Over time, different companies and corporations have been struggling to achieve profitability over the years. Basically, they have been aimed at reducing their costs and increasing their returns on products and services in which they have invested. This amounts to efficiency. The use of the smallest amount of resources to achieve maximum returns can be referred to as efficiency. There are many ways through which efficiency can be viewed and achieved in a business organization. In the essay below, completion and exhaustion have been analyzed. Information that has been used in the compilation of the report has come from secondary sources that constitute research that is carried out on hyper efficiency. These are some findings that have been done by other researchers on the basis of huge companies. Some of them are analysts that have studied dynamics that is involved in the production process.
Efficiency in production is the level that is reached, whereby a company has utilized the lowest possible amount of resources to achieve a certain level of production. It is the level at which an increased production of a certain commodity will surely lower cost of another. This means that resources have been adjusted and utilized in the best way in the production process. Hyper efficiency refers to efficiency that is considerably above normal efficiency. This is when some of the variable factors are adjusted to ensure that production of goods goes above the normal level. Very few companies afford to be hyper efficient at any time in their existence. This essay has focused on importance and use of hyper efficiency in a business and different ways through which it can be achieved.
There is the amount of production that is referred to as ‘normal’ in any business organization. This is production that can be used to show that the company is running normally. In such a situation, the company may take some additional measures in a bid to ensure that production increases to another level. This means that the production goes above the normal level if methods are successful. This is the scenario that has been explained and illustrated in this essay. It is an attempt to increase creativity of most business organizations, especially those in the manufacturing industry so that they can increase their overall production. In addition, it can also ensure that available resources in the world are used well. Therefore, there will be no depletion of few available resources. However, this does not mean that there will be reduced production. It only means that existing resources have been utilized in a better way. Therefore, they cause production of more goods than expected of them. Basically, this one and other related factors are what the essay entails. Recommendations that can be made in this essay can be applied in both small scale and large scale companies (Ferguson, 2013).
Hyper production means are any means that can be used to ensure that production goes above the normal value. In the discussion on hyper production, there is a great need to look into a topic like lean manufacturing. This is where production of a commodity is increased through elimination of waste. When people hear about waste, they only think about waste materials that cannot be used. Although this is incorporation of lean manufacturing, there are other wastes that are eliminated to ensure that production is increased. For example, there is the case of overburden. This is where a lot of work is given to one part of the production process and less to another.
Firstly, it overburdens one of the sectors in the production process. When it has reached the level that is referred to as overburdening, it means that the sector has been tasked with something that they cannot complete. However, this is a task that is expected to be completed in the determination of units of production that should be realized. At the end of the day, this is not achieved (Ferguson, 2013).
Secondly, the other part of manufacturing is given a smaller task that they can easily achieve. Assuming that all these sectors are equal, in terms of resources it is clear that the second one will not utilize all resources that have been allocated to it. Therefore, there will be waste. For example, assuming a certain number of workers, the time resource that has been allocated to them, as well as considering the number of labor resource for which the company has paid, the commodity becomes a waste. Under normal circumstances, most companies just assume that they do not have enough resources to achieve units of production that they have desired.
However, the truth is that there has been unevenness in the allocation of roles, duties, and resources. Lean manufacturing is a process that is aimed at ensuring that resources have been allocated in the best way possible (Seliger, Khraisheh, & Jawahir, 2011). It is based on the finding that in some companies resources are allocated to some of the processes unnecessarily, while in others those allocated are not enough.
From the logical standpoint, as well as the experience that a company may realize, it can easily identify some of the services and processes in the production process that do not add to the units of production that are realized at the end of the production process (Potter & Frevert, 2011). This explains the fact that they can identify activities that add value to the organization. However, this is a process that requires efficient managers. To start with, it is vital to look at things from the perspective of a consumer. According to them, value only refers to goods and services for which they are willing to pay. An organization can determine the most valuable operations through value that can be attached to them (Meyer, John, Chankseliani, & Uribe, 2013). There are some processes that cannot be eliminated in the manufacturing process, yet the company cannot add value to them. These cannot be adjusted as they would affect the whole production process. However, there are some that cannot affect the end product significantly, yet value cannot be placed on them. These are activities and processes that need to be eliminated in the process (Nilsson et al., 2007).
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This way, the company is able to remain with processes to which they can have easily give or allocate resources.
The factor that determines success of lean manufacturing processes is their steadiness and unwavering application. This means that it has to ensure that the method can be applied with success and it has to be performed continuously without reduction of pressure. The increase in efficiency is only assumed to be caused by increased production. This cannot be considered to be the most accurate way to achieve desired results. The production may increase and not show an increase in efficiency. It could have been caused by the increase in resources that have been allocated to the production process (Seliger et al., 2011). Therefore, the output that is realized considers input that is used to determine efficiency. Elimination of waste has an important effect on the input that a company has in the production process. As Meyer et al. (2013) explain, time is the first resource that is reduced. Time that is used to carry out any activity is one of the most valuable factors in the production process. This is because time is the single resource that any company is constantly running out of. This means that there are many things that can be done between any two sets of time.
