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  • What Are The Benefits of Lean?: Overall Equipment Effectiveness OEE

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    Vikas Gupta
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    Lean aims to reduce the time required to deliver value to customers, typically cutting lead times by 75% which doubles productivity and lowers costs by 20%, known as the 1⁄4:2:20 rule. Common lean results include halving lead times, doubling stock turnover, reducing floor space by 30-50%, increasing equipment effectiveness by 20-40%, boosting labor productivity by 20-25%, and lowering administration roles.

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    Lean aims to reduce the time required to deliver value to customers, typically cutting lead times by 75% which doubles productivity and lowers costs by 20%, known as the 1⁄4:2:20 rule. Common lean results include halving lead times, doubling stock turnover, reducing floor space by 30-50%, increasing equipment effectiveness by 20-40%, boosting labor productivity by 20-25%, and lowering administration roles.

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    7 views1 page

    What Are The Benefits of Lean?: Overall Equipment Effectiveness OEE

    Uploaded by

    Vikas Gupta
    Lean aims to reduce the time required to deliver value to customers, typically cutting lead times by 75% which doubles productivity and lowers costs by 20%, known as the 1⁄4:2:20 rule. Common lean results include halving lead times, doubling stock turnover, reducing floor space by 30-50%, increasing equipment effectiveness by 20-40%, boosting labor productivity by 20-25%, and lowering administration roles.

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    What are the Benefits of Lean?

    Lean essentially aims to compress time required to deliver value to the customer. Typically, if you quarter lead-times, you will double productivity and reduce costs by 20%. This is known as the :2:20 rule. Typical results are as follows: Halving of lead-times; doubling of stock turnover 30% to 50% reduction in floor space requirements 20% to 40% increase in Overall Equipment Effectiveness (OEE) 20% to 25% labour productivity gains Reduction in administration and co-ordination roles

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