FIFO (first in, first out) is one of the simplest and most basic ideas in manufacturing, and yields significant benefits. It is so simple that I don’t even want to call it a tool, since it is one of the fundamentals in manufacturing (and many other areas). In this post I want to take a closer look at the power of this most fundamental approach to material flow.
It is common in industry to measure the utilization or the closely related OEE. It is a bit more difficult, however, to set targets for these KPI. Often you hear people wanting or demanding an OEE as high as possible, with a long-term target of ideally 100%. That is often problematic. The utilization or OEE is unfortunately not a clear cut target that you can simply maximize. Let me explain…
In my last post I described a quick-and-dirty approach to estimate the percentage of value add (i.e., the efficiency) of manual work. While the value is only an estimate, it is a measurement that you can take quickly and easily even in passing for a manual workplace. You simply count when a person is adding value and when not (i.e., waste). This post will look into more detail on what numbers to expect, and what to do next if you want to increase this percentage of value adding time. Let’s have a look:
One of the necessary tasks in becoming leaner and improving your industry is to eliminate waste. I like to use a simple approach for measuring waste in manual work to know how good (or bad) the current situation is. To explain my approach I commissioned a few animations. Let me proudly present my approach and my animations, so you can also estimate the efficiency of manual lines when you are on the shop floor.