SCM 4367 - Process and Quality Management - Exam 1

product family

a group of services or products that have similar demand requirements and common process, labor, and materials requirements

Checklist

a list of task required to complete a complex process

Kaizen

continuous improvement

Waiting, Transportation, and Motion result in creating

defects

Internal Customers

employees, owners, boss

Supermarket Kanban

expansion of card or bin Kanban. -this is when you have many different products or SKU -runs off of random demand

People Systems show what?

how people and teams are utilized

Improvement Tools show what?

how processes are improved

Process Flow Tools show what?

how work flows through the organization

Lean Misconception

identification of lean by a set of tools commonly used in lean implementations (such as JIT, kanban, 5S)

Theory of Constraints Improvement Process: Step 1: Identify Constraint

identify the slowest process within a cell

Benefits of Lean - 6

increased customer satisfaction: 30% - 80% (& increased sales)

Process Inputs

information (data), materials (manufacturing), people (service)

Theory of Constraints (TOC)

informs us where to improve (area that needs to be improved), if we can improve the weakest part of a process then we can see the most impact.

Worker Cycle Time

manual work time to complete one unit of production

What is the format of a daily huddle or stand-up?

many formats

When you experience Inventory & Waiting, you also create

motion

7 Wastes: Transportation

moving MATERIALS from one place to another without transforming them. 2. Because we store excess materials in locations (warehouses) where they are not needed or used, we must transport them.

When you experience Defects, you create

overprocessing

River and Rocks Metaphor, when the water stops moving =

process is stopped

River and Rocks Metaphor, when the water is moving =

process is working

Takt Time

the PACE at which CUSTOMER demands the product or services -uniform rate of progression of products through all stages from raw material to the customer. - The drumbeat cycle of the rate of flow of products. - Understanding Takt Time is fundamental to flow and mapping of repetitive lean operations.

When you experience Inventory & Waiting , you create

transportation

The most commonly used "8th waste

untapped human potential."

End Users

whoever uses the final product and not a customer that is later down the supply chain.

Benefit of One Piece Flow - 4

§Improved scalability: quickly and easily scale production up or down

T/F: If you see waste in a process you should mandate that the waste be removed immediately.

False, just cause you see waste does not mean it can be removed immediately. Many years of removing waste and most processes will still be 80%+ waste.

T/F: Typical Processes are less than 85% waste

False. typical processes are more than 95% waste (often more than 99% waste)

T/F: Lean is a standardized methodology.

False, LEAN is not a STANDARDIZED METHODOLOGY - Because Lean is driven by a philosophical viewpoint, interpretations of Lean can vary from company to company - Each company typically has a unique name for a lean implementation and develops a framework (house) that fits their organizational perspective.

T/F: Company culture is NOT built and perpetuated by the perspective and mindset of senior managers.

False, culture is built from the manager

T/F: The Scientific Method does NOT enable the integration of all three methodologies.

False, it does enable the integration of methodologies because all are based on the scientific method. - Question -Gather Information and Define the System -Formulate Hypothesis -Propose Countermeasure -Implement Countermeasure -Evaluate the Results

T/F: Toyota Production System was NOT renamed Thinking People System.

False, it was renamed the Thinking People System

T/F: Companies DO NOT become lean they pursue lean.

True

T/F: Lean Mindset Managers see Biggest Opportunity for Improvement is through Non-value added areas.

True

T/F: Lean organizations build flexibility into the system, encourage flexibility in their employees, help suppliers improve, and will sometimes often implement a "no layoff" policy.

True

T/F: Process improvement must be customer focused.

True

T/F: The only way to discover and eliminate waste in a real process is to go to the GEMBA.

True

T/F: Typical results of lean can be achieved with EXISTING employees and EXISTING technology

True

T/F: Visual Management encourages desired behaviors,

True

T/F: World Class processes have less than 80% waste

True

Muri & Mura will lead to __________?

Muda

Rule of Kanban - 4

Only active parts are allowed at the workplace and should have specific locations

Prioritization of customer desires

Order Qualifiers, Order Winners, Order Losers

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

Spend Time in the Gemba

- Where the work happens - Where the transformation occurs

5S Straighten Reducing Waste - Waiting Inspection

-Check gauges and setup gauges -Parts that only fit one way

Cellular Layout challenges

-Duplicate Machines -Extensive Cross Training (this is a cost)

Formulate a Question involves

1. Resulting from a defect or process problem 2. Resulting from a new customer requirement 3. Resulting from a changing market need

Long-Term Philosophy of Lean- implications

(includes flexibility) 1. Process optimization 2. Developing Supply Chain Relationships & Perspective on Short Term Profits 3. Identifying Process & Quality Problems 4. Human resource policy (people) & Continuous Improvement

