EIN6935allC13 - LEAN Six Sigma

Final Exam Study Guide

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Introduction to Six Sigma and LEAN
The Deming P-D-C-A Cycle: 1. Plan: Identify problem Develop plan for improvement 2. Do: Implement plan on test basis 3. Check / Study
Is the plan working 4. Act: Institutionalize improvement, Continue cycle
Six Sigma
Created by Motorola in mid 80s
Bill Smith of Motorola: Father of Six Sigma
Mikel Harry: Creator of the DMAIC Process, Deployment tactics (Belts)
Other companies including Healthcare, Financial, Educational, and Government sectors adapted quickly
Honeywell: Fastest Implementation of Six Sigma Yet!!
GE: Important contributions to the evolution of Six Sigma Jack Welchs 4Es (Energy, Energize, Edge, Execute) and 1P (Passion)
Generated-sustained success
Set a performance goal for everyone (common goal, common language)
Enhanced value to Customers and Stakeholders
Accelerated the rate of improvement
Executed strategic change
Focuses on both the External and Internal customers
Applicable to not only the manufacturing floor, but to non-manufacturing (service) areas as well
Requires the commitment and support of the leadership
Engages the many silos of the enterprise
Six Sigma is:
An overall strategy to accelerate improvements in processes, products and services
A measurement of how effective strategies are in eliminating defects and variations from processes, products and services to
increase yield.
Sigma is a statistical unit of measure that reflects process capability
The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per million defective, yield,
and the probability of a failure/error.
The Six Sigma Improvement Methodology helps us identify and reduce/eliminate sources of variation by applying the various tools,
narrowing the number of input variables and optimizing the process
LEAN is an umbrella program to create value to the customer by eliminating waste. If we get rid of waste and variation, we can get a
more improved and consistent process.
Criteria for Project Selection: Results on Business, Feasibility, Organizational Impact Criteria
Variation exists everywhere, impacts the customer, and needs to be understood and controlled
Customers feel the VARIATION Not the Mean
Components of Variation
Common or Controlled Cause Special or Assignable Cause
Normal bouncing around of any process. Uncontrolled variation.
Need to modify process/technology to reduce. Due to an assignable input.

The Six Sigma Process Improvement Methodology Phases: Define, Measure, analyze, Improve, Control
The Evolution of LEAN:
1940s 1950s 1970s 2000
The Foundation to LEAN - Training Within
Industry: The Origin of Japanese
Management and Kaizen
Job Instruction
Job Methods
Job Relations
Program Development
SPC
TQM
Quality Circles
Dr. Edwards Deming
Joseph Juran
Kaoru Ishikawa
Eiji Toyoda
Taichi Ohno
Shigeo Shingo
Toyota Production System
Just-In-Time
Continuous Flow Manufacturing
Stockless Production
World Class Manufacturing
THE MACHINE THAT CHANGED THE
WORLD
Womack, Jones, & Roos
MITs $5M, 5-year study of Japanese,
American, and European automobile
assembly plans

EIN6935allC13 - LEAN Six Sigma
Final Exam Study Guide

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The 14 Management Principles of the Toyota Way: Management
philosophy, The Toyota Production System (TPS)

The LEAN Principles (according to James Womack)
1. Specify value in the eyes of the customer
2. Identify value stream and eliminate waste
3. Make value flow
4. Allow the customer to pull
5. Continuously improve in pursuit of perfection
The Concept of LEAN
- CADENCE: The measure or beat of movement
- FLOW- A smooth uninterrupted movement
- BALANCE- Arrange so that one set of elements exactly
equals another
- SYNCHRONIZATION - To cause to operate with exact
coincidence
- FLEXIBILITY - Ready capability to adapt to new, different
or changing requirements in time and rate

DEFINE Phase - Objective: To identify the business improvement opportunity, define critical customer
requirements, map the high level processes and value stream map and build effective team

