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? #Lean on steroids.
- Cost of bad data -typically, 15% to 25% of revenue
- Cost of quality – typically, 15 to 20% of revenue
- Costs associated with OEE of 60% is fairly typical for discrete manufacturers
- Discrete manufacturing is typically described by individual or separate unit production. … The processes deployed in discrete manufacturing are not continuous / flowing in nature. A separate process step (discrete) can be started or stopped and can be run at varying production rates.
- Cost of under-utilized assets (manpower, equipment, facilities, etc.)