How to easily measure your resource efficiency

Arguably the single most important aspect of any business is the employees. No company will grow, build, produce or deliver any products without the skills, initiative, competence and commitment from it’s employees. Therefor employees are crucial, and their working conditions must be modern, up-to-standards and competitive. From a business perspective though, workers are also a key-resource and so the effectiveness, quality and behaviour has a great impact on the company as a whole.

So what is Overall Resource Efficiency?

- Overall Resource Efficiency (ORE) is the measurement of your employees efficiency to complete their primary tasks. In other words, a measurement of the outcome of their available time at work.

As such ORE is an administrative tool to measure and evaluate the work efficiency of your workers. On the surface this may seem in opposition to employee satisfaction and may act as a restriction to joy of work, but this is not necessarily the case. ORE is simply a tool to gain overview on actual work hours compared to available hours.

Eliminate estimates and guesswork

There are obviously many factors that influence ORE. Some are directly related to the employees themselves, other are workplace related. When evaluating and responding to ORE rates, you should consider at least:

• Total available production hours
• Planned holidays (either public or personal)
• Sick leave considering both short-term and long-term
• Breaks during the working day. Planned and unplanned
• Is working time always billed at the same rate?
• Is working time always paid at the same rate?
• Transportation
• Certifications that affect or limit work tasks
• Internal procedures that directly affect work efficiency
• LEAN procedures
• Workday planning – does switching tasks include change of equipment, clothes, safety measures, location etc, and could this be planned more efficiently
• The correlation between overall equipment efficiency and resource efficiency

And this is just to name a few.

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"Optimal use of resources and uptime in production is a critical factor. With VRS , you can measure your efficiency even more precisely and right down to the level of detail. Some of our customers report a 10 percent increase in efficiency."

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Easier said than done

In conclusion it may on the surface be fairly easy to calculate worker efficiency – you simply need to calculate the output compared to the available hours. That figure can then be seen in relation to an industry standard, other teams or competitors and you can determine if you are in the “red” or “green”. The truth is however much more complicated, and you need to look at how you are planning projects, work floor layout, safety procedures, internal processes, sick-leave & their reasons and much more.

Whatever reporting tool you choose to measure these instances thus needs to accommodate for these impact areas – or at the very least enable you to reasonable evaluate and work with these parameters.

We've developed this efficiency cycle to ensure you have a tool to understand your business and more easily dedicate focus where it's needed – when it's needed. In addition, we have developed the Visual Registration System (VRS) based on these very principles.

Follow us on LinkedIn for more information about VRS and the efficiency cycle. Gain insight into relevant customer stories or contact us to find out how we can help you and your company .

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