Statistical measurements, usually called key performance indicators (KPIs) are found on pretty much every shop floor and in every company. Many management decisions are made based on KPI. Unfortunately, these numbers often are not reliable at all.
Inventory is one of the seven types of waste. There is usually quite a significant cost associated with having inventory, usually much more than what traditional bookkeeping accounts for. Between 30% and 65% of the value of your inventory is spent every year as inventory-related costs! This post looks into more detail at the cost of this inventory. Continue reading The Hidden and not-so-hidden costs of Inventory→
There are thousands of things to see during a plant tour. However, if you really want to know how good the plant is, there are a couple of tricks on what to watch during the tour. This post will give you a few quick but reliable metrics to estimate the performance of the plant. Continue reading Make Your Plant Tour a Success!→
The Overall Equipment Effectiveness (OEE) is by far and wide the most lied-about and fudged measurement on the shop floor, both intentionally or by accident. This post tells you the top three different ways how an OEE is fudged, so you know which OEE to trust and which one not. Continue reading Top Three Methods on how to Fudge Your OEE→
There is quite a difference between knowing in theory how to measure an Overall Equipment Effectiveness (OEE), and actually measuring it in practice. This post will give crucial tips and points on how to measure the OEE on a real shop floor. Continue reading How to Measure OEE→