To fully understand how the edinn platform helps to increase total efficiency, we need to define 2 concepts: Process and Efficiency.

EFFICIENCY is defined as:

Efficiency = Results / Consumption

Where:

    • Results: are the valid outputs of the process, e.g: good finished products, results of tasks...
    • Consumption: are the total inputs of the process, e.g: raw materials, energy...

We consider these types of efficiency:

    • TOTAL EFFICIENCY: when the total, results and consumption are analyzed. For this, the OPCE standard ratio is used.
    • PRODUCTION EFFICIENCY: when only the results component is analyzed, measuring them in terms of Availability, Speed and Quality. For this, the OEE standard ratio is used.
    • CONSUMPTION EFFICIENCY: when only the consumption component is analyzed. For this, the OCE standard ratio is used.
    • ENERGY EFFICIENCY: when we only analyze energy consumption.

WHY IT IS SO IMPORTANT:

Efficiency can be considered for processes, groups of processes... or an entire organization. In fact, the economical results of a company, its yearly profits, are nothing different than pure Efficiency.

If a process is not performing at 100% efficiency, we say it has losses.

As you can see, improving efficiency means directly improving profits, because you are producing more good results and you are consuming less resources: money, time, energy, materiales, etc.

This has enormous direct benefits, as generates:

    • Higher economical benefits.
    • Less impact on the environment.

But there is also an additional interesting effect. In the analysis of consumption efficiency, one can detect steps or procedures that generate excessive consumption, which a deeper analysis may determine that the process should be adjusted. This will improve production efficiency which again will imply an improvement in consumption efficiency.

Therefore, although it may not be a direct conclusion of improving efficiency, in general, it has been confirmed that more efficient organizations:

    • Produce with less time to market
    • Produce better results with higher quality
    • Are more profitable.