According to The Six Sigma Way, there are two elements that are critical to the closed-loop business (Six Sigma) system.
1. Finding out which X variables have the most influence on the Y variables
2. A company must use the changes in Y variables to regulate the organization and keep it running right.
Problem/ Opportunity Definition
COMPLETE and DETAILED description of the problem that needs to be solved or a potential opportunity that needs to be exploited
- Should NOT contain causes or solutions
- Must remain FOCUSED on the problem or the opportunity
Translating the Customer Needs - CTS : Critical To SATISFACTION
- CTQ : Critical To QUALITY
- CTD : Critical To DELIVERY
- CTC : Critical To COST
The KEY to Critical-to-Satisfaction (CTSs) issues is to make them MEASURABLE!
Ways to identify Critical-To-Satisfaction Issues:
Direct contact a small representative group. ASK THE CUSTOMER (Surveys, Face-to-face, etc)
Received requests or demands Performance Scorecards
KANO MODEL Listen to the Voice of the Customer (VOC)
QUALITY FUNCTION DEPLOYMENT (QFD): Also referred to as the House of Quality
A process for product planning and development in which the key customer wants and needs are deployed throughout
the organization in all stages of the product development.

Lean Principle #1: SPECIFY VALUE IN THE EYES OF THE CUSTOMER
- A LEAN enterprise thinks more about its customers than it does about running machines fast to absorb labor and overhead
- Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it.

Definition of Value Added activities: These are activities that the customer is willing to pay for. Activities that:
change the size, shape, fit , form, or function of material or information
for the 1st time
to meet customer requirements.
Definition of Non-Value Added activities: These activities the customer does not want, does not need and is NOT willing to pay.
These are activities that should be eliminated, simplified, reduced or integrated
Order Processing Storage (Material, WIP and Finished) Machine Set-Up Equipment & People Downtime
Transporting Rework Inspection & Testing

Project Boundaries: Well Defined BEGIN & END points prevent scope creep!
Projects, Actions and Tasks always come back to this simple process equation: Y = f (x1, x2, x3, xn) which is referred to as the Big Y -
Output (Y) equals some function of all the inputs (xs)
Brainstorming: A way of generating radical ideas. Criticism and judgment cramp creativity
EIN6935allC13 - LEAN Six Sigma
Final Exam Study Guide

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Affinity Diagrams: Essential when facts or thoughts are uncertain and need to be organized, when ideas need to be clarified, and when
unity within a team needs to be created
Typical Six Sigma Performance Metrics:
Defects Per Unit (DPU): The average number of defects observed when sampling a population.
First Time Yield: Total number of units that get through an operation without being reworked or scrapped divided by the total
number of units
Parts Per Million (PPM): The Average Defects Per Unit normalized to one million.
Defects Per Million Opportunities (DPMO): Average Defects Per Unit divided by the number of opportunities to make a defect
normalized to one million
Rolled Throughput Yield is the product of the First Time Yields of all steps in a process It is also the probability of zero defects
through all steps of a process (example: RTY = 0.9555 X 0.97 X 0.944 = 0.874 or 87.4%)

Typical LEAN Measurements
Lead Time - The amount of time, defined by the supplier,
which is required to meet a customer request or demand.
The total elapsed time from when a customer places an
order to the time the customer receives that order.
Typically 95% of Total Lead Time is Non-Value Added!!!
Process Time - Value adding component of lead time
Cycle Time - The total elapsed time to move a unit of work
from the beginning to the end of a physical process.
Queue Time The time the unit seats idle, waiting for
processing
Throughput Time - The amount of work done in a given
amount of time
Set-Up Time The time of actually converting the equipment

How do we use Takt Time
Cycle Time must always be less than Takt Time
Number of Operators= Total Work Content/ Takt Time Example: Number of Operators = 10/3.9=2.7 ~ 3 operators

Though Map (T-map): Graphical representation of your thought process and approach to assist you in satisfying your project goals.
Iterative process - used throughout your project and updated as you go!
It typically includes:
Questions asked Decisions made Problem Statement Barriers encountered
Answer/ Knowledge obtained Resources needed Tools used Data collected

