The Benefits of improving the efficiency of processes and to understand the financial and operational implications of improving these processes; both positive and negative.
Productivity improvement is one of the biggest challenges for companies in order to remain competitive in a global market (Fleischer, J, Weismann, U and Niggeschmidt, S, 2006). This can be measured using overall equipment efficiency (OEE). This can then lead onto lean production as well as Kanban systems and 5S culture to help provide this competitive advantage.
Ginsters have had falling revenues and profits year of year since 2008 due to a tough economy and the "horsegate" scandal (Best, C, 2013). One of the ways in which Ginsters can improve profit margins and overall profit is by reducing costs on the bottom line which process improvement can do and this can be done using Kanban systems, Muda and 5S culture just to name a few. My research topic requires further investigation as cutting costs on the bottom line is one of the only ways a company can control profit levels as companies can control to a certain extent their costs but the market determines the price of the product due to price elasticity (Mortimer, R, 2012)
During my placement at Ginsters I have been partaking in process improvement to free up capacity.
The objectives of my research are to understand the how improving the process of manufacture can provide both financial benefits as well as operative benefits. I will research the positive impact financially and also the risks that the business will undertake in buying new machinery in regards to return on investment as well as the people side in reference to reluctance to change. I will also look into the implications of changing a process for potential improvement of efficiency such as labour and downtime...