DECEMBER 20238MANUFACTURING TECHNOLOGY INSIGHTSBy Rudy Susanto, Head of Engineering & Manufacturing Excellence, Wings Group IN MY OPINIONLEAN MANUFACTURING DEPLOYMENT ON THE BALANCED SCORECARD AND STRATEGY MAP Lean Manufacturing is a concept that has been proven effective for increasing productivity and the main focus is to eliminate or reduce waste. According to Voehl et.al (2014: 67) in his book titled "The Lean Six Sigma Black Belt Handbook", there are 9 types of waste that are defect, overprocessing, waiting, transportation, inventory, motion, extra production, underutilized employee, and behavior. However, in the actual implementation of KPIs, the main focus is cost centric by setting target cost saving without digging into the current organizational situation. Cost saving is very popular, but sometimes the targets seem contradictory. For example: eliminate safety incidents but reduce costs related to personal protective equipment, increase machine effectiveness but reduce maintenance costs, improve manpower skills but reduce training & development costs, improve quantity task completion but reduce manpower, increase product availability but reduce the stock level quantity, etc. The problems will get more complex when each department begins to prioritize and execute improvements related to its own KPIs without caring about the effect on other departments. The impact is decreased communication and coordination among departments and leads to the situation getting out of control. In this article, I will describe 3 important points in the implementation of lean manufacturing regarding the above phenomena that focus on waste, timing deployment, and integration measurement in determining sustainable KPIs. Focus on waste KPIs are usually defined while a strategic meeting event and commonly target cost saving has been determined based on the previous year's cost structure component without identifying waste and manpower capability improvement skills in each stage. For instance, the target reject rate Rudy Susanto
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