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Tweet from @StormyR7

Tweet from @StormyR7 | Operational Excellence | Scoop.it
#6: Redefining Operational Excellence: New Strategies for Maximizing Performance and Profits Across the Organizat... http://t.co/WeAlpoL6wG
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Using Change Management To Boost Lean Manufacturing Performance

Using Change Management To Boost Lean Manufacturing Performance | Operational Excellence | Scoop.it
“Launching a lean manufacturing initiative? Learn about why it's essential to combine competence and motivation in process improvement.”
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Constellium poursuit le développement de son site d’Issoire

Constellium poursuit le développement de son site d’Issoire | Operational Excellence | Scoop.it
Le groupe ajoute un investissement de 43 millions d’euros à son programme. Le fabricant d’aluminium entame la construction de sa deuxième...

Via Frédéric Brutier
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Lean Six Sigma implementation: City of Tyler saved 5 millions!

Lean Six Sigma implementation: City of Tyler saved 5 millions! | Operational Excellence | Scoop.it
Lean Six Sigma is a managerial concept combining Lean and Six Sigma that results in the elimination of eight kinds of wastes / muda (classified as Defects, Overproduction, Waiting, Non-Utilized Talent, Transportation, Inventory, Motion,...
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Learning Curves in Manufacturing | Quarterman Lee

Learning Curves in Manufacturing | Quarterman Lee | Operational Excellence | Scoop.it

"Learning Curves have traditionally been used for cost estimating and training purposes. However, they have a much wider applications, including Manufacturing and Marketing strategy. They underly the concept of Continuous Improvement. Like compound interest, they generate large benefits from seemingly small, incremental change."


Via Michel Baudin
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Michel Baudin's curator insight, April 24, 2014 4:44 PM

It's good to see a well-documented, informative article by Quarterman Lee on a topic that is often ignored in the Lean literature but that I think if fundamental to the economics of improvement. 

 

The title mentions both Learning and Experience Curves, but the body of the article is only about Learning Curves. The difference between the two is that Learning Curves are only about labor, and were developed first, in World War II, as Quarterman points out. The Experience Curve is a generalization due to Bruce Henderson of the Boston Consulting Group in the 1960s, which applies the logic not just to labor but to all costs. 

 

The Experience Curve theory is predicated on the notion that there is such a thing as a meaningful cost per piece, and asserts that it decreases with cumulative volume along an inverse power curve, the evidence for which is in the evolution of market prices with cumulative volume in a variety of industries. 

 

The effect of this curve on pricing in an industry depends on its clockspeed. In electronics, with product lives of four years, it is dominant. In cars, where the experience accumulated for over a century is still relevant today, we are so far on the curve that it is not a major factor. 

 

The justification for an inverse power law is in fact simple. It stands to reason that, the more you have already made of a product, the easier it is to make the next unit, and therefore that costs should decrease as a function of cumulative volume. Since we are talking about a broad trend, it should also be a smooth decline. 

 

Could it be linear? No. It would mean a straight line in cartesian coordinates.and that would lead to negative costs, which makes no sense.

 

If you toggled the y-axis to "logarithmic", a straight line would represent an exponential decline. But it would not make sense either, because it would mean that you could produce an infinite volume for a finite cost. 

 

If, as in the above picture, you make both axes logarithmic, a straight line means an inverse power law. Costs never go negative, and it still takes an infinite amount of money to produce an infinite quantity. This is why, among the simple possible decline patterns, it is the only one that cannot be excluded based on its logic. 

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Le cockpit Kanban - Part I - Le calendrier | Blog Xebia France

Le cockpit Kanban - Part I - Le calendrier | Blog Xebia France | Operational Excellence | Scoop.it
“ Le cockpit Kanban permet de tracer l'ensemble des éléments de gestion, de suivi et de planification d'un projet (Le cockpit Kanban – Part I – Le calendrier par @openagileorg et @farfrac : http://t.co/Pvj8KBy800)...”
Via Philippe Moussalli
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Le lean management Bénéfique pour nos clients et pour l'industrie de la palette

Le lean management Bénéfique pour nos clients et pour l'industrie de la palette | Operational Excellence | Scoop.it
L'implantation des pratiques du lean management peut considérablement augmenter la rentabilité de l’industrie de la palette.

Via Frédéric Brutier
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Operational Excellence through Digital in Manufacturing Industries | Resource

“Digital Tools Can Help Manufacturing Companies Cut Costs by 30% Manufacturing companies have historically had an on-off relation with technology.”
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Powerful Management Metrics to Drive Effective Behaviors and Generate Exceptional Business Results | Process Excellence Network

Powerful Management Metrics to Drive Effective Behaviors and Generate Exceptional Business Results | Process Excellence Network | Operational Excellence | Scoop.it
0 (Powerful management metrics to drive effective behaviors http://t.co/41bAJXGbOE)
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Lean Restaurant Management Systems

Lean Restaurant Management Systems | Operational Excellence | Scoop.it
Lean Restaurant Management Systems and Methods from Japan (Lean Restaurant Management Systems: Lean Restaurant Management Systems and Methods from Japan http://t.co/75cEvQNDA3)...

Via Steven Bonacorsi
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MONTRICHER-ALBANNE Une usine centenaire au cœur de l'Europe - Le Dauphiné Libéré

MONTRICHER-ALBANNE Une usine centenaire au cœur de l'Europe - Le Dauphiné Libéré | Operational Excellence | Scoop.it
Le Dauphiné Libéré MONTRICHER-ALBANNE Une usine centenaire au cœur de l'Europe Le Dauphiné Libéré Depuis 1914, il avait toutefois montré une « capacité continue à améliorer son fonctionnement, à développer de nouveaux produits », rappelait hier...
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L'amélioration c'est bien, l'amélioration continue c'est mieux! | Défi ...

L'amélioration c'est bien, l'amélioration continue c'est mieux! | Défi ... | Operational Excellence | Scoop.it
Là où il n'y a plus d'amélioration possible, le déclin est proche. », disait Sénèque. Il y a plus de 2000 ans, le célèbre philosophe détenait déjà la recette du succès autant personnel que professionnel.
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History of the Six Sigma Black Belt Naming Convention

History of the Six Sigma Black Belt Naming Convention | Operational Excellence | Scoop.it
iSixSigma - Your portal to the most comprehensive collection of information about Lean Six Sigma. (Wondering about the history of Lean Six Sigma?

Via Vishwadeep Khatri
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