ISDS 730 Final - **
27.Assemble/Finish to Order
- An environment a product or service is assembled after receipt of a customer's order - Products are typically a mix of standard items and prefabricated modules
CPM - Critical Path Method
- Identify each possible path - Total the duration time for each possible path - The highest value is the critical path à The activities you need to focus on
Kanban
- Japanese term that means "card you can see" - used to pull materials downstream based upon actual usage. - It is the authorization for production and movement.
Before the Event (Kai Blitzen Events)(
- Leader Identify the "well defined need" Assign all required meeting roles Create a meaningful agenda Logistics - right room or online tool Identify the right participants Provide proper notice and expectations Prepare for a great event
Vendor Managed Inventory (VMI)
- Supplier will watch the customer demand and inventory o Supplier is responsible for maintaining the customer's inventory o Supplier has access to the customer's inventory and actual demand data o Supplier is responsible for replenishment orders
Standard Work
- a purposeful articulation of the current state of the work with a focus on achieving an intended outcome while providing a baseline for continuous improvement
The five principles of lean -
- are fundamental truths concerning a sustainable organization
Specify Value
- in terms of customers needs Identify what is important values to the business and stakeholders
A proven path to success for lean projects is to -
- move from current state to future state and then use continuous improvement to seek perfection
Lean encompasses 5 principles which can be described using terms such as -
- specify value, value streams, pull, flow, and seek perfection
Risk Analysis
- the identification of potential threats - analysis of the vulnerabilities of a project to the potential threats
Counterpoints to adding Underutilized employee to types of waste
-Covered by other wastes Already covered under poor processing -We need people to do things that are value add and might not be stimulating -routine use of lean tools does engage everyone and brings out their contributions
RCA Basic method to use (steps)
-Define the problem -Gather information, data and evidence. -Identify all issues and events that contributed to the problem. -Determine root causes. -Identify recommendations for eliminating or mitigating the reoccurrence of problems or events. -Implement the identified solutions.
12.A current state value stream map must be...
...at the level of detail which identifies the waste.
Major reasons for costs dropping with learning curves
1 - People - the more they do, the better the get 2 - Process - the more the work is done, the more efficient the process becomes 3 - Product - the more the products is used, the more functional it becomes
Project Charter - Telling the Story
1. Current situation 2. Desired situation 3. Statement of need
There 7 classic types of waste are -
1. Defects 2. Movement 3. Inventory 4. Poor Processing 5. Waiting 6. Over Production 7. Motion
5 step process of Six Sigma
1. Define 2. Measure 3. Analyze 4. Improve 5. Control
Six Habits of High Performing Teams
1. Do things on purpose - everyone on the team has a crystal clear idea what they are trying to achieve 2. Huddle up - High performing teams create the habit of having daily team huddles (5-7 minutes, same agenda items) 3. Embrace Diversity - ideas tend to be richer with diversity - spice of life 4. Encourage honest debate - 5. Celebrate Success - celebrate individual members, not afraid of members outshining each other, celebrate the small wins 6. Have Fun - mix fun with work
13.Mapping the Value Stream - 1-10
1. Identify Mapping Team 2. Identify Value Stream 3. Identify Suppliers 4. Identify Inputs 5. Identify Process 6. Identify Outputs 7. Identify Customers 8. Other Stakeholders 9. Speculate Value 10. Champion Approval 14.Steps 11-20: Creating the map: 11. Choose Approach 12. Choose Symbols 13. Identify Big Activities 14. Decide what information 15. Variation and Priorities 16. Collect information 17. Get facts (not memory) 18. Something Happening 19. Nothing Happening 20. Value Add Guestimate
Core Competencies (3 Criteria)
1. Not easy for competitors to imitate 2. Can be reused widely for many products or services • 3. Makes a significant contribution to the perceived customer value
The SMED approach consists of 6 steps -
1. Observe a Changeover 2. Define Internal and External Elements 3. Separate External Elements 4. Shift Internal To External 5. Improve Internal Elements 6. Improve External Elements
Primary Tools for Six Sigma
1. Project Charter 2. Voice of Customer 3. Critical to Quality 4. Standard Deviation Analysis 5. Mistake Proofing 6. Statistical Process Control 7. Control Charts
Five Principles of Lean
