Muda (無駄) is a Japanese word meaning "futility; uselessness; idleness; superfluity; waste; wastage; wastefulness" and is a key concept in the Toyota Production System (TPS) as one of the three types of deviation from optimal allocation of resources. Waste reduction is an effective way to increase profitability.

 

Takt time is the rate at which a finished product needs to be completed in order to meet customer demand. If a company has a takt time of five minutes, that means every five minutes a complete product, assembly or machine is produced off the line because on average a customer is buying a finished product every five minutes. The sell rate – every two hours, two days or two weeks – is the takt time.
Takt time can be determined with the formula:

Where
T   = Takt time, e.g. [work time between two consecutive units]
Ta = Net time available to work, e.g. [work time per period]
D = Demand (customer demand), e.g. [units required per period]

 

Kanban is a visual signal that’s used to trigger an action. The word kanban is Japanese. Roughly translated, it means “card you can see.”
At its simplest, kanban is a card with an inventory number that’s attached to a part. Right before the part is installed, the kanban card is detached and sent up the supply chain as a request for another part. A part is only manufactured (or ordered) if there is a kanban card for it. Because all requests for parts are pulled from a customer’s order, kanban is sometimes referred to as a "pull" system.

 

OEE is an abbreviation for the manufacturing metric Overall Equipment Effectiveness. OEE takes into account the various sub components of the manufacturing process – Availability, Performance and Quality. After the various factors are taken into account the result is expressed as a percentage.

 

 

 

 

Do not compete with your competitors, compete with perfection.