Chapter 8 Lean System & Six Sigma Quality Flashcards
In 1990, SCM combined
Quick respense (QR)
Efficient Consumer Response (ECR)
Just-in-time (JIT) Continuous reduction of waste
Keiretsu Relationships– including suppliers
What is Lean、
Use of the most efficient resource possible
Standard in many industries
Often results in
- Large cost reductions
- imporved quality
- increased customer servies
Elements of Lean
- Lean production
- Total quality management (TQM)
- Respect to People
TPS (Toyota Production System)
Early version based on Ford assembly plants
US. supermarket distribution system
Key concepts in TPS
- Muda
- Kanban
- Statistical process Control
- Poka Yoke
SCM lean elements uses
- Cross-training
- satisfying internal customer demand
- moving products quickly in the production system
- communicating demand forecasts & production schedules up the SC
- Optimizing inventory levels across the SC
Six Sigma
is a quality mgmt process which reduce process variation
elimiate defects
- No more than 3.4 parts per million defective
- signma stands for #, standard deviations of the process
- Originated at Motorola in 1970s
- zero defects
Six Sigma methodology (2 aspect)
1 use technical tools
- statistical quality control
- seven tools of quality
- people involvement
- all employees responsible to ID quality problems
- ALl employees trained to use technical tools
Six Sigma 5 steps plan (DMAIC)
Define
- the quality problem problem of the process
Measure
- the current performance of the process
Analyze
- Analyze the root cause of the quality problem
Improvement
- improve process by eliminating root cause
Control
- Control process ensure continued improvement
Developing a lean Six Sigma SC (4 steps)
- Jointly define value
- conduct supply chain capability analysis
- Development Key financial & operational metrics
- indentfy & implement System improvement
- Value stream mapping (VSM)
Impact on SC activities (Supplier)
lower cost due to efficient systems
shorter lead times
lower safety stock
Impact on SC activities (operation)
proper cycle time calculatione ensure
production according to customer demand
uniform work flow
pull production
Impact on SC activities (logistics)
optimization models to select routes
warehouse design changes reduce waste
Six Gudielines to lean
- Elimination of waste (no value adding activities)
- A broad view (supply chain members, add values)
- Simplisity (simple soultion better)
- Continuous improvement (quality and continuous improvement)
- visibility
- flexibility (easy switch from one product to another, flexible workers with different tasks)
Pull System
traditonal approach
- push system
- inventory carried
Pull approach
- each stage in SC requests quantities needed from the previous stage
- No excess inventory
- reduced inventory exposes
Visual Signals
Communication between workstations
Kanban
- Signal or card
- Imformation passed between stations
- authorized production
Quality Gurus W. Edwards deming
- COnsider the father of TQM
- management’s responsibility for quality
- 14 points to guide companies in quality imprvement
Small lot production
Amount of products produced at any one time is small:
- Reduces inventory and excess processing
- Increasing flexibility
- Shortens manufacturing lead time
- Reponse to customer demands more quickly
- Setup time must be low
Uniform form loading
production schedule frozen for a month
also called leveling
help suppliers better plan production
Respect for people
respect for all people must exist for an organization to be ists best
- flatter hierarchy than traditional org
- provide ordianary workers with great responsibilities
- supply chain member work together in crossing funtional teams
Role of worker
workers perfrom in different tasks and actively pursuing company goals
Workers duties
- improve production process
- monitor quality
- corrent quality problem
Work in team:
- quality cycle
Role of Management
Create cultural change
- provide atmosphere of cooperation
- empower workers to take action based on their ideas
- develop incentive system for lean behaviors
Role of Supplier
Lean builds long-term suppliers relationship
- Partner with suppliers
- improve process quality
- info sharing
- goal to gane single-source suppliers
Quality Gurus Philip crosby
quality is free as defects are costly
introduced concept of zero defect
focus on prevenetion and not inspection
Joseph M juran
quality as ftness for use
cost of quality
