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APRIL 2023 I DESIGN007 MAGAZINE 47 Cost Reduction/Efficiency Gain Efficiency gains and cost reductions sound like the same thing, but they are more like two sides of the same coin. • Cost reduction is measured by use of fewer consumables • Efficiency gains are the result of utilizing less labor To improve at both, manufacturers need meaningful, granular metrics in place to mea- sure how much of each is being used. e metrics for raw materials consumed during production should be in the purview of the accounting and finance team. ey can set metrics for the volume of consumables used during production. How those materials are used on the production floor requires analysis of manufacturing processes. Once an organi- zation has a clear vision of how and how much of a raw material is being used, then strategies and best practices for cost reduction can be put into place. e process for making efficiency gains is similar to material cost reduction initiatives. It is essential to understand labor costs at a granu- lar level, including how process and technol- ogy impact operational efficiency down to the individual level. When a facility learns how to increase output at the per person level, the opportunities for improvement increase sub- stantially. Continuous Improvement Continuous improvement is arguably the most important of the five HPAs. Repeatedly challenging the status quo with an eye toward improvement will keep produc- tion excellence at its highest level. Manufac- turers who adopt continuous improvement programs and implement quality management systems (QMS) will realize improvement efforts across the production floor. Common elements of successful continuous improvement programs include: • Utilize Lean Six Sigma, 5S, and 5-Why root cause analysis. • Perform daily process walks, known as Gemba in the Lean manufacturing phi- losophy. ese provide daily observation of processes occurring in real time and can uncover resource gaps. • Plan-Do-Check-Act (PCDA) is a method to both continually improve and measure results—setting the stage for solid counter- measures that will prevent reoccurrence of an observed weakness or gap in the process. Putting the five HPAs into practice on a daily basis into any production process will help keep any production team laser-focused on achieving production excellence through the continual improvement cycle. DESIGN007 Guest columnist Kevin Beattie is a quality assurance manager at Sunstone Circuits. To read past columns from Matt Stevenson, click here. Download The Printed Circuit Designer's Guide to... Designing for Reality by Matt Stevenson.