Lean Systems and Six-Sigma Quality

5 Step Six Sigma Plan

1) Define-quality problem of process 2) Measure-current performance 3) Analyze-identify root cause 4) Improve-eliminate root cause 5) Control-ensure improvements

Six Tenants of Lean

1) Elimination of waste ("non-value adding actv.) 2) A broad view (overall goals, overall SC) 3) Simplicity 4) Continuous improvement 5) Visibility (problems need to be visible; no clutter) 6) Flexibility (quick adapt, rapid change in product volumes, wide variety of products, general purpose equip.)

Developing Lean Six Sigma SC

1) Jointly Define Values 2) Conduct SC Capability Analysis 3) Develop key financial and operational metrics 4) Identify and implement system improvements (value stream mapping)

Three Elements of Lean

1) Lean Production 2) Total quality management (TQM) 3) Respect for people

Costs of Quality

1) Prevention cost (cost to prevent) [Control cost] 2) Appraisal cost (cost in uncovering defects) [Control cost] 3) Internal failure cost (cost of defects b4 customer) [Failure cost] 4) External failure cost (cost of failure at customer) [Failure cost]

The Pull Production System

1) keeps minimal levels of inventory (inv. is cost and creates visibility problems) 2) Use of visual signals (communication btwn work centers and SC partners) 3) Small lot production (produce small amounts; must reduce set-up times) 4) Uniform plant loading (small adjustments, frozen production plan)

Respect of People

People = most important resource

Role of Workers

actively engaged in production process, monitoring quality and correcting quality problems

Jidoka

authority of every worker to stop production and fix problems

P-Chart

control chart for attributes, characteristics are counted

Role of Management

create cultural change, cooperation, mutual trust, and empower workers

Descriptive statistics

described quality characteristics; mean, standard deve, range, measure of dist. data

Quality Management

determines and implements quality policy (organization wide quality focus)

Lean Production

efficiently coordinated system makes producing exact product desire and deliver them in the right quantities to where they're needed (Just-in-time)[ JIT ]...known as pull production system

Process capability

evaluation of a process as to its ability to meet certain quality standards (i.e. meeting product specifications)

Product Quality

fitness for consumption in meeting customer needs and desires

Lean Six Sigma

focus on quality and use of Six Sigma

Process control chart

graph shows whether sample of data falls within the common or normal range of variation

Quality Circles

groups of employees that come together to solve problems

Total Quality Management (TQM)

identifies customer quality standards and serves to eliminate waste such as defects, scrap, and rework. Aims to improve quality at every level and beg. to end w/ continuous improvement

Results of Lean Philosophy

large cost reductions, improved quality, increased customer service

Role of Suppliers

long term relationships, shift to single source suppliers, information sharing, improve process quality

Impact of Lean Six Sigma: Suppliers

lower costs, lower safety stock, shorter lead times, better able to respond to customer change in demand

Lean

management approach for creating value for the end customer through most efficient utilization of resources. Eliminating waste

Design Quality

match between design features and customer requirements

Conformance Quality

meeting design specifications

Kaizen and Kaizen Blitz

never ending improvement; teams to plan and deliver improvements in 2-3 day marathon sessions

Impact of Lean Six Sigma: Logistics

optimization models, warehouse design, optimized movement of materials

Quality Assurance

planned systematic activities needed to provide assurance that a product/service will satisfy requirements for quality

Six Sigma

quality management process that uses rigorous measurement to reduce process VARIATION and elimination defects. Defines quality as no more than 3.4 parts per million defective

Acceptance sampling

randomly sampling a batch of goods to see if entire batch is acceptable

Impact of Lean Six Sigma: Operations

setting uniform workflow to pull production, changes in facility layout, calculation of cycle time

Statistical Quality Control (SQC)

use of statistical tools used to measure product and process quality

Statistical process control (SPC)

verify production process is function as specified, sampling + seeing if products fall w/in acceptable range