Project Charter - The official record of each project. A LIVING document requiring ongoing updating
Supplier Input Process Output Customer (SIPOC) Form of Process mapping
The four classifications of process inputs are: Critical, Controllable, SOP and Noise
Project Objectives: In measurable terms, what is the project trying to accomplish
Realistic goals must be SMART
S Specific M Measurable A Attainable R Relevant Timely
LEAN Principle #2: IDENTIFY VALUE STREAM
- Value Stream consists of ALL ACTIONS required to complete a product or service
- Activities that clearly add value
- Activities that add no value but cannot be avoided (Type One Muda)
- Activities that add no value and can be avoided (Type Two Muda)
Value Stream Mapping is a method of visually mapping ("from door to door) the sequence and movement of materials, production
activities, and information
- The process includes physically mapping the "current state" while also focusing on where we want to be, or our "future state"
blueprint, which can serve as the foundation for other LEAN improvement strategies
- A pencil and paper tool that requires physically observing the factory floor
- A tool that highlights where waste is and then develops a plan to eliminate it


EIN6935allC13 - LEAN Six Sigma
Final Exam Study Guide

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Value Stream three main parts
1. The flow of MATERIALS, from receipt from suppliers to delivery to customers
2. The TRANSFORMATION of raw materials into finished goods
3. The flow of INFORMATION that supports and directs both the flow of materials and the transformation
Values Stream Map is NOT
A flowchart
Based on engineering standards or old information
A once a year planning session
Benefits of VSM
- To see across the functional boundaries over which a products value stream flows
- To understand the linkage between the information flow and material flow.
- It ties together LEAN concepts and techniques, avoiding cherry picking and gut feel improvement initiatives.
- Improves customer response times and customer satisfaction.
- Provides focus and understanding of improvement efforts.
- Increases profitability through improved TAKT times and daily throughput rates.
Create a Current state VSM
1. Draw customer and data box
2. Draw basic production processes and collect data
3. Draw inventory triangles where material stops
4. Draw in delivery modes, quantities, and frequencies for customer shipments
5. Add suppliers, related data box, and delivery details
6. Insert production control as a process box, and then add narrow lines to represent information flow.
7. The flow of information that supports and directs both the flow of materials and the transformation of raw materials into
finished goods.
8. Draw a striped arrow between operations where push movement exists
9. Draw a timeline under the process boxes and inventory triangles to compile the production lead time and processing time
7 classical tools of Quality Control
Tool What It Is Used For Important Notes
Check (Tally)
Sheet
To provide an easy way to keep track of the
frequency of occurrences.
Provide a complete description for the categories leaving
little/no room for confusion between the categories.
Histogram

To display variable data so that the pattern of

variation can be identified
A bi-modal or multi-modal distribution is almost always a sign
of a special cause of variation in the process or in the data
collection technique
Pareto

To organize and prioritize data from highest to
lowest.

The team or organization should focus on the vital few (those
items with the highest levels) and not the trivial many (those
with the lowest levels).
Proves 20% of problems cause 80% of impact.
Cause &
Effect
Diagram


Similar to Affinity Grouping, it is used to group
items. However, the grouping is done in a more
structured manner; inputs (causes) are
categorized to show how they lead to the
output (or the effect.)
Inputs can often be sorted into 6 categories (the 6 Ms)
Method, Mother Nature, Material, Manpower, Machine,
and Measurement

Also called Fishbone or Ishikawa Diagram.
Basic
Flowchart
To visually show the steps in a process.

The detail that should be put into a flowchart depends on
how it will be used.
Scatter
Diagram
To identify relationships between two process
variables
If investigating dependence, set the independent variable on
the x-axis and the dependent variable on the y-axis.
Control
Chart
To monitor a process against its historical
performance
Control charts are used to assess whether a process is stable
and in-control; not whether it is in-spec

In Eliyahu M. Goldratts Theory of Constraint concept, a constraint is any factor that limits the performance of a system with respect to
its goal. Constraints are physical or systemic limits on capacity (such as equipment, people, new product development, "the market")
Any business system has:
at least one constraint, otherwise its performance would be infinite
very few constraints, otherwise it would be unstable and cease to exist
A process is no faster than its smallest bottleneck
Effort spent fixing any process other than the constraint will not impact system overall efficiency
Variation (in production and material transfer times) prevents the operation of a balanced factory at 100 percent capacity
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Final Exam Study Guide

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MEASURE Phase - Objective: To determine what to measure, manage measurement data collection, develop
and validate measurement systems and determine the current process and value stream performance

There are two types of data, attribute/discrete and variable/continuous.
Attribute/discrete data is qualitative, consists of categories and cannot be subdivided (Yes/No, Pass/Fail, number of defects)
Variable/continuous data is quantitative showing absolute distance between numbers, and can be subdivided. (Time, Length,
Width)
Statistically, we can do many more potentially useful forms of analysis with continuous data versus discrete
Statistical or automatic process control, when properly applied, will eliminate most Special Cause variation. This represents Process
Capability.

