How to Implement Performance
Measures into a Production Process
“Performance Measurement - If You Cannot Measure It,
You Cannot Control It, Improve It Or Optimize It.”
By: Paul J. Zepf, P.Eng.,
CPP
Copyright
© 2002
Published: 2002
8.5x11 Soft Cover
204 Pages
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US
$89.00
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If you cannot measure it, you cannot control
it, improve it or optimize it. Simply put – you are at
RISK if you lack the ability to see the reality of your
production process.
The
purpose of this book is to present new and revised concepts
and techniques which are simple and practical to apply
in improving the design and performance of production
processes. These new approaches have been tried in numerous
industries and have proven extremely effective if applied
correctly. Furthermore, designs and concepts presented
in this book should become well understood by both management
and operating staff if significant improvement or a world
class facility is a target.
This book contains numerous easy to follow
worked examples to demonstrate types of production process
measurements. It is sincerely hoped that the techniques
and concepts presented in this book will be of practical
use in your production environment and will contribute
to the efforts of improving the effectiveness and efficiency
of your process; evaluating machinery systems; reducing
wastage and rework and increasing your productivity.
Production requires a method to evaluate
its production operations in a holistic manner in order
to make good decisions. Because of this need, new developments
are slowly changing the way production processes are viewed
and designed. It represents a major effort to develop
some new tools and ideas as well as update older existing
tools that will be useful to all production people as
well as government and consumers.
Performance in most production environments
is a widely used term such as efficiency that means different
things to many different people. Therefore the word performance
is relative and qualitative. The only understanding that
may be common to all is that it is a reflection of productivity,
output or effectiveness of time. Unless it is rigorously
defined and understood, the word performance has limited
value to decision makers, other than projecting a sense
of being or desire. I would define performance as a measure
of profitability based on the ability to produce the needed
quantity of quality packages in the time required to fulfill
customer needs at the lowest per unit cost over a sustained
long period of time (>1 year). To many people, performance
is the best bang for the buck based on up front costs
or capital costs only, not on the best value which is
based on capital and ongoing operational costs. If one
buys a system based on up front costs or lowest costs
to get in without working out operational costs over a
one year, three year and five year period, then their
anticipated profits (based on marketing targets) will
rarely materialize. Too many people are hooked on this
false sense of performance that will only contribute to
the long-term uncompetitive ness of the company. Short-term
or no planning leads to long-term disasters. Anyone can
demonstrate excellent performance hour by hour or even
day by day, but performance can only truly be judged month
by month, quarter by quarter and year by year, which translates
into consistent steady-state production under complete
control (manual or automatic) at all times and under all
conditions.
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