Vision AND Action… there is no contradiction both are required in all areas of business

Being able to see hidden costs is the key to moving toward Manufacturing 4.0.  If hidden costs are a blind spot within an organization, they are not ready to justify taking the next steps.  What are the hidden costs an organization needs to focus on? Research has show that the:

  1. Cost of bad data -typically, 15% to 25% of revenue
  2. Cost of quality – typically, 15 to 20% of revenue
  3. Costs associated with OEE of 60% is fairly typical for discrete manufacturers
  4. Cost of under-utilized assets (manpower, equipment, facilities, etc.)