philosophy, structure, voice of the customer, and lean · philosophy, structure, voice of the...

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Chapter 3-3

Philosophy, Structure, Voice of the Customer, and Lean

3-3-1 © 2015 Institute of Industrial Engineers

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Six Sigma Defined

Six Sigma (s) is a customer focused, well defined problem solving methodology supported by a handful of powerful analytical tools.

Continuous improvement is driven by the execution of carefully selected projects. The goal of the Six Sigma approach is to take small steps forward and no steps backward.


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From the GE Web Site

Customers are the center of GE's universe: they define

quality. They expect performance, reliability, competitive

prices, on-time delivery, service, clear and correct

transaction processing and more. In every attribute that

influences customer perception, we know that just being

good is not enough. Delighting our customers is a

necessity. Because if we don't do it, someone else will!


http://www.ge.com/en/

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Voice of the Customer

The "voice of the customer" is a process used to capture the requirements/feedback from the customer (internal or external) to provide the customers with the best in class service/product quality. This process is all about being proactive and constantly innovative to capture the changing requirements of the customers with time. The "voice of the customer" is the term used to describe the stated and unstated needs or requirements of the customer. The voice of the customer can be captured in a variety of ways: Direct discussion or interviews, surveys, focus groups, customer specifications, observation, warranty data, field reports, complaint logs, etc.


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Voice-of-the-customer is

a crossfunctional, systems approach to gathering data on customer needs and perceptions of performance, that translates this data into useful information, highlighting opportunities to respond and foster extraordinary customer experience.


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Definition of Customer

Gather the Voice of the Customer

• Anyone whose success or satisfaction depends on one’s actions

• Analyze Customer Needs

• Prioritize customer needs.


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Information on QFD….

• Developed in Japan in the mid 1970s

• Introduced in USA in the late 1980s

• Toyota was able to reduce 60% of cost to bring a new car model to market

• Toyota decreased 1/3 of its development time

• Used in cross functional teams

• Companies feel it increased customer satisfaction


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Quality Function Deployment

• Is a structured method (house of quality) that is intended to transmit and translate customer requirements, that is, the

• Voice of the Customer

• through each stage of the product development and production process, that is, through the product realization cycle.

• These requirements are the collection of customer needs, including all satisfiers, exciters/delighters, and dissatisfiers.


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Why….?

Product should be designed to reflect customers’ desires and

tastes.

House of Quality is a kind of a conceptual map that provides the means for inter-functional planning and communications

To understand what customers mean by quality and how to

achieve it from an engineering perspective.

HQ is a tool to focus the product development process


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QFD Target


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Components of House of Quality

Customer

Evaluation

Units

Targets

Th

is P

rod

uct

This Product

Targets

Who

Whats

Who v

s.

Wh

ats

Hows vs

Hows

Hows

Whats vs

Hows

Now

No

w v

s

Wh

at

How Muches Hows vs

How

Muches


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Step 1: Who are the customers?

• To “Listen to the voice of the customer” first need to identify the customer

• In most cases there are more than one customer

– consumer

– regulatory agencies

– manufacturing

– marketing/Sales

Customer

Evaluation

Units

Targets

Th

is P

rod

uct

This Product

Targets

Who

Whats

Who v

s.W

hats

Hows vsHows

Hows

Whats vsHows

Now

Now

vs

What

How MuchesHows vs

HowMuches

Customers drive the development of

the product, not the designer


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Step 2: Determine the customers’ requirements

• Need to determine what is to be designed

• Consumer

– product works as it should

– lasts a long time

– is easy to maintain

– looks attractive

– incorporated latest technology

– has many features

Customer

Evaluation

Units

Targets

Th

is P

rod

uct

This Product

Targets

Who

Whats

Who v

s.W

hats

Hows vsHows

Hows

Whats vsHows

Now

Now

vs

What

How MuchesHows vs

HowMuches

List all the demanded qualities at the same level

of abstraction


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Step 2: Continued

Manufacturing

easy to produce

uses available resources

uses standard components and methods

minimum waste

Marketing/Sales

Meets customer

requirements

Easy to package, store, and transport

is suitable for display


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Kano Model

Excitement

SatisfiersBasic

Per

form

ance

Fullyimplemented

Absent

Customer Satisfaction

-

+

Disgusted

Delighted

Basic Quality: These requirements are not

usually mentioned by customers. These

are mentioned only when they are absent

from the product.

