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