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Measuring Operational Efficiency Print

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Doing the work.

WHAT TO MEASURE

Time taken per job or unit Quoted versus actual Rework and errors Utilisation of people and equipment Stock turnover

WHY QUOTED VERSUS ACTUAL

It reveals which work is priced wrongly.

WHAT PEOPLE DISCOVER

That a category of work consistently overruns.

That is a pricing decision, not a performance problem.

WHAT REWORK INDICATES

A process problem, usually upstream.

WHAT UTILISATION TELLS YOU

Whether capacity is the constraint, or demand is.

WHAT STOCK TURNOVER TELLS YOU

Whether money is tied up in goods that do not move.

WHAT TO BE CAREFUL WITH

Measuring people rather than processes.

That produces gaming and resentment.

WHAT TO MEASURE INSTEAD

The process, and where it slows.

WHAT TO ACT ON

Patterns, not individual instances.

WHAT TO REVIEW

Monthly, and after any process change.


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