[原创]Definition of Efficiency Cost under CSS

Time-saving is important in production management such as Lean Production. How to measure the cost benefit of productive efficiency? Here I suggest the following concepts of efficiency cost under CSS’s principle.

n      Efficiency Prevention Cost

       Cost occurred for reducing the inefficient loss or improving productive efficiency, including expenses of production skill training, consultation of efficiency improvement, production capacity planning, improvement of equipment  performance, efficiency improvement projects。

n      Efficiency Evaluation Cost

       Cost occurred for evaluating the current status of efficiency or reviewing the efficiency management in a certain past period。

       - Items of evaluation：plan, system, process、method, communication pattern, organization, value, information system, production capacity, operating skill, supply chain, production pattern, equipment, humanity working environment。

    - It’s expenses include internal efficiency evaluation and external evaluation of suppliers or customer。

n      Abnormal Efficiency Loss Cost

       Cost incurred by the reasons of poor management, such as excess production capacity, poor equipment layout, waiting, transportation、inefficient procedures, useless motions、inefficient setup、equipment/information system breakdown。

       It’s expenses include the necessary depreciation of equipment, salary, transportation fees, rent and others related to the time wasted。

n      Normal Efficiency Loss Cost

       Cost incurred by the reasons of external environment such as lack of sales order, powerless or regular holidays。

       It’s expenses include the necessary depreciation of equipment, salary, transportation fees, rent and others related to the time wasted.