What are the main tools used for improving operational efficiency?

Maintaining an orderly flow of material. One of the primary tools of the JIT (Just-In-Time) system. Kanban stands for Kan- card, Ban- signal. The essence of the Kanban concept is that a supplier, the warehouse or the manufacturer should deliver components only when they are needed so that there is no excess inventory.

Within this system, workstations located along production lines only produce or deliver desired components when they receive a card and an empty container, which indicates that more parts are needed in production..

Operational efficiency will be directly proportional to the availability of  efficient and  really skilled hands who are intelligent enough to think with the management and with the available freedom take, own right decisions to  execute the drawingboard plan. Below is an examle ,which  may please be read patiently.

There was a steel industry in one of the Metros.Say a 15 years back who were making a sales turnover of about 32 Crores  and the out put was of about 250-300 tonnes per month.They thought  it is ineffciently operated by the 400-500 personnels  and went for particular machine worth  of 8 crores in order to make the unit more efficiently operated one.But with in a period of 6 months time the unit started showing heavy lossese and management decided to close it for while after trying so many revival plans without touching the real  problem. One employee suggested a plan. that was as follows.

                                 He told all the junior level unskilled labourers to hold for some time and also told some of the top level (who were only doing singning work)  to not to come to the factory.He  suggested to purchase the semifinished articles from small industries  from out side and converted those articles by doing only some fine tuning  and started exporting those finished products which started fetching 40% margin and with in a span of say about 4years they not only wiped out the lossese , they have paid compensations to all those were asked to hold  for some time and all the outstanding cleared and those suppliers  who thought that  they were in bad bebt are feeling proud to have supplied to them.

 So apart from depending on all the paraphernalia , we should look into the aspect of having the right choice of personnels to handle the  operational situation when it seems going down even slightly ,so that  the planning (should have right planning)goes to action without interruption.

P.S.V.Sharma

For any Production line, there should exist a logical and as well as optimized process flow in which all the process are interconnected and interdependant. This will enhance the operational efficiency by producing only the required part at a given point of time.

Moreover single piece flow (though difficult for short cycle time jobs) would be a best concept to increase the operational efficiency. Because it would bring the problem to the surface and hence provides proper space to rectify it.

I think the focus should be on eliminating waste.

Kanban is the right way to go if you are not cash rich , and need to control your inventory , since every rupee which is in inventory , is a rupee which is blocked.

However , when there is waste , it is not something which is blocked , it is something which is gone for ever.

Thus waste has a much greater impact on your profits than inventory.

Of course , in the final analysis , inventory is also a form of waste , but when you do an ABC analysis of your processes , tackle the waste first , then go in for other areas.

In order to increase the operational efficiency, we need to understand the key result areas which will improve the operational efficiency and in these KRAs, we need to have KPI in each of the Key Result Areas which will increase their productivity. When the KPIs are effectively monitored using various project control tools and target is set stringently, then over a period of time, this tool effectively improves efficiency.

Ten step Journey to success.

Improving operational efficiecy is a complex process and involves various steps along the journey.

The first step : To create a management thinking:
People are the centre for any change process. Investing in them leads to a long lasting effect. Initiation of thinking process at the TOP management is important.

The second step: Setting up a vision for the organisation

Vision statements are key for aligning of personnel and actions.

The third step: Creation of positive environment:

Positive environment generates fertile ground for the change process. This is achieved through structured interventions at all levels and cultivating and promoting positive behaviours in people.

The fourth step: Identifying wastes and prioritising:

Wastes are all around us. Some are tangible and some are in-tangible. We need to take a hard look at all wastes and list them. It can then be prioritised for elimination based on impact.

The fifth step : Training of personnel in the concepts of Problem solving and elimination of wastes.

The sixth step : Identification and implementation of correct tool for elimination of each waste

Each and every waste requires a different approach for elimination. Some tools and approach are Kanban, Lean, Six sigma, 7 QC tools, Kaizen, 8D, TPM,FMEA, etc. Select the best method which is suitable for the problem. Selection of method is critcal for getting success.

The seventh Step : Celebrate success

Celebrating success acts a strong motivator and builds morale in the team.

The eight step: Record and deploy learnings from success in other areas.

Each success provides great opportunity of learning. The ultimate success is achieved when there is a quick horizontal deplyment of the learnings across the organisation for achieving cutting edge in performance.

The nineth step : Innovate as you progress

Out-of box solutions are the key to success and sustaining competitive edge in the business today.

The tenth step: Make it a way of life in the organisation

Capture all improvements under a formal process. Waste elimination and consistent improvement of operational efficiency becomes part of the habit of each individual in the organisation. He also implements the approach in his personal life and the organisation has an informal forum where people can share their personal successes amongst their colleagues.

good operation management  is most important for for improving operational efficiency.main tools are skill,reducing non productive time,proper material handling,timely inspection,testing,good control and monitering and also good relations

To improve operational efficiency of any machine or system, it should not be neglect the minute faults & it should be corrected immediately as soon as identified otherwise it may cause for reduction of efficiency.

The operational efficiency is dependent on demands.The demand is dependent on consumption.The consumption is the result of quality , availability and durability.The OE is the mirror image of accurate projection.