Test 1 (Chapters 1-3) Flashcards
What is “The Machine that Changed the World”
A 5-year study of the auto industry where a new manufacturing paradigm dubbed “lean production” emerged after WWII
What are the three principles of Lean Production
- Elimination of waste
- Continuous improvement
- Customer focus
What are some of the benefits of Lean Production
Reduced human effort in factory
Reduced requirements for manufacturing space
Reduced investment in tools
Reduced engineering hours
Reduced time to develop new products
Reduced inventory
Reduced defects
What are the three eras in manufacturing
Craft production, mass production, and lean production
Who developed lean production
Eiji Toyoda and Taiichi Ohno of Toyota (post WWII in Japan)
Who developed mass production
Henry Ford and Alfred Sloan (GM) (before WWI)
What are some characteristics of craft production
Hand crafted products, expensive, parts not interchangeable, one-offs
What are some characteristics of mass production
Interchangeable parts, moving assembly line, standardized gauging, advancement in the machining of hardened steel
What divisions of labour within engineering emerged out of mass production
Design engineers (design of products), manufacturing engineers (design of production equipment and tools), industrial engineers (design and allocation of assembly procedures/systems/ergonomics)
Explain the Ford River Rouge Plant
Massive factory (1.5 miles x 1 mile, 16 million square ft, 93 buildings total), had its own docks in Rouge River, interior railroad track, electricity plant, steel mill, its a FULL embodiment of vertical integration (turned raw materials into running vehicles)
Why did lean production emerge
After WWII, Japanese industry had to completely rebuild and did not have volume to justify mass production system, lean production emerged to suit this based on practical considerations in this environment
What are some constraints Toyota faced in the post-WWII environment and what were the implications on their manufacturing approach
Constraint: Shortage of capital for equipment/facilities
Implication: Cannot afford specialized equipment, so must be able to use equipment in a variety of ways
Constraint: Shortage of markets to serve
Implication: Must be able to produce a variety of products in the same facility
Constraint: Shortage of workers and other resources
Implication: Must employ workers that can do a variety of tasks and processes CANNOT be wasteful
Explain how the constraints placed on Toyota caused the emergence of the lean production principles we know today
Constraint: Must be able to use equipment in a variety of ways
Principle: Quick changeover procedures and flexible layout
Constraint: Must be able to produce a variety of products in the same facility
Principle: Small batch production and mixed model production
Constraint: Workers must be able to do a variety of tasks
Principle: Employee involvement
Constraint: Processes cannot be wasteful
Principle: Pull production, standard operations, Total Productive Maintenance (TPM)
All principles emphasize on ELIMINATION OF WASTE and CONTINUOUS IMPROVEMENT
List the features of lean operations
Pull production systems
Small batch production
Small setup times
Flexible layout (workcells, focused factories, U-lines)
Standard work/operations
Workplace organization
Total Productive Maintenance (TPM)
Employee empowerment/cross-functional teams
Supplier partnerships
Integrated product-development process
Explain the benefits of the following lean operation feature: Pull-type production system
Eliminates overproduction, reduces inventory and defects
Explain the benefits of the following lean operation feature: Small batch production
Eliminates overproduction, increases agility, reduces waiting and defects
Explain the benefits of the following lean operation feature: Small setup times
Reduce waiting, increase agility
Explain the benefits of the following lean operation feature: Flexible layout
Increase agility; reduce waiting, defects, transportation, processing, and motion
Explain the benefits of the following lean operation feature: Standard work/operations
Reduces overproduction, waiting, process, motion, defects
Explain the benefits of the following lean operation feature: Workplace organization
Reduce inventory, defects, waiting, motion
Explain the benefits of the following lean operation feature: Total Productive Maintenance (TPM)
Reduce waiting, defects, inventory
Explain the benefits of the following lean operation feature: Employee empowerment/cross-functional teams
Reduce waste in everything
Explain the benefits of the following lean operation feature: Supplier partnerships
Reduce wastes of overproduction inventory, defects, waiting, processing; better serves final customer
Explain the benefits of the following lean operation feature: Integrated product-development process
Design product and production process together; reduce wastes associated with product design; improve overall design process: better, faster, cheaper
List the basic concepts of Total Quality Management (TQM)
Quality Function Deployment (QFD)
Problem solving tools
Continuous improvement
Statistical process control (SPC)
Taguchi methods
Source inspection
All focused on satisfying customers
Who was W. Edwards Deming
Taught quality to Japanese manufacturers, American statistician, his teachings widely credited as being responsible for major improvements in North American competitiveness, ignored in America until his 80s
What are Deming’s 5 Deadly Diseases in Management