Process Behavior can be described by plotting multiple data points for the
same variable over time.
Normal Distribution: It is an approximation of how the data might look if an
infinite number of data points were collected.
Processes can be characterized by their mean and standard deviation
The areas under sections of the Normal Distribution estimate the
probability of a certain event occurring.
No Process Can Be Measured to Establish a Baseline or Improvement
Impact Until It Has Been Stabilized.
Most processes in the world result in a Normal Distribution.
Roughly 68% of the data are within a distance of one standard deviation on
either side of the mean.
Roughly 95% of the data are within a distance of two standard deviations on
either side of the mean.
Roughly 99.7% of the data are within a distance of three standard deviations
on either side of the mean
Creating a plan for collecting data is essential to the success of our project. An important aspect of data collection is that we must how
the data are to be used.
Measurement Systems Evaluation is a quantitative assessment of the tools and process used in making data observations (taking actual
measurements).
Observed Process Variation is made up of the Actual Process Variation and the Measurement Variation.
To address actual process variability, the variation due to the measurement system must first be identified and separated from that of
the process.
REPEATABILITY and REPRODUCIBILITY are the primary contributors to measurement error.
Repeatability (Gage): The variation in measurements obtained when same person takes repeated measurements on the same parts
measuring the same characteristic and using the identical instrument.
Reproducibility (Operator): The variation in measurements obtained when multiple persons take repeated measurements on the same
parts measuring the same characteristic and using the identical instrument.
-Cost of Poor Quality (COPQ) is a major measurement of the hidden factory.
Traditional Costs of Poor Quality are 5-10% of cost
Hidden Factory losses could contribute to an additional 15-20% of COPQ
Examples of Hidden Factory losses include: Capacity losses due to reworks and scrap, Stockpiling of raw material to
accommodate poor yield, Rush deliveries, Audits, Vendor Control, Lost Customer Loyalty

Process Mapping [Process Map (P-map) or map]: A graphical illustration of the steps of the
actual transactional or manufacturing process
Used to help us ensure that all factors that can cause variation and defects have been identified
Can be used to develop As Is / Can Be maps.
Helps to Learn what input variables are really important.
Tribal Knowledge represents much of what is good and bad about a process.
The four classifications of process inputs are: Critical, Controllable, SOP and Noise

LEAN Principle #2: Identify value stream and ELIMINATE WASTE
Waste is anything other than the minimum amount of equipment, materials, parts, space, and workers time which are absolutely
essential to add value to the product [or service]. Shoichiro Toyoda President, Toyota
Non-Value Added activities: These are activities that should be eliminated, simplified, reduced or integrated
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Final Exam Study Guide

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Seven Types of Waste (COMMWIP):
CORRECTION (Defects): Redoing, Reworking, Repairing, or Scrapping the product or service just produced
OVERPRODUCTION: Making more or faster than is needed
MOVEMENT of MATERIAL or INFORMATION (Transportation): Excessive movement and handling
MOTION: Extraneous, unnecessary actions or having to make repetitive, unnecessary movements
WAITING or WASTING TIME: People, material, and machines waiting for one another
(Extra) PROCESSING: More processing (NVA) than required by customer
8th Type - HUMAN TALENT: Unexploited knowledge/ intelligence, Not using the knowledge/ability of people within the business
Workplace Organization 5Ss: A safe, clean, neat, arrangement of the workplace which provides a specific location for everything, and
eliminates anything not required.
Sort (Seiri - Remove unneeded) through, then sort out; keep only essential items and eliminate what is not required.
Set in order (Seiton - Arrange for ease of use) what must be kept; make it visible and self-explanatory; there should be a place for
everything and everything should be in its place
Shine (Seiso - Cleanup campaign) everything that remains; clean equipment, tools and workplace
Standardize (Seiketsu - Maintain the system) eliminate causes, create standardized methods
Sustain (Shitsuke - Make it the culture) self discipline, plan, schedule, train and STICK TO IT
5 Ss is NOT!!!
Cleaning the facility every time a customer comes
Spring Cleaning- The first 3 Ss
Taking key items away from people which are used frequently
Only to be done in manufacturing
A one person effort per department

