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Results

Results are measured in 3 ways.

  1. Technically in terms of cost and cash flow:
    • Cost reduction (we break down the OEE between RO and OA)
      • Rate of operation (RO) = demand / capacity
      • Operational availability (OA) = ouput / demand
        • Ouput is defect free and on time or is doesn't constitute ouput
      • Labor efficiency
    • Cash flow improvment
      • Lead-Time and inventory reduction
  2. Increased sales
    • Net revenue increase
  3. Human capability and acquired organization development
    • Individual Process design capability
    • Individulal problem solving capability
    • Shared organizational knowledge development
    • Leaders as teachers capability

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