How to Improve Production Efficiency

How to Improve Production Efficiency : 

Aviation Sciences Technical Services Management How to Improve Production Efficiency Brent D. Yeargain, B.S. by--

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The equation for the measurement of productivity: Productivity = ---------- Input Output

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Outputs are the goods and services provided by industry. Inputs are the resources needed to provide those products and services. Constraints on Productivity are things that hold down the equation as a whole.

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This is a ratio formula, and in its simplest form the equation looks like this: Productivity = ---------- = 1 1 1 This formula can be applied using many data—e.g. engines/time, engines/labor, winglets/$ cost, etc.

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If more output were achieved on day 2 than day 1, the equation would look like this: Productivity = ---------- = 1.1 1 1.1 This is an increase in productivity.

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If less input was required on day 2 than day 1, the equation would look like this: Productivity = ---------- = 1.1 .9 1 This is an increase in productivity.

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There are 5 general ways to increase output: 1. Process improvement 2. Regulate work flow 3. Use more modern (efficient) equipment 4. Train employees 5. Motivate employees

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There are 6 general ways to decrease input: 1. Improve quality a. Increase reliability b. Minimize rework 2. Minimize waste 3. Minimize tardiness, absenteeism, turnover 4. Reduce the cost of labor a. Number of man-hours required b. Cost per man-hour 5. Reduce the cost of parts and supplies a. Number of parts and supplies required b. Cost per part and supply 6. Reduce overhead

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There are 5 general constraints to increasing productivity: 1. Government regulations 2. Union rules 3. Management limitations 4. Employee skills 5. Employee attitudes

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Cultivating competition and recognizing those individuals and groups that excel has proven to counter these types of problems. Important Note: Group norms that discourage individual and group accomplishments and social loafing where diffusion of responsibility by individuals in a group are the bane of industry.

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Sources: Essentials of Contemporary Management. 2nd. Jones, G.R. & George, J.M. (Yeargain Library). (McGraw-Hill Irwin. 2007).   Organizational Behavior: A Management Challenge. 2nd. Northcraft, G. & Neale, M. (Yeargain Library). (The Dryden Press. 1994). Strategic Management: creating competitive advantage.3rd. Dess, Lumpkin, Eisner. (Yeargain Library). (McGraw-Hill Irwin. 2007).   Supervision: Quality, Diversity, and Technology. 2nd. Certo, S.C. (Yeargain Library). (Irwin. 1997).

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The end Questions?