Standard work is too often overlooked during a lean transformation or even when there is a business need to improve Quality, Cost, Productivity, and Employee Engagement. Standard Work is a fundamental requirement and needs to be understood by the leaders of the organization as to how it has a direct impact on business.

1.  Robert Baird
President
+1 215 353 0696
Standard
Work
13-Sep-15 www.leanteamsusa.com

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What if
No Standard Work?

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Impact on Business?
What is

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Taguchi Loss Function States
Any Variation away from the
target, performance will begin to
incur customer dissatisfaction
𝐸 𝐿 = 𝑘(𝜎 𝑦 2 +(y – T)^2
Customer Impact

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Direct Labor Efficiency Variance
Cost
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑅𝑎𝑡𝑒 ∗ (𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐻𝑜𝑢𝑟𝑠 − 𝐴𝑐𝑡𝑢𝑎𝑙 𝐻𝑜𝑢𝑟𝑠)
• A favorable (+ number) labor efficiency variance
indicates increased productivity of direct labor
during a period.
• One form of productivity is using less labor hours
because of task improvement
• Direct contributions to Gross Margin, EBIT, and
COGS

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Hidden Factory
“The most dangerous kind of waste
is the waste we do not recognize.”
– Shigeo Shingo (Toyota)
Productivity
>30% loss

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Abraham Maslow
Employee Engagement
Self
Actualization
Esteem
Belonging
Safety
Physiological
If you only have a
hammer, you tend to see
every problem as a nail
People do not feel
safe without stability
Respect for People

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Base for improvement, variation
reduction recognized by customers
With Standard Work
Cost improvements through waste
reduction
Productivity gains from employee
involvement
Employee engagement through stabilization
of work tasks and expected outcomes

9. From Lean Teams USA
Contact Us
• Lean Teams USA Lean Consulting
• View My Profile on LinkedIn
• Lean Teams USA +1 215 353 0696
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