Measuring resource efficiency and resource effectiveness in manufacturing
International Journal of Productivity and Performance Management
ISSN: 1741-0401
Article publication date: 19 November 2018
Issue publication date: 19 November 2018
Abstract
Purpose
The purpose of this paper is twofold: first, to identify and analyse existing resource efficiency (RE) and resource effectiveness measures and indicators (REMIs); and second, to identify gaps and develop a new indicator of “operational resource effectiveness” (OREft) suitable for manufacturing units.
Design/methodology/approach
Research methodology consists of three stages: gap identification, development and testing. Through review of academic literature, 40 REMIs are identified and analysed. A survey of manufacturers is carried out to validate the hypothesis and seek inputs on the development of the new indicator. The proposed indicator is tested by comparing OREft index of two manufacturing units with each other, with resource intensity per unit (RIPU), waste intensity per unit (WIPU) and with four other REMIs.
Findings
Analysis of 40 REMIs clearly points towards the absence of a hypothesised REMI. In total, 78 per cent of manufacturers surveyed in north England substantiate the hypothesis. Inverse correlation established between the proposed OREft indicator, RIPU, WIPU and other comparisons is likely to validate the output generated by the proposed indicator.
Research limitations/implications
Testing of this indicator is limited to two dissimilar manufacturing units that shared data.
Practical implications
The proposed indicator is useful for comparing the operational resource effectiveness of individual factories over a period as well as with other factories. RIPU and WIPU captured in this indicator also represent operational RE that can be used to initiate improvement action.
Originality/value
Inclusion of both, the resource consumption and the waste generation along with discount/multiplying factors that capture the circularity aspects is likely to be the distinguishing feature of this indicator.
Keywords
Acknowledgements
Mangesh Gharfalkar acknowledges the support offered by Teesside University through a PhD scholarship to enable this research.
Citation
Gharfalkar, M., Ali, Z. and Hillier, G. (2018), "Measuring resource efficiency and resource effectiveness in manufacturing", International Journal of Productivity and Performance Management, Vol. 67 No. 9, pp. 1854-1881. https://doi.org/10.1108/IJPPM-11-2017-0282
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited