Integrated productivity increase with the Process Value Analysis (PVA) and the Productivity Increase Program (PIP)
Many companies are aware that certain processes have a predominant effect on the success of a company. With the Productivity Increase Program (PIP) and the Process Value Analysis (PVA), a consistent increase in output and earnings is possible within a short period of time. This can be achieved by improvements in administration and overhead cost processes and by an increase in productivity, a reduction in through-put times, together with an increase in due date reliability and processing quality.
Focused, short term measures through performance related analysis
These tools focus on speedy and specifically implementable measures without a radical change being required in production technology and/or machinery and equipment. With a combined implementation of PIP and PVA, the economic performance analysis is covered in full – both in prime and secondary processes and also in the relevant administration and overhead cost processes.
Process Value Analysis (PVA) in secondary processes
The Process Value Analysis is a method which contributes to an output increase for the organization by means of balanced cost reduction measures and a sustainable optimization of key processes. It only relates to those sectors which do not have a high level of transparency with regard to the origin of costs within the operating data logging.
Even in production companies, more than 50 % of personnel costs are frequently incurred outside the production . sector. These processes, especially the sales and order execution functions, have a major impact on the market success due to their interface with customers. Effective programs to increase efficiency in cost reductions and market success have to start in both sectors.
Objectives of the Process Value Analysis are:
- Identifying weaknesses within the organization
- Identification of capacity reserves
- Development of optimization measures
Productivity Increase Program (PIP) in primary processes
Within the production sector, the Productivity Increase Program (PIP) concentrates on reducing the input of material quantities, personnel hours and other resources required for the these processes.
Productivity is increased by optimizing the production process by a more efficient control of capacities as well as working hours and by performance-based remuneration systems.
HANSE Consulting not only analyses processes and setting-up times but also focuses on reducing idle time, overhead costs, waste quantities and rectification work.
With PIP the following is focussed:
- to identify process weaknesses on the basis of errors and their effects,
- to analyze their economic effects on the company’s output,
- to identify the actual causes of productivity losses.
The main analyses relate to material flows, scheduling and capacity control, and an increase in productivity and motivation, together with a reduction in idle time and overhead costs. Productivity objectives are then supported by tailor-made working time and remuneration models.