Lean Production Mindset on Human Error

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

Genchi Genbutsu

- Go See For Yourself -Get Your Hands Dirty

Purpose of a Process - 2

- Increase value to a customer

Theory of Constraints Improvement Process: Step 4: Elevate constraint

- Offload constraint tasks to non-constraints - Remove waste from the constraint process - Create additional capacity at the constraint operation

River and Rocks Metaphor, when the process is stopped you should:

- 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

Mass Mindset of Managers will do the following:

-Make employees work longer hours (extra cost) -Make employees work faster (quality decreases) -Hire more employees (cost increases) -Buy technology and automation (capital expenses increase)

Theory of Constraints Characteristics

-Often referred to as "constraint management" because of its focus on identifying process constraints (limiters) -Defines "thinking processes" that encourage consideration of system interactions -Principles are widely used -Strict adoption of principles are not popularly publicized

Seven types of waste (X = material, information, or people)

-Overproduction: transforming more X than is required -Inventory: storing X -Waiting: not actively transforming X -Transportation: moving X from one place to another -Motion: Operators/machines moving while X waits - Defects transforming X incorrectly the first time or damaging X during the process -Over-processing:transforming X multiple times or transforming X using over-capable technology or methods TIM WOOD

5S Straighten Reducing Waste - Waiting

-Reduce batch size -Do tasks in parallel -Eliminate or reduce setup time

Mass Production Mentality or What happens in mass when an employee makes a mistake?

-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

5S Straighten Reducing Waste - Inventory

-Small batch sizes -Small, frequent shipments from suppliers -Make only what is needed

Red Tag (Segregated Area)

-Sort based upon frequency of Use-Only keep quantity needed immediately -Red Tag items that are used infrequently and easy/inexpensive to replace - Items that are not needed, but the process owners want to keep anyway, place in a RED TAG area

Muda

-Uselessness & Wastefulness -Typically identified with the "7 wastes" Muri & Mura will lead to Muda

Visual Management

-Work organization is obvious -Everyone knows what is expected in a process -Even those unfamiliar with a process know when something is wrong or missing or correct or useful -Everyone does work the same way - because it is easier that way -Where visual management is used, waste is eliminated - Where/When visual management is not used, waste is created

What is the purpose of a daily huddle or stand-up?

-to review previous day/shift performance -identify problems and how they are being addressed -highlight successes and improvements -discuss plan and goals for the day

Common misunderstanding & misapplication of implementing lean

1. "If I put a label on everything, I will be lean." 2. "If I put an outline around everything, it will be lean." 3. "If I create a checklist or work instructions, everyone will follow my directions and will be lean

Visual Management has what 8 things?

1. A place for everything and everything in its place 2. Planograms - describing what is inside a closed cabinet 3. Maps-describing product flow 4. Color Coded Bins 5. Min/Max Inventory Levels 6. Fill Lines on Containers 7. Fit marks on bolts 8. Standard Work

Check sheets (or Count Sheets)

1. A simple, organized way of tracking the frequency of particular events over time. 2. Provides numerical measurement of observed data.

Kanban (signal)

1. Batch or Bin Kanban -Empty container signals production 2. Reorder Point or Card Kanban -Card signals production when a predetermined reorder point is reached 3. River & Rocks Metaphor in Action - How many parts to put in each container? - How many containers to use

Leans 3 Ideals

1. Continuous Improvement (leads to LEAN mindset) 2. Systems Viewpoint (changing system to better serve customers) 3. Continuous Learning (making errors & identifying problems)

Sort (seperate/scrap)

1. Decide what to keep, what to discard 2. when in doubt, throw it out 3. Categorize EverythingInventory,Equipment, Supplies,Tools, Workbenches, Information Reference Materials, Personal Items 4. Keep items used in VA/NVA analysis-Keep items used in 80% of variations in VA/NVA analysis-80/20 rule-Keep expensive tools/equipment that is difficult to replace

Standard Work

1. Each task is performed in a very specific manner by each employee 2. It is the best way known NOW to perform a task 3. If you find a better, faster way of doing a task, you change the standard work.