Physical Flow (Spaghetti) Diagram- Purpose: To give a quick visual representation for the movement of a part or associate (operator).
Usually when a process is charted for the first time, the flow is not optimal and it looks like a plate of spaghetti.
ANALYZE Phase - Objective: To understand the sources for variation and waste, identify potential root causes,
and stratify and analyze the opportunities for improvement.

In the Analyze Phase:
We examine process maps for Non-Value Added Elements and
We use data to find patterns, trends, and differences that suggest, support, or reject theories about the causes of defects

We can decide what type of chart to use based on: 1) The types of data we have (or)
2) What is counted (Defects, Defectives, Individuals, Subgroups)












Tools used in Causal Analysis:
Relations Diagram: A visual tool that reveals a network of cause-and-effect relations.
Cause & Effect Diagram (Fishbone or Ishikawa Diagram)
Cause and Effects (C & E) Matrix:
A tool used to emphasize importance of Customer Requirements.
Numerically Ranks Output Importance
Numerically Ranks Input Relationships
Pareto Input Impact On Outputs
Pareto Output Impacted By All Inputs
Provides information for a Failure Modes & Effects Analysis and Process Capability Assessment
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Final Exam Study Guide

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Some of the benefits are:
Ensure customer requirements are being addressed
Ensure the process is putting the right emphasis on the right requirements
Identify process steps that have the greatest impact on the customer requirements
Filter the number of process steps used in the FMEA
Failure Modes and Effects Analysis (FMEA) is systematic approach for identifying, analyzing, prioritizing and documenting
potential failure modes, their effects on system, product, process performance and the possible causes of failures
Failure Mode - In what ways does the process step or input go wrong?
Failure Effect - What is the impact on the Key Output Variables
(Customer Requirements) or internal requirements?
Severity - How Severe is the effect to the customer?
Cause - What causes the process step to go wrong?
Occurrence - How often does cause or failure mode occur?
Current Controls What are the existing controls and procedures
(inspection and test) that prevent either the cause or the failure mode?
Detection - How well can you detect cause or failure mode?
Risk Priority Number (RPN) = Severity Rating X Occurrence Rating X
Detection rating
T Th he e 5 5 W Wh hy ys s i is s a a q qu ue es st ti io on n- -a as sk ki in ng g t te ec ch hn ni iq qu ue e u us se ed d t to o e ex xp pl lo or re e t th he e r ro oo ot t c ca au us se e o of f a a d de ef fe ec ct t o or r p pr ro ob bl le em m. . A As sk k W WH HY Y? ? u until a question
can no longer be answered >>> Avoid the perceived immediacy
Process Capability - The improvement strategy
CENTERING - Put the process On Target
SPREAD - Reduce the Variation
Hoshin Planning translates the strategic vision into tangible and measurable objectives for achieving the breakthrough.
In Hoshin Planning, the term Catchball means communication and socializing ideas. It is a process of aligning hoshins between levels,
through the use of factual (root/cause) analysis.
LEAN Principle #3: MAKE VALUE FLOW
LEAN Principle #4: ALLOW THE CUSTOMER TO PULL
Push and Pull Systems: The concept of pull in Lean production means to respond to the pull, or demand, of the customer.
Push: Resources are provided to the consumer based on forecasts or schedules Controlling the flow of resources by replacing
only what has been consumed
Pull: Controlling the flow of resources by replacing only what has been consumed
Supermarket:
A pull production technique
Materials in a supermarket are pulled off the "shelves" by the "customer"
A supply of parts are stored near the cell / line and as these parts are used, they are replenished by the upstream process
Pitch = how often work is released and monitored
= takt time x pitch batch size (the batch size in which work is released to the pacesetter process)
Analyzing the Value Stream- 8 typical questions regarding the value stream
1. What is Takt Time? TAKT Time = Available Time/ Customer Demand
Takt time links production to the customer by matching the pace of production (pacemaker processes) to the pace of actual sales
2. Will we produce directly to Shipping, or will we produce to a finished goods Supermarket?
Depends on the type of customer and the nature of the product.
Build to a Supermarket if
customer demand varies widely
the range of finished part numbers requiring changeovers in the Product Family is small, and
the product is small enough and cheap enough to store cost effectively
Alternatively, build directly to Shipping if the product
has many custom features
is of very high Value
is very bulky, or is subject to spoiling
3. Where can we introduce Continuous Flow?
We can only introduce continuous (or single-piece) flow when:
Processing technologies can be scaled to run at Takt Time, and
When a series of linked processing steps are highly repeatable and always available.
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Final Exam Study Guide

