You're looking to improve work efficiency in industrial engineering. What's the best way to measure it?

One has to define terms carefully. Ratio of output to input is productivity. Efficiency in some contexts is defined as actual output by expected output. Efficiency in managerial context, includes satisfaction of employees involved. If you increase productivity but employees are unhappy it is inefficiency. In the context of this article, productivity is a better term.

The best way to measure work efficiency in industrial engineering is through key performance indicators (KPIs) tailored to the specific processes and goals of the project. This may include metrics such as cycle time, throughput, defect rates, downtime, and resource utilization. Additionally, efficiency can be assessed through time and motion studies, process mapping, and workload analysis. Regular monitoring and benchmarking against industry standards or historical data provide valuable insights into performance improvements. Ultimately, a comprehensive approach combining quantitative metrics with qualitative assessments ensures a thorough understanding of work efficiency and guides targeted interventions for enhancement.

As a Company, before any measurement of efficiency or productivity is made the basic premise and raison d’etre of those being measured has to be clearly defined and understood by both parties. Companies lacking this will have very busy people failing overall objectives and blaming them for before inefficient. Establish the policies, set the objectives and align training, development and activities to those objectives and assess progress regularly to update and realign etc. this way no efficiency measurement is necessary as hopefully everyone knows what is expected.

La eficiencia mide el grado de cumplimiento de los estándares planteados, a diferencia de la productividad que lo que mide es la relación entre las salidas (productos) y alguna entrada (mano de obra, insumos, energía, etc). Por lo tanto la eficiencia es una medida interna de la empresa, no se puede utilizar para compararse con otra porque va a depender del estándar que tenga cada una establecido. Se mide como un % y es muy importante medirlo para poder hacer un seguimiento y analizar diferencias entre lo establecido y lo real.

I think we're missing here effectiveness. Example A manager dictate a letter to his 2 secretaries and ask both of them to bring a copy of the letter. Secretary A uses a costly Word processing software on a computer and prints it in 10 mins and Secretary B uses an old type writes and brings it 15 mins. Manager finds many errors in A's letter and there were none in B's letter. so, who is more efficient and who is more effective.

Industrial Engineering and most Industrial Engineers are awesome. Their whole mantra to improve processes and operations. I started out at age 16 in 1973 working as apprentices tool&die maker working with a industrial engineer on tools, fixtures to improve assembly workflow and safety devices in the press shop. Then in the 80’s work with industrial engineers on plant layout for continuous flow and implementation of JIT long before the TPS and Lean phenomena. I still use the old Industrial Engineering Handbook as a truth bearer…. Anytime a consultant or author publishes a new Lean/TPS buzzword or concept.

I have worked with quite a few Industrial Engineers who deploy their Industrial Engineering know-how to benefit their employers but sometimes forget to do the same to improve their own work efficiency. I must admit that I too have been guilty of this a few times in the past. I am trying to do better...

Following are the work efficiency factors to be considered. 1. Equipment Utilization 2. Labor Productivity 3. Cycle Time 4. Inventory Turnover 5. Defect Rate and following are some of ways to measure work efficiency. A. Overall Equipment Effectiveness (OEE): Formula: OEE = Availability × Performance × Quality B. Labor Efficiency Ratio: Formula: Labor Efficiency Ratio = (Standard Hours Produced / Actual Hours Worked) × 100 C. Lead Time: Formula: Lead Time = Processing Time + Queue Time + Wait Time + Move Time D. First Pass Yield: Formula: First Pass Yield = (Total Units Produced - Defective Units) / Total Units Produced E. Productivity Index: Formula: Productivity Index = (Output Value / Input Value) × 100

Mainly key performance indicators (KPIs) such as cycle time, throughput, availability and overall equipment effectiveness (OEE). Conduct time and motion studies, implement process mapping, and leverage data analytics. Continuous monitoring and feedback loops help identify bottlenecks and streamline operations for sustained improvement.

Eu utilizo bastante duas ferramentas que estão na abordagem LEAN: O Wrench Time que visa melhorar a eficiência e produtividade ao focar no tempo de trabalho real dedicado a tarefas produtivas. Avalia o tempo efetivamente gasto em atividades essenciais em comparação com o tempo total disponível, identificando oportunidades de otimização. O D.I.L.O. também é uma boa para medições de produtividade em cargos ADM, liderança e gerenciais, pois busca entender as atividades diárias de uma equipe ou funcionário para identificar melhorias nos processos e na eficiência. Proporciona insights valiosos sobre fluxos de trabalho, comunicação e produtividade, facilitando a implementação de mudanças que otimizem a rotina de trabalho.

One step by step example could be the following: 1. Capture all the process steps that you want to analyze and design the process-flow. 2. Capture process times for each steps. 3. Use any kind of simulation tool to predict a period of working time and the expectet output. 4. Follow the same period in real time and capture the theoretical throughout versus the reality. 5. Understand the gaps and deltas of the simulatiom vs reality. The efficiency is the ratio between reality divided by the theoretocal result.

Para empezar a medir la eficiencia de cualquier método, primero debemos definirlo, estandarizarlo y medirlo. Esa será la base para medir nuestra eficiencia. Es de suma importancia que el método al que vamos a medirle la eficiencia, esté estudiado y optimizado previamente para medir sobre un buen estándar. Después de haber establecido el estandar, debo capacitar para que todos entiendan la importancia del indicador y de la medición. Involucrar a las personas, es el principal factor de éxito cuando voy a implementar este tipo de indicadores. Los datos bien relevados son claves para obtener una medida de la eficiencia real y poder analizar desvíos para trabajar en su mejora continua.

To start measuring, I think first have clear meeting with your key stakeholders and explain the purpose of the study. If done in isolation and secrecy, it may not fetch the desired results and may lead to discontent in workforce.

To enhance work efficiency in industrial engineering, adopt a holistic approach. Select appropriate metrics and tools based on your objectives and context. Gather and analyze data with precision and neutrality. Communication with stakeholders is crucial; share insights and seek collaborative input from teams, managers, clients, and suppliers. Collective effort and responsive adjustments are fundamental to attaining efficiency targets.