Ch 8 Process Management -Lean and Six sigma in the supply chain
DMAIC
...
Lean and Six sigma helps achieve
-lower costs -fast response -high quality
Seven Wastes
-overproducing -waiting -transportation -over processing -excess inventory -excess movement -scrap and rework
Continuous improvement
Continuous approach to reduce process, delivery, & quality problems, such as machine breakdown problems, setup problems, & internal quality problems
What is KanBan?
Scheduling system that tells you what to produce, when to produce it, and how much to produce.
Lean Production
an operating philosophy of waste reduction & value enhancement & was originally created as Toyota Production System (TPS) by key Toyota executives.
Small Batch Scheduling: kanban and pull system
drives down costs by - • Reducing purchased, WIP & finished goods inventories • Makes the firm more flexible to meet customer demand Kanbans: generate demand for parts at all stages of production creating a "pull" system
Poka Yoke
guards against mistakes and defect. Can be electrical, mechanical, visual, procedural or any effective method.
Goal of six sigma
improve quality while reducing time and cost
Inventory and Setup Time Reduction
• Excess inventory is a waste. • Reducing inventory through reduced batch sizes causes increased equipment setups. • Thus, short setups are an important element of reducing inventory levels.
Statistical Tools of Six Sigma
• Flow Diagrams - Annotated boxes representing process to show the flow of products or customers. • Check Sheets - to determine frequencies for specific problems. • Pareto Charts - for presenting data in an organized fashion, indicating process problems from most to least severe. • Cause and Effect Diagrams (Fishbone or Ishikawa diagrams) - used to aid in brainstorming & isolating the causes of a problem.
Elements of Lean
• Waste Reduction • Lean Supply Chain Relationships • Lean Layouts • Inventory & Setup Time Reduction • Small Batch Scheduling • Continuous Improvement • Workforce Empowerment
