To enhance output levels, a strategic choice among a variety of methodologies is crucial. Methods like Lean Manufacturing, Six Sigma, Agile, Theory of Constraints (TOC), Business Process Modelling (BPM), Just In Time (JIT) Production, and Total Quality Management (TQM) each focus on specific productivity dimensions.
The selection of the most appropriate approach should be based on a clear understanding of the factors influencing productivity:
Design Factor: Upgrading production system design and management.
Method Factor: Utilising the most effective production methods.
Utilisation Factor: Increasing the duration of productive operation.
Performance Factor: Enhancing performance efficiency during use.
Quality Factor: Reducing product issues that negate output.
It should also consider current productivity levels, potential improvements, and the resources needed for such advancements. The optimal method not only addresses key productivity factors but provides cost-effective gains.
In complex and distributed businesses, pinpointing the right area for productivity initiatives poses a significant challenge. Critical productivity constraints are often masked by high operational variability. Identifying these constraints typically involves locating where demand exceeds throughput performance, causing bottlenecks. Each constraint should be assessed for its overall impact on production, considering the integrated effects and potential for creating new bottlenecks elsewhere. Following the TOC methodology, the focus is on the primary bottleneck to maximise latent potential, ensuring the entire process is synchronised with this constraint. Should efforts prove insufficient, investing in additional resources, extending work hours, or upgrading equipment might be necessary. The focus then shifts to the next constraint, perpetuating a cycle of continuous improvement.
Consider the analogy of a two-lane highway with traffic throughput bottlenecked by construction work reducing it to one lane. Increasing the speed limit on the two-lane section doesn't alleviate the bottleneck at the construction zone. Cars may reach the bottleneck faster, but the constraint remains unaddressed, rendering the effort futile. Similar is the case with misdirected productivity initiatives in a business setting. Improving productivity requires targeting constraints rather than localised issues.
Effective productivity improvement strategies need to tackle complexity and low tractability, with expert insight being a critical differentiator.
Sustainable solutions should minimise variability and maintain operational flexibility. An integrated approach that harmonises management systems, strategies, culture, and operations is essential. Engaging the workforce in this journey is crucial; without their buy-in, any initiative risks falling short of its potential.
Through this series, we've delved into the many aspects of 'the productivity problem.' Defining this problem succinctly and identifying the required expertise are key to understanding and resolving productivity challenges in any organisation. How is the ‘the productivity problem’ best defined?
The Productivity Problem Part 1: Defining the Problem Series