Operations Management with LEAN and Six Sigma Chapter 8

Customers of your products and services define

quality!

Philip Crosby Demonstrated what a powerful tool the cost of quality could be to

raise awareness of the importance of quality.

Changeover Time is

the time taken to adapt and modify the manufacturing equipment and systems to produce a different product or a new batch of the same product.

Setup Time is

the time taken to prepare and format the manufacturing equipment and systems for production.

Inventory can hide

the underlying problems, but they are still there and can potentially create major issues in the supply chain.

Kanbans could be facilitated through

the use of a computer software program, i.e., ERP system.

The challenge of MTS is

to avoid having excess inventory.

The "5 How's" is designed to

to bring clarity and refinement to a solution and arrive the root solution (best solution).

The Seven Tools of Quality Control are

1) Check Sheets 2) Histograms 3) Pareto Analysis 4) Cause & Effect Diagrams 5) Flow Diagram 6) Control Charts 7) Scatter Diagrams

Some inventory may be necessary, but excess inventory is

a waste

Product in Line Flow Production moves on

an assembly line through various stages of production

Value Added Process

Process steps that transform or shape a product or service which is eventually sold to a customer.

The Five-S's focuses on

effective workplace organization and standardization. It allows us to easily spot variation from standard operating conditions.

ATO is a _____ strategy that attempts to

hybrid strategy attempting to combine the benefits of both Make-to-Stock and Make-to-Order strategies, getting products into customers' hands quickly while allowing for some customization to take place.

Philip Crosby introduced the concepts of

zero defects and the focus on prevention not inspection.

Is MTO appropriate for all types of products

MTO is not appropriate for all types of products

For what products is MTO not appropriate for

MTO is not appropriate for products where customers expect immediate availability/delivery. Example: Grocery items

What are the performance of the manufacturing strategies

MTS - Shortest, ATO Strategy 2nd Shortest, MTO Strategy 2nd Longest, ETO Strategy Longest.

Six Sigma focuses on

the elimination of defects and the reduction of variations.

The goal of LEAN is

the elimination of waste and the minimization of the amount of all resources, including time, used in the operations of a company.

Appraisal Costs are associated with

the evaluation of purchased materials, processes, products, and services to ensure that they conform to specifications.

The goal of LEAN is to have

the fewest number of high-quality suppliers possible without unnecessarily increasing risk.

The Five-S's

the five pillars of the visual workplace, is a systematic process of workplace organization.

Lowering inventory will help to expose

the hidden problems. Once the problems are detected, they can be solved. The end result will be a smoother running supply chain with less inventory investment.

Value is defined as

the inherent worth of a product as judged by the customer, and reflected in its selling price and market demand.

Six Sigma focuses on improving

the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.

Quick Response

the rapid replenishment of a customer's stock by a supplier with direct access to data from the customer's point of sale.

Managers must support LEAN Manufacturing by providing subordinates with

the skills, tools, time, and other necessary resources to identify problems and implement solutions

The Seven Tools of Quality Control are used by workers

to identify and correct quality problems.

The most successful implementations begin with

LEAN, followed by the more technical Six Sigma statistical tools used to resolve process problems.

Continuous Flow Production

High capital investment - frequently dedicated to one specific product

Based on the difference of characteristics within each Manufacturing Processes, what are the two broad categories processes can be grouped into

Intermittent Processes and Repetitive Processes

4 Types of Manufacturing Processes

Job Shop Production, Batch Production, Line Flow Production, and Continuous Flow Production

Small batch scheduling can be facilitated through the use of

Kanbans

Sort

Keep only necessary items in the workplace, eliminate the rest

In the 1940's, Taichii Ohno and Shigeo Shingo created the Toyota Production System (TPS), which incorporated Ford's production system and other techniques to form the basis of what is now known as

LEAN

Non-Value Added Pure Waste

1) Consumes resources but creates no value for the customer 2) Could be stopped and it would be invisible to the customer

External Failure Costs include costs for

1) Handling and responding to customer complaints. 2) Failed products that must be replaced or services that are repeated. 3) Repair of returned products and products still in the field. 4) Handling and investigation of rejected or recalled products, including return transportation costs.