STARTING A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (B)(5S)- Closely watch the process (or video of the process) to create a VA/NVA Analysis (Several Pages)

1. Easiest to keep track in Excel 2. Note the specific activities (and associated time) for VA [VERY Specific] 3. Note the general activities (and associated time & transportation) for NVA [should be generalized - categories of waste]

work cell: benefits 3

1. Eliminates inventory between machines and reduces waste

Kanban Benefits

1. Enables Pull: responding directly to customer demand 2. Limits and maintains inventory: WIP stays constant- 3. Schedules production without technology or expensive overhead - Ensures the process runs only as fast as the bottleneck (slowest process step) - Limits Overproduction 4. Signals production exactly when needed - Work begins as soon as a need emerges - This is Just-In-Time 5. Signals when something is wrong

Valuable practices for managers

1. Establishes credibility, experience, and trust 2. Provides first-hand knowledge 3. Reduces misunderstandings 4. Allows workers to have input

Starting A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (A)- Selecting a process

1. First time practicing lean? Pick a REALLY messed-up process with LOTS of obvious waste. 2. Pick a process where you KNOW you can make progress and the process workers are open to collaboration and change

Mass vs Lean Production (Toyota)- Labor Specialization

1. Ford- High Labor Specialization 2. Lean Production(Toyota)- Mid Labor Specialization

How to correctly apply standardization

1. How can I arrange the work so that someone new would know exactly what to do? 2. How can I arrange the work so that there is no confusion or misunderstanding?" 3. How can I arrange the work so that it is impossible forget how to do the work or how to use the work area? 4. How can I arrange the work so that errors will not happen or so that it is easier to do the work correctly than to make an error?"

Theory of Constraints Improvement Process involves 5 steps:

1. Identify constraint 2. Exploit constraint 3. Subordinate all other resources to the constraint 4. Elevate constraint 5. Return to step 1

The characteristics of a process

1. Involves a collection of activities 2. Transforms physical resources and information into enhanced goods, services, or information 3. The structure and capacity of a process determines the resources required to accomplish the transformation 4. Outputs of a process can range from transportation, design, creation, and information 5. Processes are linked to other processes both internal and external to the organization. Process chains define the complex processes used in organizations. 6. In order to alter the value delivered to a customer, you must alter the process(es) used to create that value

Starting A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (A)(5S)- Spend LOTS of time in the Gemba (YOU experience doing the process)

1. Make notes of Waste: Inventory, Transportation, Motion, Defects, Rework, etc. 2. Make notes of Walking, Difficulties, Struggles, Complexity, Confusion

Starting A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (A) (5S)- Get support from management and the process workers

1. Management permission to make changes to the process 2. Recruit process workers to be a part of your improvement team 3. Teach the principles of Waste to your improvement team

Cellular Layout Advantages

1. Minimal transportation within cells. Minimal transportation for delivery of raw materials and finished goods. 2. Allows one-piece-flow or small batches (low WIP inventory)-Each cell is measured as a team which results in cooperation and maximum communication within the cell 3. Small batches, minimal handling, low inventory, and maximum cooperation results in high quality and low scrap 4. Small batches, minimal transportation and high quality results in short throughput times 5. Because of short lead times, production can be initiated within a cell with a predictable lead-time resulting in high on-time delivery. 6. Because of low inventory and high quality, production can be scheduled for exactly what the customer needs. 7. Direct and obvious production flow makes management and scheduling simple, requiring fewer managers (overhead) and eliminates the need for optimization calculations Cellular Layout may require

Historical roots and fundamental characteristics of Six Sigma

1. Motorola developed Six Sigma and adapted heavily be General Electric, Bell Telephone used statistical methods 2. Utilizes a standardized improvement process: DMAIC - Define - Measure - Analyze - Improve - Control

Sort into Categories

1. Needed for this process [will be placed in locations to facilitate the process] 2. Needed for support processes [will be placed wherever there is leftover space] 3. Not Needed [will throw/give away] 4. Not Needed, but want to keep anyway [will stay in an inconvenient RED TAG location until a later date]

The Importance of Numerical Measurement

1. Perceptions are Subjective -Everyone has a different perspective on the source and magnitude of problems 2. Measurement documents the problem 3. Measurement is used to diagnose the problem 4. Measurement documents the solution 5. Measurement convinces others that the change was helpful

5S STRAIGHTEN IDEAS FOR ELIMINATING OR REDUCING NON-VALUE ADDED TASKS- Transportation

1. Point of use storage 2. Reduce inventory 3. Eliminate the need to transport

Traditional Companies have what 5 things regarding a Mass Production Mindset

1. Policies 2. Management Mandates 3. Employee/Job Manuals 4. Written Work Instructions 5. Warning Signs/Labels

THE HEART OF LEAN: RECOGNIZING & ELIMINATING MUDA

1. Processes are focused on meeting customer needs - Internal & External Customers 2. Value Added (VA) Activities directly transform inputs (people, materials, or information) into outputs 3. Waste: activities that do not deliver value to customers -Non-necessary activities (NVA) - Necessary but non value added activities (NNVA)

Benefits of Standard Work

1. Processing Time variation is decreased 2. Quality variation and results variation is decreased 3. Defects, quality, and process problems are easier to detect 4. Finding the root cause of the problem is easier (because the method of production is consistent)

