Increasing Productivity via TechnologyWhat it is - How to measure – Technology - Case study Terry Rachwalski, MBA CMC @consultingmania #CEMC email@example.com
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 Operation• Business model • Perform activities better• Customer value • Cost, quality, time• Uniqueness • 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 FLOWCOST - re-work, reducing waste & non-value addFLOW increase includes COST items + Increased output Improved quality Decreased lead time Why flow? Increase sales and productivity
Earnings Salaries VAPE FTEsCold facts: Value Added per Employee + ROI = Productivity
Value? + What to do more of ? Less of? + Compare VAPE and ROI +Does the technology add a strategic value? = Make it so!
Barcode 2D tag code Quick response code 12 digits Sends to a web site Sends to a web site Standardized Need smart phone + app Need smart phone + appNeed line of site Close proximity Close proximityClose proximity Design! Retail !
Smart cards Magnetic stripe Access Control Access control More secure 125kHz Finance, border control,Mag stripe less secure Close proximity security
Active RFID & RTLS GPS/cell Passive RFID Transmits Needs antenna Poly tag Needs battery Standardized Longer range More data Indoor Outdoor alt: WiFi Fleet management 1-3 m read range TrackingNeed reader + antenna Need reader + antenna Time Retail/inventory Warehouse Value added features Warehousing High value assets
Handheld Devices Mobile Forms Versus Visibility Smart Phones Lone worker safety Needs Ruggedized Smart Phones Combinations ofBarcode/passive readers technology & Mobile Work Force business Retail/inventory management Warehousing 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 processStick to value & profitProductivity is in flow not just cost reductionValue added per employee + ROI + strategic valueCombine business intelligence & technology
Questions? Terry Rachwalski, MBA CMC firstname.lastname@example.org @consultingmaniaNext up: Eric Anderson - Business Intelligence