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The place to start in introducing Continuous Flow is usually at the beginning of the "pacemaker" Process in final assembly,
from which the product can flow straight through to shipping.
4. Where do we need to use Supermarket pull systems?
Completely Continuous Flow from raw material to customer is almost never possible.
Introduce a number of supermarkets to control and Level Production upstream from the pacemaker.
As downstream customers withdraw items from the front of each lane in the Supermarket, a signal is sent to the upstream
Process to replenish at the back of the lane the amount just withdrawn from the front.
5. At what single point in our Value Stream will we schedule production?
We want to stop Overproduction at any point along the Value Stream.
To do this we schedule only one point along the stream, the pacemaker.
The downstream and upstream processes are then linked to the pacemaker by two simple rules.
Every activity upstream produces only to a precise replenishment signal from the next downstream Process.
Processing downstream from the pacemaker must occur in Continuous Flow
The result of this control system will be that the pacemaker gets a schedule and every other Process falls into step.
6. How do we Level Production at the pacemaker Process?
Break orders up into small amounts, switching over frequently between different products.
7. What increment of Work will we release and take away from the pacemaker Process?
In general, Pitch will not be less than pack-out size
But it's highly desirable that it will not be much larger either.
The pacemaker Cell should receive an instruction every few minutes of what to make next, typically generated by kanbans from a
Heijunka or load-leveling box located near the pacemaker.
8. What Process improvements will be necessary to implement the changes suggested in answering the first seven questions?

Hoshin Planning is an Executive-level process for developing and achieving business plans, whereby the plan and its related goals are
deployed throughout the organization. The focus is on strategic, breakthrough priorities, developing appropriate implementation plans
for all to follow, and deploying those plans throughout the organization.
In Hoshin Planning, Catchball means communication, socializing ideas. It is a process of aligning hoshins between levels, through the
use of factual (root/cause) analysis.
IMPROVE Phase - Objective: To generate and implement creative solutions that will eliminate the causes of
problems, reduce the variation and waste in a process, or prevent a problem from recurring

IMPROVE Phase Steps:
1. Generate creative solution ideas
2. Select a solution
3. Pilot test
4. Implement full-scale
A decision matrix allows decision makers to structure, then solve their problem by:
1. specifying and prioritizing their needs with a list a criteria; then
2. evaluating, rating, and comparing the different solutions; and
3. selecting the best matching solution.
Improved FMEA: We can improve the rate of occurrence and our detection ability, but the severity rating can only change if the
customers change their expectations/ requirements
Force Field Analysis specifically can . . .
Determine if a proposed change can get needed support
Identify obstacles to successful solutions
Suggest actions to reduce the strength of the obstacles
The Impact/Effort Matrix provides a visually graphic depiction of the trade-offs between the impact that an alternative will probably
have toward resolving the problem, and the effort required.
Kanban: A Japanese word that means "instruction card". It is a Lean Pull device that allows an efficient means to transfer parts from
one department to another and automatically reorder products using minimum/maximum inventory levels.
Quality at the Source: The development of a proactive culture is needed in quality at the source, and a mind-set of error prevention
rather than reaction to problems should be taught. It is an approach to quality that places the responsibility for preventing or detecting
errors in the hands of the operator, or at the point of build.
Changeover time definition: The time elapsed between when the last good piece of product A comes off and the first good piece of
product B starts.
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Final Exam Study Guide