- Lack of Constancy of Purpose
- Emphasis on Short Term Profits
- Annual Rating of Performance
- Mobility of Management
- Use of Visible Figures Only
Explain the following Deadly Disease of Management: Lack of Constancy of Purpose
No planning for the future and a lack of long-term definitions and goals (i.e., what are we even here for)
Explain the following Deadly Disease of Management: Emphasis on Short Term Profits
Worshipping the quarterly dividend, sacrifices the long-term growth of the company
Explain the following Deadly Disease of Management: Annual Rating of Performance
Arbitrary and unjust system, demoralizing to employees, nourishes short-term performance, annihilates teamwork and encourages fear
Explain the following Deadly Disease of Management: Mobility of Management
No roots in the company, no knowledge of the company, no understanding of its problems
Explain the following Deadly Disease of Management: Use of Visible Figures Only
No use of figures that are unknown and unknowable, encouraged by business schools
Explain the Demise of Kodak
Kodak’s main reason for going out of business is that they tried to prolong the life of it’s existing technologies, despite inventing the digital camera in 1975 (philosophy of continuous improvement was not embraced, case of too little to late)
Explain the difference of the following element between craft, mass, and lean production systems: The workers
Craft: Highly skilled workers or artisans
Mass: Unskilled or semiskilled workers
Lean: Teams of multi-skilled workers
Explain the difference of the following element between craft, mass, and lean production systems: The tools
Craft: Simple, flexible tools
Mass: Expensive, single purpose machines
Lean: Highly flexible machines
Explain the difference of the following element between craft, mass, and lean production systems: The products
Craft: Unique, individualized, custom made products
Mass: Standardized products
Lean: Large product variety
Explain the difference of the following element between craft, mass, and lean production systems: The productivity/cost
Craft: Low productivity/high cost
Mass: High productivity/low cost
Lean: High productivity/low cost
Explain the Demise of Nortel
Canadian giant in global industrial space. Invested in developing/selling fiber optic communications equipment, causing an increase in stock price. Market became saturated with this tech in late 90s/early 00s, coupled with dot-com bubble lead to a downturn in sales. Company started to lose money, but restructured and profited in 2003 with healthy executive bonuses. Strategy of short-term profitability favoured over long-term sustainability by selling old hardware with new software upgrades that nobody wanted. Sudden rise in profits raised suspicions, company was audited, and $900 million in liabilities were not accounted for and $3 billion in profits were not booked properly.
What differentiates winners from losers in terms of competitive advantage
Winners do the following:
Make things better
Make things cheaper
Make things faster
Are more agile
Summarize TQM in one sentence
TQM is management that focuses the organization on knowing what customers need and want and building capabilities to fulfill those needs and wants
What are two key differences between lean organizations and other organizations
1st: Lean organizations greatly increase the number of people involved in the effort
2nd: The practices employed to identify and prioritize problems (starts with setting difficult goals relating to the key lean principles, then looking for obstructions to meeting those goals)
What is scientific management
A complete management philosophy that includes time analysis, wage incentives, separate responsibilities for managers (planning) and workers (doing), an accounting system, and principles for running a business on a scientific basis, as well as techniques for systematizing and improving economies of work motion
What is a consequence of scientific management
It deskills jobs by taking the thinking away from the factory workers and giving them to managers and specialists
Where can incremental improvements be made in a manufacturing plant
Processes, technology, systems, and subsystems
Describe what an innovation improvement is and how it affects the s-curve
It is a major innovation that begins a new S curve. Usually only a component or subsystem is replaced, or a newer technology replaces an older technology. During the transition to the new system from the old system, there is a temporary dip in performance (might get worse before it gets better). Then over time, the new curve is higher than the old curve
Explain the following chart’s behaviour: Technology S-Curves
y-axis: performance
x-axis: time
series 1: old technology
series 2: new technology
Series 1 is a gradual S-curve, Series 2 is a steeper S-curve, but the end value of the S-curve is influenced heavily by uncertainty (the future is hard to predict)
Explain the following chart’s behaviour: Opportunity Implications
x-axis: time
series 1: performance
series 2: optimization opportunities
Series 1 is a steep S-curve, series 2 looks like an inverse parabola where the vertex is situated at the steepest point on series 1 (performance increases most quickly when there are the most optimization opportunities)
Explain the following chart’s behaviour: Expertise Implications
x-axis: time
series 1: performance
series 2: expertise required
