Having understood the technology we means overall equipment effectiveness. Now, let us understand what is mean by effectiveness before getting into equipment or manufacturing line or plant level, let us understand the effectiveness with our own life as a human being we have 24 hours in a day How will you measure your effectiveness in any given day, on what basis you will measure your effectiveness on any given day. So, we will understand our effectiveness with this example then we will correlate with oily or oily rupee Suppose, for example, so generally our effectiveness related to the Output what we are delivering right let us consider this a given available for work out of 24 hours, nine hours is available. So, you want that is on percentage with you may be surprised with this number, but assume that remaining 16 hours you're spending either for sleeping or getting ready for office or getting into transportation to unfold spending some time with personal related things or if related to families, it could be anything else.
So, nection you are giving her you are available for nine hours for the work. So, your availability index is 37 percentage. The next factor I put it is efficiency of our work. Assume that you are available for nine hours and you are delivered six hours of efficiency work. So, I given 67% efficiency in that What happened to remaining three hours it is the inefficiency, it could be due to some valid reason like attending phone calls, attending emails, or spending time with your friends or colleagues or chatting or it could be any reasonable thing any thing efficiency loss, which is not allowing you to work effectively for Manos, that is the efficiency loss. So, as a firm we do not bother about the reason for the losses.
So far we'll understand the concept. So, out of nine hours, which you are available for the work, you are given six hours efficiency work, so your efficiency index is 67 percentage. Then that's a tiger nice quality of work. So you work for six hours, six hours efficiently work, but fire firewalls output only is taken for next level or approved Remaining one hour work isn't it is fully scrapped or you can rework off the job or something else that means out of six hours five hours to deliver the quality output. So, from quality perspective, say given index 83 percentage now, you have three index no availability 37 percentage efficiency 67 percentage quality of 483 percentage which one you take it for claiming your effectiveness in any given day, either it will go by efficiency and claim that 67% of effectiveness or going with quality or for kill may claim 83% is your effectiveness are considering your availability you may claim that is one percentage This is one way of claiming your effectiveness Are you will add all the three and three are in the next one will be coming out trigger it could be anything, but the real since the effectiveness is that is one percentage into 67 percentage into 83 percentage all together ever overall the effectiveness is just 20 percentage only.
That is an effectiveness of Labor Day here I want you to appreciate here we are not considering only the availability portion or only the efficiency portion or only the quality of work. Here we are considering all the factors and we are bringing one cumulative number on aggregative number saying that is the effectiveness. Here we are taking into consideration of all aspects, utilization, efficiency quality that is affecting us. When you look at this way, it will change your perspective in a different way. When you go buy a car quality of work what is the percentage should you be thinking that you are doing 80% of the day actually it is not. So, early to go by your efficiency maybe claiming you are doing 67% is actually to start.
So, you may be discounting the availability that is our percentage also it is not right. So, so, Warren day effectiveness is the multiplication factor of utilization, efficiency and quality. So, end of the day in a given 24 hours day you were africanus just 20% this is the paradigm shift in looking at our effectiveness. Now, you can extend the same concept to equipment manufacturing line our plant anything else. The idea is in the organization we cannot look at in isolated condition, we need to look could only strictly if there could be a coupon we cannot see the coupon utilization alone or you cannot see the coupon efficiency alone or we cannot see the people productivity or we cannot see only the output of the coupon we need to look holistically in any given day, how many hours acumen is ruthless with a given utilize to time how effectively efficiently the operator work with the efficient running how much quality product he delivered.
Holistically we need to see whatever comes in that is the effectiveness of a coupon. The same thing is applicable for manufacturing land setting is applicable for plant as well. If you look at all Stickley, it will do different perspective to about your organizational effectiveness. This is this should be the one of the important piece in the operation excellence matrix. Hope you understand the meaning of effectiveness and you can able to appreciate how it holistically covers most of the aspects of practice of organization or resources of organization.