Performance Quality: provides an

increase in satisfaction as

performance improves

Excitement Quality or “wow

requirements”: are often unspoken,

possibly because we are seldom

asked to express our dreams.

Creation of some excitement features

in a design differentiates the product

from competition. 3-3-15

© 2015 Institute of Industrial Engineers

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Kano Model Categorizes Needs

Must Be Needs • The needs are expected by the customer.

• Lack of fulfillment results in customer dissatisfaction while fulfillment will not particularly satisfy the customer.

More is Better • Satisfaction is directly proportional to meeting the needs

of the customer.

Delighters • Customers are not dissatisfied with their absence but

pleased when present.


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Example

It is critical that the Must Be and More is Better

features are present before Delighters become

effective in attaining a leadership position.

Airline Hotel

Must Be Safety Cleanliness

More is Better Cheap Tickets Award Points

Delighter Vanity Kits Cookies


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What Customers Want Garvin’s Eight Dimensions

Performance

Features

Conformance

Aesthetics

Reliability

Durability

Serviceability

Perceived Quality


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Dimensions of Service Quality

Reliability: consistency, error-free dependability

Responsiveness: willingness to

help the customer

Tangibles: environment for

the service presented

Competence: the right skills and

knowledge required

Courtesy: supplier’s behavior

Security: freedom from danger or

risk

Access: ease of making contact


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Types of Customer Requirements

• Functional requirements describe the product’s desired behavior

• Human factors

• Physical requirements

• Reliability

• Life-cycle concerns

• Resource concerns

• Manufacturing requirements


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How to determine the Whats?

• Customer survey (have to formulate the questions very carefully)

• If redesign, observe customers using existing products

• Combine both or one of the approaches with designer knowledge/experience to determine “the customers’ voice”


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Step 3: Determine Relative Importance of the Requirements: Who vs. What

• Need to evaluate the importance of each of the customer’s requirements.

– Generate weighing factor for each requirement by rank ordering or other methods

Customer

Evaluation

Units

Targets

Th

is P

rod

uct

This Product

Targets

Who

Whats

Who v

s.

Whats

Hows vs Hows

Hows

Whats vs

Hows

Now

Now

vs

What

How Muches Hows vs

How

Muches


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Step 4: Identify and Evaluate the Competition: How satisfied is the customer now?

• The goal is to determine how the customer perceives the competition’s ability to meet each of the requirements

– it creates an awareness of what already exists

– it reveals opportunities to improve on what already exists

The design:

1. does not meet the requirement at all

2. meets the requirement slightly

3. meets the requirement somewhat

4. meets the requirement mostly

5. fulfills the requirement completely

Customer

Evaluation

Units

Targets

Th

is P

rod

uct

This Product

Targets

Who

Whats

Who v

s.

Whats

Hows vs Hows

Hows

Whats vs

Hows

Now

Now

vs

What

How Muches Hows vs

How

Muches


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Step 5: Generate Engineering Specifications: How will the customers’ requirements be met?

The goal is to develop a set of engineering specifications from the customers’ requirements.

Restatement of the design problem and customer requirements in terms of parameters that can be measured.

Each customer requirement should have at least one engineering parameter.

Customer

Evaluation

Units

Targets

Th

is P

rod

uct

This Product

Targets

Who

Whats

Who v

s.

Whats

Hows vs Hows

Hows

Whats vs

Hows

Now

Now

vs

What

How Muches Hows vs

How

Muches


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Step 6: Relate Customers’ requirements to Engineering Specifications: Hows measure Whats?

This is the center portion of the house. Each cell represents how an engineering parameter relates to a customers’ requirements.

Customer

Evaluation

Units

Targets

Th

is P

rod

uct

This Product

Targets

Who

Whats

Who v

s.

Whats

Hows vs Hows

Hows

Whats vs

Hows

Now

Now

vs

What

How Muches Hows vs

How

Muches

9 = Strong Relationship 3 = Medium Relationship 1 = Weak Relationship Blank = No Relationship at all


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Step 7: Identify Relationships Between Engineering Requirements: How are the Hows Dependent on

each other?

