Performance Measurement Training
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PART IV. Flexibility The flexibility measurements assess both the workforce and the manufacturing process. Improved flexibility is often a result of reductions made in cost-added activities. 1. Percent reduction in cycle time The reduction in cycle time is measured by product line. The measurement is the ratio calculated by dividing actual cycle time by the theoretical cycle time. Actual cycle time is normally based on average work in process throughput time. Theoretical cycle time is based on value add time for a lot size of one. It contains no inspection, setup or queue time. Both work in process and administrative cycle times should be measured. Measure monthly and display trend. 2. Percent reduction in setup time Reduction in setup or changeover of the equipment or production line is an important measure of continuous improvement and flexibility. The measure can be daily, weekly or monthly, depending on the current frequency of changeover. Measure by machine and display on a trend line. 3. Percent reduction in lot/batch size The measurement of lot/batch size reduction measures the trend in reduction of lot sizes. It is measured monthly as average lot size by production process. 4. Percent increase in number of jobs mastered per employee The purpose of increasing the number of jobs mastered per employee is not only for improvement of flexibility, but to help facilitate the habit of improvement. This is accomplished by continuously providing a "different set of eyes" engaged in the process. Most companies involve other hourly workers in the development of qualifications for certification and deciding whether someone is to be certified. Display in the work area, showing the number of jobs each individual has mastered. 5. Percent increase in common materials used per product This measurement would be taken at the time of design release and is total common materials divided by total materials by product. Measure relative to goals set for standardization at the time design was initiated.
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