Series 1 is a steep S-curve, series 2 looks like a steep S-curve leading series 1, series 2 doesn’t flatten out at the top of the s curve (as performance is increased, more expertise is required to improve processes even further for marginal changes)
Explain the following chart’s behaviour: Investment Implications
x-axis: time
series 1: performance
series 2: level of investment
Series 1 is a steep S-curve, series 2 looks like a normal parabola with the vertex situated at the steepest point on series 1 (the least amount of investment is needed when performance is increasing rapidly, but before and after, investment is needed in order to improve initially and after it has been mostly optimized)
How do variable and fixed costs vary along the S-curve
For fixed cost, there is a lot at the start, then drops in the middle, then increases at the end, but not to the same peak as it was at the beginning. For variable costs, they start of low due to the minimal output, then peaks at about half way through the S curve, then drops off near the end as further optimizations are made, but not to the low it was at the beginning
Explain how long lean transitions take as well as their costs/benefits
Lean transitions can take anywhere from a few weeks to decades (principles are straightforward and can be implemented quickly, but perfection takes a very long time). The costs of lean are usually low, in many cases, companies replace expensive equipment with simpler and cheaper equipment. The benefits of transitioning into lean is doubling labour productivity, major reduction in throughput times, major reduction in inventory, improved quality, and reduced time to market
Describe process re-engineering
The fundamental rethinking and redesign of business processes to achieve dramatic improvement in contemporary measures of performance such as cost, quality, service, and speed
What are the fundamentals of process re-engineering
- Simplify and eliminate non-value added steps
- Start from scratch (don’t automate existing process)
- Processes are often interrelated and a systems view is required
Name three techniques for finding and implementing improvements
- PDCA cycle
- Five-why process
- Value analysis/value engineering
Explain the four phases of the PDCA cycle
- Plan: Identify problem, develop plan for improvement
- Do: Implement plan on test basis
- Check: Is the plan working?
- Act: Institutionalize improvement, continue cycle
The ‘Plan’ phase is the most involved phase of the PDCA cycle. Explain it in detail
- Collect data through systematic observation/documentation
- Define problem with a clear statement of root cause
- Use five-why and magnificent seven data collection/analysis tools
- State goal or desired situation after problem has been solved
- Develop a solution
- Prepare plan to implement the solution with roles and a schedule
Explain the five-why analysis and what it accomplishes
The five-why analysis is simply asking why to an issue five times. It helps separate root causes from symptoms
Explain the 6-sigma quality-improvement process DMAIC
Define: Define problem, customer of problem, and critical-to-quality attributes (CTQs) that customers consider most important
Measure: Identify processes that influence CTQs, measure their performance
Analyze: Determine causes of problems and poor performance in those processes, determine key factors causing large or erratic process variation
Improve: Confirm impact of key factors on CTQs, determine methods for measuring variation, maximum acceptable range of variation, and methods to make processes acceptable
Control: Employ methods to ensure processes remain within acceptable range
True or False: DMAIC and PDCA both rely heavily on the Magnificent 7 data collection and analysis tools
True
How would you define value with a mathematical equation
Value = Sum of all desirable attributes / Sum of all undesirable attributes
Who defines the value of a product
The customer
What is a one sentence synopsis that defines value analysis/engineering
How much value does something (components/features/processing steps/etc.) add compared to its cost?
What is the main goal of value analysis/engineering
Eliminating things that add cost but not value
Explain the employee involvement principle of lean production and what elements are required to make this possible
Improvement must be everyone’s job, getting everyone involved is how everything improves. The required elements to encourage employee involvement are:
- Opportunity
- Authority
- Skills
- Recognition
- Respect
- Training and tools
What is Nemawashi and how does it relate to employee involvement
Nemawashi is Japanese for ‘obtaining consensus’ and it is an inherent feature of PDCA. It relates to employee involvement because once a plan is identified, the planner involves all who will be affected by the plan or approve its activities. Consensus does not mean 100% agreement, but it is an expression of support for the decision. Management steps in only if consensus cannot be reached
What are the Magnificent 7 problem solving tools
- Check Sheet
- Histogram
- Pareto Analysis
- Scatter Diagram
- Process Flowchart
- Cause & Effect Analysis
- Run Diagram
Define and describe the following magnificent seven problem solving tool: Check Sheet
A simple, structured form used to collect and record data in real time at the location where the data is generated. It helps organize and categorize information, making it easy to identify patterns or trends and prioritize problem areas. Physically, it is just a sheet with a bunch of tally marks in categories that are dependent on the problem at hand.