LEAN is composed of three components working in unison

1) LEAN Manufacturing 2) Respect for People 3) Total Quality Management (covered with Six Sigma)

LEAN regularly results in

1) Large cost reductions 2) Improved quality 3) Increased customer service

What Lean is NOT

1) Laying off employees by the bus load 2) Delivering less or working harder 3) Outsourcing or offshoring 4) A cost reduction program 5) Just a set of "tools" like 5S, kaizen events, etc. 6) Automation or buying a monstrous ERP system 7) Winning a Shingo Prize so as to look Lean

The key principles of TQM are

1) Management Commitment 2) Employee Empowerment 3) Fact Based Decision Making 4) Continuous Improvement 5)Customer Focus

TCM includes

1) Manufacturing and Procurement activities 2) Inventory and Warehousing activities 3) Transportation activities

As volume goes up in TCM

1) Manufacturing and Procurement costs go down due to economies of scale. Generally-step function applies as more capital is required to produce. 2) Inventory and Warehousing costs go up 3) Transportation costs go down, but level off at high volumes as the shipping container gets filled to capacity and another container must be used.

Uniform Plant Loading

1) Planning up to capacity in earlier time periods to meet demand in later time periods. 2) Also called "front-loading" the plan or "leveling" the plan. 3) Production schedule is frozen in the up-front time period (i.e., month) 4) Helps suppliers better plan production.

There are three foundational aspects of Six Sigma

1) Quality is Defined by the Customer 2) The Use of Technical Tools 3) People Involvement

Philip Crosby introduced the four absolutes of quality

1) Quality is conformance to requirements 2) The system of quality is prevention. 3) Performance standard is zero defects. 4) The measure of quality is the price of nonconformance

Appraisal Costs include costs for

1) Testing, evaluating, and inspecting the quality of incoming materials, process setups, and products, against agreed upon specifications. 2) Quality assessment and approval of suppliers. 3) Performing audits to confirm that the quality system is operating properly.

Value-Added Activities

1) Transform or shape material or information 2) Customer wants it and is willing to pay for it 3) Done right the first time

Elements of LEAN Manufacturing

1) Waste Reduction 2) LEAN Layouts 3) Inventory, Setup Time, & Changeover Time Reduction 4) Small Batch Scheduling and Uniform Plant Loading 5) LEAN Supply Chain Relationships 6) Workforce Empowerment 7) Continuous Improvement

Internal Failure Costs include costs for

1)Defective product or material that cannot be used, sold, or repaired, and the costs associated with correction of these defects. 2) Unnecessary work or inventory resulting from errors. 3) Activities required to establish the root causes of product or service failures.

Typically, in Continuous Flow Production, production runs

24 hours a day with the end result being a large quantity of finished product

Continuous Improvements (Kaizen)

A system involving every employee that is based on making little changes on a regular basis, anywhere changes can be made, to reduce process, delivery, and quality problems.

Approach and Tools of LEAN

A wide range of Lean tools are available and Learn-by-doing approach to performance improvement and capability-building

What Manufacturing Strategy is used in Line Flow Process

ATO and MTS

Examples of businesses that take on Job Shop Production (a.k.a., Project Production)

Architects in Custom Home Construction, Ship Builders, and Road Builders

Examples of businesses that use Line Flow Production

Automobile Assembly, Cell Phones, and Toilet Paper

Examples of business that uses Batch Productions

Bakeries, Textiles, Furniture, and Pharmaceuticals

Large batches can exacerbate the

Bullwhip Effect as production in large batches creates an uneven workload

Job Shop Production (a.k.a., Project Production)

Creates a custom product for each customer

Example of ETO product

Customized piece of manufacturing equipment

Six Sigma has two key methodologies

DMADV and DMAIC Methodology

What Manufacturing Strategy is used in Batch Process

MTO and ATO

For what products is MTO appropriate for

MTO is appropriate for highly configured products. Examples: aircraft, ocean vessels, bridges, or products that are very expensive to keep in inventory.

What Manufacturing is used in Continuous Flow Process

MTS

Batch Production

Manufacturing of a small fixed quantity of an item in a single production run.

What are MTS-type products

Most daily necessities such as foods, sundries, and textiles are MTS-type products.

The concept of Six Sigma was originated by

Motorola

LEAN Layout

Move people and materials when and where needed, and as soon as possible

Non-Value Added Incidental Waste

No value created but required by current thinking, process limitations, current technology, and current regulations

Examples of Continuous Flow Production

Oil Refining / Gasoline, Cement, Laundry Detergent, and Chemicals

In Job Shop Production (a.k.a., Project Production) how many numbers of items are producted

One-off or small number of items produced, generally one unit manufactured at a time.

