Optimal Material Utilization

OPTIMAL MATERIAL UTILIZATION

MOST IMPORTANT GOAL EXAMPLE

Increase Material Utilization Rate from 88% to 98%

DESCRIPTION

The purpose with this MIG is to contribute to reduced cost by reducing waste of high quality raw materials.

KEY ACTIVITY EXAMPLES

DESCRIPTION

Purpose to follow up internal usage of purchased products, items or applications to assess purchasing efficiency and identify needs from the organization.

DEFINITION OF DONE

Evaluated items.

UNIT

Items

Forecast material volume 2hrs a week

DESCRIPTION

Purpose to contribute to improved cost control and productivity by continuously spending proactive time on forecasting needed material volume to deliver on production targets.

DEFINITION OF DONE

Forecasted volumes.

UNIT

Volumes

Coach 4 Production Leaders a week

DESCRIPTION

A Key Activity that is normally used by senior managers within production to coach direct reporting leaders. The purpose is often to improve the quality and compliance of LEAN-activities such as how GEMBA-walks should be conducted for optimal effect.

DEFINITION OF DONE

Coached Production Manager.

UNIT

Sessions

MOST IMPORTANT GOAL EXAMPLE

Decrease Inbound Quality Rejects of Raw Material from 4,5% to 1%

DESCRIPTION

This MIG aims to contribute to increased productivity and decreased cost by ensuring that all raw material received have excellent quality. Rejecting raw material due to quality issues is a costly procedure since it, worst case, will delay production.

KEY ACTIVITY EXAMPLES

Follow-up usage of 2 items a week

DESCRIPTION

Purpose to follow up internal usage of purchased products, items or applications to assess purchasing efficiency and identify needs from the organization.

DEFINITION OF DONE

Evaluated items.

UNIT

Items

Evaluate 10 items a week

DESCRIPTION

Purpose to analyze & evaluate items or item categories purchased from suppliers to identify cost saving opportunities.

DEFINITION OF DONE

Evaluated items.

UNIT

Items