SCM 4367 Exam 1

Motion Waste (def)

People and materials moving without transformation...without creating value

Purpose of Poka Yoke

Extension of visual management/5S and to make sure we are doing the correct things and not making errors

Lean Production Mindset on Human Error

- Errors are seen as an opportunity to improve - Reduce or Eliminate Errors using Poka Yoke

How Visual Management reduces wasteful activities

- Make normal and abnormal conditions visible - so standards can be easily be followed by all employees - Makes waste visible - so you can eliminate it and prevent it from recurring in the future

Purpose of a process (ex)

- Increase value to a customer - Increased performance (product or service functionality) - Increased speed (decreased lead time) - Increased quality (consistency, durability, reliability, aesthetics) - Increased flexibility (product or service variation) - Decreased cost

The importance of using data when solving problems

- Perceptions are Subjective (1) Everyone has a different perspective on the source and magnitude of problems - Measurement documents the problem - Measurement is used to diagnose the problem - Measurement documents the solution - Measurement convinces others that the change was helpful

Importance of preparing for human error in a process

- Stops defects from passing into the next process - Avoids wasting people skills by designing "smart" processes

Examples of Poka Yoke

- USB C or Lighting Port - Cattle Guard/Crossing - Metal bar bridge makes cow fall and no need for gate door - Gas Cap - leash or new cars with no gas cap - Sink - Drain off to the side, drain grid, and hole from overflowing water - Sidewalk gates make you face oncoming traffic

7 Wastes

- Transportation - Inventory - Motion - Waiting - Overproduction - Overprocessing - Defects

Purpose of A3 reports

- What is the problem we are seeing, what are the root causes of this problem, and how are we proposing that we attack this problem. - Communicating the problems and ideas in creative ways

Rules of a Kanban system

- When it is not practical to group machines (suppliers) - When multiple product families utilize one machine - As a buffer in front of a bottleneck operation - When process quality and reliability are stable

Fundamentals of 5-S

5S Methodology is to create and maintain an organized workplace to focus on creating uninterrupted flow of material, people, and information

Check Sheets

A Non-VA activity, simple, organized way of tracking the frequency of particular events over time. Provides numerical measurement of observed data. Where: General processes in our everyday life When: When we start seeing defects we put a tick mark beside that item for temporary problems. Once the problem has been solved we stop using the Check Sheets.

Pareto Diagram

A Pareto Chart is a bar chart that ranks problems or causes (errors) of problems in descending order from most to less amount of errors Where: General or business processes in our everyday life When: Where are we going to have the biggest impact to eliminate errors in a business

Process (def)

A process is a collection of activities that transforms inputs into outputs that offer value to a customer (Inputs: Material, People, Info) INPUTS → TRANSFORMATION ACTIVITIES → OUTPUTS

Waste (NVA) (def)

Activities that do not deliver value to customers - Non-necessary activities (NVA) - Necessary but non value added activities (NNVA)

Recognize when Poka Yoke should be used

Anytime you want to make an effort to eliminate or reduce errors

Different types of Kanban (Signal)

Batch or Bin Kanban - Empty container signals production Reorder Point or Card Kanban - Card signals production when a predetermined reorder point is reached

Recognize the problem-solving methodology imbedded in A3

Coming up with countermeasures for a root cause. Root cause is the underlying problem that causes the causes. Eliminating the root cause to eliminate all the causes.

Two Primary "Pillars" of Lean: Continuous Improvement & Respect for People (def)

Continuous Improvement: Creating an atmosphere of continuous learning and an environment that not only accepts, but actually embraces change Respect for People: Refers to everyone inside and outside of the organization who has contact with the PROCESS. Respect anyone who changes the process for better.

