| Managers generally lack an objective
means of discovering where they stand on the efficiency
scale. The processes of production may be well planned
with a well trained work force. But considerable sums
of money may be lost if efficiencies are not what they
should be. Consider this hypothetical but realistic example:
Production during a 5 day week of 2 x 8 hour shifts
for 245 days (allowing three weeks shut down) with nominal
production speed of 400 products/minute at designed
line efficiency of 85% gives an expected annual throughput
of 80 million products.
Question:
How many products lost if packing line efficiency drops
by 5%?
Answer:
4.7 million.
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