Lies, Damned Lies, and KPI – Part 1: Examples of Fudging

Upward Trend
Don’t get too excited about your numbers!

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.

Mark Twain popularized the phrase “Lies, damned lies, and statistics.” Winston Churchill famously said, “I only believe in statistics that I doctored myself.” Hence, both men were wary of trusting numbers. You should be too!

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The Hidden and not-so-hidden costs of Inventory

Gold Bullion Missing
1/3rd to 2/3rd gone every year!

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.

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Lean Shop Floor Checklist – Top 4 KPI to Watch in the Factory

Lean Shop Floor Visit Checklist
Check my List!

Due to popular demand related to my two posts on “Make Your Plant Tour a Success!” and “How to Misguide Your Visitor – or What Not to Pay Attention to During a Plant Visit!,” I have created a  checklist for a lean visit to a manufacturing shop floor for you to download. Take this checklist with easy-to-use metrics during your shop floor visit to make yourself independent of potentially misleading data given to you by the shop floor staff. Metrics include worker utilization, machine utilization, inventory reach and turnaround, and order & cleanliness.

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How to Misguide Your Visitor – or What Not to Pay Attention to During a Plant Visit!

And here's what I want you to know...
And here’s what I want you to know…

In the previous post I talked about how to have a successful plant tour and how to get the most information out of the visit. Today’s post shares the tricks of the trade on what things the plant does NOT want you to know about.See through the ruse during a plant tour and discover how good the plant really is.

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Make Your Plant Tour a Success!

A typical shop floor 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.

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Top Three Methods on how to Fudge Your OEE

How to fudge your OEE!
How to fudge your OEE!

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.

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