Push Production (Mass Mindset)

1. Produce to Forecast 2. All machines work all the time 3. Increasing Inventory 4. Expediting "rush jobs" becomes common 5. Complex scheduling algorithms

STARTING A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (C) (5S)- Set initial goals for your process improvements:

1. Reduce the Total Time for the process by AT LEAST 50% 2. Reduce the Total Distance Walked by at least 85% 3. Make it easy to remember by making the goals "round" numbers: 4. Instead of 12 minutes 33.5 seconds ... Set a goal of less than 10 minutes 5. Instead of 17.53 steps ... Set a goal of less than 15 steps 6. DON'T guess at what will reduce NVA time ... EXPERIMENT! 7. Run mini-experiments to test which configurations work best

Disadvantages of Functional Layout

1. Requires excessive transportation (forklifts, confusion) 2. Requires producing in large batches to minimize transportation 3. Each department is measured independently and tries to achieve the highest efficiency, resulting in competition between departments and lack of communication between departments 4. Large batches, transportation, storage, and communication problems result in quality problems, scrap, and rework 5. Large batches, transportation, & quality problems in production results in long throughput times 6. Because of long lead times, production must be scheduled well ahead of delivery dates. 7. Because of quality loss and large batches throughout the process, more product is scheduled to be made than is needed (overproduction) 8. Because of all the above problems and the fact that the various overlapping processes are difficult to visualize, companies use complex scheduling software and algorithms to try to optimize the production flow. 9. Each machine within each department must be scheduled independently which makes management difficult and encourages bureaucratic levels of management (supervisors, department managers, production managers)

Shine (scrub, clean)

1. Reveal where dirt and defects are originating 2. Clean Everything: -Equipment maintenance becomes obvious -Equipment lasts longer 3. Paint:-Creates bright work environment (highlights when a problem occurs) -Encourages pride in work area -Create countermeasures at the sources 4. DO NOT put things back where you found them. Put items into the process where they minimize NVA.

starting 5S

1. Select a Process 2. Get support from management and the process workers 3. . Spend LOTS of time in the Gemba Make notes of Waste: Inventory, Transportation, Motion, Defects, Rework, etc 4. Take DETAILED Pictures & Video of Everything 5. Closely watch the process (or video of the process) to create a VA/NVA Analysis (Several Pages) 6. Summarize the VA/NVA Analysis-Set initial goals for your Process Improvements-Begin EXPERIMENTING with possible changes

Principles for implementing each of the 5-S steps

1. Sort (Seiri, Separate, Scrap) 2. Straighten (Seiton, Set in Order) 3. Shine (Seiso, Scrub, Clean) 4. Standardize (Seiketso, Neatness) 5. Sustain (Sitsuke, Systemize, Discipline)

How do manages beliefs deeply affect an orgs culture?

1. Starts with Management Beliefs (mindset) 2. Then, that influences Management Behaviors 3. Which create Organizational Policies (formal & informal) 4. Then, that develops the Organizational Culture 5. Finally, the Organizational Culture determines organizational performance

Kanban is Inventory

1. TRY TO GET RID OF ALL KANBANS! 2. When possible, use one-piece flow cells -Group needed machinery or people to produce a product family -Structure process so one piece is carried from machine to machine until complete 3. If you must use Kanban, continuously strive to reduce the size of the Kanban

Organism Viewpoint Example (cougar and rabbit)

1. The cougar = an organization 2. The parts of the cougar = the employees 3. The habitat = the market environment 4. Other predator animals = competitors 5. Smaller animals = suppliers 6. The cougar's actions = the organization's processes

STARTING A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (B)(5S)- Summarize the VA/NVA Analysis

1. Total Time for the entire process (total process time: beginning to end) 2. Total Time for the VA steps 3. Percent VA (VA time/Total Time) 4. Total Walking Distance (in feet or steps)

examples of poka yokes

1. USB C or Lighting Port 2. Cattle Guard/Crossing Metal bar bridge makes cow fall and no need for gate door 3. Gas Cap - leash or new cars with no gas cap 4. Sink - Drain off to the side, drain grid, and hole from overflowing water 5. Sidewalk gates make you face oncoming traffic

Straighten (Seiton)

1. Use a VA/NVA analysis to guide placement 2. Placement Criteria - What do I need for my primary process? - Where do I need it? - In what order do I need to use it? - How many do I need? 3. Ergonomics - minimize movement 4. Visual Management (During Standardize Step) 5. DO NOT put things back where you found them. Put items into the process where they minimize NVA

When/Where to use Kanban

1. When it is not practical to group machines (suppliers) 2. When multiple product families utilize one machine 3. As a buffer in front of a bottleneck operation 4. When process quality and reliability are stable

