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Standardized Work
Standardized Work
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Standard work

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Standard work is too often overlooked during a lean transformation or even when there is a business need to improve Quality, Cost, Productivity, and Employee Engagement. Standard Work is a fundamental requirement and needs to be understood by the leaders of the organization as to how it has a direct impact on business.

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Standard work

  1. 1.  Robert Baird President +1 215 353 0696 Standard Work 13-Sep-15 www.leanteamsusa.com
  2. 2. 13-Sep-15 www.leanteamsusa.com 2 What if No Standard Work?
  3. 3. 13-Sep-15 www.leanteamsusa.com 3 Impact on Business? What is
  4. 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. 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. 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. 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. 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. 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

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