Lecture 4 - Lean & Six Sigma Metrics / Introduction to Measure Flashcards

1
Q

What does a ‘Push’ system focus on?

A

Upstream information: expected demand -> Mass manufacturing -> Economies of scale

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2
Q

What does a ‘Pull’ System focus?

A

Downstream information: customer requirements -> On demand production -> Adaptation

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3
Q

What are the steps of the ‘Measure’ stage?

A
  1. Determine which data to capture
  2. Develop a data collection plan for the process and collect data
  3. Establish baseline performance
  4. Compare to customer results to determine the shortfall
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4
Q

What is the aim of the ‘Measure’ process?

A

Determine the performance of the core business processes involved in the project

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5
Q

What type of measurement should be made during this stage?

A

Variance-based NOT mean-based

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6
Q

What are two types of variation?

A

Common cause (noise) Special Cause (Signals)

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7
Q

What produces Common Cause variation?

A

Process itself

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8
Q

How can Common Cause variation be mitigated?

A

Fundamental changes to the process

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9
Q

What produces Special Cause variation?

A

Unique disturbances or a series of them

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10
Q

How can Special Cause variation be mitigated or removed?

A

Basic process control and monitoring

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11
Q

What is the stability of processes that only have Common Cause variation?

A

Stable over time that is probable

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12
Q

What is the stability of processes that only have Special Cause variation

A

Not stable over time

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13
Q

What are steps to creating a Data Collection Plan?

A
  1. Decide what data to collect
  2. Develop operational definitions
  3. Determine the sampling plan
  4. Collect data
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14
Q

What is discrete data?

A

Data that take son a discrete and finite number of possible values

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15
Q

What is continuous data?

A

Data that can take on a continuous, infinite number of possible values, usually a characteristic

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16
Q

What are the considerations that should be taken into account when data is to be collected?

A

Is the data feasible to collect?
Does the data validate or refine your understanding of the size and frequency of the problem?
Does the data show if customer requirements are being met?
Is the data valuable to analyse the problem?
Does the data measure causes that are thought to be causing variation in the output

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17
Q

Give an example of a percentage is discrete.

A

37% of customers are between the ages of 66 and 70

50% of a company’s departments met yearly targets

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18
Q

Give an example of continuous percentage.

A

37% of the total cost of rework occur at Machine B Waiting time is 50% higher than the target value

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19
Q

What are the benefits of collecting continuous data?

A

Conclusions from smaller samples which are cheaper to collect
High sensitivity
Variety of analysis options

20
Q

What are the drawbacks of discrete data?

A

More data points are required which are more expensive
Low sensitivity
Limited options for analysis

21
Q

What should a good Data Collection Plan be?

A

Ensure that data will be useful and statistically valid

22
Q

Give an example of a data collection tool.

A

Tally
Checklist
Survey

23
Q

What should an Operational Definition of Measurement be?

A

Precise description of how to obtain required measurements: defines exactly what to measure and how exactly how to measure it

24
Q

Give an example of a Lean metric.

A

Work in Process
Takt time & cycle time Troughput yield & rolled throughput yield
Value added/Non Value Added/Needed but Non Value Added Ratios

25
Q

Give an example of a Six Sigma metric.

A

Sigma Quality Level

Defects Per Million Opportunities (DPMO)

26
Q

What is the Throughput Yield?

A

Ratio of the number parts that were right first time to the number of starting units excluding scrap and rework

27
Q

What are the rules for calculating Throughput Yield?

A

Units must be consistent Rework should be considered
Should only be used to measure individual processes
For a number of processes, the rolled throughput yields needs to be calculated
Raw material used at the beginning of a process may have to be converted to expected units

28
Q

What is Work In Progress?

A

Refers to all materials and partly finished products that are at various stages of a production process

29
Q

Why is Work In Progress important?

A

Service processes are slow because there is too much Work In Progress, often the result of unnecessary complexity in the service offering

30
Q

What is Life

A

George Harrison

31
Q

What is Lead Time?

A

How long it takes to deliver a service once the order is triggered (ratio of average Work In Progress to Average completion rate)

32
Q

How can the Lead Time be decreased?

A

Improve average completion rate

Limit the amount of Work In Progress

33
Q

What is Takt Time?

A

Time which reflects the rate at which customers buy one unit
Determines how fast work must process through the value stream to meet demand

34
Q

What can the Takt Time help businesses do?

A

Align work efforts to actual demand
Focus staff awareness on what is expected
Set a standard rate for a process

35
Q

What is the Cycle Time?

A

Time to perform an operation on one produce at a work centre

36
Q

What can Cycle Time help businesses do?

A

Establish the time elapsed from the beginning of a work process until it is completed

37
Q

What is the Total Cycle Time?

A

Rate of the process

38
Q

What does the incorporation of the measurement of Takt Time help achieve?

A

Provides a timetable for scheduling and allows the team to evaluate whether it is meeting the customer’s demand

39
Q

What are the components of DPMO?

A

Unit, CTQ, Defect and Opportunity

40
Q

What are Units in DPMO?

A

Parts, components, assemblies, subassemblies or systems tested or inspected

41
Q

What is CTQ?

A

Characteristic of a product/process that is critical to quality in the eyes of the customer

42
Q

What is a Defect?

A

Any non-conformity in a product, system, assembly or sub-assembly

43
Q

What is an Opportunity?

A

Total number of chances per unit to have a defect; anything that can be measured or tested for the presence of a defect

44
Q

What are the Total Opportunities?

A

Product of units and opportunities

45
Q

What is the goal of every Six Sigma project?

A

To improve the Sigma quality level

46
Q

What Sigma level is good enough?

A

If it is better than your competitors