lean implementation

CAN OEE BE USED TO REDUCE OPERATING COST?

OEE or Overall Equipment Effectiveness measures manufacturing performance against perfection. It is regarded as the global benchmark for measuring manufacturing efficiency. Any deviation from perfection drives up operating cost. OEE looks at three different losses and multiplies them across to assess total losses. Those losses are:

Availability - This is a measure of downtime (both planned and unplanned)

Throughput - This measures rate loss against the theoretical maximum run rate

Yield - This measures the amount of efficiency lost due to quality issues

Are Your Metrics Causing You To Lose Money?

As Peter Drucker, one of the founders of the study of modern management, once said, "if you can't measure it, you can't manage it." Rather you agree with this statement or not, the practice of measurement, or expressing things, events, and ideas numerically, is only increasing in the way we run our businesses. Metrics are critical to Continuous Performance Improvement since they provide the frame of what exactly we're working to improve.

How to Do a Stress-Free Lean Implementation

Lean is said to be the "Machine that Changed the World," which a fantastic book written by Jim Womack, Dan Jones and Daniel Roos. According to Wikipedia, "Lean manufacturing or lean production, often simply "lean", is a systematic method for the elimination of waste ("Muda") within a manufacturing system." We are now learning that Lean has applicability across far more industries than just manufacturing such as healthcare, finance, education, and many others.

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