Engineering specifications maybe dependent on each other.

Customer

Evaluation

Units

Targets

Th

is P

rod

uct

This Product

Targets

Who

Whats

Who v

s.

Whats

Hows vs Hows

Hows

Whats vs

Hows

Now

Now

vs

What

How Muches Hows vs

How

Muches

+9 = Strong Relationship

+3 = Medium Relationship

+1 = Weak Relationship

-1 = Weak Negative Relationship

-3 = Medium Negative Relationship

-9 = Strong Negative Relationship

Blank = No Relationship at all


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Step 8: Set Engineering Targets: How much is good enough?

• Determine target value for each engineering requirement.

– Evaluate competition products to engineering requirements

– Look at set customer targets

– Use the above two information to set targets

Customer

Evaluation

Units

Targets

Th

is P

rod

uct

This Product

Targets

Who

Whats

Who v

s.

Whats

Hows vs Hows

Hows

Whats vs

Hows

Now

Now

vs

What

How Muches Hows vs

How

Muches


6s

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of Quality

Quality Function Deployment’s

House of Quality

Customer

Perceptions

Relationships

between

Customer Needs

and

Design Attributes

Imp

ort

an

ce

Ra

nk

ing

s

Customer

Needs

Design

Attributes

Costs/Feasibility

Engineering Measures

Correlation

Matrix

1 2

3

4

5

6

7

8

Establishes the Flowdown Relates WHAT'S & HOW'S Ranks The Importance


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Design for Manufacturability

is the general engineering art of designing products in such a way that they are easy to manufacture. The basic idea exists in almost all engineering disciplines, but of course the details differ widely depending on the manufacturing technology. This design practice not only focuses on the design aspect of a part but also on the producibility. In simple language it means relative ease to manufacture a product, part or assembly.


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Value Engineering/Analysis

is a systematic method to improve the "value" of goods or products and services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be increased by either improving the function or reducing the cost.


http://en.wikipedia.org/wiki/Cost

http://en.wikipedia.org/wiki/Cost

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Six Sigma Philosophy and Organization

A brief synopsis of the key points of the six sigma philosophy that Green Belts and Black Belts are expected to be knowledgeable of.


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What Distinguishes Six Sigma from the Other Quality Improvement Methods?

a. The use of Greek in its name

b. Better marketing

c. The use of statistics

d. Justifying improvements in the language of management

Does the name Mikel Harry ring a bell?


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Savings

• A cable TV company reduced customer service calls by over 50% resulting in an annual savings into 7 figures.

• A hospital increased captured revenue by over half a million annually and save over $300,000 yearly by reducing no show and cancellation rates for procedures.

• A soft drink company decreased time for Engineering Change Notice from 56 days to 7 days


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More Savings

• A hospital reduced the time required to provide timely information about lab tests and saved over $140,000 annually.

• A drug store chain reduced inventory of perishable pharmaceuticals by $173 million per year.

A telecommunications company saved $5.2 million annually by improving the scheduling system for technician dispatches.


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Six Sigma Structured Approach

• Six Sigma involves a series of steps designed to lead the organization through the gauntlet of process improvement. Major steps include:

– Define

– Measure

– Analyze

– Improve

– Implement

– Control (Standardize and Validate)


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Memory Trip

• Can you remember back to your first science class and the scientific method?

• Are there any similarities between the scientific method and DMAIIC?


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Define

The first step is to define. This includes identifying the problem and setting the scope. It also includes the following:

– Identifying customers and requirements?

– Determining the outputs?

– Determining the inputs?

– Determining what is critical

– Determining what to measure

– Determining what we want to accomplish

• Tools sometimes used – Process Analysis

– Flow Charting

– Check Sheets

– Pareto Analysis

– Cause and Effect

Diagrams

– FMEA (Failure Mode Effects Analysis)


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Measure

The second step is to measure

– Identify and verify critical quality characteristics

– Estimate current capability

– Determine where you are relative to desired objectives

• Process Capability

– Percent Nonconforming

– Capability Indices

• Measurement Systems Analysis

– Gage R&R

– Operational Definitions

• Cost of Quality


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Analyze

• The third step is to analyze. This makes sense out of the data that is collected during measure.