Define and describe the following magnificent seven problem solving tool: Histogram
A graphical representation of the distribution of numerical data. It shows how often each range of values in a data set occurs, making it easy to identify the frequency of different outcomes or deviations in a process.
Define and describe the following magnificent seven problem solving tool: Pareto Analysis
Based on the 80/20 principle, this tool helps identify the most significant factors in a process by showing which issues cause the most problems. It looks like a bar chart that highlights the ‘vital few’ causes versus the ‘trivial many’ by sorting the causes from those that cause the most issues to those that cause the least issues (left to right).
Define and describe the following magnificent seven problem solving tool: Scatter Diagram
A simple scatter plot. By plotting the data, you can see if a correlation exists, helping to identify potential causes of variability.
Define and describe the following magnificent seven problem solving tool: Process Flowchart
A visual representation of the steps in a process. It helps clarify how a process flows from start to finish, identifying inefficiencies, redundancies, or bottlenecks that can be optimized.
Define and describe the following magnificent seven problem solving tool: Cause & Effect Analysis
Also known as a fishbone or Ishikawa diagram, this tool helps identify potential causes of a specific problem. It visually breaks down possible root causes into categories such as people, machines, methods, and materials. Physically, it looks like a horizontal line pointing to the quality problem with several diagonal offshoots. Each offshoot represents various categories with the associated potential root causes listed below each category.
Define and describe the following magnificent seven problem solving tool: Run Diagram
A line graph that plots data points over time to show trends or patterns. It helps monitor process performance and highlights variations, making it easier to spot changes that need attention for process improvement.
True or False: Bias is rarely an error in root cause analysis because the goal of the analysis is to define an objective cause and is not susceptible to subjectivity
False, bias is one of the most common errors in root cause analysis. Bias is amplified by the urgency to find a solution that may be costing the company time or money, but bias itself will also cost the company time and money if left unnoticed.
What are the six different types of biases that can affect the decision making process
- Anchoring Bias
- Bandwagon Effect
- Optimism Bias
- Category Size Bias
- Cognitive Dissonance
- Planning Fallacy
Describe the anchoring bias and how it can be countered
Causes us to rely on the first piece of information we are given about a topic. To counter this, keep an open mind
Describe the bandwagon effect and how it can be countered
The habit of vectoring to a root cause because many other people hold the same opinion. To counter this, slow down the decision making process and question why certain opinions are held
Describe the optimism bias and how it can be countered
The tendency to overestimate the likelihood of success and underestimate the likelihood of failure. To counter this, consider all the factors and present all the scenarios before communicating information to the organization
Describe the category size bias and how it can be countered
The result of basing decisions upon a large sample size rather than a small category, even if the outcome of each is equally likely. Can be a result of misinterpreting data. To counter this, review the logic on which the decision has been made at the micro level versus at the macro level.
Describe cognitive dissonance and how it can be countered
The tendency to avoid having conflicting beliefs and attitudes because it makes us feel uncomfortable. To counter this, stop and examine why you may have an opinion, and if the opinion is based on fact or personal factors
Describe the planning fallacy and how it can be countered
The tendency to underestimate the amount of time, costs, and risks associated with task completion. To counter this, consult with others and in particular, those not associated with the issue to scrutinize plans and create something more realistic
Describe the iron triangle
At the first vertex, there is scheduling, which includes deadlines and estimates. At the second vertex, there is resources, which includes people and budget. At the third vertex, there is scope, which includes features and function. All these vertices encompass the word quality at the center of the triangle. This model describes how the quality of work is constrained by the project’s resources, schedule, and scope. If one of these constraints have changed, the others must change, or the quality of the project will suffer (i.e., project can be completed faster by increasing budget or limiting scope). The model does not take into account the limitations of people and organizations (i.e., learning curves, adapting to new technologies, etc.)
