What is Efficiency | True Efficency vs Apparent Efficiency
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 Published On Mar 30, 2024

This video explains the concept of True Efficiency, which lies at the core of Lean Manufacturing.

Lean Manufacturing strives to achieve higher production levels while minimizing resources, always keeping the customer's requirements in mind.

It emphasizes the importance of avoiding overproduction in order to attain true efficiency.



🎯 Efficiency, in simple terms, means meeting customer requirements with minimal resources. It's the ultimate goal of Lean Manufacturing, and what we constantly strive for.



🔄 Let's differentiate between Apparent Efficiency and True Efficiency.

Imagine 10 people producing 100 units daily. If process improvements increase output to 120 units daily, there appears to be a 20% efficiency gain.

However, this increase is only valid if demand also rises by 20%. If demand remains stable at 100, true efficiency lies in producing the same units with less effort and capital.



📊 Apparent Efficiency focuses on system output, while True Efficiency considers input as well.

To genuinely enhance efficiency, we must reduce waste, boost productivity, and enhance quality, rather than solely increasing output.




💯 Another significant concept is the distinction between Total Efficiency and Local Efficiency.

Total Efficiency encompasses the entire production process or value stream, while Local Efficiency relates to a single point or step within the process or value stream.

Toyota, for example, prioritizes overall efficiency rather than optimizing individual steps or processes.



🚀 By optimizing the entire value stream, we can achieve Total Efficiency and drive substantial improvements.

Remember, it's crucial to meet customer requirements with minimal resources and focus on Total Efficiency instead of Local Efficiency.




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