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Name: Mahathir Mohammad Bappy

Efficiency Improvement of an Industry

The industrial revolution makes the world faster by discovering versatile useful products

or services. Industries are becoming agile to reach the customer with the shortest lead time and to

obtain a competitive business advantage. To get more profitability and growth in the market the

organizations are focusing on their efficiency. Because efficiency is one of the most important

performance indicators of an industry. The company with low efficiency is laggard in the

competitive market. The optimum level of efficiency reduces the cost of production of the

products or services. Nowadays, worldwide the nations are directly or indirectly dependent on

the economic contributions of industries, so it is crucial for the owners of the organizations to be

conscious regarding the proper tracking of the efficiency. As organizations are struggling for

efficiency development, continuous research is going on by scientists. However, by maintaining

some well-defined steps it’s possible to develop the efficiency percentage of the manufacturing

and service industries in the competitive business environment.

Initially, the owner of the organization can focus on diagnosing the existing scenario of

the industry. To diagnose the problems of the industry some scientific tools and techniques need

to be adopted along with the skilled employee. Without a skilled employee, the tools cannot be

operated properly. Recently, the ‘system simulation’ and ‘Lean Manufacturing’ techniques are

using for the improvement of efficiency. In the simulation, a system of an organization is

imitated properly to see how the system is running. For instance, by imitating the real-world

scenario using software the performance indicators can be analyzed. The throughput and the

bottleneck of the system along with the financial report can be observed through simulation. In
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this approach without a high investment, the decision-maker can analyze the system to solve

bottleneck points or problems, which are relevant to efficiency. On the other hand, to achieve a

product or service with shorter lead time and minimum cost lean manufacturing techniques are

applied. Lean manufacturing deals with the waste less production system. In reality, it is tough

to achieve zero waste from a system, but lean techniques try to obtain waste less production

process. Different cost-effective tools are implemented on the manufacturing floor to gain a

competitive advantage. For example, ‘value stream mapping’ and ‘Kanban’ are widely used for

reducing the processing time of a product. Using these two approaches the flow of goods and

services is streamlined among the desired locations. Thus, by adopting the scientific techniques

of simulation and lean, an industry can minimize the processing time of products or services,

which has a direct impact on improving efficiency (Kovács., 2018).

After that, by optimizing the resources of the organizations the efficiency can be

improved. The resources that are directly engaged with efficiency improvement are man,

machines, materials, money, and information. Therefore, decision-makers have to apply some

methods for minimizing the consumption of resources. For instance, to reduce or to optimize the

manpower of the production line the line balancing technique can be practiced by the industry.

The line balancing is concerned with the layout design. During the layout design of a

manufacturing facility, the number of required manpower is declared. It is observed that in some

production or service floor the number of manpower is more, which increases the man-hour. On

the other hand, some manufacturing section produces low outputs, which hampers the throughput

rate. Both of the man-hour and unit production has a robust impact on efficiency. Therefore, to

get the optimum level of efficiency the necessity of line balancing is prominent. During line

balancing policy all the processing times are recorded in a work-study sheet. After recording the
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processing time the capacity of the workstation is calculated along with the manpower. In this

approach using the graph the lowest output point, as well as the idle man-hour of the employee,

is identified. By tracking the capacity and man-hour the workload is distributed properly among

the existing employee to obtain the required level of efficiency. Similarly, machines and

materials should be monitored in a real-time manner to get the highest volume of output that

drives efficiency a lot. Optimum utilization of machines should be ensured because a huge

amount of costs are associated with a machine. In the organizations due to the lack of

information machines remain idle or sometimes machines are hired. For example, if in a group of

the company the order is not properly loaded based on the capacity, the machines remain idle

(Grzechca, 2014). The policy makers can adopt some software like SAP and ERP to track the

uses of resources in a real-time manner. Therefore, to optimize the efficiency of the industry it is

vital to be aligned with some modern philosophy.

Meanwhile, the thinking of engineering management can be adopted by the industry to

obtain a benefit through efficiency improvement. Some motivation techniques can be applied to

achieve a high level of efficiency by reducing man-hour. For instance, a performance incentive

system can be launched to improve the productivity of the industry. In this approach, an

employee becomes motivated to do the work within the shortest possible time to improve self-

efficiency. Besides this, by improving the skill of the employee of the organization the efficiency

can be improved. The training center policy inside the industry is a vital approach to skill

development. Therefore, by establishing a training center the unskilled operator of a machine can

be transformed into a skilled one, and a skilled operator can improve the process of work that has

a direct impact on efficiency improvement. Finally, the top management of the industry is to be

concerned regarding the issues that are relevant to efficiency. The unused skill of the employee is
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to be identified by the management because it is a great loss for the organization. The

brainstorming session can be arranged by the authority to get new ideas for improvement. In this

session, all levels of employees can join together to share their views regarding a problem. By

obtaining different ideas and sharing the proper one the problem can be solved in an efficient

manner. Another important issue is the continuous improvement policy by which process value

efficiency can be improved. For example, using this approach the employee of the process or

machine can submit a structured format to the management for improving a process or machine.

Thus, incorporating some management philosophy the efficiency of the industry can be changed

from one level to another level (Boehm, 2012).

For any sort of organization to obtain overall equipment effectiveness it is essential to

maintain a good percentage of efficiency. The efficiency is directly related to the cost, and it

reduces the cost of production too. If an organization produces lots of product it does not mean

that it will be profitable. Therefore the owners of the organization are to be conscious about

efficiency. The decision-maker should not focus only on selling products or services. In addition

to this, the industry owner should emphasize the standard operating procedure that has robust

impacts on efficiency improvement. Moreover, the techniques for improving efficiency save

costs or extra investment of the organization. Finally, to get a competitive business advantage it

is essential to improve the efficiency of the organization by following the structured steps.

References
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Kovács, G. (2018). Methods for Efficiency Improvement of Production and Logistic Processes.

Research Papers Faculty of Materials Science and Technology Slovak University of

Technology, 26(42), 55–61. doi:10.2478/rput-2018-0006 

Grzechca, W. (2014). Assembly Line Balancing Problem with Reduced Number of

Workstations. IFAC Proceedings Volumes, 47(3), 6180–6185. doi:10.3182/20140824-6-za-

1003.02530 

Boehm, E. (2012). Improving Efficiency and Effectiveness in an Automotive R&D

Organization. Research-Technology Management, 55(2), 18–

25. doi:10.5437/08956308x5502011