• This shows the amount of improvement that might be possible to make the critical quality characteristic “best in class.”

Possible Tools

• Descriptive Statistics

• Inferential Statistics

• Probability


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Improvement

• Design of Experiments • ANOVA

• Factorial

• Simulation

• Cost Justification

• FMEA

• Project Management

• Correlation

• Regression

– Linear

– Multivariate

In order to improve, possible improvements are evaluated in a logical and planned fashion


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Sources of Improvements


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Implement

• Improvements are implemented in a logical and planned fashion

• A project plan is developed and managed


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Control (Standardize and Validate)

• The final stage is control. In the control phase measures have been implemented and steps are taken to make sure improvements are maintained. We also validate that the improvement…the reduction in variation…has actually occurred and the suggested benefits have been “seen.”

• Some Tools

– Statistical Process Control

– Cost of Quality

– Cost Analysis

– ISO 9000


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MEASURE THE

CURRENT PERFORMANCE

DEFINE THE OPPORTUNITY

IMPROVE PROCESS EFFICIENCY

ANALYZE THE CURRENT PROCESSES

CONTROL AND ADJUST

NEW PROCESSES

IMPLEMENT IMPROVEMENTS

• Determine

breakthroughs,

design future state:

new process, new

“Sigma” level

• Create dashboards,

scorecards and

plans

• Perform cause-

effect analysis to

determine reasons

for gaps in

performance

• Map the process,

gather initial

performance data

and determine

current “Sigma”

level

• Obtain client input,

factors Critical to

Quality (CTQ)

• Improve on what

matters most to the

client

• Significantly impact

the bottom line

• Measure

improvements and

breakthroughs

• Report dashboard,

scorecard data and

client feedback

• Execute plans,

overcome barriers

• Transition to the

new process

Client Driven,

Consistent,

Metrics Focused,

Results Oriented

DMAIIC Overview


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Implementation Strategy

Top Management Support and Participation

Project Identification

Resource Allocation

Data Based Decision Making

Measurement and Feedback


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Implementation

The process of implementing Six Sigma must be a top down approach. Responsibility must lie with senior management. Senior management must drive the process through the organization. Elements of this include careful selection of projects, allocation of resources, and decisions based on the measurements.


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Top Management Support / Participation

Leaders of successful Six Sigma implementations make it a top priority. They devote enormous amounts of thought, energy, time, and personal resources to making sure the Six Sigma succeeds.

In effect, they challenge employees.

“Would you tell me please which way I ought to go from here?” asked Alice. “That depends a good deal on where you want to get to,” said the Cat. “I don’t much care,” said Alice. “Then it doesn’t matter which way you go,” said the Cat.


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Six Sigma “Challenge”

• Senior leadership establishes its Six Sigma vision, customer satisfaction promise, goal, and new measurement indices

• This vision should fit within context of existing quality policy

• Establishes the common goal of reducing variability


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Develop Structure

Six Sigma has used the language

– Steering Committee

– Champion

– Yellow Belt

– Green Belt

– Black Belt

– Master Black Belt

– Master Black Belt Trainer

– Process Owner


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Steering Committee

• Identifies projects

• Identifies black belts

• Allocates resources

• Monitors progress

• Reviews effectiveness

• Establish implementation strategy and policies


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Champions

• Key management personnel who provide support, resources, and encouragement for the process

• Champions require a more in-depth understanding of the methods used, especially the measurements and the interpretation of the process measurements


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Green Belt

A green belt is an introductory participant in the process. Green belts understand concepts of problem solving, data collection, data interpretation, variation, process capability, and cost analysis.


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Black Belt

• Black belts are “thoroughly” trained individuals knowledgeable of all the analysis tools

• Black belt training is typically structured around a project where the analysis tools are applied as part of the training


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Black Belt

Black belts perform the following tasks:

– Teach

– Coach

– Transfer knowledge

– Identify opportunities

– Influence the organizational use of the Six Sigma methods


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Master Black Belt

• The master black belt has demonstrated proficiency by documenting saving in excess of a predetermined amount. Master black belts also are competent teachers.

