The efficiency rule

In actual practice, experience indicates that this rule is often ignored. It is, however, a very valuable key to an entirely new earnings potential and consistent customer orientation. 

The resources of the enterprise fmanpower. machines, stocics,are to be flexibty adapted to customer ordersf 

The Idie time between the necessarv ooerations Is to be reduced to a minimum. 

If it is not possible to utilize all resources, e.g. machines with customer orders for the enterprise s own products, why not work to capacity on service orders (e.g. extended workbench) for third parties  

Virtually 100% of the additional business has an immediate effect on earnings. 

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We have developed a number of simple methods to speedily exploit the lion s share of the efficiency rule s inherent benefits. 

Supply chain management integrates the functions planning of all customer orders and/or target figures , materials dispatching as well as the complete control of the manufacturing process. Your SCM puts the efficiency rule to work for your business. This means ... 

You will now have implemented the profit potential of the efficiency rule. Bi-terprises that have reached this goal experience a new world of corporate culture, of customer and employee satisfaction and increased revenue. 

SCM produces consistent, on time and on schedule process orientation and thereby customer orientation in all performance networks, in particular in the enterprise itself on the basis of the efficiency rule. 

You can see that there is virtually no other position in your enterprise that is as important to profit as Supply Chain Management which together with you and your employees is constantly working towards the realization of the efficiency rule. 

There is nothing better than consistent customer orientation and the efficiency rule. These are principles which your organization should follow without compromise. 

An enterprise that endeavors to follow the efficiency rule is far superior to every other organized competitor - assuming they offer the same range of performance and services - in earnings and customer orientation. 

We have developed simple methods designed to realize rapidly the vast potential of the benefits hidden in the efficiency rule (Fig. 2). 

With the backlog, bottleneck, and waste-free enterprise you realize the efficiency rule which is so relevant to profit and corporate culture. The vision outlined at the beginning of this chapter becomes reality. 

We have already discussed the special significance of the efficiency rule in sufficient detail. The disharmonious performance process full of backlog, bottlenecks, and waste, however, is the exact opposite of the efficiency rule. The challenge is then to find the causes of the disharmonious performance process (Fig. 22) in order to adopt targeted measures for turning it into a performance process with secured resources (Fig. 24). 

Also not recommendable is the frequently practiced limitation of the number of simulated parts and workplaces. This method assumes that you know precisely who the bottleneck candidates are and that you want to keep them. This means all other resources must be consciously over-sized and remain so. This in turn is simple profit-consuming contravening of the efficiency rule. The intentional oversupply of resources that cannot be simulated burdens the output of the enterprise to such an extent that this route can never lead to a profitable, lean enterprise. 

If you enter primary demand in the deterministic demand and order calculations without a future-oriented and consistent feasibility control function, you can forget about implementing the efficiency rule despite the world s best employees and the most expensive ERP systems. 

Most of the ERP systems currently offered on the market make two assumptions in the deterministic demand calculation both of which have nothing to do with reality, the market, the logic of business economics and absolutely nothing with the actual supply and operative activities within the enterprise or let alone with the efficiency rule (Fig. 29). 

The SCM not only ensures that business processes run rapidly and on time through the enterprise. It also proactively manages processes and the structure of the supply chain so intelligently that your enterprise comes as close as possible to realizing the efficiency rule (Fig. 33). 

The SCM works as a service provider for all employees in the performance process and optimizes the system for the entire performance process with regard to the efficiency rule that is so pertinent to profit. Its single most important services for the departments and teams can be described as follows ... 

You may remember our ulterior goal for an enterprise, the efficiency rule. We want to utilize the expensive resources as effectively as possible towards revenue, and reduce all throughput times. We will then achieve maximum profits. 

This takes you closer and closer to mastering the efficiency rule. 

A reorganization of a company in line with the Wassermann Philosophy is so vital to profits that the investment effort amortizes within just a few short months. Nothing tops the efficiency rule ... 

The efficiency rule has been implemented by your enterprise. The resources become ever more flexible. You switch increasingly to those order combinations that reap the greatest possible revenues. 

It is best to give this former chief function as much freedom as possible to push all activities that continue to improve your earnings and customer orientation. You will not find anything as ingenious as following the efficiency rule. 

No competing organization can provide your level of performance more on time, more flexibly, more reasonably and faster than the supply chain partnership you shape on the basis of the efficiency rule. 

Page 57 Figure 23 A small example of the efficiency rule... 

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