Describe quality circles
Self-directed work teams that meet regularly to identify and solve problems. They are trained in the use of problem solving tools and the PDCA cycle.
Define waste (muda)
Anything other than the minimum amount of resources (material, labor, parts, equipment, time) absolutely necessary to add value to a product or service (i.e., if the activity does not add value to the customer, it is muda)
What are the effects of waste
Adds cost/time to the end product/service, adds no value to the client, opportunity for mistakes
What are some necessary non-value-added tasks
Planning, scheduling, purchasing, quality inspection, process/equipment changeover, equipment preventative maintenance/repair. These can’t really be eliminated, but they can be optimized
What are Toyota’s seven wastes (note: these focus on factory operations only)
- Overproduction
- Waiting time
- Transportation
- Processing
- Inventory
- Motion (non-work)
- Defects
What are the causes and effects of overproduction
Causes:
- Producing faster than the next process step
- Batching works or moves for economic reasons
- Unbalanced resources
- Producing “just in case” vs “just in time”
Effects:
- Queues
- Finished WIP
- Delays
What is the best way to reduce overproduction
Produce only on demand
What are the causes and effects of waiting
Causes:
- Response slower than required
- Unavailable resources
- Waiting for answers
- Reactive vs Proactive
Effects:
- People (very bad), machines, and material waits
What is a monument
A machine that is too big to move and must be operated in batch mode. Monuments are bad but sometimes unavoidable
What are some ways to reduce waiting
- Discourage busy work so waiting can be identified
- Eliminate sources of waiting, such as:
- Setup time
- Equipment breakdown
- Erratic schedules
- Large-batch production
- Defects
What are the causes and effects of transportation
Causes:
- Long distances between processes
- Work areas set up by similarities, rather than product flow
- Approval processes
Effects:
- Inventories
- Batches of product awaiting transport
- High cost due to cost of energy of transport
What are some ways to reduce transportation
- Rearrange facility layout to shorten distances
- Coordinate stages of process
- Use good housekeeping
- Improve transportation methods
What are the causes and effects of inventory
Causes:
- Cheaper to buy in bulk
- Setup takes too long, therefore do it all at once
- Work flow is slow to arrive at my station, so it will be slow to leave my station
Effects:
- Increased space requirements
- Financial resources tied up
- Obsolescence and potential scrap
- Handling costs (receiving, counting)
INVENTORY HIDES WASTE
What are some ways to reduce inventory
- Produce only what is required or demanded
- Produce in small batches
- Procure in small batches
- Eliminate the reasons for inventories
What are some reasons for inventory
- Uncertain demand
- Product defects
- Equipment breakdown
- Erratic schedules
- Poor housekeeping/inventory control
- Part obsolescence (specialized parts with one supplier vs. standard parts with more than one supplier)
What are the causes and effects of motion (non-work)
Causes:
- Poor organization
- Poor process layout
- Things are where they should not be, not placed in proper location after use
Effects:
- Searching
- Repetitive movement and strain
- Waiting
What are some ways to reduce motion (non-work)
- Improve facility layout
- Improve process and job design
- Clean up and organize workplace
What are the causes and effects of defects
Causes:
- Lack of skill or training
- Poor design
- Inadequate analysis / product validation
- Rushing
- Avoid confrontation and asking of the hard questions
- Absence of standards
- Premature selection of one alternative
Effects:
- Extra resources for inspection and rework
- Scrap
- Delays
- Warranty claims
- Dissatisfied Customers
What are some ways to reduce defects
- Reduce process variation (statistical process control)
- Implement a system to preclude defects (poka yoke)
- Implement system to immediately identify and rectify defects (source inspection)
What is Poka Yoke
“Mistake proofing”, design the product so that it cannot be assembled incorrectly (think plug and outlet)
What are Canon’s nine wastes
- Operations (motion)
- Work-in-process (inventory)
- Defects
- Equipment (procurement and operation)
- Expenses (personnel, materials, tools, etc.)
