Introduction Flashcards
Overall Equipment Effectiveness (OEE)?
Rate (% of max) x Availability (% of time) x Quality (% right first time)
Operational Excellence is absolute or relative?
Absolute
What is lean thinking?
Lean thinking is about accelerating the velocity of any process by doing only the things that add customer value and eliminating other activities that don’t (waste)
Origins of Lean
Autonomy/ no errors forward
Forms of waste
Production Levelling
Continuous Improvement
Lean Principles
Identify Value Map Value Stream Create Flow Establish Pull Pursue Perfection
Focus of traditional improvement programs
Work Longer
Work Harder
Add People
Add Equipment
Lean is not about eliminating people…
It is about continuous process improvement, NOT cost reduction through headcount cutbacks
What is Six Sigma
Vision Business Strategy Goal Metric Benchmark Philosophy Vehicle for Business Excellence (Continuous Improvement methodology aimed at reducing and eliminating variation in processes, resulting in financial savings and improved customer satisfaction.)
Goal of Six Sigma
Reduce and Control variation in processes
Reduce defects
Increase Yield
Improve Customer Satisfaction
Higher Profit
Six Sigma Approach
Practical Problem
Statistical Problem
Statistical Solution
Practical Solution
Achieving Six Sigma Performance
Understanding Customer Needs
Simplifying Processes
Reducing Variation
DMAIC
Define, Measure, Analyse, Improve, Control
What makes Six Sigma successful?
1) Focus on Customers (VoC)
2) Integrates human and process aspects
3) Uses a disciplined approach to problem solving (DMAIC)
4) Organisational Project Infrastructure
5) Active Senior Management leadership and Commitment
6) Significant bottom line financial returns
7) Effective use of statistics
8) Data driven methodology
9) Focuses of solution unknown problems
Six Sigma Ranks
Champion Master Black Belts Black Belts Green Belts Yellow Belts
Lean vs Six Sigma
Lean - High Value High cost
Six Sigma - Low Value Low Cost
LSS - COMBO
Lean focuses on …
Dramatically improving flow in the value stream and eliminating waste
Lean aims
Elimination of waste Identification of value stream Achievement of flow Pacing by pull Pursuit of perfection
Lean outcome
improved speed
Six Sigma focuses on…
eliminating defects and reducing variation in processes
Six Sigma aims
DMAIC
Six Sigma Outcomes
Reduced Variation
Lean and Six Sigma Similarities
Same Objective: continuous and sustainable business process improvement
Focus on business needs defined by the customer
Customer focus
Requires active involvement of all interested
Practical methods, proven to work
Both include a comprehensive tool box improve any business process
Lean vs Six Sigma differences
Lean Focused on flow Removal of waste Technically simple Low investment Typically non statistical tools Appropriate for first round of improvements
Six Sigma
Focused on problems with unknown solution
Reduction of defects often through reduction of variation
Technically more difficult
More significant investment
Statistical tools typically used
Appropriate for more complex problems
