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The Concept Of The Golden Triangle

Posted in Improvement, and Lean Six Sigma

The Concept Of The Golden Triangle
The Concept Of The Golden Triangle

Golden triangle principle in dividing remedial efforts into three main areas , namely :

1. Wasteland is a foot or bottom of the triangle . 70 % investment of time ( or attempts ) only provides improvements (yield ) of 10 % . Unfortunately , this area is often gained major attention from managers industry as a consequence of the unplanned efforts.

2. Low yield is the center of the triangle . 20 % investment of time ( or effort ) to provide improvements (yield ) of 20 % . The third area of the triangle , this area is a work area that is most frustrating for industry managers , because managers want results a great improvement , but little that can be done .

3. Golden triangle is the top of the triangle , a 10 % investment of time ( or effort ) to provide improvements (yield ) of 70 % . Managers who have the knowledge and commitment to continuous improvement will focus attention on the work area ‘s golden triangle . In connection with the cost reduction program continuously , should the industrial management seeks to investigate the activities or the various cost items that are in the golden triangle , because with a little effort a systematic and well-planned will be found or obtained great benefits . Grouping items cost using ABC classification analysis is one of the efforts to investigate to find the golden triangle , which means an item or activity of the class A is always in the golden triangle area .

#Note : ABC classification is a classification of a group of items ( or activity ) in descending order based on the cost of the use of the item ( or activity ) per time period ( price per unit item multiplied by the volume of items over a certain period ) or the total cost.