Recently, I had the opportunity to visit a client's production site and observed two main aspects of the manufacturing process: increasing efficiency and adding value. What are these two approaches, and how do they differ?
Recently, I've observed two approaches to production processes
: increasing efficiency and adding value.
For example, in the food processing business,
this involves adding value to food products. We have fresh fruit as raw material, and we look for ways to increase its value. We process it through various processes
: Input: Fresh fruit;
Process: Washing, peeling, trimming, and using it as an ingredient in other products, such as making ice cream, or processing it into a finished product, such as canned fruit. This prevents spoilage, extends the shelf life, and allows for sales for up to a year.
Output: Canned fruit and ice cream can be sold at higher prices than fresh fruit and have a longer shelf life.
#Improving Production Efficiency:
How to achieve high-quality output in large quantities with minimal input?
If you have two machines, you could measure their efficiency by which one produces more output or which one generates less waste, assuming the production formula, machine capacity, and raw materials are the same.
In real life, we probably can't control every aspect of our environment, or perhaps only partially. So, we can instead think in terms of ratios
Nuchanat
Rongrong
#Consultant
#ProductivityImprovement
#ValueAdded
3/5/2018
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