• Title is one given as recognition for outstanding performance or as the result of additional training, including train the trainer.


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Process Owner

• A process owner is the individual who has the ultimate authority to change a process.

• The process owner should be identified for every project or task that is entered onto an organizational metric tracking system.

• The process owner: – Monitors the performance of his/her process through key

indicators

– Works with all Six Sigma project teams in the area to enable them to successfully complete their projects

– Manages the process after completion to the Six Sigma project to sustain the gains made.

– Continues to improve and/or innovate the process through the application of the PDCA cycle.

3-3-56


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Outside-In Thinking

Six Sigma requires us to look at our business from the customer’s perspective, not ours. In other words, we must look at our processes from the outside-in. By understanding the transaction lifecycle from the customer’s needs and processes, we can discover what they are seeing and feeling. With this knowledge, we can identify areas where we can add significant value or improvement from their perspective.


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Data Based Decision Making

Obtaining a return on your Six Sigma investment requires that you make use of the information you obtain.

In successful Six Sigma organizations both strategic and operational decisions are guided by facts and data.

EOE


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The 6s Process

ID Customer Expectations

Process Flow Analysis

Root Cause Analysis

(Cause & Effect, Pareto)

Key Process Identified Data Collection Strategy

•Histogram

•Scatter Diagram

•Run Chart

•Control Chart

Baseline Measures

Propose Improvement Plan

Implement Plan

Collect & Analyze Data

Compare with Previous Results

Document & Standardize

Monitor

Causes Identified?

No

Objectives Met?

YES

No

YES

Define Measure and Analyze Improve, Implement

and Control


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Lean (Toyota Production System)

• Purpose: Reduce Waste

• Methodology: – Identify Customer Value

– Draft Value Stream Map

– Improve Stream • Remove Waste

• Balance Workload

• Flow the Process and Pull the Service/Product

• Effects: – Improved Delivery Time

– Reduced Waste

– Less Cost $$$


Problem

Solving

Standardized

Work

Error

Proofing

Quick

Changeover

Total

Productive

Maintenance

5S /

Visual

Factory

Kanban Lean

Layout

Lean

Enterprise

The World of Lean Enterprise

61 © 2015 Institute of Industrial Engineers

Observables in Lean Operations:

– Reliable Systems and Virtual Uptimes for Operations.

– Consistently Capable Processes – Capable, Reliable Suppliers – Minimal Non-Value Added Work – Point of Use Layouts, and Processes Without

Excessive Movement and Bulk/Mass Storage Systems

– Just-In-Time Delivery and Shipping – Involved Workforce – No Investment for Non-Value Added

Equipment/Resources


Lean Is . . . .

• According to . . . Michael George

– Lean is a process philosophy with three purposes – “To eliminate wasted time, effort, and material”

– “To provide customers with make-to-order products”

– “To reduce cost while improving quality”

Henry Ford, 1926 (Ford Motor Company) – “One of the most noteworthy accomplishments in keeping

the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is the ultimate cost.”


Lean Enterprise.....by Definition Means:

Achieving Customer Expectations Through The Use Of The Absolute Minimum Amount of Man, Machine, and Material.

Waste Elimination Requires a Systematic Approach

And....

This Is Achieved By Continuous Pursuit, Identification and Elimination of Waste.


Lean Enterprise Elements

Quality

Man/Mach.

Effectiveness

Employee

Involvement

Employee

Training

TPM Total Productive

Maintenance

Level

Schedules

& Pull

Workplace

Organization

Visual

Controls Simultaneous

Engineering

Supplier

Partnership

Material Flow

Lean

Enterprise


Adaptable to Demand Changes

Just-In-Time Production

Parts

Defect-Free

Error Proofing

Total Quality

Assurance

Program

Supplier

Involvement

Partnership

Pull

Kanban

Smooth

Production

Set-up

Reduction

Small Lot

Production

TPM

Flexible

Workforc

e

Reduced

Lead Time

Single Piece

Flexible

Production

Man Machine

Effectiveness

Std

Work

Multi

Function

Ops

Integrate

d Layout

Material Flow

Visual Control/Workplace

Organization

Employee Involvement

Improvement Activities By

Small Groups

Education & Training

Respect

Trust Increased

Morale

Element

Result

Eliminate

Material Waste

Reduced Scrap & Rework

Reduced Inspection

Reduced

expediting

Simple Systems

Eliminate Process and Conveyance waste

Less Inventory

Reduced Storage

Less Direct

Less Indirect

Less Handling

Less Idle Space

Lean Enterprise Goal: Higher Productivity = Less Material, Labor and Indirect Inputs for the Same or Higher Output. Less Delay = Faster response, Better Forecasts, and Less Administration

