Maximizing equipment efficiency means maximizing its productivity – that is, achieving the greatest possible output (results) with the least possible input (costs). In other words, it means maximizing the equipment’s cost-effectiveness.

The Relationship between Production Inputs and Outputs
Where Equipment Sits in the Production System

Production equipment has become more and more important as production systems have become increasingly mechanized and automated. The message has changed from “build quality into the product utilizing the process”, to “build quality into the product using the equipment”.

Value A < Value B

Productivity = Output/Input = B/A

Equipment is the most important element in the production system

To reduce Value A, best use must be made of all available management techniques to eliminate the 16 Big Production Losses and maximize the efficient use of equipment, labor, and resources.

How the Production Inputs and Outputs are Related

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