two features
- less waste
- greater efficiency
-
Less waste: 8 sources of waste DOWNTIME Defects Overproduction (wasted assets) Waiting times (delays in production process) Non-utilized talents or resources: creates inefficiencies Transportation: unnecessary and expensive transportation Inventory: stockpiling assets. - insurance and maintenance, risk being stolen Motion: worker movement between workstations, wastes time and reduces labour productivity Excess processing: does not add value to a product but drives up cost
-
Efficiency
- use resources productively to generate output
- sales per person
- output per worker
- output per machine hour
- average costs per unit of output
- increase efficiency through
- employee motivation
- improve technologies
- improved training for employees
- Efficiency is good for economic (profits) and ecological sustainability
