The Hidden Cost of Inefficiency: Why Minor Process Delays are Bleeding Your Bottomline

With the rising competition or in fact, cut throat competition most of the manufacturing and service organizations focus on big cost saving projects such as

♀ Big ticket losses

♀ Equipment breakdowns

♀ Major quality issues

♀ Missed deliveries

But what about the small delays?

♀ The 2-minute wait for a tool

♀ The 5-minute spent searching for information

♀ The 10-minute delay due to unclear instructions

These are not the operational roadblocks – these are the hidden holes in the bottom of the organization through which profits are continuously leaking.

Let’s try to understand with simple math

Suppose a factory has 200 workers. Each employee is losing 10 minute per day to process delays, then;

♂ Total minutes lost per day = 2000

♂ Total hours lost per day = 33 (Approx.)

Suppose there are 26 working days in a month, then;

♂ Total hours lost in a month = 858

Suppose average hourly wage is ₹300, then;

♂ Total loss per a month = ₹2.5 lakhs (Approx.)

♂ Total annual loss as direct labour cost = ₹31 Lakhs (Approx.)

And further these delays lead to missed deliveries, poor morale, or quality errors.

♀The Real Cost is Culture

When the employees become habitual to these small delays then these delays turned in the culture of the organization. With the passing days they eat away the motivation of employees, customer satisfaction and the competitiveness of the organization.

♀The Solution-Gemba Walk

Go walk through the shop floor or service desk today. Observe with open mindedness

♂Are people waiting for approval of tools?

♂Are forms incomplete or unclear?

♂Are steps duplicated or unnecessary?

Fixing these delays doesn’t need a big project, it all starts with awareness.

Begin with fixing one small delay today, right now!

#OperationalExcellence #LeanThinking #ProcessImprovement #ManufacturingMatters #HiddenWaste #ContinuousImprovement #KaizenCulture #EfficiencyMatters #BusinessExcellence #ServiceIndustry #DailyImprovement