In my last post, I talked about the value of time in manufacturing, focusing on cyclic or repeatable times. However, the bigger problems are often non-cyclic or fluctuating times. The main difference is that non-cyclic work is a fluctuation, and it causes all kinds of other waste, from excess inventory to additional waiting times. On the other hand, depending on how often the fluctuation happens, there may not be so much benefit in reducing its duration. Read on…
Time
(EN) On the Value of Time in Manufacturing—Cyclic Work
Time is money. One goal in lean is to reduce the time needed to do the work by eliminating waste (muda, which is the better-known part of reducing time) and fluctuations (mura, which many people skip over because it is more difficult, but also more powerful). However, not all time is equal. Reducing the time needed to do the work saves labor cost, but depending on where you save the time, you may have many more additional benefits. Let’s have a look.
(EN) The Power of Six: Time and Money for Parts of Your Value Stream
In my last post I presented you Rajan Suri’s Power of Six – the relation between turnaround time and product cost. In this post I extend his work to apply it to not the entire value stream but to segments of the value stream. Enjoy!
(EN) The Power of Six: Relation between Time and Money in Manufacturing
Time is money. You know that. But with respect to product cost and lead time, there is a rule of thumb that estimates this relation. Let me present to you the „Power of Six,“ discovered by Rajan Suri. This gives you a rough estimate of how the lead time of your products influences the cost and vice versa. This first post looks at the original work, and my next post applies this rule also to segments of the value stream.