Introduction Phase Flashcards
Lean Process
achieved by removing waste; any activity not required to complete a process. A lean process is faster, more efficient/economical and delivers satisfactory quality to customer.
Six Sigma
Produces 3.4 defects per million opportunities (DPMO)
Where did Six Sigma Come from
Motorolla in the 80’s by Bill Smith
4 Benefits of Lean Six Sigma
- Increase Profits
- Decrease Cost
- Increase Efficiency
- Effective People
3 Questions to Ask for Process Improvement
10 Intangible Quality Costs
- Customer Dissatisfaction
- Late Deliveries
- Wasted Supplies and Equiptment
- Changed Product Orders
- Rework
- Employee Frustration
- Long Cycle Times
- Expediating Costs
- Rescheduling
- Lost Customers
How to Apply Lean Six Sigma
- Connect Customer Feedback
- Reduce Variation
- Focus on the Process
- Quantify the Project
- Engage the People
How do you connect with the customer
- Tracke feedback and make it availble internally to all parties that need information
- listen to real needs not projections
- focus on end result and not internal convienence
How do you quantifiy the dollar impact
Take the tangible and intangible costs and measure reduction of costs if processes were perfected
Who are the biggest victims of poor process?
Those who work in it
Name each of the 8 wastes
Acronym: DOWNTIME
D: Defects
O: Overproduction
W: Waiting
N: Non-Utilized Talent
T: Transportation
I: Inventory
M: Motion
E: Extra-Processing
Give Definition of Defect and Example
Are information, products or services that are inaccurate, incomplete or missing.
Errors that occur over and over
Bahama Bistro example: using milk when customer requested soy milk
How do you uncover and remove all types of process waste
Eliminate
Simplify
Streamline
Minimize
What does Muda mean
Waste in Japanese
Definition of Waste
strain on an organization’s time and resources. It does not add value to customer.
Give Definition of Overproduction and Example
Making more units earlier or faster than the next step in the process or the customer requires
Example: Selecting Reply All for emails that only a few need to see
Example at Bahama Bistro: producing more coffee that is needed for the day
Waste: Waiting
Refers to the process delays while waiting on people, equipment, matterials or information
Example: Customers waiting for their orders
Being unable to complete a step until receiving a file
Waste: Non-Utilized Talent
Not making the best use of people’s experience, knowledge, skills, creativity or capability
Example: Requiring those with specialized skills to perfome unskilled activities.
Waste: Transportation
Is the unnecessary movement of materials, equiptment or information. More time people have to “touch” the product, then the more likelyhood for error.
Example: Bureucratic processes of information
Waste: Inventory
storing more supplies or having a higher quantiy of materials on hand than needed or when needed. You have to hold it, maintain it, and move it.
Valuable floor or storage space filled with unused items
Bahama Bistro example: storing coffee beans with 1 year supply when next day delivery is availble by vendor
Waste: Motion
any movement of people that does not add value to the product or service
Example: Workplace not organized in order of the process being performed
Nurses walking around too much instead of spending more time with patients
Bahama Bistro Example: Frequent trips to the stock room
Extra-Processing
any effort that doesn’t add value to the product or service from the customer’s perspective; more work than is required
Example: Fields on forms requiring unused information
Example: Addition of features or services that customers don’t need or care about
