Cost of Waste (8 Wastes)
- November 7, 2017 at 3:03 am #55856
Can someone help me to calculate the wastes?
for Defect, it should be price per piece?
meaning if material cost is $0.2, then defect is 20pcs
Cost = $4
Non utilize Talent
Im now currently calculating my project estimated benefits,
The project im working on is yield improvement,November 7, 2017 at 8:01 am #201942
work with your financial rep…they have accepted savings most likely.November 7, 2017 at 3:49 pm #201944November 7, 2017 at 5:45 pm #201945
Follow @cseider advice. My advice is to avoid putting monetary value on a project unless you are required to do so by policy or to get approval. In that case get help from your finance people. You can calculate how much waste is occurring. You can estimate how much of that you can reasonably eliminate. But you almost certainly can’t put a justifiable monetary value on it without financial data and expertise.November 8, 2017 at 7:49 am #201949
I still remember one young belt who put a loss value to Taguchi’s loss function. I pointed out the financial benefit happens only if you shift the amount of material laid down on the product–assuming no additional bad product produced. They were heartbroken but lesson learned.
Thanks @Straydog Some folks think some of our “quick post responses” aren’t well thought out but it’s not always possible to explain the response.
Hope all is well.November 9, 2017 at 4:04 am #201950November 9, 2017 at 8:51 am #201952
Please see sample of calculation. http://qcin.org/nbqp/DLShah-Award/ppt/Lupin%20Limited%20Ankleshwar-%20QCI%20DL%20Shah%20Quality%20Award.pdfNovember 9, 2017 at 4:03 pm #201954
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