STARTING A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (B)(5S)- Answer the following questions about your process:

1. Who is the customer and what do they want? 2. What is the purpose (outputs) of the process? 3. What is being transformed? ["W, X, Y are being transformed into Z"]

Starting A PROCESS IMPROVEMENT INITIATIVE WITH ANALYSIS (A)(5S)-Take MANY DETAILED Pictures & Video of Everything

1. Zoom-In to show details about what is happening 2. Use a Flash to get details on Pictures 3. Video should be in Landscape View (sideways...like a TV) 4. Video tour of the work area & Video of the process(es) from BEGINNING to END

SUSTAIN - SITSUKE

1. create the discipline to maintain 5S 2. Establish routine 5-S audits 3. Establish a process for removing old items and placing new items in the system 4. Revisit areas for continuous improvement 5. Celebrate the Gains -Compare before and after pictures -Compare before and after measures -Encourage workers to brag about their work area

STANDARDIZE

1. insure everyone performs work the same way 2. Establish standardized processes - completing tasks the same way every time

Pull Production (Lean Mindset)

1. tells you what to do, connection to customer and system 2. Produce to Demand-Machines work only when needed 3. Constant Inventory 4. All jobs are produced quickly 5. Simple scheduling rules

work cell: benefits 2

2. Minimizes walking and transportation distance-

work cell: benefits 4

3. Flexibility: enables workers to be added or removed in response to demand and reduces waste

work cell: benefits 5

4. Minimizes pickups and set-downs and reduces waste

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

External Customers

A customer who is either an end user or an intermediary (e.g., manufacturers, financial institutions, or retailers) buying the firm's finished services or products.

Process (def)

A process is a collection of activities that transforms inputs into outputs that offer value to a customer

(Mass vs Lean Mindset Handout) The following belief is generally considered characteristic of a Lean Production Mindset A. Cost, speed, and quality can be improved simultaneously B. Key business data is useful to managers only C. High educational attainment earns the right to avoid manual labor D. Running a business is a complex task E. All business processes can be optimized

A. Cost, speed, and quality can be improved simultaneously

(From Class 04 Identifying 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 A. Motion B. Waiting C. Defects D. Transportation E. Overprocessing

A. Motion

(Six Sigma Vs Lean Article) Six Sigma was developed at the company A. Motorola B. Toyota C. Hertz D. Sigma Inc

A. Motorola

From Class 05 VA/NVA Analysis] Watering a potted plant is an example of a transformation process (transforming a plant in dry soil into a plant in moist soil). Which of the following steps would be categorized as Value Added (VA)? Step 1: Touch the soil to determine how much water is needed Step 2: Find a container for holding water Step 3: Fill the container with water Step 4: Pour the water slowly into the soil of the plant Step 5: Dry the container Step 6: Put the container away Step 7: Wipe up any drips or water that has leaked out of the bottom of the container A. Step 4 only B. Step 3 Only C. Step 3 and 4 D. Step 1,2,3,4,5,6,7, E. Step 1 and 4 only because you could just carry the plant to the sink F. Step 2,3,4,5,6 G. Steps 3,4, and 5

A. Step 4: Pour the water slowly into the soil of the plant

(From Class 04 Identifying Waste) 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. A. Transportation B. Waiting C. Motion D. Inventory E. Defects

A. Transportation

The following are all key points for overcoming resistance to change EXCEPT: A. Use a variety of charismatic leaders to help implement the change process. B. Making people a part of the change by involving them in the change process. C. Create opportunities for people to provide feedback about the change process. D. Communicate regularly about the need to change and the change process.

A. Use a variety of charismatic leaders to help implement the change process.

Recognize when Poka Yoke should be used

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

Rule of Kanban - 5

Authorization to produce is by card or signal only

The following are all a part of Ohno's Method EXCEPT: A. Mentally force yourself into tight spots. B. Create a well-defined system of reinforcements and consequences. C. Derive personal pleasure from accomplishing Kaizen. D. Generate ideas; find and implement simple, ingenious, low cost solutions.

B. Create a well-defined system of reinforcements and consequences.

(Mass vs Lean Mindset Handout) The following belief is generally considered a characteristic of a Lean Production Mindset A. Significant improvements are complex and take a long time to implement B. Implementing Lean means that problems will become visible C. Culture can be changed by sending employees to a training class D. Implementing lean means that problems will disappear E. Lean companies are successful because they utilize lean tools.

