Operational Excellence is not a new trend that has manifested today’s manufacturing industry. Traditionally, it has helped organizations in reducing the operational risks, lower the incurring operational costs and at the same time increases the revenues thus helping the operationally excellent company pushing its competitor out of business. Every operational excellence quest is bound to face one or the other obstacles that will ultimately hamper the growth and the productivity of the organization.
DOWNTIME is the infamous leader, or you can say a package of eight viruses that inhibits the operational excellence journey of any organization and risks it for failure and devastation. Below is a detailed guide about all the eight viruses of DOWNTIME.
Defects are the end product of process flaws that infects the results on the production floor. If the process is correct, defects can be avoided. It takes more time, resources and money to get rid of defects as it not only consumes time and adds redundancy, it also reduces the value of the product.
Overproduction is one of the most common types of wastes that manifests in any organization. It is mother of all wastes/ inefficiencies which happens when an organization keeps producing and ultimately produces more than what the immediate next customer demands. It results in increased manufacturing cost, inventory holding costs and increased labor costs. It also adds waste when it comes to human resources.
Waiting refers to any kind of waiting relating to man, machine or material waiting for the other! Out of several reasons, such waiting times can occur due to unscheduled stops like malfunctioning of equipment, lack of right people or unavailability of material. It increases the work in process at the downstream end as well as indicates towards inefficient controls and systems.
Human resource is the backbone of the organization who keeps the body steady and firm. Waste of non-utilized human potential or talent occurs when a personnel’s potential is not used properly or efficiently. It not only adds additional value of the human labor but also leads to less motivated workforce.
Muda of Transportation can not be eliminated. However, any additional movement of material leads to waste of transportation, incurring additional costs to the organization which is nothing but a kind waste that hinders operational excellence.
Excess inventory is capital blocked. It not only consumes captital but requires more floor space, handling and has chances of obsolescence, hence costs more to the organization. Operational excellence and LEAN manufacturing transforms the system in a manner that the workforce produces only when it is required. The excess inventory also creates trouble for the organization to get the product in using up if the demand dramatically reduces from the market.
Motion waste refers to the excess movement of the human workforce across the floor that increases the chances of injuries and accidents at the workplace. Such kind of motion waste can impact the productivity of the labor force and ultimately organization. The recovering time taken by the employee also results in delays and more waiting time.
Such kind of wastes is a result of poor maintenance of the organization’s process and systems. It increases the costs incurred, delayed processes, incorrect process parameters, etc which might impact the overall efficiency of the manufacturing processes. It also restricts the process from functioning at the optimum levels.
Operational excellence is the turning point in any organization’s transformation journey. It is really important for any organization to get rid of these viruses from their process in order to have optimum results of their transformation journey.
The fundamental still stays valid in the era of Smart Manufacturing or Manufacturing 4.0 that – Anything for which the customer is not willing to pay for, is a waste, inefficiency, Muda – a virus!
Team Faber has helped many organizations to efficiently executing operational excellence projects. For more information contact us at firstname.lastname@example.org.
Written & Compiled By Faber Kishlay & Faber Mayuri.