Muda (Japanese term) One of the key steps in Lean and TPS is the identification of which steps add value and which do not. By classifying all the process activities into these two categories it is then possible to start actions for improving the former and eliminating the latter. Some of these definitions may seem rather 'idealist' but this tough definition is seen as important to the effectiveness of this key step. Once value-adding work (actual work) has been separated from waste then waste can be subdivided into 'needs to be done (auxiliary work) but non-value adding' waste and pure waste. The clear identification of 'non-value adding work', as distinct from waste or work, is critical to identifying the assumptions and beliefs behind the current work process and to challenging them in due course. The expression "Learning to see" comes from an ever developing ability to see waste where it was not perceived before. There can be more forms of waste in addition to the seven. The Eight Wastes - DOWNTIME[5]
The Eight Elements of TQM-Framework Lean manufacturing Overview[edit] The difference between these two approaches is not the goal itself, but rather the prime approach to achieving it. The implementation of smooth flow exposes quality problems that already existed, and thus waste reduction naturally happens as a consequence. Both lean and TPS can be seen as a loosely connected set of potentially competing principles whose goal is cost reduction by the elimination of waste.[5] These principles include: Pull processing, Perfect first-time quality, Waste minimization, Continuous improvement, Flexibility, Building and maintaining a long term relationship with suppliers, Autonomation, Load leveling and Production flow and Visual control. Origins[edit] Lean implementation is therefore focused on getting the right things to the right place at the right time in the right quantity to achieve perfect work flow, while minimizing waste and being flexible and able to change. Lean aims to make the work simple enough to understand, do and manage.
Business process reengineering Business Process Reengineering Cycle Business process re-engineering is a business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and business processes within an organization. BPR aimed to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors.[1] In the mid-1990s, as many as 60% of the Fortune 500 companies claimed to either have initiated reengineering efforts, or to have plans to do so.[2] BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. Business process re-engineering is also known as business process redesign, business transformation, or business process change management. Overview[edit] Reengineering guidance and relationship of Mission and Work Processes to Information Technology. History[edit]
Six Sigma The common Six Sigma symbol Six Sigma is a set of techniques and tools for process improvement. It was developed by Motorola in 1986.[1][2] Jack Welch made it central to his business strategy at General Electric in 1995.[3] Today, it is used in many industrial sectors.[4] Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the organization ("Champions", "Black Belts", "Green Belts", "Yellow Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits. Doctrine[edit] Methodologies[edit]
Production leveling On a production line, as in any process,[2] fluctuations in performance increase waste. This is because equipment, workers, inventory and all other elements required for production must always be prepared for peak production. This is a cost of flexibility. If a later process varies its withdrawal of parts in terms of timing and quality, the range of these fluctuations will increase as they move up the line towards the earlier processes. This is known as demand amplification. Where demand is constant, production leveling is easy, but where customer demand fluctuates, two approaches have been adopted: 1) demand leveling and 2) production leveling through flexible production. To prevent fluctuations in production, even in outside affiliates, it is important to minimize fluctuation in the final assembly line. Production Leveling by volume or by product type or mix[edit] Leveling by volume[edit] Leveling by product[edit] Implementation[edit] Demand leveling[edit] Implementation[edit] See also[edit]
Six Sigma vs. Total Quality Management May 28, 2007 | Author: PM Hut | Filed under: Quality Management Six Sigma vs. Total Quality Management By Tony Jacowski Six Sigma is a relatively new concept as compared to Total Quality Management (TQM). However, when it was conceptualized, it was not intended to be a replacement for TQM. Total Quality Management Total Quality Management is often associated with the development, deployment, and maintenance of organizational systems that are required for various business processes. Comparison To Six Sigma In comparison, Six Sigma is more than just a process improvement program as it is based on concepts that focus on continuous quality improvements for achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. The basic difference between Six Sigma and TQM is the approach. Applications Where Six Sigma Is Better Conclusion Tony Jacowski is a quality analyst for The MBA Journal. Related Articles
SER Deze website maakt gebruik van cookies. Wij gebruiken cookies onder andere om het gebruik van de website te analyseren en het gebruiksgemak te verbeteren. Wat betekent dit? Wat zijn cookies?Websites maken gebruik van cookies. Een cookie is een klein tekstbestandje, dat bij bezoek aan de website wordt geplaatst op de harde schijf van uw computer. Wij gebruiken cookies om uw instellingen en voorkeuren te onthouden. Work in process Work in process,[1][2][3][4] work in progress,[5][6][7] (WIP) goods in process,[8] or in-process inventory are a company's partially finished goods waiting for completion and eventual sale or the value of these items.[9] These items are either just being fabricated or waiting for further processing in a queue or a buffer storage. The term is used in production and supply chain management. Optimal production management aims to minimize work in process. Work in process requires storage space, represents bound capital not available for investment and carries an inherent risk of earlier expiration of shelf life of the products. Barcode and RFID identification can be used to identify work items in process flow. Sometimes, outside of a production and construction context "Work in process" is used erroneously where the status "Work in Progress" would be correctly used to describe more broadly work that is not yet a final product. WIP in construction projects[edit] See also[edit] References[edit]
Theory of constraints The theory of constraints (TOC) is a management paradigm that views any manageable system as being limited in achieving more of its goals by a very small number of constraints. There is always at least one constraint, and TOC uses a focusing process to identify the constraint and restructure the rest of the organization around it. TOC adopts the common idiom "a chain is no stronger than its weakest link." This means that processes, organizations, etc., are vulnerable because the weakest person or part can always damage or break them or at least adversely affect the outcome. History[edit] An earlier propagator of the concept was Wolfgang Mewes[2] in Germany with publications on power-oriented management theory (Machtorientierte Führungstheorie, 1963) and following with his Energo-Kybernetic System (EKS, 1971), later renamed Engpasskonzentrierte Strategie as a more advanced theory of bottlenecks. Key assumption[edit] The five focusing steps[edit] Constraints[edit] Breaking a constraint[edit]
Vertical integration A diagram illustrating vertical integration and contrasting it with horizontal integration Vertical integration is one method of avoiding the hold-up problem. A monopoly produced through vertical integration is called a vertical monopoly. Nineteenth-century steel tycoon Andrew Carnegie's example in the use of vertical integration[1] led others to use the system to promote financial growth and efficiency in their businesses. Three types[edit] Vertical integration is the degree to which a firm owns its upstream suppliers and its downstream buyers. There are three varieties: backward (upstream) vertical integration, forward (downstream) vertical integration, and balanced (both upstream and downstream) vertical integration. A company exhibits backward vertical integration when it controls subsidiaries that produce some of the inputs used in the production of its products. Examples[edit] Oil industry[edit] Telephone[edit] Reliance[edit] Media industry[edit] Apple[edit] Agriculture industry[edit]
The Three Windows of Opportunity A new book, Made in China, delivers lessons learned by Chinese entrepreneurs in the rugged and dynamic environment of that country. This excerpt zeros in on determining if your timing is right: Is the window of opportunity open? by Donald N. Editor's note: We all know the stories of famous American entrepreneurs such as Henry Ford, Andrew Carnegie, and Bill Gates. Three windows of opportunity Golden opportunities hold out the promise of great rewards but generally require risky concentration of resources without the benefit of knowing whether the bet will pay off. These questions of whether the customer need is real and the potential market big enough to constitute a golden opportunity are critical. The reality of golden opportunities, however, is more complicated. Is the market poised to take off? [ Buy this book ] Footnotes: 1. 2. 3. 4.
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