Analysis of order-handling systems as a means of determining influences on throughput times and productivity†

Abstract

The productivity of manufacturing companies, and in particular their throughput efficiency, is very much influenced by the management procedures adopted for progressing orders from the point of receipt to delivery of the finished product. In some instances, the administrative system may unnecessarily lengthen delivery lead times. Thus, there is a case for defining and examining more closely the influence of order-handling systems upon productivity. Using case study examples, the paper describes a new approach to the analysis of order-processing systems. Possibilities for shortening delivery lead times are identified by examining company administrative procedures, producing diagrams of information and work flows within the organization. These may then be converted into lists of positive and negative influences upon throughput time. Alternative strategies for productivity improvement are evaluated according to their effect upon time consumption, through (a) the collapse of durations of those activities essential to order completion (termed ‘positive’ factors); and ( b) the elimination of delays and excess slack (‘negative’ factors) to reduce idle time for individual orders. The conclusions presented concern the relevance of the study of order-handling systems to the identification of potential improvements in management productivity; the nature of the efficiency gains that may be made and the most appropriate methods of realizing the potential gains that exist in any individual system.

Notes

†Paper presented at the 7th International Conference on Production Research (Windsor, Canada), August 1983.