Measuring the Efficiency of Processes

B

Britman - 2012

#1
Hi, within our Quality Policy Statement I want to include the words "Through the use of efficient processes", however I need a simple method of demonstrating this "efficiency" within our business.

The business is electronics, from design to completed assemblies, the assemblies are hand soldered on small variable batches, setting up of an automatic system within production would not be efficient.

The total workforce is around 30 employees.

The measures I'm looking for need to be simple, and efficient in there collection.

The business has ISO9001 & ISO14001.

Thanks in advance.
 
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B

Benjamin28

#2
Typically you will have established measurable outputs of your processes during design and development. Measuring your efficiency would be a simple matter of comparing these output measurements against your objectives. Depending on your processes these can cover a wide range of items such as lead time, ppm nc, on time delivery, customer satisfaction, % rework/scrap...so on and so forth. :D
 

Randy

Super Moderator
#4
1st...define efficient

2nd...prove that you meet the definition

The above should be applied to each area or process that is effected.
 
B

Britman - 2012

#5
From the posts I have concluded:

 Use internal process metrics to achieve “a high output to input, with a minimum of waste, or unnecessary efforts”

Is this close to the mark?:thanx:

Thanks
 

Jim Wynne

Staff member
Admin
#6
Hi, within our Quality Policy Statement I want to include the words "Through the use of efficient processes", however I need a simple method of demonstrating this "efficiency" within our business.

The business is electronics, from design to completed assemblies, the assemblies are hand soldered on small variable batches, setting up of an automatic system within production would not be efficient.

The total workforce is around 30 employees.

The measures I'm looking for need to be simple, and efficient in there collection.

The business has ISO9001 & ISO14001.

Thanks in advance.
Instead of "efficient," say "efficacious." "Efficacy" refers to the ability of something (a design, a process, a product, etc.) to have the desired effect, or perform as intended. Your quality system defines how efficacy is achieved.
 

Randy

Super Moderator
#7
From the posts I have concluded:

 Use internal process metrics to achieve “a high output to input, with a minimum of waste, or unnecessary efforts”

Is this close to the mark?:thanx:

Thanks
Sounds good.

Does it suit your needs? If so, run with it.
 

Steve Prevette

Deming Disciple
Staff member
Super Moderator
#8
I prefer to use efficiency paired with effectiveness. Efficiency implies what portion of the input resources go to useful activity. Idle time, rework, scrap, waste are all detractors from efficiency.

Effectiveness relates to how the output meets form, fit, and function requirements.

Interestingly, I can be highly efficient at being ineffective (doing the wrong things right) and be highly inefficient while being effective.
 
R

ralphsulser

#9
I have seen a company that was efficient and effective and still lose money.
Track profit and if you are consistently meeting your targeted profit, or margins then that is what counts.
 

Randy

Super Moderator
#10
I think this is what our good friend was wanting...

efficiency: a measure of the success achieved in the performance of a task


He has to define it and he has to measure it according to what his KPI's or needs are.
 
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