Manufacturing Processes

Part of any manufacturing strategy involves developing a manufacturing process that can create the exact product that has been designed.

Non-Value Added Process

Process steps that take time, resources, or space, but do not transform or shape the product or service.

In the 1990s, Supply Chain Management combined

Quick Response, Efficient Consumer Response (ECR), Just-In-Time (JIT), and Keiretsu Relationships

Key aspects of quality for the customer include

Reliable - acceptable level of breakdowns or failure. Good functionality - it does the job well. Durable - lasts as long as it should. Good design - looks and style. Good after sales service. Value for money. Consistency

Standardize

Schedule regular cleaning and maintenance

Components of the Five-S's

Sort, Set in Order, Shine, Standardize, and Sustain

Manufacturing

To process or make raw materials or components into a finished product, especially by means of a large-scale industrial operation, i.e., mass production.

Focus and Scope of LEAN

Using Value Stream Mapping as primary work unit, Focusing on improving process performance, and Having a clear view of the end state

Make-to-Order (MTO) is

a manufacturing strategy in which manufacturing starts only after a customer's order is received.

Engineer-to-Order (ETO) is

a manufacturing strategy in which the product is designed engineered and built to the customer's specifications after receipt of the order.

The "5 How's," is

a questioning technique for drilling down into the details of a potential solution to a known problem.

The "5 Whys," is

a questioning technique for identifying the root cause of a problem

What does Continuous Flow Product Involve

a series of processes which raw materials flow through. These processes are very inflexible.

Production in small batches creates

a smooth workload as production can be synchronized with customer demand, facilitating a pull system.

Make-to-Order (MTO) strategy creates

additional wait time for the customer to receive the product, but allows customers to purchase products that are customized to their specifications.

Just-In-Time (JIT)

an inventory strategy to decrease waste by receiving materials only when and as needed in the production process, thereby reducing inventory costs.

Once an order is received in ATO, the parts are

assembled quickly into the finished product which is then sent to the customer.

Respect for all people must exist for an organization to be

at its best

The goal of Six Sigma is to

attain less than 3.4 Defects Per Million Opportunities (DPMO)

Generally Continuous Flow Production is highly

automated, and workers act as monitors rather than as active participants.

ETO involves

building a unique product every time. There may be components that are common from one product to another, but the finished product is different each time.

Although there are differences between companies, many manufacturing processes have

certain characteristics in common.

LEAN and Six Sigma ________ one another

complement

LEAN Manufacturing is a natural fit within the discipline of Supply Chain Management as all of the LEAN goals and objectives help to

facilitate an efficient and effective supply chain.

Smaller batches will

facilitate producing at the same rate as customer demand.

TCM incorporates both

fixed and variable costs used in the manufacturing, storage, and delivery of the product.

LEAN involves a ______ hierarchy than traditional organizations

flatter

Production in small batches increases

flexibility allowing the company to respond to changes in customer demands more quickly.

Reducing inventory can

free up capital and reduce holding costs.

Companies that operate with a MTS model tend to

hold more inventory just in case they need it, therefore, they struggle to ensure that inventory levels don't get out of control.

LEAN Manufacturing attempts to reverse the bullwhip effect though

small batch scheduling.

Job Shop Production (a.k.a., Project Production) are often undertaken by

small, specialist businesses

Excess inventory takes up

space, and costs money to hold, maintain, protect, secure, and insure.

It is important that all Six Sigma team members are assigned

specific well-defined Six Sigma roles with measurable objectives.

LEAN is _____ in many industries

standard

In Quality Control you establish

standards of performance.

Companies must develop a manufacturing strategy that

suits the type(s) of products that they produce, their customer's expectations and their strengths.

Lean improves the

supply chain "flow" by eliminating waste

Six Sigma improves the

supply chain "process" by reducing variation

The ATO strategy requires that

the basic parts for the product are already manufactured but not yet assembled.

In the 1940's, Taichii Ohno and Shigeo Shingo created the Toyota Production System (TPS), which incorporated Ford's production system and other techniques to form

the basis of what is now known as LEAN.

Total Cost of Manufacturing (TCM) is

the complete cost of producing and delivering products to your customers.

Prevention Costs are related to

the design, implementation, and maintenance of the quality management system. They are planned, and experienced before actual products or materials are acquired or produced

Managers can also create a culture in which

workers are encouraged to speak out when problems are found.

