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Actual for You - TPM and Lean Production, is It Worth the Effort?
Do You Want to Become a Entrepreneur?What does it take to become a successful Entrepreneur? Entrepreneurs are unique and they are unlike "most people". I have been entrepreneur for the past 10 years, and it hasn't been all glory. Entrepreneurship is challenging and rewarding. It has allowed many indulgent items in our family, some of which are time and vacations.Lets talk about the traits of a successful entrepreneur.1. An eye for opportunity: Entrepreneurs notice opportunities when most people don't. One of my past opportunities was the purchase of a duplex. It was fairly run down, but I saw that it only needed some paint and new ca
Project team members
You will need people to run the project. Project management and coaching equals to about one full-time coordinator per 100 employees in the facility
Benefits
Increased Overall Equipment Efficiency (OEE) is the main factor that may be used to approximate the return on the efforts. S
As a salesperson or the owner of a small business, do you consider yourself to be qualified, experienced, and dependable? More importantly, have 95% of your customers had a satisfying experience doing business with you or your company? If your answer is ‘yes’ to all those questions, then your services or products have the potential to be in high demand. The trick is effectively communicating that information to your target market.Let’s assume that you have what your prospective customers are looking for: excellent service, high ethical and quality standards, a near-perfect track record in living up to promises and producing desired results, and the
"We should implement Lean Production and TPM in our plant", he says. "This will make our production more reliable and increase our delivery accuracy".
The MD is paying attention but is not yet convinced. He wants to put the ideas to a test.
"Looks interesting", he says, "Please come back with a good calculation of the Return on Investment so that we can see if it fits into next year's budget."
This is where the story might end. How could you possible estimate costs and benefits from such advanced management techniques as TPM and Lean Production? These concepts are known to be difficult to plan in advance, and they require a mind-shift for everybody in the facility.
Well, it may be difficult but you have to do the calculation anyway. Arguments as "we have to do this" or "everybody else is doing it" are just not convincing enough.
A change project must be looked upon as an investment that will come with initial costs and hopefully bring something back in return. This is no different from any other investments. If you can not give an educated guess on its financial impact, there is a big risk that the project might not be given the necessary resources for what it needs to succeed. Even if the financial impact of important factors such as shorter lead times and better delivery accuracy are not known, we need to describe how this project will raise profits in the company.
To give an answer to these important questions we have put together some simple guidelines for you to use, and if you prefer, a free calculation tool that you may use to do your own estimations.
What will the costs be?
The main cost will consist of:
Training and Consultancy
No successful implementation of TPM and Lean Production has succeeded without the help of experienced professionals. You will have to train your employees and you need support in your project team. A good estimation is a yearly cost of $100.000 per 100 employees involved
Increased initial maintenance costs
Elimination of manufacturing wastes and implementation of improvement ideas are likely to increase the maintenance costs. Expect maintenance to increase up to 20% the first year, but with it stabilizing at a level less than today after one to two years.
Project team members
You will need people to run the project. Project management and coaching equals to about one full-time coordinator per 100 employees in the facility
Benefits
Increased Overall Equipment Efficiency (OEE) is the main factor that may be used to approximate the return on the efforts. Si
When people think of advertising, the first options are usually television, radio, newspapers and billboards. It never comes across the person’s head to use balloons, which happen to be the cheapest of all these methods.Why? Perhaps because these balloons are often regarded as accessories in birthdays, parties and other company functions.But do people know that the first balloons ever built were used as bombers or as the first passenger airliners in the world? These may have happened more than 60 years ago but there are people who use this now to advertise a certain product and increase sales.The reason why advertising balloons are so
This is where the story might end. How could you possible estimate costs and benefits from such advanced management techniques as TPM and Lean Production? These concepts are known to be difficult to plan in advance, and they require a mind-shift for everybody in the facility.
Well, it may be difficult but you have to do the calculation anyway. Arguments as "we have to do this" or "everybody else is doing it" are just not convincing enough.
A change project must be looked upon as an investment that will come with initial costs and hopefully bring something back in return. This is no different from any other investments. If you can not give an educated guess on its financial impact, there is a big risk that the project might not be given the necessary resources for what it needs to succeed. Even if the financial impact of important factors such as shorter lead times and better delivery accuracy are not known, we need to describe how this project will raise profits in the company.
To give an answer to these important questions we have put together some simple guidelines for you to use, and if you prefer, a free calculation tool that you may use to do your own estimations.
What will the costs be?
The main cost will consist of:
Training and Consultancy
No successful implementation of TPM and Lean Production has succeeded without the help of experienced professionals. You will have to train your employees and you need support in your project team. A good estimation is a yearly cost of $100.000 per 100 employees involved
Increased initial maintenance costs
Elimination of manufacturing wastes and implementation of improvement ideas are likely to increase the maintenance costs. Expect maintenance to increase up to 20% the first year, but with it stabilizing at a level less than today after one to two years.
