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)