How the adoption of a lean mindset is mandatory for implementing sustainable culture change

Culture is built and perpetuated by the perspective and mindset of the senior managers. A lean production mindset produces a lean production culture. Companies do not "become lean;" companies "pursue lean"

Value Added Activities (VA) (def)

Directly transform inputs (people, materials, or information) into outputs

Overprocessing Waste (def)

Doing an activity multiple times when it should be done only once - Repacking a box for reorganization or consolidation - Taking an item out of one box and putting it into another box - Repairing a product or item (kitchen: reheating leftovers) - Reconfiguring a product because the customer wants something different

Inventory Waste (def)

Extra material, parts, supplies, information that are not currently needed Results in additional expenses - Storage Space.... warehouses - Expenses associated with warehouses & storage: (Inventory Containers, Inventory Shelving, Employees, Management, Electricity, Water)

How the scientific method connects Lean, Six Sigma, and Theory of Constraints

Formulate a Question - Resulting from a defect or process problem - Resulting from a new customer requirement - Resulting from a changing market need Gather Information and Define the System - Describe the system using process data Formulate an Hypothesis - Describe how the results are occurring based on the data Propose a Countermeasure - Predict the result of your proposed process improvement Implement the Countermeasure Evaluate the Results - If the results are different than your prediction, restructure your hypothesis

Function of A3

Having a standardize format with the problem solving and communication process , making it easier to read because everything is fast to read. Very specific pieces of information in certain spots of the A3 layout.

Waiting Waste (def)

Idle Time when materials are not being actively transformed

Six Sigma (def)(ex)

Improves individual processes at a micro-level - Utilized primarily by statistically trained professionals - Provides statistical tools used to address specific problems

Lean (def)(ex)

Improves the organization at a macro-level - Easily utilized by most people in an organization - Establishes a foundational culture of continuous improvement

Why customer focus is important for process improvement?

In order to alter the value delivered to a customer, you must alter the process(es) used to create that value Process improvement must be customer-focused Identify the customers of a process - Internal Customers (Employees, Owners, Boss) - External Customers (Suppliers, Customers, Society, Shareholders) - End Users (Who ever uses the product NOT a customer or customers later down the supply chain) Define what the customer wants (define value for the customer)

Value (def)

Increased performance, speed, quality, flexibility, and decreased cost. What the customer wants.

Theory Of Constraints (def)

Informs us where to improve (ex. Small Space)

Historical roots and fundamental characteristics of Theory of Constraints

Introduced in 1984 Book - The Goal by Eliyahu Goldratt and adapted by Goldratt Institute, Looks at production process and one part of the process (weakest) will give us the most gains. - Often referred to as "constraint management" because of its focus on identifying process constraints (limiters) - Process improvement cycle involves 5 steps (we will discuss later) - Defines "thinking processes" that encourage consideration of system interactions

The PHYSICAL material/parts/supplies or the VIRTUAL information that need to be stored BECAUSE they are not currently needed are referred to as

Inventory

Defects Waste (def)

Materials and Products that cannot be used Defects can be caused by many things, including: - Obsolescence and Spoilage - Damage and Deterioration - Mishandling and Mistakes

Mass Production Mindset on Human Error

Mass Production Managers - Require 100% visual inspection - Reprimand or humiliate the employee - Fire the employee - Retrain the employee - Write a "job description" manual - Tell the employee to - "Be more careful" - Pay closer attention" - Hang motivational posters

How the wastes are connected to one another

Most of these waste occurs because we engage in Overproduction Waste - One waste created leads to another waste

When you work in a disorganized workplace and have difficulty finding the tools or material you need to do your job, you experience this waste:

Motion

Historical roots and fundamental characteristics of Six Sigma

Motorola developed Six Sigma and adapted heavily be General Electric, Bell Telephone used statistical methods Utilizes a standardized improvement process: DMAIC - Define - Measure - Analyze - Improve - Control

Transportation Waste (def)

Moving materials without transforming them

"Organism viewpoint" and how lean systems take a long-term perspective

Organizations are like living organisms - The organization grows and changes - The market environment changes (1) Customers (2) Competitors - Employees grow and change

Functional Layout (ex)

Organized in departments (organized by team that IS NOT cross functional)

Muri

Overburden - Forcing a person or equipment to work faster than normal - Making people work faster or slower - Requiring "quotas" that are unattainable

Fundamentals for creating a work cell

Processes are cross functional (Create team that has multiple people from different departments for that process family)

Overproduction Waste (def)