- Indirect labour (management functions)
- Planning (inappropriate methods, machinery, purchasing)
- Human Resources (people given tasks better done by machines; not given tasks that require judgment and creativity)
- Startup (setup/changeover time)
What are the causes and effects of over-processing
Causes:
- Lack of knowledge
- No standard work
- Appreciation of customer activities lacking
Effects:
- Added time
- Wasted effort
- Added costs
- Product variability
What are the causes and effects of the poor use of people’s skills
Causes:
- No time to listen
- Mismatch between skills and work
- Lack of employee empowerment
Effects:
- Lost opportunities
- Lower morale
- Barriers between team members
What are the causes and effects of re-prioritization
Causes:
- Multitasking
- Poor planning
- Interruptions
- Lack of functional flow
Effects:
- Lost time
- Customer / employee frustration
- Cost
Explain what Design for Environment (DFE) is
A design principle with the following pillars:
- Minimize use of environmentally unfriendly materials and processes
- Minimize energy use
- Minimize waste byproducts
- Maximize use of environmentally friendly alternatives
- Design products for easy repair
- Design products for easy disassembly after disposal
What are the seven JIT principles
- Simplification
- Cleanliness and organization
- Visibility
- Cycle timing
- Agility
- Variation reduction
- Measurement
What are the Five S’s
A way to manage cleanliness and organization. The Five S’s are:
- Sort - proper arrangement and organization
- Straighten - orderliness
- Shine - cleanup
- Standardize - cleanliness
- Sustain - discipline
Explain the ‘Sort’ principle in the Five S methodology
Do things in the proper order and eliminate unnecessary things
Explain the ‘Straighten’ principle in the Five S methodology
Specify a location for everything, designate locations by number or colour or some other method, and put things where they belong
Explain the ‘Shine’ principle in the Five S methodology
Specify recommended procedures for cleanup, follow the procedures, and check over all the work
Explain the ‘Standardize’ principle in the Five S methodology
Dust, wash, and maintain equipment to keep equipment and the workplace in the best possible condition
Explain the ‘Sustain’ principle in the Five S methodology
Scrutinize practices, expose the wrong ones, learn the correct practices, and implement them
What are the benefits of 5S
- Eliminates need to search for items
- Reduces probability of errors
- Increases productivity
- Improves quality
- Ensures shorter response time
- Improves morale
- Improves appearance and professional image of the workplace
True or False: 5S covers the entirety of the ‘Cleanliness and Organization’ principle of JIT
True
Explain the ‘Simplification’ principle of JIT
Simplify products, processes, and procedures by reducing steps and complexity in all areas as much as possible within reason
Explain the ‘Visibility’ principle of JIT
All information should be visible, including areas like tool boards, kanbans, work stations, machine controls, and more
Explain the ‘Cycle Timing’ principle of JIT
Processes should be repetitive and predictable, cycle time should be based on demand
Explain the ‘Agility’ principle of JIT
Responding to unpredictable change, such as:
- Changing demand
- Changing product mix
- New products
What are some elements of Lean Production that embody the ‘Agility’ principle of JIT
- Short setups and small batches
- Flexible equipment
- Flexible workers
Explain the ‘Variation Reduction’ principle of JIT
Variability always makes performance worse, so the goal is to reduce or eliminate variability of any kind, such as:
- Batch and queue has high variability because every day is different
- Small lot, repetitive, flow production has low variability because every day is the same
Explain the ‘Measurement’ principle of JIT
Without measurement, it is impossible to know if things are getting better or worse, so there must be metrics for measurement, otherwise why perform measurement at all
What is value stream
The flow of physical items, like patients, customers, or materials, through a process, as well as the flow of information related to the flow of these physical items
What is value stream mapping
A graphical method to identify and eliminate waste in a process by mapping the flow of material and information in the current state, future state (typically within a 3-6 month period), and ideal state. It should map all value add and non-value add activities, as well as formal and informal communication channels
How do you create and use a value stream map
- Identify the target product, product family, or service
- Draw a current state value stream map, which shows the current steps, delays, and information flows
- Assess the current state value stream map to identify waste
- Draw a desired future state value stream map
- Work toward the future state condition
What are the steps to creating the actual value stream map
- Identify Start and End Points
- Identify Activities (process/activity steps, information boxes)
- Add Inventory to the Map (inventory in a process is equivalent to a wait time, i.e., if # of requests that must be completed per day is 25 then an inventory of 100 is 4 days etc.)
