duecesevenOS
10th August 2006, 05:26 PM
As I understand it apparent efficiency is increasing the capability of the operators or equipment without decreasing the work force or having a higher demand. True increased efficiency comes from either eliminating workers, eliminating excess equipment, or increasing product SOLD.
Asutherland brought up this distinction in another thread and I would like to see some more discussion on it. One of the firm thoughts in Toyota's lean model is the idea of no layoffs. So if you keep increasing efficiency and do not decrease your labor force, how does the increased apparent efficiency effect your profit margins. No amount of increase in efficiency for the labor force will ever decrease costs unless there is also an necessity for increased capacity (more customer demand)
Obviously, there are more benefits to the Toyota Production System then just the increased throughput of a leaner factory. We've been implementing TPS pretty extensively on my fabrication line. I know how much more efficient my workers are now and have even done the calculation of how much less walking time they waste and so on. The changes are obvious and they are obviously beneficial.
But they do NOT increase the true efficiency of my area. We are not going to layoff any employees and our customer demand is not increasing as a result of this product. The efficiency of the worker HAS increased however and now they have the ability to do other things. Keeping equipment more operational and in better condition because the workers now have time to keep things clean.
I guess what I'm trying to get at is, I think apparent efficiency improvement has a lot of benefits. Do you guys agree? Would you report apparent efficiency increases to your management/supervision? Have any of you ever tried to quantify the benefits of having workers that have more time to do maintenance, inspections, process control checks, etc, etc.
Asutherland brought up this distinction in another thread and I would like to see some more discussion on it. One of the firm thoughts in Toyota's lean model is the idea of no layoffs. So if you keep increasing efficiency and do not decrease your labor force, how does the increased apparent efficiency effect your profit margins. No amount of increase in efficiency for the labor force will ever decrease costs unless there is also an necessity for increased capacity (more customer demand)
Obviously, there are more benefits to the Toyota Production System then just the increased throughput of a leaner factory. We've been implementing TPS pretty extensively on my fabrication line. I know how much more efficient my workers are now and have even done the calculation of how much less walking time they waste and so on. The changes are obvious and they are obviously beneficial.
But they do NOT increase the true efficiency of my area. We are not going to layoff any employees and our customer demand is not increasing as a result of this product. The efficiency of the worker HAS increased however and now they have the ability to do other things. Keeping equipment more operational and in better condition because the workers now have time to keep things clean.
I guess what I'm trying to get at is, I think apparent efficiency improvement has a lot of benefits. Do you guys agree? Would you report apparent efficiency increases to your management/supervision? Have any of you ever tried to quantify the benefits of having workers that have more time to do maintenance, inspections, process control checks, etc, etc.