Project team members
You will need people to run the project. Project management and coaching equals to about one full-time coordinator per 100 employees in the facility
Benefits
Increased Overall Equipment Efficiency (OEE) is the main factor that may be used to approximate the return on the efforts. S
Typically, doing a tradeshow isn't an inexpensive proposition. There's a great deal of investment of money in your setup and materials, as well as the time you and your employees invest in staffing the booth. If you're working solo, you're doing the bulk of the preparation and staffing alone, which adds to the anxiety and tension.My recent tradeshow debut caused me to think about how to approach the situation, make it productive for me and fun for my visitors. These are the ten tips I've followed in my preparation process:1. Determine your primary goal for being an exhibitor in the tradeshow. I know that my email newsletter is a great ma
To give an answer to these important questions we have put together some simple guidelines for you to use, and if you prefer, a free calculation tool that you may use to do your own estimations.
What will the costs be?
The main cost will consist of:
Training and Consultancy
No successful implementation of TPM and Lean Production has succeeded without the help of experienced professionals. You will have to train your employees and you need support in your project team. A good estimation is a yearly cost of $100.000 per 100 employees involved
Increased initial maintenance costs
Elimination of manufacturing wastes and implementation of improvement ideas are likely to increase the maintenance costs. Expect maintenance to increase up to 20% the first year, but with it stabilizing at a level less than today after one to two years.
Project team members
You will need people to run the project. Project management and coaching equals to about one full-time coordinator per 100 employees in the facility
Benefits
Increased Overall Equipment Efficiency (OEE) is the main factor that may be used to approximate the return on the efforts. S
Have you ever found yourself in the wrong job or career? I think it is fair to say that we have all had that experience. This is actually a good thing if you’re conscious of it.I ran into a good friend of mine a few weeks ago. I’d remembered that she was going after a new position so I asked her if she’d gotten it. Her response, Yes, and I hate it! I asked her if it was just the typical fear that can come with a career change and the accompanying sharp learning curve as you develop the new skills. Apparently that wasn’t the problem because she found the job quite simple. As it turns out the very reason she went after the position is the reason she
What will the costs be?
The main cost will consist of:
Training and Consultancy
No successful implementation of TPM and Lean Production has succeeded without the help of experienced professionals. You will have to train your employees and you need support in your project team. A good estimation is a yearly cost of $100.000 per 100 employees involved
Increased initial maintenance costs
Elimination of manufacturing wastes and implementation of improvement ideas are likely to increase the maintenance costs. Expect maintenance to increase up to 20% the first year, but with it stabilizing at a level less than today after one to two years.
Project team members
You will need people to run the project. Project management and coaching equals to about one full-time coordinator per 100 employees in the facility
Benefits
Increased Overall Equipment Efficiency (OEE) is the main factor that may be used to approximate the return on the efforts. S
Globalization has put forth India’s business community in the international market. Various foreign trade policies and investment policies have been framed to facilitate foreign trade and increase the profitability of the Indian garment manufacturers. The advent of liberal trade policies in textile and garments sector have made it possible of usage of modern technologies and international methods of manufacturing clothes. This sector of garments is one of the most successful and important in terms of foreign exchange generation and employment generating field. It provides employment to lakhs of people and is the most sort out and booming industry of India
Project team members
You will need people to run the project. Project management and coaching equals to about one full-time coordinator per 100 employees in the facility
Benefits
Increased Overall Equipment Efficiency (OEE) is the main factor that may be used to approximate the return on the efforts. Simply speaking, the OEE is the ratio of the facility's actual output compared to the theoretical output that would be possible if the machinery was run at full speed every minute, without break-downs, lack of raw material, quality losses or set-ups. As the OEE-ratio is a direct reflection of your plant's capacity, it may be used to calculate the future productivity after improvements.
An example: A plant produces 10,000 units per year with an OEE-ratio of 50 percent. After improvement, the project team estimates that it will be possible to reach an OEE-ratio of 80 percent. This means that they will be capable to produce
10,000*80/50 = 16000
units in the same facility without investments and with the same manning as before.
Can the increased capacity be used to increase sales?
One important question is if there is a market for expansion. If so, the increased capacity may be used for increased sales. It is common that the company's market share might grow after implementing TPM or Lean Production. This is possible as improved delivery accuracy and shorter lead times make more sales possible even if the market is stagnant.
If expansion is not considered possible, the increased capacity may instead be used to lower the production costs. This is possible through
- less overtime
- fewer shifts
- fewer parallel production lines maintained and operated
The direct labor costs for production will therefore decrease as the OEE-ratio increases.
Your present and future OEE-ratio
Do you know your plant's present OEE-ratio? If so, is it accurately calculated? Often we see that some downtimes are deducted when OEE is calculated. This might be stops for planned maintenance, set-up times, and lack of personnel. The end result will be an OEE-ratio that looks better than reality.
If you do not know your present OEE-ratio, the easiest way to determine it is to use the free OEE - calculator at wcm.nu.
Then estimate what you consider a possible OEE-ratio after improvements. World Class companies reach 80-95% OEE, what is a realistic level for you?
Use the present and future OEE to calculate the future benefits. If you don't want to do the calculations by hand, try instead the free
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