- Add a Timeline
True or False: When constructing the current state map, the areas where incidental work occurs will form the basis for Kaizens in the future state map
False, Kaizens are used for pure waste work, but may be rarely used for incidental activities if deemed necessary on a case-by-case basis
What are the high-level steps to leading a VSM event
- Define the process (inputs, outputs, level of detail)
- Select a process owner (leads the event)
- Plan the event
- Form a process inspection team (Kaizen team, includes everyone involved at all levels of the process)
- Do a walk-through of the process at the workplace (Gemba). Start with the last step of the process and work backward to the first step
- Observe the process, ask questions, take notes (ask worker if they know how their work fits into entire process, how do they know what to do, are certain process steps batched, etc.)
How does value stream mapping differ from flow charting
VSM focuses on flow rather than steps and includes all important information associated with the flow of the process
True or False: VSM is a systems view of the process
True
What are the types of activities that could be included on a value stream map
- Value Adding - Any activity enabling the production of quality products/services in a timely manner based on customer expectations (deliverables and cost)
- Incidental Work - Any activity that does not add value but is currently necessary
- Pure Waste - Any activity that does not add value and is not necessary to meet the needs of the customer
What is some typical information collected when creating a current value stream map
Most important information:
- Employees per operation (# of employees it takes to complete a process step)
- Batch Size (# of parts/sub-assemblies produced in one process step)
- Distance/Movement (physical distance from one step to the next)
- Reject/Rework rate (fallout rate from a certain step requiring parts to be reworked or scrapped)
Other information:
- Cycle/Lead/Processing/Changeover time
- Work disruptions
- Planned/Unplanned downtime
- Availability (machine/labour)
- Inventory
- Improvement opportunities (identified, but not acted upon)
- Schedules
- Policies/Procedures, such as collective agreements
- Customer feedback
In VSM, where should you start
Always start with the customer and their rate of demand (“are we processing on customer demand, or just trying to get ahead?”). Should be a focus on items that are easy to implement first, followed by a focus on items not yet completed. Problems and opportunities should be highlighted, and each step must create value for the client
What is the definition of lead time
The door-to-door time between the placement of an order to the delivery of the product (pre-manufacture time + cycle time + post-manufacture time). It is indicative to the responsiveness of an organization
What is the definition of actual cycle time
The unit production rate (not to be confused with required cycle time or Takt time). It includes time to manufacture the product, including waiting time in between different processes, as well as time to get materials, etc. In a balanced process, this time should be equal and as close as possible to the required cycle time
What is the definition of % uptime
The percent that the process equipment is available to work when it needs to work
What is the definition of changeover time
The time it takes to retool a piece of equipment to produce a different part
In VSM, who is the value stream leader
A person that provides cross-departmental system-wide focus, typically reports to top site managers, has the responsibility for the implementation of the future/ideal state and have the authority to make changes end-to-end. They also have strong project management/communication skills
What is the definition of wait/queue time
The time between steps when a product/service is waiting for the next step in the process to execute
What is value add time
The portion of the lead time that transforms the product in a way that the customer is willing to pay for
Explain how to implement the ideal value stream through a lean implementation plan
The lean implementation plan is a project scope statement mandated by senior stakeholders to whom the VSM leader is accountable. It shows what to do, when to do it, and by who
What is Takt Time
Takt Time is the effective working time per day divided by the demand per day (e.g. for one process, assume an 8 hour shift, with 30 min lunch, and 2 15 min breaks with a demand of 500 units per day, Takt time = [480-60]/500 = 0.84 mins or 50.4s)
What is Total Quality Management (TQM)
Focus entire company on all aspects of quality with emphasis on the customer’s perspective, the customer is interested in value, which combines both quality and cost
In VSM, who is/are the customer/s
May be internal or external to the organization. Must develop an ability to gain an overview of the entire process, and while internal customers are important, it must be ensured that the needs of the end client are met
In VSM, what are some ways to improve flow
- Reduce handoffs
- Eliminate redundant activities (approvals, rework, etc)
- Improve process organization and order (5S)
- Empower employees to improve flow
- Eliminate batch mentality
Fill in the blank: If within the value stream you cannot create flow, link the processes by creating __________
pull
Where you create pull, establish inventory levels for max/replenishment points. Once linked, determine where the work will be scheduled
What is quality from the consumer and producer perspective
Consumer’s Perspective:
- Quality characteristics
- Value (benefits - cost)
Producer’s Perspective:
