Integrated productivity increase with the
Process Value Analysis (PVA) and the
Productivity Increase Program (PIP)
Many companies are aware of the situation 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.
The two aforesaid 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.
The Process Value Analysis is a method which contributes to an output increase for the organization by means of balanced cost reduction measures and an sustainable optimisation 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. In addition, these processes, especially the sales and order execution functions, have a major impact on the market success as a result of their interface with customers. Effective programs to increase efficiency have to be applied in the aforesaid sectors both for cost reductions and for an increase of market success.
The objectives of the Process Value Analysis are as follows:
- Identifying weaknesses within the organization
- Identification of performance reserves
- Development of optimization measures
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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 aforesaid 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.
Thereby the following is focussed:
- to identify process weaknesses on the basis of errors and their effects,
- to analyse their economic effects on the company’s output,
- to identify the actual causes of productivity losses.
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The aim is a speedy implementation of measures without radical changes in production technologies and the relevant machinery/equipment. The main analyses relate to material flows, scheduling and capacity control, 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.
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