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Quick Changeover: A rapid and efficient way of converting a process from running the current product to running the next product.
It reduces the waste of inventory by creating shorter production runs that better align with customer demand
Internal elements: operations that must be performed while the machine/process is stopped
External elements: operations that can be performed while the machine/process is running
The Single Minute Exchange of Die process focuses on converting INTERNAL to EXTERNAL activities and creating more machine run time.
Mistake-Proofing (or Poka-Yoke): Using ingenuity to create devices that
allow us to do our job 100% error free 100% of the time.
Mistake Proofing Works Well Where:

Make them simple
Make them inexpensive
Design for prompt feedback
Design for preventive action
Focus on the application
Input from right people
Worker vigilance is needed (manual operations)
Mis-positioning can occur.
Adjustment is required.
SPC is difficult to apply or ineffective.
Attributes, not measurements, are important.
Training cost and employee turnover are high.
Mixed model production occurs.
Users make mistakes and blame the service provider.
Special causes reoccur.
Field failures are extremely expensive.
Total Productive Maintenance (TPM) is an initiative for optimizing the effectiveness of manufacturing equipment.
Total: consider every aspects and involve everybody.
Productive: do the maintenance job while producing or at least minimizing the impact on production
Maintenance: maintain, keep in good operating condition
Overall Equipment Effectiveness (OEE) is a synthetic rate build upon three components, featuring three "dimensions", namely:
AVAILABILITY of machine, of equipment
Actual PERFORMANCE efficiency, in normal state
QUALITY capability (First Time Yield)
OEE index = Availability x Performance x Quality = 80% x 50% x 90% = 36%
LEAN Principle #5: CONTINUOUSLY IMPROVE IN PURSUIT OF PERFECTION
Kaizen Continuous Incremental Improvement of products, processes, or services over time, with the goal of reducing waste to improve
workplace functionality, customer service, or product performance.
In the pursuit of perfection, the most important spur to perfection is transparency. In a Lean system everyone suppliers, integrators,
distributors, customers, and employees can see everything. So its easy to see and achieve better ways to create value.
Kaikaku Radical Improvement
CONTROL Phase - Objective: To guarantee process and value stream improvements are maintained,
disseminate lessons learned, and identify standardization opportunities

CONTROL Phase:
Project has been completed.
Process Inputs are
controlled.
Sponsor and Process Owners
agree.
Control Plan is in place.
Improvement Gains will be
sustained.
The Control Plan
The way to keep past problems in the past is with a vigorous
control
Describes the actions required at each step in the process to
assure that all process outputs will be in a state of control
During regular production runs, Control Plans provide the
process monitoring and control methods used to control part
or product characteristics
The Control Plan augments the information provided in
detailed operator instructions
Control Methods
Standard Operating Procedures
Statistical Process Controls
Checklists
Troubleshooting Guides
Automated Processes Controls
Controlled Documentation
Mistake-proofing Methods
Standardized Work
Transition to the Process Owners: If the adequate controls are not in place prior to turning the process back to its owners, the time and
effort spent making the improvements are simply wasted.
RASCI Model: Roles & Responsibilities
RESPONSIBLE: The doer
ACCOUNTABLE: The buck stops here
SUPPORTIVE: The lending hand
CONSULTED: The reference point
INFORMED: The need to know

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Final Exam Study Guide

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According to David Mann, Leader Standard Work is
A list of the normal tasks that must be done to sustain the Lean Management System
Tasks include audits, meetings (daily accountability) and continuous improvement projects
Focuses on the production process
Directs the leader to check on the visual controls
Expected to be continually improved
Visual Management: A system that enables us to recognize the standard and any deviation from it, thus corrective actions can be taken
immediately.
It is the easy difference between
Normal (LEAN and GOOD) conditions, and
Abnormal (WASTEFUL and HARMFUL) conditions
Visual Management and Workplace Organization (5S) go hand-in-hand
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