Lecture 1 - Introduction to Lean and Six Sigma Flashcards
Which of the following is a need for Change? • Productivity Gap • Global Competition • Tight Public Resources • Cyber-Activism • Increased Expectations
All of these are examples of circumstances which may need Change • Productivity Gap • Global Competition • Tight Public Resources • Cyber-Activism • Increased Expectations
What is the equation for Overall Equipment Effectiveness (OEE)
(Max Rate %) x (Availability Time %) x (Quality i.e. Right first time %)
Using the OEE equation, what is the overall effectiveness of a company which displays:
75% max operating rate
60% availability
75% right first time
75% x 60% x 75% = 34% efficient
Lean thinking is about ________ the process by doing only things that _____________ and eliminating activities that don’t, i.e. _____
Lean thinking is about accelerating the process by doing only things that add customer value and eliminating activities that don’t, i.e. waste
True / False?
Six Sigma is a tool / technique to improve a company
False.
Six Sigma is a vehicle for business excellence, it is NOT a tool or technique.
The goal of Six Sigma is to reduce control variation in processes. This contributes to… (4 things)
- Reduced Defects
- Increased Yield
- Improved Customer Satisfaction
- Higher Profits
What makes Six Sigma successful?
9 available
- Focus on Customers
- Integrates human and process aspects
- Uses a disciplined problem solving approach (DMAIC)
- Organisational Project Infrastructure
- Active senior management leadership
- Significant bottom line financial returns
- Effective use of statistics
- Data driven methodology
- Focuses on solution unknown problems
Lean is about turning ___ into ___ .
Six Sigma is about creating ___ for the organisation by ___ costs via ___ problems without harming ___ customer value.
Lean is about turning waste into value.
Six Sigma is about creating value for the organisation by decreasing costs via eliminating problems without harming perceived customer value.
State similarities between Lean and Six Sigma.
6 available
- Same objective: Continuous and Sustainable business process involvement
- Focus on business needs defined by the customer
- Customer focused
- Requires active involvement from all interested
- Practical methods, proven to work
- Both include a comprehensive tool box to improve business performance
What are the five Lean Principles?
- Identify Value
- Map Value Stream
- Create Flow
- Establish Pull
- Pursue Perfection
Differences between Lean and Six Sigma:
State qualities which are unique to Lean.
(6 available)
- Focused on “flow”
- Removal of waste
- Technically simple
- Low investment
- Typically non-statistical tools
- Appropriate for first round of improvements
Differences between Lean and Six Sigma:
State qualities which are unique to Six Sigma.
(6 available)
- Focused on problems with an unknown solution
- Reduction of defects often through reduction of variation
- Technically difficult
- Requires significant investment
- Statistical tools are typically used (but not always!)
- Appropriate for more complex problems
“Services” cannot be subjected to precise specifications because they are….
Intangible.
What does “inseparability and heterogeneity of services” mean?
There is less managerial control over quality, since services cannot be tested and assured before delivery and standardised during delivery.
What does the characteristic of “perishability” imply?
It implies that service organisations need to retain excess capacity to meet fluctuating demands of customers.
