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.