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Cost of Waste (8 Wastes)

Six Sigma – iSixSigma Forums General Forums Implementation Cost of Waste (8 Wastes)

This topic contains 7 replies, has 4 voices, and was last updated by  Ruben 1 year, 1 month ago.

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  • #55856

    Ruben
    Participant

    Hi everyone!

    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

    how about;

    Over Production
    Waiting
    Non utilize Talent
    Transporation
    Inventory
    Motion
    Extra Processing

    Im now currently calculating my project estimated benefits,
    The project im working on is yield improvement,

    #201942

    Chris Seider
    Participant

    work with your financial rep…they have accepted savings most likely.

    #201944

    Ruben
    Participant

    Thanks @cseider

    Any other suggestions?

    #201945

    Strayer
    Participant

    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.

    #201949

    Chris Seider
    Participant

    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.

    #201950

    Ruben
    Participant

    Thank you Sir @csider and sir @Straydog

    #201952

    thiyagu
    Participant
    #201954

    Ruben
    Participant

    @thiyagu Thank you very much for the material, my project is also concern in the improvement of yield.

    Thank you! Thank you! Thank you!

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