Rationalisation

Posted in Operations and Supply Chain Terms, Total Reads: 754
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Definition: Rationalisation

Organizations in their continuous attempt to become more efficient and thus, more agile in their response to the market keep on trying to record processes, knowledge and improvements so as to ensure that clear rules are defined for various elements of workflow. These records are used as a collection of good practices to be followed in all parts of the organization including external stakeholder and partners like suppliers.


However the effectiveness with which rationalization measures work depend upon the human element in the organization who must be ready enough to accept the changes that may be suggested, skilled enough to implement the changes and willing enough to learn from the changes. However often times rationalization leads to what is termed as depersonalization and disconnect from the human element and leads to routine boredom. Hence it becomes essential to maintain a proper flow of information and connect with the employees down below the line.


For example:

By observing the process followed by workers in the tooling department it might be possible to clearly identify elements of the workflow that are superfluous and reduce the efficiency of performance. Also the same work or variants of it may be performed by different individuals and they might not be connected properly. Rationalization aims at identifying those connection and disconnections and provide for means to overcome them in order to improve effectiveness and efficiencies. It is also possible that certain functions previously performed by humans are carried out by machines post rationalization initiatives. Ultimately the aim is to increase productivity.

 

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