In Quality Control

you measure: performance, interpret the difference, take action

What is Six Sigma

A quality management process

Shine

Clean the work area so it is neat and tidy

The Five-S's causes

Cleaner, safer work environment, Organized, user friendly workstations, and Opens up space and reduce clutter

The VOC can be captured in a variety of ways

Customer Interviews, Market Surveys, Focus Groups, Customer Specifications, Observation, Warranty Data, Field Reports, and Complaint Logs

What Manufacturing Strategy is used in Job Shop Process

ETO and MTO

Pull Approach

Each stage in the supply chain requests quantities needed from the previous stage. No excess inventory is generated. Reducing inventory levels can also uncover production problems.

Set in Order

Organize and arrange items to promote an efficient workflow

In LEAN Layout, Manufacturing cells are

Process similar parts or components saving duplication of equipment and labor. Are often U-shaped to facilitate easier operator and material movements

Six Sigma uses technical tools such as

Root Cause Analysis, Statistical Process Control, and DMAIC.

Sampling is less time-consuming than testing every unit but can result in errors

Supplier's Risk and Buyer's Risk

Is LEAN and Six Sigma frequently implemented together

They are frequently implemented together, but the two initiatives approach their common purpose from somewhat different angles:

Six Sigma is an integral part of

Total Quality Management.

Developing a manufacturing strategy that suits

a company's strengths is essential for establishing and maintaining an effective supply chain.

Total Quality Management (TQM) is

a management philosophy based on the principle that every employee must be committed to maintaining high standards of work in every aspect of a company's operations.

Customers want quality that is

appropriate to the price that they are prepared to pay and the level of competition in the market.

Philip Crosby

coined the phrase "quality is free" (which is also the title of his book) as defects are costly. He introduced the concepts of zero defects, and focus on prevention and not inspection.

Manufacturing involves the

entire process of converting the raw material(s) or the component(s) into a finished goods item.

In an ideal LEAN supply chain relationship, both customers and suppliers

get connected in ways that allow them to easily exchange information, demand data, and the visibility of status.

In Quality Planning Managers set

goals, priorities, and compare results.

Ordinary workers in LEAN are given

greater responsibility

Six Sigma

is a disciplined, statistical-based, data-driven methodology for identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and in business processes.

LEAN

is an operating philosophy of waste reduction and value enhancement.

Manufacturing Management

is the management of all the processes which are involved in manufacturing.

LEAN involves building

long-term supplier relationships, Partnerships with suppliers, Improving process quality, and sharing information

Manufacturing includes the

machines used, the personnel involved, inventory handling, warehousing, etc.

Each individual item in the batch production goes through

one stage of the production process before the whole batch moves on to the next stage.

Operations Management

refers to managing the process to convert resources into goods and services, in alignment with the company's business strategy as efficiently and effectively as possible, while also controlling costs.

In Quality Improvement you Implement

remedies

Quality Improvement

show the need for improvement

Kanban means

"Signal" or "Card" in Japanese and is used for communication (e.g., visual signal) between workstations.

In what sampling is the entire shipment is assumed to have the same quality as the representative sample that was taken

Acceptance Sampling

What does each letter of DMADV correlate to

Define, Measure, Analyze, Design, and Verify

What does each letter of DMAIC stands for

Define, Measure, Analyze, Improve, and Control

Example of ATO product

Dell Laptop Computers

How customizable are Job Shop Production (a.k.a., Project Production) items

High customization - Normally made to customs specifications

Manufacturing Strategy

defines what cycle time (i.e., lead time) the customer will experience for delivery

Efficient Consumer Response (ECR)

a strategy to increase the level of services to consumers through close cooperation among retailers, wholesalers, and manufacturers.

Batch Production Aims to

achieve better use of equipment

A company must involve

all its employees in the Six Sigma program, and provide opportunities and incentives for employees to focus their talents on satisfying customers.

In the Cause and Effect Diagram the user can

see all possible causes of a problem to help find the root cause.

Six Sigma is concerned with

the permanent fix to quality problems and seeks to identify and correct the root cause of the problem through the use of Root Cause Analysis

The MTO strategy relieves

the problems of excessive inventory that is common with the Make-to-Stock strategy.

Quality and excellence are

what your customers say they are.

