The Hidden Factory

Posted on October 16th, 2008



The hidden factory is the hidden cost of a process, due to unaccounted and unrelated costs associated with the standard process. Examples are inspection, delays, rework, and extra processing. The hidden factory deals with throughput in the process and tries to calculate the probability of an item passing through the process the first time without any defects. Anything else is a loss, and therefore should be counted as the hidden factory.







Get Business Tips Thru Email

Enter your email address:

Not yet a member of PinoyBusiness.ORG Community?
Join us - It's Free

This entry was posted on Thursday, October 16th, 2008 at 7:36 pm and is filed under Product Reviews, Six Sigma. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.



Leave a Comment



Possibly Related Topics to Read