The awareness that any goods or service that is overpriced will receive resistance from customers is a guide to operational leaders in deciding product/service design, capacity investment, efficient moulds/processes, production cost reduction, quality products and delivery to customers/end-users. To create operational efficiency, the operational leader must ensure the following:

• Production capacity is optimized

• Rate of output is based on what is planned.

• The choice of methods, materials, manpower, machinery, money and messages (6Ms) meet company objectives and goals.

• Minimization of cost of materials handling.

• Damage of materials, equipment and defective product reduction

• Reduction of materials handling cost –ordering

cost, carrying cost, etc.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: