Incremental:
The Continuous Improvement Podcast Episode 3. Is your non value added time in your production processes?
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Jan 25, 2023 The hosts delve into a fascinating ROI calculator, discussing its surprising limitations and practical applications. They highlight the challenge of identifying non-value-add tasks, suggesting that management overhead often poses a bigger issue than production inefficiencies. The conversation shifts to the eight lean wastes identified by Toyota and the importance of customizing waste reduction strategies for different businesses. They also explore building a culture of continuous improvement, emphasizing grassroots engagement over mandates, and share insights into effective job management tools.
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Model Improvements With A Simple ROI Sheet
- Use a simple ROI spreadsheet to test improvements and run sensitivity analysis on key inputs.
- Compare hours spent improving versus hours saved to decide whether an idea pays off over weeks, months, or years.
Sandblaster Paid Back Slowly
- Uriel plugged a $3,000 sandblaster purchase into the model and found a 28-month ROI, longer than he expected.
- He kept the purchase for safety reasons despite the long payback, showing non-monetary factors matter.
Spreadsheets Miss Culture And Compounding
- The spreadsheet underestimates many benefits like morale, culture, and compounded future profits from time saved.
- Building improvement habits compounds value beyond what simple time-saved models show.