Five Myths of Operational Efficiency
By Connie Siu
An efficient operation is a competitive advantage . Yet companies might not benefit from efficiency when the focus doesn ’ t align with their vision and goals . Below , we take a look at five of the most common myths about operational efficiency .
1 . 2 . efficiency
Low cost is Keeping costs down is good for the important for a healthy
bottom line bottom line . Intense cost consciousness affects your
brand and the quality of your products and services . Often , actions undertaken to cap costs have the opposite effect .
Lower-grade input materials impact product durability . Dull packaging affects product appeal and value perception . The most economic courier option keeps customers waiting and can lead to potential loss claims . Poorly staffed post-sale customer support breeds dissatisfaction .
Speed is most important for
Getting things done quickly is good , but doing them poorly is counterproductive . You end up with rework , frustration , and finger-pointing to avoid blame . When speed becomes the sole focus for operational efficiency , it leads to hidden costs downstream .
Examples include passing on a work order with incomplete information in order to meet the target turnaround time ; shipping products without adequate quality checks ; hasty product designs that lack input from important stakeholders ; and incomplete responses to customer inquiries .
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