Production Inefficiencies
Management often think that production inefficiencies are the fault of the production staff. In reality, they may be caused by other departments, senior managers, etc.​ A way to identify the true root cause of inefficiencies is to formally measure a number of areas that may impact production’s ability to deliver the expected efficiency and performance.​
Examples include:​
Production plan & production schedule stability as set at an agreed point in time​
Lead time violations​
Lot size violations​
Production sequences as they relate to efficiency expectations​
Product costing approach not aligned with physical production realities​
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You can tell if this is a problem as you will regularly see:
• Manufacturing & production plans and detailed schedules are unstable
• All required materials, components and packaging items are not guaranteed to be available in the right place at the right time
• Unplanned machine & equipment set ups and changeovers occur
• Unplanned labour reallocation and overtime occurs
• Engineering changes cause production confusion and delays
• Plan and schedule performance measurement results are not seen as realistic and are not driving continuous improvement
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