Tuesday, July 26, 2011

The stats for why do lean

Typical of the benefits attributed to lean production are those cited by Kotelnikov (2001):
●  Reduction of waste by 80% (waste includes intellect, motion, overproduction, transportation, inventory, waiting, and defects);
●  Reduction of inventory by 80%;
●  Decrease  in  manufacturing  cycle  times  by 50%;
●  Reduction in labor by 50%;
●  Increased capacity in facilities by 50%;
●  Improved product quality by 50%;
●  Higher profits;
●  Higher system flexibility;
●  Better cash flow;
●  Just-in-time delivery

My source - Society of Wood Science and Technology .Kotelnikov is now the driving force behind http://www.1000ventures.com (warning possible information overload)  The Kotelnikov paper is heavily referenced, I just have not been able to find the original available on the web.

1 comment:

  1. Lean principals are why I got into business in the first place. Over my professional career I watch companies implement fattened checks and rechecks on a paper record tracking system only to see more and more costs head out the door. I trained to be able to bind electronic and digital system together and be able to better control flow with less dependency on paper. Having data at your finger tips to manage decisions is a key tool to moving forward in an ever competitive marketplace. In order to compete with cheaper wages being leveraged in less economically progressive countries, working smart not harder will have to be the norm.