My days at SIBM Bangalore have been bringing with them insights of all kinds. The period of my summer internship has been a really great experience and has brought with it something new every other day.Today during a discussion with my project guide who is the Head of TPM (Total Productive Maintenance) and Manufacturing Excellence at SKF, the issue of the factors responsible for lost efficiency came up. To this my guide said that the role of the human factor is by far the most important for productivity and efficiency.He said that if an industry has an efficiency of 70%, its the human factor that can take it from there to 90% and beyond that the other factors come in. Technology comes the last when its effect on lost efficiency is considered.
Although his views have been so framed as a result of his 18+ years of experience in companies like TVS, Arcelor-Mittal etc., I still find it difficult to comprehend the extent of the human factor's importance. Of course if this very factor wishes to bring the efficiency down, it can be achieved in no time. But taking it up from there would definitely need a deep resolve, a connection with the larger goal and loads of motivation for achievement.
The initiatives taken at SKF under TPM with a great deal of involvement from its employees are in some way trying to change the mindset of this human factor. The SKF India unit which now has nearly $325mn of revenues is in a transition phase and it aspires to become a billion $ firm soon. The company is thus taking its most important resources quite seriously.
In my last post, I talked about how employees come first so as to put customers first, and here we have this live example supporting the view.Though the extent to which SKF will go in this direction is something to be watched for.
2 comments:
No denying the experience of your mentor, but I have a different perspective on the human factor playing a dominant role in efficiency management. The views of your mentor holds ground in a service industry. But what happens in a totally automated plant like that of Toyota or Honda. A car is rolled out of the production line with minimum human intervention. If by human factor you mean the application of lean concepts and other principles, then yes; human factor does play a significant role in improving efficiencies.
@Yash: Thanks for putting across your views. I agree with you to the extent of little being the role of employees in a totally automated plant. But, acceptance of the soft technologies which are the enablers of complete automation, depends to a great deal on employees. Also, be it services or manufacturing, automation or no-automation, I believe that its always people who run the business, more than any technology.
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