B. Implementing Lean means that problems will become visible

(From Class 04 Identifying Waste) The Physical Material/ parts/ supplies of the Virtual Information that needs to be stored BECAUSE they are not currently needed are referred to as: A. Overproduction B. Inventory C. Transportation D. Motion E. Overprocessing

B. Inventory

(Mass vs Lean Mindset Handout) The following belief is generally considered characteristic of a Lean Production Mindset A. Inventory is an asset B. Inventory is a source of problems C. The mission and vision of the organization is relevant only to top management D. Improvement efforts should be conducted by professionals E. Process Problems need to be avoided

B. Inventory is a source of problems

The process of assigning tasks workload so every operator is doing the same amount of work to meet the customer requirement is called A. Work Focus B. Line Balancing C. Customer Focus D. Task Optimization

B. Line Balancing

Historical Perspective Handout] Craft production (the predominant operations method in the 1890s) typically incorporated: A. High labor specialization, low product variety, and slow process speeds B. Low labor specialization, very high product variety, and slow process speeds C. Operations methods were not utilized in the 1890s D. Low labor specialization, low product variety, and fast process speeds E. High labor specialization, very high product variety, and fast process speeds

B. Low labor specialization, very high product variety, and slow process speeds

(From Class 04 Identifying Waste) The ACT of producing or buying more than you need right now is an example of performing this waste A. Overprocessing B. Overproduction C. Inventory D. Waiting E. Transportation

B. Overproduction

(Mass vs Lean Mindset Handout) The following belief is generally considered characteristic of a Lean Production Mindset A. Managers are the smartest people in the company B. Problems are caused by ineffective processes C. It is difficult to find skilled talented people D. Employees understand what management tells them E. Efficiencies of scale will result in higher profits

B. Problems are caused by ineffective processes

Benefit of One Piece Flow - 2

Built In Quality" - Defects are detected more quickly (reduces rework)

Benefit of One Piece Flow - 3

Built In Quality" - Defects are detected more quickly (reduces rework)

(Lean Thinking in the Office Article) Organizing and managing a service organization by "value streams" is also referred to as A. Manufacturing Process Management B. Optimal Process Management C. End to End Process Management D. Functional Process Management

C. End to End Process Management

Card Kanban

Card signals not an empty box, you put the card in the empty box where you want the replenishment to happen.

Foundation

Common elements throughout the organization Philosophy, Visual Management, Standardized Processes

Columns/Walls/Pillars

Continuous Improvement Tools & Respect for People:

Theory of Constraints Improvement Process: Step 3: Subordinate all other resources to the constraint

Create mechanisms to limit the production speed of the non-constraint processes

Two Primary "Pillars" of Lean: Continuous Improvement involves:

Creating an atmosphere of continuous learning and an environment that not only accepts, but actually embraces change. -tools, techniques, and systems

Mass Production Mindset vs Lean Production Mindeset (see handout for more details)

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

(From class 08 lecture) The following are all benefits of Kanban systems except A. Limits and maintains inventory levels B. Enables pull C. Signals production exactly when production is needed D. Eliminates the need to transport inventory E. Schedules production without using technology

D. Eliminates the need to transport inventory

(From class 08 lecture) One situation in which it is appropriate to create a Kanban system is A. Whenever you are trying to implement 5-S B. Whenever efficiency needs to be increased C. Whenever you reduce the setup time D. When it is not practical to group machines or workstations E. When machine quality is unrelaiable

D. When it is not practical to group machines or workstations

Purpose of a Process - 7

Decreased cost

Benefit of One Piece Flow - 7

Decreases impact of production variations

DMAIC Process

Define, Measure, Analyze, Improve, Control

Rule of Kanban - 3

Demands are placed on upstream operations by means of cards or other signals

Step 2 of TWI Job Instruction

Demonstrate the work -point out each important step -point out key points for each step -explain the reasoning for each step

Formulate an Hypothesis involves:

Describe how the results are occurring based on the data

Gather Information and Define the System

Describe the system using process data

7 Wastes- Over-processing

Doing an activity multiple times when it should be done only once. Ex: repacking, repairing, or reconfiguring a product

Rule of Kanban - 1

Downstream operations come to withdraw parts from upstream operations

(From Class 04 Identifying waste) When inputs are not fully or correctly transformed into outputs or when inventory becomes unusable you encounter this waste A. Inventory B. Overprocessing C. Overproduction D. Waiting E. Defects

E. Defects

(From Class 04 Identifying Waste) When you have performed some task in the past but it either was not done correctly the first time or it becomes undone at some time in the future such that you have to do the same task on the same materials AGAIN, you experience this waste. A. Defects B. Inventory C. Overproduction D. Motion E. Overprocessing

E. Overprocessing

(From class 05 VA/NVA Analysis) 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. Step 1: Lay newspaper on the ground to prevent overspray Step 2: Place 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 A. Step 4 & 5 B. Step 4 only C. Step 2 & 6 D. Step 4 & 6 E. Step 6 only F. All steps EXCEPT Step 7 G. Step 1,2,3,4,5,6,7

