Streamlining processes inherently makes them more efficient, but how quantifiable is that increase? Let’s delve into the basics and explore how streamlining processes through the implementation of Vertical Reciprocating Conveyors (VRCs) can boost efficiency.
1. Reduced Handling Time
Time Studies
Conducting time-motion studies helps measure the time taken for material handling tasks before and after implementing VRCs. Compare the total time spent moving materials manually with the time spent using VRCs to see the improvements.
Cycle Time Reduction
Calculate the reduction in cycle time for transporting materials between floors. For instance, if it takes 5 minutes manually and 2 minutes with a VRC, the time saved per cycle is 3 minutes.
2. Increased Throughput
Throughput Analysis
Measure the number of items transported per hour before and after VRC implementation. For example, if throughput increases from 20 items per hour to 35 items per hour, calculate the percentage increase in productivity.
Productivity Gains
Use the following formula to quantify productivity gains:
{Productivity Gain %} = (({New Throughput} – {Old Throughput}) / [{Old Throughput}) x 100
In the example above, going from 20 items to 35 items, using this equation should equate to a 75% increase in Productivity Gain.
Example Calculation
- Old throughput: 20 items/hour
- New throughput: 35 items/hour
- Productivity gain: ((35−20) / 20) ×100 = 75%
3. Reduced Labor Costs
Labor Cost Savings
Calculate the reduction in labor hours due to decreased manual lifting and moving. Multiply the number of hours saved by the hourly wage rate to determine cost savings.
Reallocation of Labor
Determine how many workers can be reallocated to other productive tasks, enhancing overall operational efficiency.
Example Calculation
- Labor cost per hour: $20
- Hours saved per hour: 0.6 (36 minutes)
- Labor cost savings per hour: $12 per hour per employee
4. Decreased Downtime
Injury Reduction
Track the decrease in workplace injuries and associated downtime. Fewer injuries mean less lost time and lower costs related to injury management and compensation.
Maintenance Efficiency
Modern VRCs often require less maintenance compared to manual handling equipment, leading to less downtime and improved operational efficiency.
Example Calculation
- Injuries per month before VRC: 4 (20 days of downtime)
- Injuries per month after VRC: 1 (2 days of downtime)
- Days of downtime saved per month: 18 days
Injury Cost Savings = Injuries Reduced × Downtime per Injury × Daily Cost of Employee
- Daily cost of employee: $160 (8 hours * $20)
- Injury cost savings per month: 3 injuries * 5 days * $160 = $2,400
5. Improved Workflow
Workflow Analysis
Evaluate workflow improvements by measuring the reduction in bottlenecks and delays. Streamlined workflows result in faster processing and higher throughput.
Process Optimization
Use process mapping to identify and eliminate unnecessary steps, ensuring a smoother and faster material handling process.
Example Calculation
Time Savings
Calculation: Time Saved Per Cycle = Original Time − New Time
Based on the example:
- Time saved per cycle: 3 minutes
- Time saved per hour: 3 minutes × 12 cycles = 36 minutes
Productivity Gain
Calculation: Productivity Gain % = ((New Cycles per Hour − Old Cycles per Hour) / Old Cycles per Hour) × 100
Based on the example:
- Old cycles per hour: 12
- New cycles per hour: 30
- Productivity gain: ((30−12) / 12) × 100 = 150%
Labor Cost Savings
Calculate the labor hours saved per hour. The example shows a time saving of 36 minutes per hour, translating to a 60% time saving. Given a 50% reduction in staffing needs, the labor cost savings per hour would be:
- Labor cost: $20 per hour
- Savings: $10 per hour per employee
Injury Cost Savings
Before VRC:
- Total downtime per month due to injuries: 20 days (4 injuries x 5 days each)
After VRC:
- Downtime reduced to 2 days per month
- Injuries reduced by 3 per month (4 – 1)
- Downtime saved: 15 days (3 injuries x 5 days each)
- Daily cost of an employee: $160 (8 hours x $20)
- Injury cost savings per month: 15 days x $160 = $2,400