1. Specify Value 2. Identify Value Streams 3. Create Flow 4. Leverage Pull 5. Seek Perfection
The are 8 categories of tasks required for closing most projects -
1. Support Services 2. Stakeholder Approval 3. Implementation Review 4. Lessons Learned 5. Celebration 6. Staff Transfer 7. Project Archive 8. Financial Closure
Top 10 Things to Not Do In A High Performance Team
1. Unclear goals or plans 2. Have unproductive meetings 3. Vague roles for team members 4. Deadlock 5. Exhibit ineffective team leadership 6. Encourage negative relationships 7. Poor communication 8. Inefficient Operation 9. Engage in Conflict 10. Being a problem, instead of a problem solver
Primary Tools for Lean
1. Value Stream Mapping 2. 7 Types of Waste 3. Kaizen Blitz Events 4. The 5S System 5. Changeover Reduction 6. Pareto Analysis 7. Poka Yoke
Typical target for implementation ______ days
30 Days
Project Charter - Making the Case
4. Scope 5. Benefits 6. Cost
Project Charter - Closing the Deal
7. Justification 8. Organize for success
Pareto Principle
80% of the land is owned by 20% of the people (aka 80/20 rule)
Pareto Principle
80/20 rule roughly 80% of the effects come from 20% of the causes
The scope for most A3 projects should be problems that can be solved in
90 to 120 days
Corrective Maintenance
: Activities to detect, isolate or rectify a fault so that a failed piece of equipment or an entire system can be restored to its normal operable state - The systematic inspection, detection and correction of potential failures before they come actual failures
25.Value Stream Mapping
: a team based systematic approach to create value stream maps which identify waste in the current state or paint the vision of a future state with less waste.
24.Value Stream Map
: a visual representation of activities and flows of information, materials, and services required to accomplish specific objectives.
Periodic maintenance
: activities carried out according to a predetermined schedule to maintain the operational status of a piece of equipment or an entire system o Schedule = calendar (ex change oil every three months) o Schedule = occurrence (change oil every 5,000 miles)
Core Competencies
: particular strengths relative to other organizations in the industry. They provide the fundamental basis for the Provision of Customer rule.
Cost Leadership
: seeking customers who value low cost Competing on price by having the lowest cost of operation in the industry (Walmart)
Education may include knowledge gained through
: · Executive education programs · Master degrees from universities · Professional certifications · General knowledge classes - often "theory" to be used in the future.
11.Value Stream Flows
> Materials, Products and Services > < Funds and Returns < < Information >
scatter diagram
A correlation chart that uses a regression line to explain or to predict how the change in an independent variable will change a dependent variable.
The Bullwhip Effect
A distribution channel phenomenon in which forecasts yield supply chain inefficiencies. It refers to increasing swings in inventory in response to shifts in customer demand as one moves further up the supply chain
An effective policy should be Appropriate
A policy should align with the organization's core values and stated objectives - conflicts will lead to poor implementation
An effective policy should be Clear
A policy should be simple and easily understood by all in the organization - avoid jargon and ambiguous language, to avoid misunderstandings
An effective policy should be Stable
A policy should be stable, providing certainty to those who look to the policy for guidance
An effective policy should be Comprehensive
A policy should have a wide scope and handle a wide range of routine scenarios - do not allow a long list of exceptions or loopholes
Best Practice
A procedure, demonstrated by research and experience, which produces superior results and is suitable for a widespread adoption as a standard. People don't know what they don't know.
31.Pull
A process that uses actual customer demand to drive production o The order pulls inventory through your supply chain o AKA - reactive o Ex steak - that is ordered as rare, med rare etc...
Pareto Analysis
A statistical technique in decision making that is used for analysis of selected and a limited number of tasks that produce significant overall effect. The premise is that 80% of problems are produced by a few critical causes (20%).
Force Field Analysis
A technique for determining which forces drive a proposed change and which forces restrain it.
Gantt Chart
A time and activity bar chart that is used for planning, managing, and controlling major programs that have a distinct beginning and end.
10.Value Stream Map
A visual representation of activities and flows of information, materials, and services required to accomplish specific objectives.
