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CHAPTER THIRTEEN: Measurements for the P... > MANUFACTURING EFFICIENCY

MANUFACTURING EFFICIENCY

Description: Though the preceding manufacturing effectiveness measure is a prime driver of corporate profitability, it is also useful to determine the overall level of efficiency of manufacturing operations. The manufacturing efficiency measure determines the proportion of value-added operational time to the total amount of time required to convert raw materials into finished goods. Typical efficiency measures can be hundreds or even thousands to one, because of the large proportion of setup times, queue times, and materials-handling times built into a manufacturing operation. Thus, the manufacturing efficiency measure can be a prime benchmark for an ongoing drive to improve the overall level of manufacturing efficiency.


  

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