SCM q3 Ch 8

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Lean Layouts

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

SPC

as part of TQM efforts

Small batch scheduling

drives down costs by Reducing purchased, WIP, & finished goods inventories

Six Sigma

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

Kanban

signal card & part of JIT (pizza restaurant example)

Producer's risk

A buyer rejects a shipment of good quality units because the sample quality level did not meet standards.

Consumer's risk

Buyer accepts a shipment of poor-quality units because the sample falsely provides a positive answer.

Continuous Improvement (Kaizen)

Continuous approach to reduce process, delivery, & quality problems, such as machine breakdown problems, setup problems, & internal quality problems, This is a philosophy, think of the tortoise beats the hare over the long term.

DMAIC Improvement Cycle

Define, Measure, Analyze, Improve, Control

Lean Six Sigma

Describes the melding of lean production and Six Sigma quality practices, Input materials, WIP, and finished goods, Continuous Improvement (Kaizen)

Inventory & Setup Time Reduction

Excess inventory is waste, Reducing inventory levels causes production problems, Once problems are detected, they can be solved, The end result is a smoother running organization with less inventory investment.

Waste (Muda) Reduction

Firms reduce costs & add value by eliminating waste from the process.

Lean Supply Chain

JIT purchasing includes delivering smaller quantities, at right time, delivered to the right location, in the right quantities.

Workforce Commitment

Managers must support Lean Production by providing subordinates with the skills, tools, time, & other necessary resources to identify problems & implement solutions.

Key concepts incorporated in TPS

Muda, Kanban, SPC, Poka-Yoke

Six Sigma Quality

Near quality perfection (the statistical likelihood of non-defects 99.99966% of the time),

Six Sigma

Pioneered by Motorola in 1987, A statistics-based decision-making framework designed to make significant quality improvements in value-adding processes

Flow Diagrams

Process Maps, Annotated boxes representing process to show the process flow of products or customers.

Manufacturing cells

Process similar parts or components saving duplication of equipment & labor, often U-shaped

The Elements of Just-in-Time

Waste Reduction, Lean Supply Chain Relationships, Lean Layouts, Inventory & Setup Time Reduction, Small Batch Scheduling, Continuous Improvement, Workforce Empowerment

Acceptance Sampling

When shipments are received from suppliers, samples are taken & measured against the quality acceptance standard. The entire shipment is assumed to have the same quality as the sample.

Six Sigma Training Levels

Yellow, Green, Black, Master Black

Lean Production

an operating philosophy of waste reduction & value enhancement.

Small production batches

are accomplished with the use of kanbans. (who's been to a Brazilian restaurant?)

Waste (Muda)

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

Poka-Yoke

error or mistake-proofing (Dryer plug vs table lamp plug)

Pareto Charts

for presenting data in an organized fashion, indicating process problems from most to least severe.

Kanbans

generate demand for parts at all stages of production creating a "pull" system.

Lean Production

operating philosophy of waste reduction & value enhancement & was originally created as Toyota Production System (TPS)

Check Sheets

to determine frequencies for specific problems.

Cause-and-Effect Diagrams (Fishbone or Ishikawa diagrams)

used to aid in brainstorming & isolating the causes of a problem.

Statistical Process Control

visually monitor process performance, compare the performance to desired levels or standards take corrective action

Muda

waste in all aspects of production


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