establishing robust processes and procedures.
The first step to achieving this is by completing an Operational Excellence programme.
eBook - First Steps to Operational Excellence
To read an overview of all 15 KPAs, download our eBook and find out what the first steps are to achieve Operational Excellence, and how you can take them…