Value Add
Activities which are necessary for meeting customer requirements
Business Value Add
Activities which are necessary for meeting other stakeholder requirements (ex. Government regulatory issues, corporate accounting) --> Investment in a lean transformation
Non-value Add
Activities which are not valued by any stakeholder --> Not necessary
Identify Value Streams
All activities (value added, business value added and non-value added) required to meet a customer or stakeholder request Value Stream Mapping
An effective policy should be
Appropriate Clear Comprehensive Stable
Project Closure - Implementation Review
Assess actual results vs. expectations documented in the project charter. This could include - · Review accomplishments as they relate to the goals outlined in the project charter · Conduct an analysis on planned vs. actual for benefits and costs · Run a 360 assessment for all team members · Summarize the "parking lot" items which might be great ideas, but were out of scope · Present the implementation review to project champion and steering committee
coach
Assigning someone the responsibility to solve a problem means you are assigning yourself responsibility to coach them through the process
22.Run Chart
Astronomical: When there is an outlier
Takt Time = (Formula)
Available Time / Unit Demand
Four Disciplines of Organizational Health
Build a Cohesive Leadership Team Create Clarity Over-communicate Clarity Reinforce Clarity
Project Closure - Celebration
Celebrate with project team and other stakeholders. This is also the time to recognize key successes. This could include - · Schedule and plan a celebration event the whole team can attend · Go big or go home - plan a night on the town in New Orleans and listen to Gary Brown at the Mahogany Jazz Hall · Share key metrics on how performance has improved · Procure and distribute customized gifts for all team members
Reactive Sources
Complaints, support/service calls, reporting, returns, warranty claims, website activity, FAQs
Seek Perfection
Continuous Improvement Run an improvement project to create a significantly better value stream, in which you seek continuous improvement.
5 stages of 6 sigma
Define, Measure, Analyze, Improve, Control
Fish-Bone Diagram or Ishikawa Diagram
Derived from the quality management process, it's an analysis tool that provides a systematic way of looking at effects and the causes that create or contribute to those effects. Because of the function of the _______ diagram, it may be referred to as a cause-and-effect diagram. The design of the diagram looks much like the skeleton of a fish—hence the designation "__________" diagram.
Gap analysis
Difference between the current and future state maps - Examine each step on your current state map and compare it with the step on your future state map - Make a plan o Identify Gap o Identify Owner
Project Closure - Lessons Learned
Discuss and document what went right and what went wrong during the project. This could include - · Bring in a facilitator to guide the team in discussing the project life cycle · Have each team member self-reflect and submit their thoughts · Identify innovations which could transfer to other locations or departments - pay it forward · Update relevant policies, procedures, and instructions for managing projects
Project Closure - Financial Closure
Ensure all project related final invoices are paid and contracts closed out. This could include - · Set a deadline for completion of all financial transactions · Ensure services with on-going monthly fees are terminated or transferred to a new project · Transfer any physical assets to non-project related accounts · Calculate and cut bonus checks for all team members
Project Closure - Support Services
Ensure resources are in place for routine on-going process and system support. This could include - · Ensure IT and other support people are trained and ready to quickly solve problems · Create service level agreement for meeting support requests · Schedule 30 day and 6 month audits to evaluate effectiveness and sustainability of changes · Implement routine gemba walks for managers, supervisors, and other stakeholders
26.Made to Stock
Environment where products can be and usually are finished before receipt of a customer order (ex - grocery store)
Defects
Errors in materials, products, services information's, system, etc that reduce stakeholder satisfaction Ex. Inaccurate inventory records
Plan Do Check Act - Check
Evaluate the results - · Compare your measurements to expectations · If problem persists, then return to the Plan step · If success achieved, then proceed to the Act step
Scope creep
Expanding the objectives of a project after the charter is in place
Five-Stage Team Building Model
Forming Storming Norming Performing Adjourning
Plan Do Check Act - Act
Fully implement the solution - · Update documentation on new standard work · Train everyone in the new procedures · Apply improvement to all areas · Monitor performance
A Principle is a
Fundmental Truth
Instructions
How to form a task within a process - how to carry out a step within a procedure - typically much more detailed in a procedure
Point of Use
How workers access materials and tools as close as physically possible, reduce movement and motion, treat the operator as a surgeon
Plan Do Check Act - Plan
Identify the problem and develop a plan for improvement - · Identify the problem · Agree on the desired situation · Determine the root cause(s) · Select a potential solution · Create implementation plan Some of the tools which can help during this step include - · Brainstorming · Cause and Effect Diagram · 5 Why Questioning · Run Chart
Storming
In this stage conflicts often emerge about the goals and contributions of team members. There may also be challenges to the leader of the group. In this stage leaders should openly address conflict and emphasize the team's purpose and ground rules as established in the Charter
Norming
In this stage the team members form close relationships and a cohesive unit, develops norms or unwritten rules for what is acceptable also takes shape during this stage
Four types of Cost of Quality
Internal Failure Costs External Failure Costs Appraisal Costs Prevention Costs
Visual Controls - Self-Explaining
It is obvious - people knows what it means
Gemba
Japanese term meaning the actual place - where value is created
Kaizen Blitz Rules
Keep an open mind Maintain a positive attitude Treat others as you'd like to be treated One person, one voice - no position or rank There is no such thing as a dumb question Create a safe environment Understand the process
Cross Training Matrix
Most valuable employees know how to do their job and how to do them well. Otherwise, they are one step away from obsoletion Job Rotation - must leverage the training - people can't perform if they haven't done the cross-trained job in a year
Kaizen Blitz Success
Moving rapidly from planning to implementation Continuous progress rather than waiting to find perfection. Addressing the root cause of waste. Empowerment and teamwork
Sustain
Often the most challenging of 5s but key to the overall success of its use why is 5s so important
Project Closure - Project Archive
Organize all documents, including electronic, and archive them for storage and retrieval. This could include - · Scan documentation into electronic format · Take photos of team members and new work areas · Save all files on shared drive · Move any physical items into secure storage
Gemba Walks - Customers and Suppliers
Outsiders can make observations which no one has ever considered. Customers can see how their orders are fulfilled. They might see where too much effort is going into unnecessary work or where more attention to detail is needed. Suppliers can see how their materials, equipment, tools, or information is used. They might see where they can make an improvement or provide a suggestion to eliminate waste.
