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First Step for Factory Effectiveness Development

A factory owner asked-I know our efficiency in the factory is low. What should I do first to improve my profitability in the factory? I replied, the First Step for Factory Effectiveness Development. 
First Step for Factory Effectiveness Development

In the case that you don't calculate the productivity of the line and the output of the plant, the first step would be to measure the actual efficiency. Recall "what's being measured is being strengthened." So, the move can not be prevented.

If you're already evaluating line productivity and factory efficiency, your first step would be to monitor off-standard time (non-productive time) without using your standard time.

Measuring the efficiency of the factory 

To evaluate and calculate the output of the factory you must first calculate the daily efficiency of line-wise. Note, based on the quantity of line output, you can calculate line efficiency. Another way to calculate line efficiency is to calculate the SAM produced by individual operators and to sum up to get the total SAM produced by the line.

Define factors affecting line efficiency 

The next move defines the factors that affect the efficiency of your line. Low line performance may have many causes.

The major problem affecting factory output. Work on those to eliminate them from the process. Reduce the frequency of such variables when removal is not feasible.

Here are a few tips to increase line performance which helps for Factory Effectiveness Development.
  1. Capturing lost time hours and turning those lost time into standard time by increasing the use of standard time.
  2. Do advanced line preparation and intimating line supervisors and production coordinator on the loading date of the new style, order qty, and production running time with the number of productions for each line.
  3. Reduce setup time of line. If your managers, system mechanics, and industrial engineers are prepared for the new style loading in advance, you can set up a line for a new style (model) quicker.

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