E. Step 6 only

Rule of Kanban - 6

Each Kanban card circulates between a particular pair of workstations only

Roof

Enterprise Goals and Deployment Strategy

Purpose of Poka Yoke

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

Step 4 of TWI Job Instruction

Follow up over time

Step 3 of TWI Job Instruction

Have the worker try out the work -worker completes the task -worker completes task and explains important steps -worker complete the task and explains key points -worker completes the task and explains the reasoning for each step

Benefit of One Piece Flow - 8

Highlights problems quickly - makes problems obvious

7 Wastes: Waiting

Idle Time when materials are not being actively transformed and nothing is being done to create customer value.

Evaluate the Results involves:

If the results are different than your prediction, restructure your hypothesis

Benefits of Lean - 5

Improved quality: 30% - 80%

Six Sigma

Improves individual processes at a micro-level -utilizes a standardized improvement process: DMAIC -utilizes statistical analysis and data collection

Lean definition

Improves the organization at a macro-level -easily utilized by most people -establishes a foundational culture of continuous improvement -the process of improving a system continually in search of the "ideal way"

Purpose of a Process - 6

Increased flexibility (product or service variation)

Purpose of a Process - 1

Increased performance (product or service functionality)

Purpose of a Process - 3

Increased performance (product or service functionality)

Purpose of a Process - 5

Increased quality (consistency, durability, reliability, aesthetics)

Purpose of a Process - 4

Increased speed (decreased lead time)

How do characteristics of a typical work cell - Increase quality?

Increases Quality - Employees are responsible for the entire process - Employees become their own customer - Errors are discovered immediately Increases mental engagement

work cell: benefits 1

Increases Quality and reduces waste: 1. Employees are responsible for the entire process 2. Employees become their own customer 3. Errors are discovered immediately 4. Increases mental engagement

Process Flow

Inputs => Transformation Activities => Outputs

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

Why is Overproduction considered the worst part of waste

It often causes ALL of the other types of waste. - When you experience overproduction, you create inventory.

Philosophy of Lean

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

The Scientific Method Connects these 3 Methodologies

Lean, 6 Sigma, TOC

What is the abbreviation for Lean

Lean: aka Toyota Production System (TPS)

Rule of Kanban - 2

Make only the exact quantity indicated on the Kanban

A purpose for poke yoke - 3

Makes it easier to discover errors

A purpose for poke yoke - 5

Makes it harder to do what cannot be reverse

A purpose for poke yoke - 4

Makes it possible to reverse errors

A purpose for poke yoke - 1

Makes right actions easy and obvious

A purpose for poke yoke - 2

Makes wrong actions difficult

Theory of Constraints Improvement Process: Step 2: Exploit constraint

Manage the productivity of the cell by managing the productivity of the constraint

Mass vs Lean Production (Toyota)- Tools Used

Mass - Expensive, Specialized, Large Lean Production(Toyota)- Flexible, Adaptable, Small

Mass vs Lean Production (Toyota)- Process Speed

Mass - Fast- Determined by Manager Lean Production(Toyota)- Variable- Determined by Customer

Mass vs Lean Production (Toyota)- Product Volume

Mass - High Volume Lean Production(Toyota)- Approaches one

Mass vs Lean Production (Toyota)- Quality/ Product Reliability

Mass - Highly Variable Lean Production(Toyota)- Consistent

Mass vs Lean Production (Toyota)- Labor Knowledge

Mass - Low Lean Production(Toyota)- Relatively High

Mass vs Lean Production (Toyota)- Production Lead Time

Mass - Relatively Long Lean Production(Toyota)- Short

Mass vs Lean Production (Toyota)- Space Required

Mass - Very Large Lean Production(Toyota)- Relatively Small

Mass vs Lean Production (Toyota)- Product Variety

Mass -Low Lean Production(Toyota)- High

Mass vs Lean Production (Toyota)- Improvement

Mass- Periodic designed by management Lean Production(Toyota)- Continuous designed by the worker

7 Wastes: Defects

Materials and Products that cannot be used Defects can be caused by many things, including -Obsolescence and Spoilage -Damage and Deterioration -Mishandling and Mistakes Results in costs to identify, remove, and correct defects

Lean: Organism Viewpoint

Organizations are like Living Organisms -The organization grows and changes -The market environment changes -Customers -Competitors -Employees grow and change

Functional Layout (ex)

Organized in departments (organized by team that IS NOT cross functional) DISADVANTAGES - Excess transportation (forklifts, confusion) - Producing in large batches to minimize transportation -Large batches result in quality problems - Long lead times result in scheduling well ahead of time

Process Outputs

Outputs of a process can range from transportation, design, creation, and information

Muri

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

Most of these wastes happen because we engage in what?