Core Competencies
Particular strengths relative to other organizations in the industry. They provide the fundamental basis for the provision of customer value.
Visual Controls - Self-regulating
People know what to do, priority and authority are granted to work or not to work (ex. depleted inventory card)
Gemba Walks - Extended Team Members
People who support the work area Second most Common Beyond the questions, these gemba walkers can learn how their colleagues do their work and where they could help.
Ergonomic Disciplines
Physical, cognitive and organizational
Challenges to Continuous Improvement - Documentation
Policies, procedures and instructions
A3 problem solving methodology
Problem definition, root causes, countermeasures, implement, follow up
2.Types of Value Stream
Products Services Ideas Sales Resources Projects
3.Types of Value Stream
Products: A product used from materials to the point of use by the customer
Organize for success
Project Champion, Steering Committee, Stakeholders, Project Manager, Project Team Members, Project Management Office
5 stages of lean
Project Charter, Current state map, Future state map, Implementation, Seek Perfection
8.Types of Value Stream: Projects
Projects from concept o implementation and support (ex lean transformation project - from concept through implementation) Concept to Improvement
Project Closure - Staff Transfer
Release temporary staff and reassign permanent staff. This could include - · Create a success story mentioning all team members and post it to social media · Plan for everyone's next assignment · Complete performance reviews for all team members · Write letters of recommendation This is not the time to fire the people who helped improve the organization. You can fire those who refuse to change!
3.Run Chart
Runs: (too few or too many) - number of times the median line is crossed
19.4 rules of run chart
STAR - Shift - Trend - Astronomical - Runs
Two types of visual Controls
Self-Explaining Self-Regulating
4.Types of Value Stream
Services: A service from suppliers to solving the need of a customer (ex barber, police, etc) start when notified service is required, end when service is provided
20.Run Chart
Shift: when too much data is grouped above or below the lines (rule of 6)
The 5 Whys
Should keep asking why and you will keep getting closer to the root cause
401k effect
Small incremental changes routinely applied and sustained over a long period result in significant overall improvement
401 K Effect
Small incremental changes, routinely applied and sustained over a long period, result in significant overall improvement.
The 401k Effect
Small incremental investments Over time
undocumented features
Software Defects You can have a defect by not doing something (ex - a missing piece of a diy patio set)
15.SPIOC
Suppliers, Inputs, Process, Outputs, Customers
32.SIPOC
Suppliers, Inputs, Process, Outputs, Customers
kaizen burst
Symbol to identify waster on current state map. The areas to make good.
