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Lean process analysis in administration and production

: Schloske, Alexander; Thieme, Paul

Sihn, W.; Kuhlang, P.; Westkämper, E. ; International Institution for Production Engineering Research -CIRP-, Paris; Fraunhofer Austria Research GmbH, Wien; TU Wien, Institute of Management Science, Division Production Engineering and System Planning:
Sustainable production and logistics in global networks : 43rd CIRP International Conference on Manufactoring Systems. 26 - 28th May 2010, Vienna, Proceedings
Wien: Neuer Wissenschaftlicher Verlag, 2010
ISBN: 978-3-7083-0686-5
International Conference on Manufacturing Systems (ICMS) <43, 2010, Wien>
Fraunhofer IPA ()
performance measurement; process visualiziation; Prozessanalyse; Fehleranalyse

The seamless coordination of processes between administration and factory floor is of paramount importance to the success of a business. Minor errors that occur, for instance during order entry, procurement or when creating technical drawings, can have an extremely negative impact on the production process. They often lead to unnecessary extra work or result in scrap, thus reducing the profit of the business.
The presented article shows how business can be analyzed in terms of effectiveness and efficiency using the novel PE2 (Process efficiency and effectiveness measurement) method. This new approach focuses on the effects that administration errors have on downstream stages of the production process. Established methods, such as FMEA, FPM or Value Stream Mapping, concentrate exclusively on either effectiveness or efficiency of process steps. Accordingly, they can only be used in process performance analysis to a limited extent.
PE2 analyzes both the efficiency and the effectiveness of a process and can be handled with reasonable effort. The appeal of the method is not only the simple and quick analysis but also that it allows presenting the findings in financial terms. Thus, it enables management to recognize what process errors caused a loss of profit.