Lecture 1: Lean Enterprise / Lean Thinking Flashcards
What does Lean mean?
An approach that emphasizes the smooth flow of items synchronized to demand so as to identify waste.
Which costs can you reduce by being efficient? (4)
- Working hours
- Transportation costs
- Material costs (less waste)
- Manufacturing costs
What is Six Sigma?
A disciplined methodology of improving every product, process, and transaction.
What is a defect?
when one aspect of the product/service does not meet the requirements
What is a defective product?
When a product does not perform as it should
What is the question lean six sigma asks?
How can we make our process as efficient as possible
What does effective mean within the context of lean six sigma?
Reduce variation and defects
What does efficient mean within the context of lean six sigma?
Reduce waste, lean value-added steps
What did Hawthorne’s experiments show?
How worker productivity could be improved by worker participation
What does TQM stand for?
Total Quality Management
What does JIT stand for?
Just in Time Principle
What is the JIT principle?
The planning of materials in time for production, to make sure they arrive on time for production
Who taught of the JIT principle?
Taiichi Ohno
What are the five key principles of lean?
- Define value add and nonvalue add
- Map the value stream
- Establish process flow
- Shift from push to pull systems
- Strive for perfection/ zero defects
Who came up with the five principles of lean?
Womack
When is it not necessary to shift from push to pull systems?
When demand is fixed
When do you perform a Lean Six Sigma quality?
When 3.4 in 1 million products or less are not functioning well
What are reasons companies might not find it worth investing to reach six sigma levels? (4)
- one of the only companies that offers a product
- Not enough budget
- the market does not care about quality
- A product is really cheap (only when it is not critical)
What are the six sigma goals? (6)
- Higher quality of a product
- Reduce variation
- Higher customer satisfaction
- Reduce variation by eliminating waste
- High customer retention
- Increase in shareholder value
What does USL stand for?
Upper spec limit
What does LSL stand for?
Lower spec limit
When is variation bad?
When it is outside the customer specification limit
How can customer satisfaction be achieved? (5)
- Conformance to specifications
- Value
- Fitness to use
- Support
- Psychological Impressions
Why do you follow methods and instructions when doing research?
To limit bias
In which 5 steps is progress monitored?
- Define
- Measure
- Analyze
- Improve
- Control
What do you do in the Define stage in the DMAIC process? (2)
- Define opportunity from business + customer perspective
* Describe problem and the critical to quality tree
What does CTQ stand for?
Critical to Quality tree
What is a CTQ?
a Six Sigma tool used to identify the needs of the customer and translate that information into measurable product and process requirements. It allows organizations to understand the characteristics of a product or service that most drives quality for customers.
What do you do in the Measure stage in the DMAIC process? (5)
- Understand process + performance
- Know how big the problem is.
- Collect data
- Establish baseline process capability.
- Establish improvement goals.
What do you do in the Analyze stage in the DMAIC process? (2)
- Search for key factors (X) that impact process performance (Y)
- Determine the root causes
What do you do in the Improve stage in the DMAIC process? (3)
- Develop improvement for the critical X
- Identify routes to improving performance
- Confirm changeswill achieve the project goals
What do you do in the Control stage in the DMAIC process? (2)
- Implement solution and control plan
* Lock in improvements and share them
Critical Enablers for improving existing processes (3)
- Project Selection
- Project Sponsorship
- Tollgate reviews
What do you look at when you select a project? (4)
- Feasible projects
- Business results with limited investments
- Data available
- High probability of success
What are the 4 different levels of Lean Six Sigma belts?
Yellow
Green
Black
MBB (Master Black Belt)
What Lean Six Sigma roles fall within the yellow belt? (2)
- Awareness Levels
* Participation in project part-time in the function
What Lean Six Sigma roles fall within the green belt? (4)
- Certified level of competency
- Lead projects part-time in their function
- Responsible for majority of projects and Six Sigma benefits
- Understands internal and external supply chain improvement needs
What Lean Six Sigma roles fall within the black belt? (4)
- Certified position / demonstrated performers
- Lead projects full time in their function
- Dedicated to lead projects and train and coach green belts
- Can define and improve Supply Chains using Lean Six Sigma techniques
What are the roles that fall under the project sponsor? (3)
- Identify opportunities, initiate and define projects
- Creates environment for GB/BB to complete project (remove barriers, provide resources)
- Decision maker during toll gate review
What are the roles that fall under the deployment manager? (5)
- Lead project prioritization
- Manage black belts
- Track financial returns
- Track certification of black belts and green belts
- Create environment of knowledge sharing
What does DPMO mean?
Defects per million opportunities
What is the Yield %?
Number of good products relative to the number of produced products
What is the CpK?
Process capability relative to product specifications
What is the 𝜎level ?
Statistical measure of a process ability to customer requirements.
What does COPQ mean?
Cost of Poor Quality
Where to apply LSS? (3)
- Manufacturing Activities
- Transactional and administrative activities
- Management Activities
VOC is also known as…
…the requirements of the customer
What is the normal distribution?
a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean. In graph form, normal distribution will appear as a bell curve.
What is the mean and how to calculate it?
The average value of numbers in a set. Find the mean by adding up all numbers and dividing it by the amount of numbers
What is the median and how to calculate it?
The number in the middle. Find the median by putting the number in order from smallest to largest and finding the number that is in the middle.
What is the mode and how to calculate it?
The number that occurs the most frequent of all numbers. Find the mode by putting the numbers in order from smallest to largest and look for the number that occurs the most.
What is the variance?
It is calculated by taking the average of squared deviations from the mean. Variance tells you the degree of spread in your data set. The more spread the data, the larger the variance is in relation to the mean.
What is the standard deviation?
a measure of the amount of variation or dispersion of a set of values. A low standard deviation indicates that the values tend to be close to the mean (also called the expected value) of the set, while a high standard deviation indicates that the values are spread out over a wider range.
How to calculate the interquartile range?
Q3 - Q1
