Days of Inventory [DOI]

Days of Inventory (DOI) is a Lean Metric describing the average time period your inventory stays in the warehouse, typically separated into raw materials, intermediate (Work in Process [WIP]) and finished goods (FG). Work with Days of Inventory to indicate the volume...

Takt Time

Takt Time is a Lean Metric which is calculated (not measured!) based on customer demand. It indicates the amount of time, production has to provide one output on average. It is important to remeber, that Takt Time does not consider the time it takes to produce a...

Analysis of Variance (ANOVA)

ANOVA is a hypothesis test to check whether the average differences between groups are significant or only due to random chance. It works when the Y variable is continuous and the X variable is discrete. Practitioner’s Tip: The name ANOVA (ANalysis Of VAriances)...