PQL Exam 1 Flashcards
Productivity
outputs divided by inputs
Productivity =
Quality products and services (generate revenue) / people, materials, technology, equipment, and capital (incur expenses)
PQL in a nutshell:
Learn and practice
designing processes so that the natural outcome is lower cost and better quality on a consistent basis
Desired outcomes are achieved by
its not about improving productivity or quality but about
system
Productivity: (lean)
- Customer focus
- Employee involvement
- Continuous improvement
- Waste elimination
Quality:
- Customer focus
- Employee involvement
- Continuous improvement
- Data-driven management
Profit =
Revenue-Expenses
or
(Productivity*Quality) - (Variable Cost + Fixed Cost)
Value:
what the customer wants & is willing to pay for
Everything else:
Waste
Lean:
keeping the value, eliminating the waste
Making small improvements, continuously, adds up to a
BIG impact
7 Types of waste
- Transportation
- Inventory
- Motion
- Waiting
- Overproduction
- Over-processing
- Defects
Transportation:
the movement of product (ex: moving supplies or parts from here to there)
Inventory:
Inventory: any inventory that doesn’t generate revenue today (excess inventory) (ex: finished parts that are not generating value)
Motion:
the movement of people (ex: workers walking to find supplies)
Waiting:
waiting on anything (ex: waiting on materials, waiting on answers)
Overproduction:
making a product or service more than the customer wants or sooner than the customer wants it (ex: making more than the next step in the process can use right away)
Over-processing:
doing anything that’s unnecessary, over and above what is useful (ex: special packaging the customer doesn’t care about)
Defects (Mistakes):
doing something wrong, making the product or service wrong (ex: making a part incorrectly)
Process:
activities that turn inputs into outputs
Process Map:
a tool used to visualize the steps in a process
Value Stream Map:
an extension of a process map
- Shows you what’s actually happening
- All processes have activities that add value AND activities that don’t
A value map
EXAMINES and QUANTIFIES EVERY step in the process
Examines:
differentiates value from non value activities
Quantifies:
time, distance, cycle time, people, equipment, and materials
Observation:
used to determine what is actually happening
Only correct way to create a proper value stream map is through
observation
Spaghetti Diagram:
Spaghetti Diagram: Visual creation of actual flow
- Visualizes two types of waste: Transportation and Motion
Swimlane Diagram:
- Look at multiple participants in a process and how they inter act
- Shows participant responsibilities for a certain part of the process
Concentration Diagram:
- Visual picture of data, tells you what’s going on in any type of process
- Patterns
Do these three things to identify what’s happening at every step:
- Observe
- Ask questions
- Gathering data
Always look at value from the
customer point of view
Must use a systematic approach to discover
waste
2 Ways to Approach Operational Improvement:
- Identify non-value steps and work to eliminate or reduce them, To improve the process you have to change the process
- Start with value and re-think how to provide it
Edwards Deming:
-Taught quality techniques, beneficial during the war
-Approached businesses after the war but was rejected because the US economy was strong and business didn’t want to change
-Was sent to Japan to help rebuild
-Improving quality would reduce expenses and increase productivity, therefore market share
Japan products considered
better quality and cost less
If Japan can why cant we
They were better because they were taught the quality techniques by the American Edward Deming
Quality came from
Edwards Deming
productivity came from
Taiichi Ohno
Taiichi Ohno Came to tour ford motor company to learn
best practices
continuous improvement
- Little steps = big improvements
- Continuous improvement is everyone’s job
- good enough is never enough
Kaizen:
- Kai = ongoing
- Zen = for the better
- Means continuous improvement
Kaizen Events:
Event where you identify a problem you want to improve with a team of people and solve it
- Get together for a day or shift, etc.