Overproduction

7 Wastes: Motion

PEOPLE AND MATERIALS moving without transformation...without creating value 2. Motion creates wasted time and occurs when: -We are looking for items that we cannot find -We are sorting through items -Have to move items that are in the way of other items

Characteristic of a Poka Yoke - 2

Part of the process and does not require additional action by the user

Propose a Countermeasure involves:

Predict the result of your proposed process improvement-implement the countermeasure

Step 1 of TWI Job Instruction

Prepare the worker -explain the purpose of the process -create connection between new work and old work

Poka Yoke stands for what?

Preventing inadvertent mistakes

7 Wastes: Overproduction

Producing or buying more than the customer Needs before the customer Needs it -Results in reduction of cash flow due to spending money on things before it is needed.

Benefit of One Piece Flow - 6

Productivity increased

Characteristic of a Poka Yoke - 3

Provide immediate feedback and are usually placed where the mistakes occur

Rule of Kanban - 7

Quality at the source is a requirement, only good items are sent downstream.

Benefits of Lean - 3

Reduced delivery lead time: 50% - 95%

Benefits of Lean - 1

Reduced floor space required: 50% - 70%

Benefits of Lean - 2

Reduced inventory levels: 70% - 97%

Benefits of Lean - 4

Reduced operations costs: 40% - 60% (& increased profits)

Two Primary "Pillars" of Lean: Respect for People refers to:

Refers to everyone inside and outside of the organization who has contact with the PROCESS. Respect anyone who changes the process for better.

Step 3 of 5S

Shine (Scrub, Clean) Reveal where dirt and defects are originating

Kanban means what?

Signal, a signal that work needs to be done. How we get the message from the customer to the

Step 1 of 5S

Sort Separate, Scrap) - Decide what to keep, what to discard

Step 4 of 5S

Standardize (Neatness) - Insure everyone performs work the same way - Visual Management occurs here

What are the two most important and yet most difficult steps within 5S?

Standardize and Sustain

Steps in creating a Poka Yoke- (importance of preparing for human error)

Steps in creating a Poka Yoke Review each stage of the process to determine where and when failure occurs Find the root cause of the failure Creatively set up a Poka Yoke - Prevent: Make it impossible to make a mistake - Control: Shut down process when mistake occurs -Design: Reconfigure parts so that any action produces an acceptable result

7 Wastes: Inventory

Storing extra material, parts, supplies, information that are not currently needed

Step 2 of 5S

Straighten (Set in Order) - Arrange in a way that minimizes muda

Step 5 of 5S

Sustain (Systemize, Discipline) - Create the discipline to maintain 5-S

What is the Acronym for the 7 wastes?

TIM WOOD Transporation Inventory Motion Waiting Over-processing Overproduction Defects

Takt Time Formula

Takt time = (Daily available work time per period) / (Daily Required quantity or daily demand per period)

Batch Size

The amount of production in units of product that is produced after a setup.

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) -organized by product family -arranged parts by process -training cost in Lean - Empty Space may be used for alternate purposes

Rule of Kanban - 8

The number of kanbans should be reduced as problems decrease.

Two-Bin (Multi-Bin) Kanban

The signal is an empty box.

Machine Cycle Time

The time it takes for a machine to produce one unit, including the time it takes to load and unload

Order Winners

These are the traits that, if provided, will differentiate your product or service from competition

Order Losers

These are traits that, if present, will cause the customer to decline a product or service.

Order Qualifiers

These are traits the customer expects. The customer will not pay for a product or service unless these traits are present.

Characteristic of a Poka Yoke - 4

They are NOT work instructions, signs, or warning labels

Characteristics of Poka Yoke - 1

They are simple and cheap and are typically less than $100.Part of the process

Characteristic of a Poka Yoke - 5

They eliminate a root cause and are applied to the cause and not the symptom

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

Benefit of One Piece Flow - 1

Transportation and Storage will be simply, safer, and cost less.

Characteristics of a typical work cell- U turn layout

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

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

FIFO Kanban

Used internally within own production processes -keeping a buffer inventory

River and Rocks Metaphor, water = ? and rocks = ?

Water = Inventory Rocks = Problems

Why customer focus is important for process improvement?

What is it that the customer values and how can you satisfy that value. In order to alter the value delivered to a customer, you must alter the process(es) used to create that value.

Where are checklist best used?

Where a worker's brain is needed to perform more complex or critical functions

Benefit of One Piece Flow - 5

Work In Progress Inventory reduced, saving money & simplifying schedules