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Efficiency Improvement Tool of Work Effectiveness

Introduction

Work effectiveness is often regarded as the crucial moment for assessing the business performance rates and principles. The calculation of throughput rate and efficiency is required for defining the most effective efficiency improvement tool. Therefore, the application process cycle calculations will be the basis of defining the effectiveness of the application performance, and efficiency improvement.

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Calculations and Analysis

The calculations of the process time and efficiency are given in table one (see Appendix). Considering the process time, and total time spent for each process, the efficiency is equal (66.67% each). However, considering human resources that are needed for each process, the basic application processing is more effective. This is explained by the fact that the process time requires less human resources, while the process time effectiveness stays the same. (Lcronjé, 2007)

Suggestions that are relevant for process improvement is to reduce the inspection and waiting cycles. Therefore, if the application processing needs double-check, the process of input and verification needs improvement. Otherwise, double check is not reasonable, and the check time may be decreased to 10 and 30 minutes. The effectiveness will grow to 70.59%, and 72.73% correspondingly. If mailroom time is shortened to 15 minutes, the effectiveness will be 77.42% and 76.19%. (see Table 2)

Moving between stations seem to be non-value adding processes, however, these parameters should also be improved for improving the entire performance of the team. (Fried and Lovell, 2005)

Improvement Effects

If the work-in-progress will be decrease to given values, the entire effectiveness of the application time will increase. This means that the actual importance of the WIP value is closely linked with the decrease of the time-adding activities that is not required for improving the productiveness of the entire work cycle. This means that if the WIP levels are the lowest, the implications for increasing efficiency to reach the office manager’s goal will involve the improvement of the entire process effectiveness. Therefore, the process will involve only the most important processes, and the non-value adding cycles will be removed. This will involve the increased responsibility level, and minimal or any process check, hence, the managers will have to implement more effective quality control strategy, as well as the larger process capacities that will allow proceeding more operations within shorter time. (Blake, 2009)

Another implication that will be inevitable in this case, is the decrease of the control role of a manager, as more effective quality control strategy will decrease the time needed for control, and waiting. (Hwang and Kao, 2006)

Conclusion

Performance improvement measures are closely linked with the implementation of better quality control system, as well as shortening time needed for non-value adding operations. This involves lesser managers’ control, as well as larger capacities.

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Reference List

Blake, M. 2009. Creating the Right Retail Rate for Resource and Management Efficiency. Management Quarterly, 50(4), 2

Fried, H. O., Lovell, C. 2005. The Measurement of Productive Efficiency: Techniques and Applications. New York: Oxford University Press.

Hwang, S., & Kao, T. 2006. Measuring Managerial Efficiency: an Application of Two-stage Data Envelopment Analysis. International Journal of Management, 23(3), 699.

Lcronjé, J. J. 2007. Assessing the Relative Efficiency Management of South African Banks. Management Dynamics, 16(4), 11.

Appendix

Table 1

Basic Specific
Input information 60 140
Verify 60 100
Double-check work 20 60
Mailroom 30 30
Moving Between Stations 10 30
Cycle Time 180 360
Operations 10 20
Workers 2 3
Hours p/worker 900 2400
Hours p / worker. 1 operation 90 120
Process Time 120 240
Efficiency Rate % 66.67 66.67

Table 2

Basic Specific
Input information 60 140
Verify 60 100
Double-check work 10 30
Mailroom 15 15
Moving Between Stations 10 30
Cycle Time 155 315
Operations 10 20
Workers 2 3
Hours p/worker 775 2100
Hours p / worker. 1 operation 77.5 105
Process Time 120 240
Efficiency Rate % 77.42 76.19

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