Gemba
the real place, Where the action is taking place, where the work is being done, where the important stuff is happening
Go to Gemba:
managers need to go into the workplace and see what’s going on
Gemba management:
when leaders/managers go out and see what’s going on
The objective is to ______ where ___________ in ______ the business process
- create a culture
- everyone is involved
- continually improving
employee involvement
- Everyone, everyday
- Experience/knowledge
- Empowerment
DMAIC
- Define
- Measure
- Analyze
- Improve
- Control
Define
the problem and the ideal in terms of the target to achieve
- Establish WHY we’re making a change
- Understand what is the thing we want to improve (define measure of success)
Measure
collect relevant data about the process and the problem
- To establish the current state*
- MUST gather data (surveys, observations, interviews, data spreadsheets)
- Establish the “current state” or what is happening in the process now
Analyze
the process to identify the cause-effect relationship between inputs and outputs, identify the vital few root causes
- What does the data show you
- Where is the Pareto effect
- What is the root cause
- What is impacting the process
- Identify what must change to impact the measure of success
Improve
determine the optimum values for key contributing process inputs, implement solutions to eliminate the root causes
- Establish solutions (changes to the process that will impact the metric you want to improve)
- Must present ideas/solutions in “concrete” ways
- Not just ideas, but show what the new way looks like
Control
establish standards and controls to sustain improvements in the long run
- Check the measure of success to see if it made a difference (key)
- If so standardize the new way
- If not gather more data
Measure of success (MOS):
way to measure did we improve or not
Seven Quality Tools:
- Process map
- Check sheet
- Histogram
- Pareto diagram
- Scatter diagram
- Cause and effect diagram
- Run chart
Process maps:
- A picture of a process
- Identifies the sequence of activities or the flow of materials and information in a process
Check sheet:
- A simple method of gathering information
- Ensures consistency of data collection
- Spots problems
- Not the same as a checklist
- Ex: employees pointing out mistakes of certain products
Checklist
a list of items required, things to be done, or point to be considered, used as a reminder
Histograms:
- It is picture of data
- It displays frequency of occurrence
- It allows us to see patterns or trends that are difficult to see in tables of numbers
Pareto Diagrams:
- A type of histogram that shows the data from the largest frequency to the smallest
- It identities priority
- Ex: machine downtime
Check sheet and Pareto Diagram:
- Check sheet to gather data
- Pareto chart to organize it into useful information
- Ex: computer problems
Scatter Diagrams:
- A graphical tool allowing the identification of possible relationships between two different sets of variables
- A display of what happens to one variable when another changes
- Ex: weight gained vs calories consumed
- Ex: shark bite and ice cream sales
Cause and Effect Diagrams:
- A graphic tool used to identify all possible causes of a specific problem
- Also called a fishbone diagram
○ Man, method, machine, materials, - Ex: cause of car failure
- Ex: lack of responsiveness to customers
Run Chart:
- display data in the time sequence in which it occurred
- Helpful in spotting trends, cycles, or other patterns
- Ex: % on time - first quarter
- Ex: length of time to get to work
Type of Run Chart: Control Charts
○ A run chart in which two horizontal lines, called control limits, are added
○ It is a statistical tool used to distinguish between variation in a process resulting from common causes and from special causes
○ Upper and lower controls limits
Pareto Chart:
- The trivial many and the vital few
○ 20% of variables (things) create 80% of your impact (issue)
○ Example: 80% of your phone time is on 20% of your apps - This is because of priority
- Everything has limited resources
- Better decision making
A second level pareto
Biggest factor and breaking it down into its own pareto chart to get more detail
Scatter Plot:
Both variables need to increase and decrease because time can’t
Benefits of Poka-Yokes
- It increases revenue and decreases expenses
- Never prevents intentional error
- Only prevents unintentional human error
Ex of Poka Yoke
- EX: hole in the trash can is smaller than the basket, human error is throwing away the basket, it prevents that human error from costing the business, saves the company money from buying new ones and time from searching for baskets
- EX: safety feature on the john deer (if there is no weight on the seat the engine shuts off), human error is falling off or forgetting to turn off, benefit to the company is it provides extra value to the consumer
Benefits of Visual Management:
- It can reduce cost in a process such as how its impacting the business
- More than profit:
○ Ex: kiss-n-ride sign in front of car windshield, having name and grades makes it much easier, but didn’t make profit for a company
Ex of Visual Management:
- EX: squares on the floor in a factory
- EX: Seeing the status of a wait time, benefit is getting to do other things while waiting
