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: