Definition of productivity using technology, decision making framework, case study use of active RFID to increase productivity. Useful for DTAPP program in Canada
Repurposing LNG terminals for Hydrogen Ammonia: Feasibility and Cost Saving
Increasing Productivity via Technology
1. Increasing Productivity via Technology
What it is - How to measure – Technology - Case study
Terry Rachwalski, MBA CMC
@consultingmania #CEMC
terry@theconsultinglife.ca
2. 1. Automation applied to an efficient operation will magnify the
efficiency.
2. Automation applied to an inefficient operation will magnify the
inefficiency.
Bill Gates
3. Where is the value?
Strategy Operation
• Business model • Perform activities better
• Customer value • Cost, quality, time
• Uniqueness • Execution
4. Decision making framework
• Strategic objectives 3 – 5 years? Performance?
• 5 best opportunities for growth?
• Pain points? What keeps you from growth?
SWOT
• 5 biggest opportunities for productivity?
• Barriers to increasing productivity?
• How will we measure?
5. COST vs FLOW
COST - re-work, reducing
waste & non-value add
FLOW increase includes
COST items +
Increased output
Improved quality
Decreased lead time
Why flow?
Increase sales and
productivity
6. Earnings Salaries VAPE
FTEs
Cold facts: Value Added per Employee + ROI
= Productivity
7. Value?
+
What to do more of ?
Less of?
+
Compare VAPE and ROI
+
Does the technology add
a strategic value?
=
Make it so!
8. Barcode 2D tag code
Quick response code
12 digits Sends to a web site
Sends to a web site
Standardized
Need smart phone + app
Need smart phone + app
Need line of site Close proximity
Close proximity
Close proximity Design! Retail !
9. Smart cards
Magnetic stripe Access Control
Access control
More secure
125kHz
Finance, border control,
Mag stripe less secure Close proximity
security
10. Active RFID & RTLS
GPS/cell
Passive RFID Transmits
Needs antenna
Poly tag Needs battery
Standardized Longer range
More data Indoor
Outdoor
alt: WiFi
Fleet management
1-3 m read range
Tracking
Need reader + antenna Need reader + antenna
Time
Retail/inventory Warehouse
Value added features
Warehousing High value assets
11. Handheld Devices Mobile Forms
Versus Visibility
Smart Phones Lone worker safety Needs
Ruggedized Smart Phones Combinations of
Barcode/passive readers technology &
Mobile Work Force business
Retail/inventory management
Warehousing intelligence
12. Case Study: real time locating inventory
• Before RTLS (Monthly)
– Labour – 4 people per shift $16,000
– Rush shipments & late charges $ 5,000
– Halted or slowed production lines $12,000
– Total $33,000
• Cost with RTLS (Monthly)
– Labour – 1 person per shift $ 16,000
– Labour re-assigned to high value work
– Rush shipments & late charges $ 2,000
– Halted or slowed production lines $ 5,000
– Total $23,000
– Monthly Savings $10,000
13. ROI & VAPE
• Technology saved $10,000 per month
• Capital cost of $100,000 ROI = 10 months
• Re-assigned labour increased profit
• VAPE: increased 10% per employee
• Improved client relations = differentiator
14. Where’s the sweet spot?
Technology doesn’t solve bad process
Stick to value & profit
Productivity is in flow not just cost reduction
Value added per employee + ROI + strategic value
Combine business intelligence & technology
15. Questions?
Terry Rachwalski, MBA CMC
terry@theconsultinglife.ca
@consultingmania
Next up: Eric Anderson - Business Intelligence