When it comes to maintaining a building or property, most managers are always looking for ways to be more efficient. However, while efficiency is important, it’s not always the best indicator of success. In fact, in many cases, performance is a better measure. Here’s why.

1.      The definition of performance and efficiency

To correctly manage your facility, it is essential to understand the definition of performance and efficiency. Performance is how effectively a machine or system can achieve its goal, while efficiency is how much resources are used to achieve that goal. To improve performance and efficiency, you must first understand what affects them. By understanding the concepts of performance and efficiency, you can develop strategies to improve them in your facility.

2.      How to Measure Performance

The best way to measure your organization’s performance is to use targeted KPIs. Listed below are just a few to keep in mind when you measure performance:

  • Capacity Utilization – How much of the available capacity is used on the production line.

  • On Standard Operating Efficiency – If one has an incentive system in place, the idea is to measure how employees are doing against the standards of labor you used to determine the cost of the product.

  • Overall Operating Efficiency (OOE) is a great metric because it includes ‘on standard time’ and ‘off standard time.’

  • Overall Equipment Effectiveness OEE– To measure the total effectiveness of production machinery or the whole line. Availability x Performance x Quality.

  • Machine Downtime – This KPI, although it is a component of OEE, is worth measuring on its own. This takes into account scheduled downtime for maintenance, unscheduled downtime, and setups that often include machine changeover.

Source: Business2Community, 2019.

3. Why performance is better than efficiency

Performance-based maintenance is based on the actual needs of the equipment, while efficiency-based maintenance is based on arbitrary numbers or guidelines. Performance-based maintenance produces better results because it focuses on what needs to be done, not what someone thinks should be done. This approach leads to improved uptime and safety and lower overall costs.

4.      Ways to Improve Performance

1. Evaluate the manufacturing process to identify areas for improvement

2. Implement a quality management system to ensure product quality

3. Use lean manufacturing principles to optimize the production efficiency

4. Train workers on best practices for manufacturing operations

5. Monitor performance metrics to track progress and identify areas for improvement

6. Celebrate successes and learn from failures to improve future performance

5.      The benefits of improving performance

Improving performance can have several benefits, including increased productivity and efficiency. It may also lead to higher morale among employees as they feel like their valuable contribution impacts the company’s success. In addition, improving performances often leads organizations towards a competitive edge in today’s market where change happens rapidly, which helps businesses stay up-to-date on trends while still offering quality service or products.

Source: Profit.co, 2022.

In conclusion, we have seen that performance is a better metric than efficiency when measuring the success of a business. There are many ways to improve performance, and the benefits can be significant.

If you are interested in learning more about how Proteus MMX can help your business achieve its goals, don’t hesitate to contact us today for a free demo.