When should you stop branching out in a CTQ tree?

When you get to something you can actually measure

1. A vibrant business case
2. A problem statement
3. The project scope
4. Goals and objectives
5. Realistic milestones
6. Clearly defined roles and responsibilities

• Movement of people or machines that does not add value
• Transportation of partd or materials
• Storage of inventory
• Providing a service that does not meet the customer's requirements

The systematic elimination of waste.

• Defective units
• Overproduction
• Waiting
• Transportation
• Inventory
• Motion
• Over-processing

Single Piece

Lean focuses on one-piece processing to make the system more effective.

Which of the following is the BEST example of a project statement?

1. Improve changeover time before December 1st
2. Reduce defects from Machine X by 50% before June 30.
3. Reduce DPMO by 75% at Call Center 1
4. Increase net profit in Division B by the 4th qtr

2.Reduce Defects from Machine X by 50% before June 30

• It states a specific measurable improvement
• Where the improvement will take place
• Due date

• Faster response
• Reduction in mistakes
• Less inventory
• Higher profits
• Ability to deal with variation

1. Strategy
2. Tactics
3. Culture

Shigeo Shingo

SMED

Single Minute Exchange of Dies

• Sort
• Store
• Shine
• Standardize
• Sustain

• Prevent defects or detect errors
• Improve Safety
• Prevent machine damage
• Improve quality

• Be easy to maintain
• Provide 100% auto-inspection
• Prevent defects and errors

• Value Stream Mapping
• 5S
• Poka-yoke

• Forming
• Storming
• Norming
• Performing

• Initation
• Planning
• Execution
• Control
• Closure

• Cost
• Scope
• Time

• EV --- the actual work that was done
• PV --- the value of the work that was scheduled
• AC --- how much the work that was done (EV) costs

EARNED VALUE

PLANNED VALUE

ACTUAL COSTS

Establish the rhythm of the process with at most 3-4 takt times.

Eastblish a few takt times based on your customer demand patterns & practice takt. The "pacemaker" is the delivery process closes to the customer & uses takt time to set the rhythm. Processing faster that takt creates the #1 waste of overproduction.

• Throughput
• Inventory &
• Investment
• Operating Expense

1. Replacement Waste
2. Adjustment Waste

• It provides a baseline for all continous improvement activities.
• It enables problem solving
• It makes training new employees easier

People.

If people are properly motivated they can correct problems with the other two P's.

Focus on increasing throughput.

One should above all increase throughput by reducing throughput time (lead time). Focusing on a step in the process of reducing cycle time depends on its particular constraining effect on the process flow.

1. Performance
2. Availability
3. Yield

From a Lean perspective, which of these statements about traditional standard or activity-based costing is NOT true?

• Std costing approaches tend to focus the org on functional efficiency & utilization
• Tends to hide period profit & loss
• Allocates overheads to products & services
• It is the most time efficient method of all

It is the most time efficient method of all for gathering & reporting planned and actual costs.

• Policies and politics are well established
• Metrics used to measure results are difficult to define
• Office processes are rarely "islands unto themselves"

1. Value Stream Mapping is a critical skill employed
2. Kaizen events can be performed in office & service enviorments
3. Kaizen events in a manufacturing enviorment typically last 5 days

• Supervision
• Management Salaries
• Selling & administration costs
• Depreciation
• Rent
• Utilities

Often both obscure and easy to recognize. They include

• Management churning
• Traditional accounting culture & practices
• Natural human resistance to change
• Lack of urgency for change

Analyzes what the constrained resources are in the accounting period and prioritzes production or service delivery choices to deliver the highest level of system value derived.

Throughput accounting system optimizes system performance by making sure we optimize the capacity constrained resource (CCR) so that the total output in sales & profits are as large as possible.

1. Steering Committee
2. Lean Champions
3. Cascade Lessons Learned
4. Have all employees involved

• It shows relationships between issues or ideas
• It helps in priortizing resources and processes
• It is a useful way to organize data

Nayatani.

The 7M tools were developed in 1982 by Nayatani of Japan

• Kaizen
• SIPOC
• SMED

Team meetings should be reviewed in terms of:

• Process
• Results
• Relationships

• Planning Specific Contingencies
• Steering events in a required direction if problem occur
• Finding many counter-measures to overcome problems

• Rationally narrow down the focus of the team before detailed implementation planning can happen
• Enable selection of priority items by applying a set of criteria to each of them

1. Full Analytical Criteria Method
2. Combination ID/Matrix Method
3. Consensus Criteria Method

• Power of time
• Organizational structure
• System dynamics
• Unified strategy

• Patterns of how people solve problems
• Tools to define problems in ways that allow us to utilize the patterns for solving new problems.

"Go to the balcony". It refers to a third party view of the situation. It is similar to taking an overhead view of the situation and asking "How am I behaving" as well as "Am I following my negotiation strategy?"

POLCA

Paired-cell overlapping loops of cards with authorization.

• Seek first to understand
• Listen reflectively
• Be aware of body language

• Pull systems
• SMED
• Design For Six Sigma