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What is operational efficiency in manufacturing?

Operational efficiency is crucial for the success of your operations. It’s the ability to deliver quality products and services with fewer resources. The more a manufacturer is able to produce with a given input, the more efficient the operations become.

But operational efficiency also entails looking internally at the organization’s processes, employees and technology, identifying areas where inefficiencies exist and finding ways to improve them. Increasing operational efficiency requires a strong commitment to continuous improvement (CI) at every level of your organization because CI succeeds best when it is embedded into the organization’s culture, where all employees take responsibility for improvements.

Do you want to increase your knowledge of continuous improvement? Download the eBook 40 operational efficiency improvement terms explained and get:

  • Detailed descriptions of 40 commonly used CI tools and processes
    Understand 5S, which deals with the principles of order, cleanliness, discipline, ownership, responsibility and pride, DMAIC, the five-step improvement process, and more.
  • Explanations of how they are applied in practice
    Learn how to use A3 reports with rigorous questioning and discussion, and a demand-driven value network (DDVN) to produce according to customer demands.
  • Tips to help you implement the tools and processes effectively
    Discover how to embrace “a gemba approach” to management and problem-solving, and how to implement leader standard work (LSW) and shift from reactive to proactive management.

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