What are the 14 points W. Edwards Deming developed to guide companies in quality improvements

1) Create constancy of purpose to improve product and service 2) Adopt the new philosophy 3) Cease dependence on inspection to improve quality 4) End the practice of awarding business on the basis of price 5) Constantly improve the production and service system 6) Institute training on the job 7) Institute leadership 8) Drive out fear 9) Break down barriers between departments 10) Eliminate slogans and exhortations 11) Eliminate quotas 12) Remove barriers to pride of workmanship 13) Institute program of self-improvement 14) Put everyone to work to accomplish the transformation

Problem with Kanbans

1) Demand exceeds capacity at points in the planning horizon. 2) Matching the production plan to follow demand exactly can contribute to inefficiency and waste, including excess inventory or shortages of inventory

Prevention Costs include costs for

1) Establishment of specifications for incoming materials, processes, products, and services 2) Creation of quality plans 3) Development, preparation, and maintenance of quality training 4) Creation and maintenance of the quality system

Workers Perform tasks and actively pursuing company goals causing

Improve production process, Correct quality problems, and Monitor quality

ETO is a more dramatic evolution of

Make-to-Order strategy.

Major Manufacturing Strategies

Make-to-Stock (MTS), Make-to-Order (MTO) , Assemble-to-Order (ATO), and Engineer-to-Order (ETO)

Management Create the cultural change needed for LEAN to succeed causing

Provide an atmosphere of cooperation, Empower workers to take action based on their ideas and Develop incentive systems to recognize and reward Lean behavior

Reducing wastes consequently results in

Reduced cycle times, Greater throughput, Better productivity, Improved quality, and Reduced costs consequently improving customer satisfaction and provides the company with a competitive advantage!!

How does all of the LEAN goals and objectives help to facilitate an efficient and effective supply chain

Satisfying internal customer demand, Communicating demand forecasts and production schedules up the supply chain, Quickly moving products in the production system, Optimizing inventory levels across the supply chain, Increasing the value, capabilities, and flexibility of the workforce through cross-training, and Extending collaboration and alliances beyond just 1st tier suppliers and customers to include 2nd and 3rd tier suppliers and customers as well

Acceptance Sampling

When a shipment is received from a supplier, a statistically significant representative sample is taken and measured against the quality acceptance standard.

What Lean is

a management philosophy based on the Toyota Production System (TPS)

Assemble-to-Order (ATO) is

a manufacturing strategy where products ordered by customers are produced quickly and are customizable to a certain extent.

There is no single academic formalization of total quality, however

a number of noted quality experts all contributed to the basic framework

LEAN and Six Sigma are ___________ principles with significant overlap

complementary

In Quality Improvement you provide

control to maintain improvement.

The root cause is the

core issue that sets in motion the entire cause-and-effect reaction that ultimately leads to the problem(s).

TCM is generally expressed as

cost per unit

Supply chain members in LEAN work together in

cross functional teams.

In LEAN Manufacturing, employees are ________ on many of the various production processes to enable capacities to be adjusted as needed when machines break down or when workers are absent

cross-trained

Joseph Juran

defined quality as "fitness for use". He developed the concept of the cost of quality.

Quality Control

determine what to control

Kaoru Ishikawa

developed one the first tools in the quality management process, the cause and effect diagram, which is also called the "Ishikawa" or "fishbone" diagram.

Six Sigma is a structured and data-driven approach to

drive a near-perfect quality goal, i.e., "Zero Defects"

Batch production produces good quality products more

economically than manufacturing them individually

Quality Planning

identify internal / external customers and needs

Some root cause analysis approaches are geared more toward

identifying true root causes than others, some are more general problem-solving techniques, and others offer support for the core activity of root cause analysis.

Six Sigma provides a statistical approach for solving any problem and thereby

improves the quality level of the product as well as the company.

Value is any activity that

increases the market, form, or function of the product/service. Example Things for which the customer is willing to pay.

Keiretsu Relationships

involves companies both upstream and downstream of a manufacturing process, remaining independent but working closely together for mutual benefit

Root Cause Analysis (RCA)

is a collective term that describes a wide range of approaches, tools, and techniques used to uncover causes of problems.

DMADV Methodology

is a data-driven quality strategy for designing products & processes.

The goal is of Lean is NOT to reduce the number of people in an organization, it is to

use people resources more wisely.

Intermittent Processes

used to produce a large variety of products with different processing requirements in lower volumes.

Repetitive Processes

used to produce one, or a few, standardized products in high volumes.