Problem Solver
Taking responsibility to solve the problem means you will follow a systematic process for developing a proposal to fix the problem
Education
Teaching people why we do what we do - more general knowledge and concepts - help people develop a sense of reasoning and judgement
Project Charter Steps
Telling The Story 1. Current situation 2. Desired situation 3. Statement of need Making the Case 4. Scope 5. Benefits 6. Cost Closing the Deal 7. Justification 8. Organize for success
Plan Do Check Act - Do
Test your solution - · Implement on a trial basis · Take measurements
Challenges to Continuous Improvement
The 20/60/20 Rule One and Done Documentation Standard Work
learning curve
The concept that people get better at a task, the more they do it
Learning Curve Data
The data you need is the per unit average cumulative cost for every point where you double the cumulative output
Learning Curve
The more people do something the better they get at doing it - people get faster and mistakes decrease - you can count on the learning curve to deliver improvement - and you can also accelerate it
Performing
This phase is simply when the team begins focusing less on building relationships and weren't actually achieving their team goals
Total cost of ownership
Total costs associated with owning a product. Ex - printer includes additional paper and ink costs
Total Landed Costs
Total costs, including additional fees (ex furniture purchased, plus delivery fees)
21.Run Chart
Trend: When a consecutive group is going up or going down (5 points)
Value Add Ratio
VA - (VA+BVA+NVA) Not a percent Ex - Process over elasped
Value Add Percentage
VA/(VA+BVA+NVA)
Kanban is part of a system called ___
VISUAL CONTROLS - Self-Explaining - people know what it means (ex - empty bin means order more) - Self-regulating - where people know what to do (provides approval to proceed)
Three types of value
Value Add (VA) Business Value Add (BVA) Non-Value Add (NVA)
Create Flow
Value Streams need to keep moving in a continuous flow ( ex. Pitstop is always moving) Stopping the stream includes Finding a defect and fixing mistake Unread emails in inbox and not getting back to customers When climbing up a ladder to get more supplies
Project Closure - Stakeholder Approval
Verify all deliverables are complete and signed off by stakeholders. This could include - · Meet with stakeholders to verify they are pleased with the results · Provide stakeholder feedback to project champion and steering committee · Conduct focus groups with customers and suppliers · Create video testimonials from customers and other stakeholders
7 Types of Waste
Waiting Defects Motion Overproduction Movement/Transportation Inventory Poor Processing
Don't Do This (Kai Blitzen Events)
We run a kaizen blitz and come up with a long list of projects that will take years to do." - Frustrated Kaizen Blitzer
Types of Root Cause Analysis
Weed 5 Whys Pareto Principle Scatter Diagram
Hold the problem solver accountable for status _______ and hold the coach accountable for status ________.
Yellow.... Red
Challenges to Continuous Improvement - One and Done
You have one great lean project that focuses on the systematic elimination of waste... then it is back to the same old grind Successful projects should be the launching pad for future projects
Root cause analysis
___________________ is a systematic process for identifying "root causes" of problems or events and an approach for responding to them. RCA is based on the basic idea that effective management requires more than merely "putting out fires" for problems that develop, but finding a way to prevent them.
Pull
a force drawing something towards a particular destination
Leverage Pull Pull
a force drawing something towards a particular destination - Requires a focus on true demand -Not leveraging pull Making products not ordered by a customer Enticing customers to buy something they don't need Rely on speculation and hope based upon forecast
Single Piece Flow
a legendary goal for lean purists. Seeks to have each step in your value stream create 1 unit at a time and pass it to the next step - Continuous efforts to eliminate the root causes for running batches
Supermarket
a location where a specified amount of inventory is kept to supply downstream processes (icon = backwards E)
Best Practices
a procedure, demonstrated by research and experience, which produces superior results and is suitable for widespread adoption as a standard
30.Push
a process that relies upon a forecast to create inventory in anticipation of customer orders o You push inventory into your supply chain o When actual orders don't match forecast, there will be excess inventory or stock o AKA Speculative o Ex - Buffet
Root Cause Analysis
a process, using a set of defined rules and tools, to investigate and categorize nonconformance
Procedures
a set of actions which are the official or accepted way of doing something - how a process needs to be done - an established or official way of doing something
17.Check Sheet
a tool for recording and organizing data to identify a problem
Scatter Diagram
a visual representation of two variables which can show if there is a correlation - spending more time with your studies will lead to higher grades in your classes
Pareto Analysis
a visual representation which demonstrates the "eighty twenty" rule - 80% of customer complaints come from 20% of your customers
gemba walk
a walking visit to the actual place where value is created, with a goal to observe, listen, learn, and help.
28.Make to Order
a) An environment where a good or service is made after receipt of a customer's order b) Relatively long lead time to ship after the order is received --> carry less stock
29.Design/Engineer to Order
a) An environment where customer specifications require engineering design, specific customization or unique materials
Corrective Action
action taken to address the root cause of a nonconformance and prevent recurrence - an mentioned, there could be multiple actions taken
Containment
actions which ensure nonconforming products or services do no harm and do not reach the customer - this treats the effect only
Poor processing
activities that hinder or create no value for stakeholders o Poor processing > over processing o Data entry from one system to another, assembly that requires too many nuts and bolts of different sizes, creating a 52 week schedule when the project is 14 days, testing for defects too late in the process
1.Value Stream
all activities (value added, business value added, and non-value added) required to meet a customer or stakeholder request.