Producing or buying more than the customer needs before the customer needs it - Spending money on materials & supplies before it is needed Seen as the worst type of waste because it often causes ALL of the other types of waste

Characteristics of Poka Yoke

Simple and cheap - Most Poka Yoke devices cost less than $100. Part of the process - Most Poka Yoke devices do not require additional action by the user Eliminate a root cause - Poka Yoke devices are applied to the cause, not the symptom Provide immediate feedback - Usually Poka Yoke devices are placed near where the mistakes occur

Principles for implementing each of the 5-S steps

Sort (Seiri, Separate, Scrap) - Decide what to keep, what to discard Straighten (Seiton, Set in Order) - Arrange in a way that minimizes muda Shine (Seiso, Scrub, Clean) - Reveal where dirt and defects are originating Standardize (Seiketso, Neatness) - Insure everyone performs work the same way - Visual Management occurs here Sustain (Sitsuke, Systemize, Discipline) - Create the discipline to maintain 5-S

Painting a wooden chair with a can of spray paint is an example of a transformation process (transforming an unpainted chair into a painted chair). Which of the following steps would be categorized as Value Added (VA)? Step 1: Lay newspaper on the ground to prevent overspray Step 2: Place the chair in the middle of the newspaper Step 3: Pick up the can of spray paint Step 4: Shake the can of spray paint to mix up the paint Step 5: Remove the lid/cap from the can of spray paint Step 6: Spray the chair with paint Step 7: Throw away the can of spray paint

Step 6 Only

Cellular Layout

The combination of equipment, material, and people in close proximity to maximize flexibility, create flow, and minimize NVA activities. (organized by team that IS cross functional)

Gemba Importance (ex)

The only way to discover and eliminate waste in a real process is to go to the GEMBA. Go to and experience the actual process, where the work is happening, participate

Order Winners (def)

These are the traits that, if provided, will differentiate your product or service from competition. (Sauce, Customer Service, Clean)

Order Qualifiers (def)

These are traits the customer expects. The customer will not pay for a product or service unless these traits are present. (Fast Food, Service Speed)

Meaning of the Thinking People System

Toyota Production System We must think about processes, productivity, quality differently Requires creativity, imagination, inventiveness, ingenuity Requires system-thinking: - Not if A changes, then Z will happen - Instead, A, B, C, D influences W, X, Y, Z simultaneously

Historical roots and fundamental characteristics of Lean

Toyota invented Lean (Toyota Production System), Companies worldwide continue to implement lean concepts Lean is a philosophy of improving a system continually in pursuit of the "Ideal Way" - Perfect Quality - Zero Waste - Exact Quantity - Instant and Complete Customer Satisfaction - Minimum Cost - Ability to Instantly Adapt to Market and Competitive Changes - LEAN is not JIT, Kanban, or 5S

When you are doing a task and must physically move material from one location to some other (remote) location without transforming it, you are experiencing this type of waste:

Transportation

Characteristics of a typical work cell

U-Turn Layout Reduces Waste - Eliminates inventory between machines - Minimizes walking and transportation distance - Flexibility: enables workers to be added or removed in response to demand - Minimizes pickups and set-downs Increases Quality - Employees are responsible for the entire process - Employees become their own customer - Errors are discovered immediately Increases mental engagement

Mura

Unevenness - Unpredictable variation in the product mix - Unpredictable variation in the types of tasks required - Unpredictable spikes and dips in demand levels - Unpredictable changes in job requirements

Muda

Uselessness & Wastefulness - Typically identified with the "7 wastes" (TIMWOOD)

If you (the worker) are not actively transforming inputs into outputs or when inputs are not actively being transformed into outputs

Waiting

How companies remove waste by using the metaphor of a river and rocks

Water = Inventory Rocks = Problems When the water is moving, the process is working When the water stops moving, the process is stopped - Slowly reduce inventory levels until a problem emerges - Increase inventory levels slightly to facilitate process flow - Find the root cause of the problem eliminate the underlying waste - Slowly reduce inventory levels until the next problem emerges

Where to use Kanban

When there is a disconnect between items (when the source of what you need is somewhere else and you can't locate it easily; if you're gonna have a Kanban, it needs to be high quality)