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 Robert Baird
President
+1 215 353 0696
Standard
Work
13-Sep-15 www.leanteamsusa.com
13-Sep-15 www.leanteamsusa.com 2
What if
No Standard Work?
13-Sep-15 www.leanteamsusa.com 3
Impact on Business?
What is
13-Sep-15 4
Taguchi Loss Function States
Any Variation away from the
target, performance will begin to
incur customer dissatisfaction
𝐸 𝐿 = 𝑘(𝜎 𝑦 2 +(y – T)^2
Customer Impact
13-Sep-15 5
Direct Labor Efficiency Variance
Cost
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑅𝑎𝑡𝑒 ∗ (𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐻𝑜𝑢𝑟𝑠 − 𝐴𝑐𝑡𝑢𝑎𝑙 𝐻𝑜𝑢𝑟𝑠)
• A favorable (+ number) labor efficiency variance
indicates increased productivity of direct labor
during a period.
• One form of productivity is using less labor hours
because of task improvement
• Direct contributions to Gross Margin, EBIT, and
COGS
13-Sep-15 6
Hidden Factory
“The most dangerous kind of waste
is the waste we do not recognize.”
– Shigeo Shingo (Toyota)
Productivity
>30% loss
13-Sep-15 7
Abraham Maslow
Employee Engagement
Self
Actualization
Esteem
Belonging
Safety
Physiological
If you only have a
hammer, you tend to see
every problem as a nail
People do not feel
safe without stability
Respect for People
13-Sep-15 8
Base for improvement, variation
reduction recognized by customers
With Standard Work
Cost improvements through waste
reduction
Productivity gains from employee
involvement
Employee engagement through stabilization
of work tasks and expected outcomes
From Lean Teams USA
Contact Us
• Lean Teams USA Lean Consulting
• View My Profile on LinkedIn
• Lean Teams USA +1 215 353 0696
13-Sep-15 www.leanteamsusa.com 9

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Standard work

  • 1.  Robert Baird President +1 215 353 0696 Standard Work 13-Sep-15 www.leanteamsusa.com
  • 4. 13-Sep-15 4 Taguchi Loss Function States Any Variation away from the target, performance will begin to incur customer dissatisfaction 𝐸 𝐿 = 𝑘(𝜎 𝑦 2 +(y – T)^2 Customer Impact
  • 5. 13-Sep-15 5 Direct Labor Efficiency Variance Cost 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑅𝑎𝑡𝑒 ∗ (𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐻𝑜𝑢𝑟𝑠 − 𝐴𝑐𝑡𝑢𝑎𝑙 𝐻𝑜𝑢𝑟𝑠) • A favorable (+ number) labor efficiency variance indicates increased productivity of direct labor during a period. • One form of productivity is using less labor hours because of task improvement • Direct contributions to Gross Margin, EBIT, and COGS
  • 6. 13-Sep-15 6 Hidden Factory “The most dangerous kind of waste is the waste we do not recognize.” – Shigeo Shingo (Toyota) Productivity >30% loss
  • 7. 13-Sep-15 7 Abraham Maslow Employee Engagement Self Actualization Esteem Belonging Safety Physiological If you only have a hammer, you tend to see every problem as a nail People do not feel safe without stability Respect for People
  • 8. 13-Sep-15 8 Base for improvement, variation reduction recognized by customers With Standard Work Cost improvements through waste reduction Productivity gains from employee involvement Employee engagement through stabilization of work tasks and expected outcomes
  • 9. From Lean Teams USA Contact Us • Lean Teams USA Lean Consulting • View My Profile on LinkedIn • Lean Teams USA +1 215 353 0696 13-Sep-15 www.leanteamsusa.com 9