Prevention costs
all the costs incurred to reduce the defects created by a product or service (training courses, pre- checklists)
External failure costs
all the costs to correct a defect after a product or service is received by the customer (repairs, replacements, etc) Includes damage to the brand
Internal failure costs
all the costs to correct a defect before a product or service is received by the customer (burnt pizza, etc)
Appraisal costs
all the costs to inspect judge identify and sort our defects with a product or service (ex. inspecting a hotel room after cleaning, counting money from an ATM) - not just by quality inspectors
Fishbone Diagram
also called a "cause and effect" diagram - it was developed by Professor Kaoru Ishikawa to examine problems by looking at categories of "causes" which could have created the "effect" or nonconformance
Standard Work
always do things the same way every time
Control Chart
an enhances run chart which shows upper and lower limits of what is acceptable
Environmental Waste
an unnecessary or excess use of resources or a substance released to the air water or land that could harm human health or the environment. - not value add
Environmental Waste
an unnecessary or excess use of resources or a substance released to the air, water or land that could harm human health or the environment. This includes - - energy water or raw materials consumed in excess of what is needed to meet customer needs - pollutants and material waste released into the environment hazardous - substances that adversely affect human health or the environment.
Total cost of quality
appraisal + Prevention + internal + external
Prior to failure
before a breakdown
Gawande's recommendation is to
build a checklist when there is a blend of tasks
Standardize
checklists and audits are very helpful and it helps identify abnormalities or problems
Shine
clean to inspect
Why is change resisted? Misunderstanding
communication problems, inadequate information
Functional benchmarking
comparing methods to companies with similar processes in the same function outside of your industry and lastly
Benchmarking
comparing the performance of your products, services or processes with those of competitors and best-in-class organizations.
Competitive benchmarking
comparing to what's seen as their best from the direct competitors
Internal benchmarking
comparison among similar operations within your organization
Cost Leadership
competing on price by having the lowest cost of operation in the industry (Walmart, McDonald's)
Market Focus
concentrating resources on a narrow market or industry segment (ie Pharma, Space, Education)
Statistical Analysis
concepts such as mean, mode, range, and standard deviation can describe the amount of variation and other significant information you could not see by just "looking" at the data
Predictive Maintenance
continuous or periodic monitoring and diagnosis in order to forecast component degradation so that maintenance can be performed prior to failure
Key Benefit of VMI
customer is better served and is less likely to switch
Procedure
describes the sequence of activities, or set of actions, which is the official, or accepted, way of doing something.
Mistake proofing
design the process in a way that prevents errors from happening (AKA poka yoke) (ex - 12 eggs in a carton, child's matching shape toy, plug only goes in 1 way)
9.Value Stream Manager
designated as the owner of a value stream which crosses functional boundaries. They are champions for future state design and implementation, creating flow and leverage pull across all functions
Diagnosis
determine health status
Training
developing a particular skill to a desired standard through instruction and practice
Differentiation
developing and marketing unique products for one or more customer segments (ie Apple, AMEX, Disney)
Why is change resisted? Different Assessment of the Situation
disagreement over the need for change or advantages or disadvantages
Brainstorming
discussing possible causes with others in a cross-functional group helps gain an overview of the problem and aids in a more complete solution
A key aspect of the lean vision is to make a cultural transformation where everyone is
empowered to participate in continuous improvement.
Master
establish standards, provide expert advice on overall program management, and coach problem solvers
The primary driver of value add is specified by
external and internal customers
Milk Run
frequent pick ups and drop offs to each work center, not waiting to accumulate large batches (ex only deliver materials once a day)
5.Types of Value Stream: Ideas
from concept to implementation (new products and services) concept through product launch
7.Types of Value Stream: Resources
from justification to retirement at end of use (recruiting of new employees through retirement) Equipment and people
Overproduction
generating more product, service or information than is needed by the customer right now - Producing anything based on forecast, avoid changeovers, creating reports that nobody reads, unnecessary tests, replying to all in emails when only 1 person needed to know
Stratification
grouping data into "subpopulations" which can then be examined discretely - sorting patients by age group to see if this characteristic is correlated with triggering the root cause
Sort
helps to reduce time lost waste and stress
a. Before the event - Leader
i. Identify the well defined need ii. Identify the right participants iii. Logistics - right room or online tool iv. Create a meaningful agenda v. Provide proper notice and expectations vi. Assign all required meeting roles vii. Prepare for great event
Post Meeting roles
i. Minute Taker - Issue minutes and Action plan ii. Participants - complete assignments (project manager typically has to follow up)
Conducting the Meeting - rules to follow
i. Start on time ii. Lateness not tolerated iii. Review kaizen blitz rules iv. Stick to the agenda v. Agree on action items vi. Stop on time
Waiting
idle time created when products, materials, people and equipment is not ready Ex. Cannot move forward without approval
Fault
incorrect directions in the documentation of policies, procedures, or instructions
Why is change resisted? Self Interest
individuals are concerned with the implications for themselves
Proactive sources
interviews, focus groups, surveys, direct observation, market research, benchmarking, SEO techniques, joint projects
Value Stream Mapping
involves creating a value stream map of your current state - this is how you learn where the waste exists (used to create a future state map)
What is Six Sigma
is a structured methodology for improving the quality of products, services, and processes by reducing variation with a goal of reaching less than 3.4 defects per million opportunities to have a defect.
