ENHANCING OPERATION EFFICIENCY BY REDUCING NON-UTILIZED TALENT WASTE: A CASE STUDY OF A TRAFFIC SIGN MANUFACTURING SME IN THAILAND

Abstract

Non-utilized talent waste defined as the underutilization of employees’ skills, knowledge, and creativity constitutes a critical yet frequently overlooked source of inefficiency in manufacturing operations. This study investigates the manifestations of such waste within a small and medium-sized enterprise (SME) engaged in traffic sign manufacturing in Udon Thani Province, Thailand. Employing a qualitative case study methodology, data were collected through participant observation, in-depth interviews with twelve purposively selected employees, and small group discussions. The analysis incorporated flow process charts, two-handed process charts, and skill matrices to systematically identify inefficiencies across production workflows. The findings reveal several key factors contributing to non-utilized talent waste, including misalignment between task assignments and employee competencies, imbalanced distribution of manual tasks, and limited opportunities for employee participation in continuous improvement initiatives. To address these challenges, the study advocates for the implementation of Lean Human Resource Management (Lean HRM) strategies, encompassing skill-based job design, workflow optimization, and structured communication mechanisms to foster employee engagement. The results underscore that the integration of Lean HRM principles can significantly enhance operational efficiency by minimizing talent-related waste and optimizing workforce utilization within labor-intensive SME environments.