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Boosting Efficiency When Times Are Tough

Posted May 16, 2009 7:22 AM

One way companies can cope with a tough economy is to get more efficient at what they do. Efficiency can be improved in a number of ways—employee training and education, investment in automation and advanced equipment, and reengineered business processes. All require some investment, but such investments are necessary in order to position a company for the future. What is your company investing in? Are they getting it right?

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#1

Re: Boosting Efficiency When Times Are Tough

05/16/2009 11:11 AM

I would offer that in the US, "efficiency" is pursued through reduction in employee wages. Mostly through outsourcing since no one thinks that requires investment.

I would say I have observed this in everything from banking to engineering - it has never paid off the way it is promised, if your firm was bad at it in-house you aren't qualified to supervise it outside the house, all the problems you think you are solving are going to be worse. It is WAY harder to supervise an effort outside than in.

But go argue with an MBA.

Outsourcing can be beneficial, but requires investing in a long-term partnership. There are costs. Blindly throwing work "over the wall" is dangerous even between departments. Throwing responsibility "over the wall" AND outside your house gets expensive very, very fast.

If you are buying strengths you don't want to grow, and understand that responsibility can be delegated, but not absolved - you might survive.

If you are simply looking for a cheaper workforce - I think it will not go so well.

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#2
In reply to #1

Re: Boosting Efficiency When Times Are Tough

05/16/2009 2:45 PM

" gotta stay from discussions like this , enjoy them way to much "...

here we go :

some will think i've just finished my substance abuse treatment..but :

" efficiency " can't be externally imposed on a people .

...commitment : allowed to feel that your contribution is valued, not only to the bottom line , but to your co- workers, mgt people..and imho : yourself..stimulates a work environment where , an attitude of " how can we get this done " .. leads to success..

not sure that any business model addresses this ..

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#3

Re: Boosting Efficiency When Times Are Tough

05/17/2009 8:36 AM

Building automation (energy management systems) do work. The proof lies in the fact that most national retail chains now have these systems installed in their stores. The question is always about payback.

Usually you want to see if the system can pay itself back in 3 to 5 years. the Original systems were installed in large facilities do to the cost of product and installation. Because of the revolution in micro electronic systems (PC's). The cost manufacturing has dropped to a level where a small system can be installed in almost any facility and begin to reduce their energy costs.

The reason for the Automation Systems was because company's found that training personnel to be efficient just doesn't work.

Re-engineering business processes is a little tricker since you usually have to start at the top and work your way down. Meaning you have to get the broad to change their ways first and experience has taught me that it is damn near impossible.

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#4
In reply to #3

Re: Boosting Efficiency When Times Are Tough

05/17/2009 10:40 AM

if i may:..

since the " integrity " of the hourly wage force is being called " the culprit "..

..and the perception of " my " world may define " my " world...

is it possible : that when an average wage earner.. see's the CEO, CFO.

1. outsource his very job

2. spend company funds on " outside " projects , that don't return an investment on capital, all the while claiming the company's economic position is a hair's breath from chapter 7 , or 11...

....imho : respect is earned not awarded..

if " you " expect me to watch these types of events and continue to care , when that " care " is not recipricated.....

......i personally , don't think that's in my nature..

i'm not speaking for all wage earners..

...

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#5
In reply to #4

Re: Boosting Efficiency When Times Are Tough

05/17/2009 4:12 PM

Dear Ahuha, Are you a fan of ee cummings?

Anyway my Grandfather was an efficiency expert engineer during the last Depression, and then was the guy that made sure the Norden Bombsight got made.

He was a terrible influence on me since his only degree was in Divinity.

It breaks my heart that when he was VP of a prominent cookware company, his fair advances and equitable attitudes towards the Union, were an undoing of his career, and the company.

Seems like nothing works right, and then you end up being attacked by acolytes.

P.S. And I am very very cheery today.

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#6
In reply to #5

Re: Boosting Efficiency When Times Are Tough

05/17/2009 11:24 PM

imho: may you take solice in the knowledge of the contibution of your Grandpa .

my uncle carried a bar in the eto...from D day on...

the La May doctrine saved many lives..( bomb `em back to the stoneage ).with out your Grandpa many more lives would have been lost...

..while in nam.. one night these 3 army guys come into our squadrons day room..a section of the quanset hut aft of the latrine..the sole surviors of a company being overrun...it was our squadron , my airplane , that provided close ground air support..

i thank you.. the developements from the Norton to the system we used..

..in the legacey carrier i worked at, we tried to replace the twu with amfa..

the procedures met, the vote held,..the amfa contingent protested the results when it was determined that dead people had voted , mgt people and others who were not even eligible.

the nlrb found that there was no problem and the results stood, that it was ok that dead people voted , as a block , against you.. it's ok..

in the blues there's a song : don't mistake my kindness for weakness..

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#7

Re: Boosting Efficiency When Times Are Tough

05/18/2009 10:56 AM

I believe that you can optimize the amount of spare parts in your warehouse so that you don´t carry a large stock.

Keep the machines uptime as high as possible through attacking problems in your machines.

Let personnel help you out in pinpointing places and processes were you may run more efficiently. The how is where the engineers come in.

Place a counter on basic utilities (water, heat, steam, electricity, air, etc). Analyze the numbers and see where misuse comes from.

Move around the floor and see what´s happening.

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