Metrics to Measure Wastes

•Cycle Time

•The time it takes to complete a process or product from start to finish.

•By measuring cycle time, organizations can identify opportunities to reduce lead times and eliminate waiting, motion, and processing waste.

•Throughput

•The number of products or services that are produced within a given time frame.

•Measuring throughput helps organizations identify opportunities to reduce overproduction and inventory waste.

•Defect Rate

•The percentage of products or services that are defective or do not meet customer requirements.

•By measuring defect rates, organizations can identify opportunities to reduce defects and rework, which can reduce processing and inventory waste.

•Setup Time

•The time it takes to set up equipment, machines, or workstations to produce a new product or service.

•By measuring setup time, organizations can identify opportunities to reduce changeover times, which can reduce waiting, processing, and motion waste.

•OEE

•A metric that measures the productivity of equipment and machines.

•OEE takes into account availability, performance, and quality and can be used to identify opportunities to reduce downtime, waiting, and motion waste.

•Inventory Turnover

•A metric that measures how often inventory is sold and replaced within a given time frame.

•By measuring inventory turnover, organizations can identify opportunities to reduce excess inventory and reduce inventory-related waste.