Challenges of Continuous improvement - Sub-optimization
it's always easy to make a small change in one department and miss the impact on downstream activities
Challenges of Continuous improvement - Documentation
it's very difficult to keep policies, procedures, and instructions accurate when things are changing every day
5 Whys
keep asking why as a means to dig deeper into the source of the nonconformance - this is one of the most powerful tools for a root cause investigator
Expert
lead major projects, address complex problems, and advise project teams
Practitioner
manage projects, lead value stream mapping sessions, and facilitate kaizen blitz events
Inventory
more products, materials or information than the customer needs right now - Unread emails, finished goods in a distribution center, testing supplies in a store room, obsolete materials in an off-site warehouse
6.Types of Value Stream: Sales
new business from marketing to closing the deal Prospect to Order
Challenges to Continuous Improvement - The 20/60/20 Rule -
o 20% will buy in soon after you demonstrate a commitment to lean o 60% will take a wait and see approach looking for confirmation o 20% will never get on board and may even sabotage efforts
- Plan Do Check Act
o Leverages the scientific method, hypothesis, experiment and evaluation § Hypothesis = Plan § Experiment = Do § Evaluation = Check § Then, if all is well, you can Act = Implementation
Market Focus
o targeting a small market segment Concentrating resources on a narrow market or industry segment (ex health care)
Focus Group
o the goal is to gain perceptions opinions beliefs and attitudes towards the products and services. This should be a diverse group of people assembled to participate in a guided discussion (can be internal or external customers)
Takt
of German origin, with a meaning most closely associated with musical rhythm. Like a heartbeat, it should be steady and measured can have a couple of known paces, but these paces should not change every day. - Ex high level during busy season, another level during the year
Motion
physical activity by people that does not add value - Reaching for tools, searching through files, walking to the printer, driving, bending, etc
scatter plots
plotting 2 variables on a graph. Are the 2 variables related.
Degradations
poor health status
Forecast
predict the future status
Policies
principles, rules and guidelines adopted by an organization to reach long-term goals
Policies
principles, rules, and guidelines formulated to influence decisions and ensure actions align with organizational goals.
Apprentice
provide subject matter expertise and support projects, kaizen blitz events, and continuous improvement activities
Force field analysis
provides an overview of the balance between forces driving change in a business and the forces resisting change
the goal of six sigma is to
reduce variation to the point where you have less than 3.4 defects per million opportunities to have a defect
Correction
replacing a nonconforming product or service - this treats the effect only
Maintenance
return to normal health
Gemba Walks - Executive Leadership
seek to understand how the cultural transformation is progressing should observe employee attitudes and general workplace organization
Differentiation
seeking customers who are value high quality products and services Developing and marketing unique products for one or more customer segments (apple)
Why is change resisted? Low Tolerance of Change
sense of insecurity
Straighten
set an order makes files and tools easy to find easy to use and easy to store away for later use
Scatter Diagram
shows if a correlation exists between two measurements
SMED
single minute exchange of dies systematic approach used to reduce changeover time
5S
sort, straighten, shine, standardize, sustain
Champion
sponsor projects, ensure resources, communicate the progress toward creating a sustainable organization
The primary driver of business value add is
stakeholders not identified as external or internal customers Ex - Investors Invest Government IP protection
The destination for a lean transformation is to create a ______
sustainable organization
Training
teaching people how to do something - specific knowledge and skills - following the standard work to deliver an intended outcome
Adjourning
team finalizes their work and disbands in this phase
Forming
team members may experience a great deal of stress and anxiety due to uncertainty about the other team members and their roles. First interactions can be cautious and tentative as team members feel each other out.
Unit Demand
the average demand per day
work instruction
the detailed description of how to perform a task. It is step-by-step and much more detailed than a procedure.