66


Components of a

Lean Enterprise System

• One Piece Flow/ Small Lot “Production” • Pull Systems • Work Place Organization • Visual Controls • Standardized Operations • Total Productive Maintenance • Multi-Function “Operators”


Value

Anything the ‘customer’ is willing to pay you to do.

Anything that fulfills ‘customer’ requirements.

Anything that increases the satisfaction of the ‘customer’.


Approving

Batching

Searching

Walking

Waiting

Non-Value

Some Examples

Mistakes


Design Raw Materials

Definition of Value Stream

Assembly Plants Distribution Customer

Parts Manufacturing

Introduction to Value Stream Mapping

A Value Stream includes all elements (both value

added and non-value added) that occur to a given

product from its inception through delivery to the

customer.

Requirements


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Value Stream Maps

1. Define the Current State

2. Lead to the Future State


Future State Questions

1. What does the customer really need?

2. How often will we check our performance to customer needs?

3. Which steps create value and which are waste?

4. How can we flow work with fewer interruptions?

5. How do we control work between interruptions? How will work be prioritized?

6. Is there an opportunity to balance the work load and/or different activities?

7. What process improvements will be necessary?


Elimination of Waste: Muda

• A Japanese term for anything that is wasteful and doesn't add value.

• Waste reduction is an effective way to increase profitability.

• A process adds value by producing goods or providing a service.

• A process consumes resources. • Waste occurs when more resources are consumed

than are necessary to produce the goods or provide the service.


Muda

• The Seven Wastes – Overproduction

– Inventory

– Defects (Repair / Rejects / Rework / Correction)

– Motion

– Processing (Over-processing)

– Waiting

– Transportation (Material Movement)

• Plus One More – Skill Abuse


5 S Workplace Organization

• 5S is used to diminish the slack hidden in plants and offices – finding the “dirt” and “washing it out”.

• Dirt in a plant includes

– unnecessary work-in-process inventories

– defective inventories

– unnecessary jigs, tools, methods

– Unneeded carts, equipment, tables

• Dirt in an office includes

– Unnecessary documents, reports, stationery


Standard Work

Definition: Best Practice

An effective process to systematically organize work

elements to support the operator and assure health and safety.

Work is designated “Operator or Machine” and broken into

individual elements.

Employees should be involved with documenting work

elements

in maintaining the standard process in an environment

supportive of health and safety.


VS.

A central planning approach which determines and disseminates production schedules to all processes simultaneously.

Characteristics Include:

•Product delivered late

•High levels of waste

•Low productivity

An approach where you go to the preceding process to withdraw the necessary units in the necessary quantity at the necessary time. The preceding process produces only enough units to replace those that have been withdrawn. The production schedule is determined by one process (the pacemaker).

Characteristics Include:

•Product delivered when needed

•Low levels of waste

Review


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Lean and Six Sigma Together

Define Measure Analyze Improve

Implement Control

Benchmarking

FMEA

IPO Diagram

Kano Model

KB

Management

SIPOC

QFD

VOC

Task Analysis

VSM

Confidence

MSA

NGT

Pairwise

Ranking

Flow

Capability

Time Value

VSM

Waste Analysis

Affinity Diagram

Brainstorming

C&E Diagram

F test, T test

Fault Tree Analysis

FMEA

Histogram

Pareto

Regression

Scatter

5 whys

DFSS

DOE

Kanban

Mistake Proofing

Standard Work

Takt Time

TOC

TPM

Work Cell Design

Visual

Management

5S

Control Charts

Control Plan

Reaction Plan

Run Charts

SOP


philosophy, structure, voice of the customer, and lean · philosophy, structure, voice of the...

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