Reduce the Units of Input Not Producing Output
Reduce units of Input (I) available but not producing Intermediate Cost Drivers
(ICDs). This action makes Input levels more directly variable with the quantity of the ICD by reducing the amount of the available Input that is wasted or idle. For example, an employee (I) might produce one subassembly (ICD) per day. During that day, the employee spends a total of one hour waiting for parts for the subassembly. If the Company could eliminate that one lost hour of the employee's work day by providing parts in a more timely manner, the Company could reduce the number of employees (I) needed to produce the same subassembly (ICD) by 1/8th.
A. Assist Input in increasing ICDs.
Train employees in efficiency. The company may incur costs to train employees in the expectation that these expenses will result in even greater cost savings through better efficiency.
Warnings and advice
|1||0||2003||When employees feel psychologically safe, they engage in learning behavior–they ask questions, seek feedback, experiment, reflect on results, and discuss errors or unexpected outcomes openly. Leaders must move quickly to implement promising ideas.|
|2||0||1992||One study found that for every additional year of schooling, employees have 2.8% greater productivity.|
|3||0||1996||Knowledge tip: Executing a knowledge-based strategy is not about managing knowledge; it's about nurturing people with knowledge. Organizations leverage knowledge through networks of people who collaborate–not through networks of technology that interconnect.|
|4||0||2008||A successful benchmarking project requires five essential steps. Step five: Implementation. Publicize the findings to your company and work with management to establish a new set of goals and objectives that match with performance standards outlined in the report. Then fill in the performance gaps and meet the revised goals and objectives. Afterwards, measure the effectiveness of the changes and improvements.|
|5||0||2008||A successful benchmarking project requires five essential steps. Step four: Analysis. Summarize and interpret the data gathered during the research and observation phases. Using statistical analysis and other measurement standards, the team will then identify performance gaps between their processes and the partners, and figure out how to fix and identify future gaps. Summarize findings in a report.|
|6||0||2008||A successful benchmarking project requires five essential steps. Step three: Observation. After establishing an agreement with a benchmarking partner, the benchmarking team will then visit the benchmarking partner to collect data on their processes and procedures.|
|7||0||2008||A successful benchmarking project requires five essential steps. Step two: Research. Collect all data relating to your project. Identifying and thoroughly researching a set of potential benchmarking partners or subjects is another step. Then the benchmarking team selects a benchmarking subject to work with.|
|8||0||2008||A successful benchmarking project requires five essential steps. Step one: Planning. Form a knowledgeable team of people from the company, especially some people that are familiar with statistical analysis. When planning a project to analyze, figure out what type of service/product you want to deliver, who are your customers, and what are your customer's expectations.|
|9||0||2008||Many companies show the need for broader management strategy that addresses how they are creating, sharing, and using knowledge. Many organizations are finding that the best way to encourage workers to put knowledge to use is through "learning" programs – practices such as mentoring, on-the-job training, workshops, and other initiatives that are run by the human resources department.|
|10||2800||2008||Training Within Industry (TWI) is a technique designed to improve supervisory skills, a good asset in lean manufacturing. There are three standardized classes which teach supervisors to develop their skills. The third course is Job Relations training, which helps supervisors build positive employee relationships, increase cooperation and motivation, and resolve conflicts effectively. Principles of the program include providing constructive feedback, providing praise for a job well done, informing employees of any changes ahead of time, and tapping into each individual's talents. As for resolving conflicts, supervisors are taught to get the facts, weigh and decide, take action, and then check results.|
|11||2800||2008||Training Within Industry (TWI) is a technique designed to improve supervisory skills, a good asset in lean manufacturing. There are three standardized classes which teach supervisors to develop their skills. The second course is Job Instruction training, which teaches supervisors to break down jobs for instructional purposes. They must prepare the worker to learn, present the operation, watch the worker go through the operation, and then follow up after the training.|
|12||2800||2008||Training Within Industry (TWI) is a technique designed to improve supervisory skills, a good asset in lean manufacturing. There are three standardized classes which teach supervisors to develop their skills. Each classe uses preparation, presentation, application, and then testing. One course is Job Training, the goal of which is to increase the production of quality products in less time through more efficient use of people, machines, and materials currently available. Supervisors are taught how to break down the job, question every detail, develop a new and improved method, and administer the newly developed method.|
|13||2800||2008||Training Within Industry (TWI) is a technique designed to improve supervisory skills, a good asset in lean manufacturing. Supervisors play a major role in achieving and maintaining stability on the shop floor. They ensure quality products, cost control, efficient production, and a safe work environment. Employees are valued for their intellectual abilities and are considered a competitive "advantage" over the competition. Everyone in the company needs to strive for continual improvement.|
|14||3663||1992||Motorola's return on training is said to be 30 to 1. After implementing its training program, its plant makes 200% more pagers than it could four years ago with just 22% more manufacturing employees.|
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