Reduction in the production time ensures that production per unit time is increased. This amounts to efficiency. However, production should not change or else there would be a need to increase the time dedicated to the original. The other resource that Meyer et al. (2013) has mentioned is the cost. It is vital to remember that lean manufacturing does not involve the increase in resources that have been put into the production process. Instead, it involves ensuring that resources that are available are utilized in the best way possible. This means that it acknowledges the fact that there are some resources that are paid for by the company, yet they do not fully contribute to the production process. Therefore, there are two ways that the company can remedy this. They can shift some of the roles from overburdened processes to the underutilized ones. In case there is no unevenness, but there is underutilization, they can take some of the resources from the under-utilized sector. In both cases, they are positively adjusting inputs or outputs. Both of these lead to achievement of efficiency in the production process. Perfection in this process is what leads to hyper efficiency. This is when wastes in the company are almost zero.
Nilsson et al. (2007) explain efficiency that has been constantly achieved by Toyota Company over the years. This is a small company that has focused on the reduction of wastes in a bid to increase their production. The major way used to achieve this is redesigning of their work cells. Their approach is more general than what has been explained above. In the above explanation, the essay has shown how specific processes that show waste have been identified. Toyota has used a different method in the enhancement of efficiency. Either in the reduction of inputs or increase in outputs, this company has proved to have one of the best methods for achieving hyper efficiency. They have decided to focus on the whole process of manufacturing. Value stream mapping and general productive maintenance are among some of the tools that the company has used in the endeavor. Sometimes, it is difficult to look into all working cells in a bid to identify overburdening. This can be difficult, especially for huge companies. However, the company can design its production process and ensure that appropriate resources have been allocated to every activity (Seliger et al., 2011).
When a business has just started, there is low focus on efficiency. The reason is that the business is still in the struggle to become popular and known to the public. For this reason, it suffers competition from companies that are already existent. This means that they cannot commit their resources to the increase in efficiency (Seliger et al., 2011). Some of the companies do not even mind thin profit margins. They just want to market their brands and products. Neglecting of the important issue of efficiency can lead to methods that can reduce efficiency. Therefore, when the company has become bigger, they find themselves entangled into a production procedure that they have not planned for. This is what happened to Toyota. After the company had become popular and well known, they started focusing on their profit margins. They conducted a research on their own production process and noticed that there were numerous wastes that were taking place. Therefore, they decided to conduct a general reshuffle of the process. This was to aid in ensuring that all the wastes were eliminated. They continued to try allocating right resources for all activities and operations in the production process. With time, they have been able to achieve efficiency that most companies crave.
For companies that are willing to achieve moments and periods of hyper efficiency, the method used by Toyota can be helpful. Although redesigning of the whole production process may be demanding and more expensive, it can prove to be the best method. However, this should only be done for large companies. When done in the right way, it does not have to be repeated from time to time. Instead, little adjustments will be made over time to ensure that production is constantly increased (Shu, 2014). For a smaller company, it is easier to identify underutilization and overburdening. Therefore, a more specific and less demanding reshuffle can be carried out. However, both these processes have a constant factor.
Ferguson (2013) has explained that increase in efficiency in an organization is dependent on an aggressive and efficient management. Management of the company has to be focused and determined to increase production efficiency whatever the cost may be. For example, a company may be having excess employees in a certain part of the production process. After identification of this fact, management should be expected to adjust this variable in a bid to ensure that waste does not occur. Managers that do not have control and what it takes may be afraid to lay off these workers. This would cause persistence of the waste. If the manager decides to lay off these workers, it would mean a reduction of cost without necessarily reducing production at the end. This shows that management of a company has a huge effect on the achievement or lack of hyper efficiency. The best and fearless managers are the ones that at some point achieve hyper efficiency.
One characteristic of resources is that they are always limited. This means that a company cannot have all the resources that it may require. This may be seen as a negative thing and people may think that it reduces efficiency. This is not true. Potter and Frevert (2011) explain that availability and amount of resources only determine the scale to which a company operates. On the other hand, efficiency is only affected by how well these resources have been used. Therefore, if resources were not limited, words like efficiency would not make sense. In the first place, it is this limitation of resources that makes application of efficiency methods necessary. This is because limited commodities, goods, and services are generally expensive. This creates the need to ensure that they have been utilized in the best way possible.
Focus on efficiency is what causes both small scale and large scale companies to admit and agree with the fact that resources are always limited. Therefore, discussion on hyper efficiency is relevant to all companies, especially in the manufacturing process. Although this essay has focused on manufacturing and production, this does not mean that hyper production cannot be applied in other industries such as the service industry. Generally, reduction of wastes is bound to increase production of goods and services in any company. However, Seliger et al. (2011) have emphasized the need for methods that used to be sustainable. This means that they should be maintained over time. They should improve the production process, while still taking care of the future. They should not increase efficiency today at the cost of tomorrow. Methods should also ensure that all employees’ interests are considered and their comfort is ensured. This enhances sustainability of the production adjustment measures.
From the essay above, it is clear that efficiency, let alone hyper efficiency, is difficult to achieve. It requires adjustment of factors and processes in a bid to ensure that there is maximum utilization of resources. Although it can be done in many ways, it is clear that all of them aim at increasing output units per unit inputs. It has been mentioned that there are few companies that are able to achieve hyper efficiency at any point in time. However, there are some companies that have utilized methods in the best ways possible and have achieved it. This is the reason why the most successful managers succeed wherever they go. This should be used as a wakeup call for all companies in the manufacturing industry. Although they might not achieve perfection that may be coveted by most companies in the world today, they can put efforts in applying the mentioned processes and trying to make themselves better.