- EX: vest when administering medicine, Visual management system: do not interrupt vest, and a rule: you don’t touch or talk to a vest, 1 warning and then 2nd is termination
- EX: Andon - stacked light system for communication, make immediate action take places, keeps machines running, therefore generates revenue
○ Green = running
○ Red = line down (flashes after 15 mins downtime)
○ Orange = set-up
○ Blue = need maintenance
○ White = need supervisor
Benefits of 5S:
Reducing motion waste within the company, so your not paying your employees to walk around and look for stuff
Ex of 5S
EX: AEP trucks were set up how the driver liked it, but once they went through and standardized the way the trucks were organized, less mistakes were made
Benefit of JIT (Just In Time): ONLY ONE
your not holding inventory
Benefits of PM (Preventative Management):
- Can minimize and plan downtime (scheduled repairs)
- Breakdowns are always more and are inconvenient
Ex of PM
EX: pilots walk around before a flight
Everything is about changing a process:
Things can not be just said, you have to change the process
Types of Lean Tools
- Poke-Yoke
- Visual Management
- 5S (Workplace Organization)
- JIT (Just In Time)
- PM (Preventive Management)
Poka-Yoke
- Poka = inadvertent error
- Yokeru = to avoid
- Goals:
- Keep a mistake from turning into a defect- Keep a defect from moving any further in the process
Types of Poke-Yokes
Prevention, Facilitation, Detection
Prevention
design the process so that it is impossible to make a defect
- Ex: Healthcare there may be different types of air so each nozzle has a different peg or hole shape to plug into
Facilitation
make the wrong action more difficult to make if very unlikely the error will occur
- Ex: Hanging the tennis ball in the garage so the car windshield just touches the tennis ball that way you park in the same exact spot in the garage every time, so that you don’t pull up too far or too little
detection
when an error is made, catch it at the source, if possible, or at the next process step
- Ex: When in google mail, if you type an email and say you attached a file, and then go to send an email with out attaching the file, an window pops up saying you seem to have forgotten to attach a file, it caught the error
How privation, facilitation, and detection work
Prevention is before the mistake, facilitation with the mistake, detection (at the source) with the defect or detection (next step) before it reaches the unhappy customer
Visual Management
- Conveys information clearly and concisely, at a glance
- Reduces the need to ask and discuss
- Eliminates room for interpretation
- Assess current status easily
- Identifies Priorities
- Makes problems visible
More Visual Management ex:
- You know what to do at a stop light
- Air pressure gage
- Know it’s a handy cap spot
- The feet on the mat in airport security
- A meat temperature guide
- Knife cut guide
- Nurses and doctors peg colors by waiting rooms, the patient is ready for different things
- Red means emergency, yellow means priority, green means non-urgent
- Tape on the floor by furniture to see when it has been moved
5S (Workplace Organization)
- The purpose is to make the workplace more efficient
- Sort out
- Set-in-order
- Shine
- Standardize
- Sustain
Japanese Version of 5S
seiri (sorting), seiton (setting in order), seiso (systematic cleanup), seiketsu (sanitizing), and shitsuke(sustainable discipline)
Sort out
keep only what you really need
- Ex: Sorting the Tupperware shelf, got rid of the things she didn’t need
Set-in-order
a place for everything
- Ex: Silverware tray in the door, separating forks knives and spoons
Shine
cleaning and inspection
- Ex: Cleaned a car, and then you find all the cracks and rust
Standardize
all like processes, document, train
- Ex: Organizing the line, knowing where everything is so it can be accessed easily
Sustain
make it a habit
- Ex: Dividers in a cabinet or audits to make sure it keeps happening
JIT (Just In Time)
The right part at the right time in the right amount
- The right part: what the customer wants
- The right time: when the customer wants it
- No more than the customer want
Kanban: (part of JIT)
means signal
- To produce or stop producing
- To move from supplying to consuming location
- To place an order
Kanban Ex:
- Having squares on the ground on a working floor to see how much inventory should be there (The empty square is the Kanban signal to produce, full squares are the Kanban signal to stop producing)
- Milk being in different rows, when a jug is taken out, people in the back have to fill the slots of that jug (Only replenish what the customer has purchased)
- The two bin system: employees take what they need out of the top bin, when the top bin is empty that is a Kanban signal to place an order, the second bin is then used while they wait for the supplier, the second bin is filled with the amount of time it takes ot get the product from the supplier (weeks worth, etc)
Types of Kanban Signals:
- Lights
- Card/sign
- Bin/square
- Rule: once you have 3 people in line, make another batch of fries
- Others
PM (Preventative Management)
- Monitoring and maintaining equipment
- This is always referring to equipment
- Early detection of defects
- Prevent breakdowns
- Plan and schedule downtime (machine is unavailable for use)
More ex of PM (Preventative Management)
EX: Changing the oil in your car, Can plan whenever it is convenient for you