Nonconformance
the non-fulfillment of a requirement in providing a product, service, or fulfilling a policy requirement
Available time
the number of minutes per day the value stream is working
Education
the process of learning general knowledge while developing reasoning and judgment
Benchmarking
the search for and implementation of best practices
Quality at the source
the supplier of products services or information meets expectations specified by the customer, eliminating the need for incoming inspection
Lean can be defined as
the systematic elimination of waste. The first key word is systematic - we are not interested in a chaotic scramble. Key word number 2 - get rid of the bad things, to make room for the good things The third key word is waste - we are not going for a cost cutting frenzy. The waste that we seek to eliminate
Changeover Time
the time it takes to change from producing the last good product or service of one batch to producing the first good product or service of the next batch. - does not support Flow
Root Cause
the underlying fault or weakness in a process or system which triggers an undesired event or result - there is often more than one root cause
External elements
those tasks which can be done while the resource is running good parts or providing a service.
Internal elements
those tasks which can only be done while the resource is not running good parts or a providing a service
the most applicable definition for lean six sigma is
three words used for marketing purposes by organizations that provide lean or six sigma consulting and training services. (Marketing Hype)
zen
to make good
kai
to take apart
16.Value Add Guestimate
total time something is happening divided by the total time.
Movement/transportation
transportation of products, tools, materials, samples, documents, etc that does not add value - Reports sent to another area for storage, work in process sent between departments, materials moved in and out of storage, materials moved into a quality control lab
trend lines
trend line going down: negative correlation trend line going up: positive correlation
18.Run Charts
type of chart used to show variations in the process over time or to show trends (such as improvements or the lack of improvements) in the process.
Call Systems
typically set up for bulky materials that require forklifts or other equipment. Operator triggers replenishment right before materials are needed
Weakness
unclear or missing information which results in more than one possible decision - some of which will result in a non-conformance
root cause analysis
underlying causes
Underutilized employee capabilities
underused talent and creativity
Gemba Walks - Managers & Supervisors
want to know what is happening now compared to what should be happening now Most Common
Monitoring
watching closely
Gemba Walk
where leadership make a routine habit to get out from behind their desk to go see what is happening
Generic Process Benchmarking
which compares work processes to others that are innovative and exemplary
Initiating Continuous Improvement - Process
you should run an improvement project to examine your current state and implement an improved future state.
two goals of using the A3 methodology
§ Solving problems using a thought process involving continual dialogue between the owner of an issue and others in the organization. § Making the process of problem solving transparent and teachable in order to create an organization populated with problem solvers.
Two critical reasons why a new future state is just the beginning are -
· All improvement projects have limited resources and cannot possibly create a process which will provide perfect performance at the lowest total cost · Reaching perfect performance, if possible, will always be temporary - the environment is constantly changing and all processes need to respond to these changes
Desired situation
· Describe a desired situation that reflects fixing the bad and leveraging the good in your current situations · What are the best practices and emerging trends
Benefits
· Describe the benefits in terms of improved capabilities and reduced costs · Consider all stakeholders to draw a link to one or more strategic initiatives
Cost
· Describe the costs of the project in terms of time and money · What are the one-time vs on-going costs? · Project team time · Steering committee time · Education time and costs · Food and beverages · Other costs - Travel, software, equipment, construction
Current situation
· Describe the current situation in terms of processes, poor performance and strategic initiatives · What is happening now
Statement of need
· Describe the gap between current and desired situation · What do you need to do · AKA Problem statement
Scope
· Describe the project boundaries · What is included and excluded?
Justification
· If justified, clearly state how the benefits exceed the costs · Which stakeholders will be impacted
An effective procedure will contain elements such as
· Purpose · Scope · People · Location · Resources · Customer · Measurement · Terms
Training may include skills developed through
· Software classes for the programs you use · Apprentice programs from community colleges · On-the-job learning with a supervisor or peer · Targeted classes on your standard procedures - often "practical" to be used immediately.
During Project Closure, you need to
· Tie up all loose ends · Harvest knowledge for use in future projects · Communicate the success to all stakeholders · Celebrate with your team
The "5-Whys" Analysis"
— A simple problem-solving technique that helps users get to the root of the problem quickly. It was made popular in the 1970's by the Toyota Production System. This strategy involves looking at a problem and asking "why" and "what caused this problem". Often the answer to the first "why" prompts a second "why" and so on—providing the basis for the "5-why" analysis.
Reactive Sources
• Complaints • Technical Support Calls • Customer Service Calls • Comment Cards • Sales Reporting • Returns • Warranty Claims • Website Activity • FAQs
Proactive Sources
• Interviews • Focus Groups • Surveys • Sales Visits • Direct Observation • Market Research • Benchmarking • SEO Techniques • Joint Projects