Download - Increasing Productivity via Technology
Increasing Productivity via Technology What it is - How to measure – Technology - Case study
Terry Rachwalski, MBA CMC
@consultingmania #CEMC [email protected]
1. Automation applied to an efficient operation will magnify the efficiency.
2. Automation applied to an inefficient operation will magnify the
inefficiency.
Bill Gates
Where is the value? Strategy
• Business model
• Customer value
• Uniqueness
Operation
• Perform activities better
• Cost, quality, time
• Execution
Decision making framework
• Strategic objectives 3 – 5 years? Performance?
• 5 best opportunities for growth?
• Pain points? What keeps you from growth? SWOT
• 5 biggest opportunities for productivity?
• Barriers to increasing productivity?
• How will we measure?
COST vs FLOW
COST - re-work, reducing waste & non-value add
FLOW increase includes
COST items + Increased output Improved quality
Decreased lead time
Why flow? Increase sales and
productivity
Cold facts: Value Added per Employee + ROI = Productivity
Earnings Salaries VAPE
FTEs
Value? +
What to do more of ? Less of?
+ Compare VAPE and ROI
+ Does the technology add
a strategic value? =
Make it so!
Barcode 12 digits
Standardized
Need line of site Close proximity
Quick response code Sends to a web site
Need smart phone + app
Close proximity
2D tag code Sends to a web site
Need smart phone + app
Close proximity Design! Retail !
Magnetic stripe Access control
Mag stripe less secure
Access Control
125kHz
Close proximity
Smart cards
More secure
Finance, border control, security
Passive RFID Poly tag
Standardized More data
1-3 m read range
Need reader + antenna Retail/inventory
Warehousing
Active RFID & RTLS Transmits
Needs battery Longer range
Indoor alt: WiFi
Need reader + antenna
Warehouse High value assets
GPS/cell Needs antenna
Outdoor Fleet management
Tracking Time
Value added features
Handheld Devices Versus
Smart Phones
Ruggedized Barcode/passive readers
Retail/inventory
Warehousing
Mobile Forms
Lone worker safety
Smart Phones
Mobile Work Force management
Visibility Needs
Combinations of technology &
business intelligence
Case Study: real time locating inventory
• Before RTLS (Monthly) – Labour – 4 people per shift $16,000
– Rush shipments & late charges $ 5,000
– Halted or slowed production lines $12,000
– Total $33,000
• Cost with RTLS (Monthly) – Labour – 1 person per shift $ 16,000
– Labour re-assigned to high value work
– Rush shipments & late charges $ 2,000
– Halted or slowed production lines $ 5,000
– Total $23,000
– Monthly Savings $10,000
ROI & VAPE
• Technology saved $10,000 per month
• Capital cost of $100,000 ROI = 10 months
• Re-assigned labour increased profit
• VAPE: increased 10% per employee
• Improved client relations = differentiator
Where’s the sweet spot?
Technology doesn’t solve bad process
Stick to value & profit
Productivity is in flow not just cost reduction
Value added per employee + ROI + strategic value
Combine business intelligence & technology
Questions? Terry Rachwalski, MBA CMC [email protected]
@consultingmania
Next up: Eric Anderson - Business Intelligence