Starting in the 1910's, Henry Ford's mass production line was a first breakthrough by

using continuous assembly systems that made parts find their way into finished products

The nature of how Operations Management is carried out

varies by company and depends on the nature of the products or services in the portfolio.

Manufacturing strategies can

vary significantly depending on the product and/or the customer requirements.

LEAN Layout are very

visual (lines of visibility are unobstructed) with operators at one processing center able to monitor work at another

Waste encompasses

wait times, inventories, material and people movement, processing steps, variability, any other non-value-adding activity.

The goal of LEAN is the elimination of

waste and the minimization of the amount of all resources used in the operation of a company

Setup Time and Changeover Time are both considered a

waste as they are times when the equipment is not performing its intended function . . . . producing product.

Suppliers and customers work to remove

waste, reduce cost, and improve quality and customer service

DMADV methodology is used

when the company wants to create a new product design or business process that is more predictable and defect free.

DMAIC methodology is used

when the company wants to improve an existing product or business process.

Internal Failure Costs occur

when the product or service does not meet the designed quality standards, and are identified before the product or service is delivered to

External Failure Costs occur

when the product or service does not meet the designed quality standards, but is not detected until after the product or service is delivered to the customer

DMAIC Methodology

which is a data-driven quality strategy for improving products & processes.

DMAIC is the most

widely adopted and recognized Six Sigma methodology in use.

Line Flow Production (a.k.a., Mass Production)

For standardized products with a limited number of variations

Waste Categories (remember the acronym "DOWN TIME")

Defects, Overproduction, Waiting, Non-Utilized Talent, Transportation, Inventory, Motion, and Extra-Processing

Objective of LEAN

Eliminate everything that does not add value (waste) in the customer's eyes

Lean Facilitates a Culture Change by

Eliminating Waste, Change the way we act, Change the way we think, and Culture Change

In LEAN Supply Chain Relationships

Firms develop lean supply chain relationships with key customers and key suppliers

Waste Reduction

Firms reduce costs and add value by eliminating waste from the production system.

Do you focus on improving value added activities or non-value added waste

Focus on non-value added waste for improvement

Sustain

Stick to the rules. Maintain and review the standards

Traditional Approach

Supply chains work as "push" systems, and inventory is carried to cover up problems

Voice of the Customer (VOC)

Term used in business to describe the in-depth process of capturing internal and external customer's expectations, preferences, likes, and dislikes.

Buyer's Risk

The buyer accepts a shipment of poor-quality units because the sample falsely provides a positive result against the acceptance standard (type II error)

Supplier's Risk

The buyer rejects a shipment of good-quality units because the sample quality level did not meet the acceptance standard (type I error)

In the ETO world, why is the cost of poor quality very high

The warranty costs, and the cost of rework to replace an item in a complex assembly, can have a serious negative effect on profit margins.

W. Edwards Deming

is widely considered the father of TQM. He is the creator of the Plan-Do-Check-Act model.

LEAN achieves its goals by using

less technical tools such as value stream mapping, LEAN Layouts, Continuous Improvement, and Respect for People.

Make-to-Stock (MTS)

means to manufacture products for stock based on demand forecasts. Push system.

LEAN is NOT a tool box of

methods, ideas, or methodologies, it is philosophy / culture

While setting up the equipment is a necessary function, if the set up time can be

minimized, the difference will be more time available to produce.

When one task is finished in Line Flow Production the next task

must start immediately, therefore, time taken on each task must be the same

Both setup and changeover are ________ operations and should be _______ as much as possible

non-value added, minimized

There is less likelihood of waste being created by

obsolescence, expiry, spoilage, or damage with lower inventory levels.

Kaoru Ishikawa developed

one the first tools in the quality management process, the Cause and Effect Diagram, which is also called the "Ishikawa" or "fishbone" diagram.

In Make-to-Stock (MTS ) since accurate forecasts will

prevent creating excess inventory and avoid stockouts, the critical issue is how to forecast demands accurately.

After waste is removed

processes are more streamlined, resulting in more satisfied customers. You'll also save your organization time and money

Before waste is removed

processes are often scattered, which can negatively affect your customers

Kanban's authorize

production or the movement of materials to the next workstation.

In Quality Improvement you Identify

projects for improvement.

TQM is a combination of

quality and management tools which are designed to increase business and reduce losses resulting from wasteful practices.

W. Edwards Deming Stressed management's responsibility for

quality. He developed 14 points to guide companies in quality improvements

Implement Lean to

reduce the waste (non-value added)