- Conformance to requirements/specifications
- Emphasis on defect detection/prevention
- Minimization of variation
What are the costs associated with TQM and what do they represent
- Prevention costs - build it right the first time
- Appraisal costs - inspection and testing
- Internal failure costs - scrap and rework
- External failure costs - warranty claims, recalls, lost business
What are the three areas to improve quality
- Quality of design
- Quality of conformance
- Quality of service
How do you improve quality of design
- Meet the customer’s needs
- Design for manufacturability
- Build quality into the product or service
How do you improve quality of conformance
Minimize and control the process variation to satisfy the design specs every time
What is the benchmarking process
- Determine what to benchmark
- Determine what to measure
- Determine who to benchmark
- Collect data
- Analyze data
- Set goals and action plans
- Monitor the action
How do you improve quality of service
The customer must be prioritized above all else
What is benchmarking
Essentially making a ‘standard’ to measure against to ensure that you are meeting, exceeding, or falling below it
What are the types of inventory
- Raw materials
- Purchased parts/supplies
- WIP
- Component parts
- Tools, machinery, and equipment
- Finished goods
What is the procedure for policy deployment
- Develop a long-term vision
- Determine annual policies to support the long-term vision
- Deploy the policy company-wide through participation in planning
- Implement the policy
- Audit the process and plans regularly
- Audit the process annually by top management
What is policy deployment
Focusing and directing all activities and processes so they support the company’s vision, mission, and long-term strategy
What are the visible costs of inventory
Carrying cost (cost of holding an item in inventory such as floor space and utilities) and ordering cost (such as cost of replenishing inventory)
Describe the ABC classification system
A items - most important items, items with high sale volumes, high costs, or both
B items - less important, may not sell as quickly as A items or may be cheap to produce
C items - least important, makes up largest inventory but smallest value
What assumptions must be made in order to use EOQ
- Constant demand over time
- No constraints on lot size
- Only costs are associated with inventory holding and fixed costs for ordering/setup
- Demand for one item is not linked to another
- No uncertainty in lead time for orders and supply
What is economic order quantity (EOQ)
The order quantity that minimizes the net cost between ordering cost (decreases with order size) and inventory cost (increases with order size)
What are the hidden costs of inventory
- Longer lead times
- Reduced responsiveness (why bother addressing failures, i have plenty of stock)
- Underlying problems are hidden
- Quality problems are not identified immediately
- No incentive for improvement of the process
What are the two forms of demand
Independent demand (finished products, based on market demand) and dependent demand (parts that go into finished products, function of independent demand)
What assumptions must be made in order to use EPL
- Demand is known with certainty
- Demand is relatively constant over time
- No shortages are allowed
- Lead time for the receipt of orders is constant
- The order quantity is received all at once
What is an economic production lot (EPL)
The lot size that minimizes the net cost between setup cost (decreases with production lot/batch size) and inventory holding cost (increases with production lot/batch size)
What is the bullwhip effect
If a retailer sees an increase in demand for a certain product, they order enough of the product to meet demand AND a bit more to keep in inventory. Then, the distributor orders more to meet demand and keep in inventory, and so on along the supply chain
What are the causes of the bullwhip effect
- Over- or under-reacting to market demand expectations
- Batching orders
- Cost variations in commodities
- Inaccurate forecasting
What are some ways to counter the bullwhip effect
- Use accurate forecasting tools
- Collaborative supplier-customer relationship
- Employing a demand-driven approach
Explain small-lot production and smooth flow production
Smooth flow requires production in small lots with frequent changeovers. By making parts in frequent, small lots, the flow of material is much smoother and more repetitive, less WIP is required, and lead times are shorter
What are the benefits of small-lot production
- Requires less space and capital investment
- Moves processes closer together
- Makes quality problems easier to detect
- Makes processes more dependent on each other
What is push production
The production methodology behind traditional batch-and-queue production, starts at the manufacturer’s first step in the process as material is available and ends as the customer’s final product. This leads to high amount of WIP, long lead time, and difficult scheduling
What is pull production
The production methodology behind lean/small lot production, starts at the customer’s order and signals the manufacturer’s first step (kanban). Pull systems operate with very little inventory to avoid disrupting production, parts must be 100% defect free, and equipment must be reliable
Describe the concept of transfer lots and how lean manufacturing and traditional manufacturing differ
Traditional manufacturing - an entire lot is processed at one machine before being moved to the next machine
Lean manufacturing - transfers small amounts more frequently through superior material handling, resulting in much shorter processing times
