Productivity is an important measure of the efficiency of use of production factors (resources) of an enterprise, that is, how many products can be produced with the same cost in materials, labor and production facilities. For manufacturing companies, effectively improving production efficiency is the key to reducing production costs.

1. Solve the bottleneck production process

This is the simplest trick, but it is also the most powerful one. My own "famous saying" is, "Practice simple tricks To the extreme it’s a masterstroke.” There is a saying: "The bottleneck process determines the maximum production capacity." As we all know, balance is an important guarantee for production progress. Among 100 links, as long as one link is inefficient, then the efforts of 99 links may not be able to solve the problem of lagging behind. Therefore, grasping the production rhythm of the bottleneck process and continuously improving it is the most important magic weapon to improve efficiency.

Old bottlenecks are solved and new bottlenecks are created. Bottlenecks are constantly eliminated, combination optimization is continuously promoted, and production efficiency is greatly improved.

So, how to effectively relieve the bottleneck process? The commonly used five-step method to relieve bottlenecks: ①. Find the bottleneck of the system; ②. Decide how to tap the potential of the bottleneck; ③. Provide the bottleneck with the best resource support; ④. Untie the bottleneck (bypass, replace, outsource) ; ⑤. If step four breaks the original bottleneck, then go back to step one, continue to improve, and find new bottlenecks again.

2. Implement performance and piece-rate compensation

I remember a management guru once said: “If the fixed salary of an enterprise’s employees exceeds 70%, the enterprise is already close to death. Far away”. This sentence is easy to understand, because employees who are "guaranteed to harvest despite droughts and floods" cannot be motivated at all. A wise saying we often say is "it is shameless to time the clock (fishing), and it is not life-saving to count the piece".

In fact, management is the distribution of interests, and good distribution means win-win and multi-win. I once worked in a company with tens of thousands of people. There were more than 10 IE engineers in the company. They studied how to improve efficiency every day, but the efficiency just couldn't be improved. My statement is very simple, "On-site efficiency improvement does not mean sacrificing the interests of employees to achieve the interests of the company. Such improvements are bound to fail." It means: "IE engineers study how to make employees do things faster and better, but it is relatively harder for employees to do things faster and better. If employees work harder, they will definitely stop working if their wages do not increase."

In fact, the most valuable asset of production management is employees. The core of employees is motivation, and the focus of motivation is to meet the needs of employees.

The piece-rate system must be adopted for the production site operations (such as spot welding, soldering and other processing processes). In previous consulting experience, productivity efficiency can generally be increased by more than 10% after implementing piece-rate compensation. Piece rate is inherently a reasonable compensation method. It encourages employees to do more and get more. This not only mobilizes employees' enthusiasm, but also improves on-site work efficiency, ensures that the assembly line does not wait for materials or runs out of materials, and reduces production costs.

Of course, when implementing piece-rate compensation, we must focus on solving the following six issues: ①. Repair of defective products, ②. Replacement quantity, ③. New employee training, ④. Piece-rate unit price calculation, ⑤. Standard production capacity Rationalization, ⑥. The rationality and fairness of the division of labor among production line supervisors.

The current production management form of the enterprise is not suitable for implementing piece-rate wages. Therefore, at certain work stations, if the order of the production site is straightened out and the working methods are improved (reduce unnecessary work steps) , or to complete the necessary operations in the fastest, safest and most comfortable way), then it is necessary to improve our work efficiency and productivity and implement a performance bonus system, and the key points to focus on at this time are: ①. Assessment Project; ②. Calculation method; ③. Project connotation; ④. Target weight; ⑤. Project allocation; ⑥. Scoring rules; ⑦. Data source; ⑧. Assessment cycle; ⑨ Award amount allocation.