Optimizing Performance of Manufacturing Systems by Evaluating Performance Effectiveness Function

Managing change in manufacturing companies is complex. This complexity tends to increase when organisations overstretch improvement targets above their current ability to apply adequate effort to succeed. This paper describes a performance effectiveness function that estimates performance gain that is achievable levels of effort required to apply to the improvement project. The performance effectiveness function maps the often non-linear relationship between actual performance gain and applied effort. The outcome when applying the function may be used by organisations to set realistic performance gain targets with a better chance of success and to have realistic expectations on the level of performance they may achieve from an improvement project.