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