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Improvement (Kaizen)/ Three stages of the S-Curve defined in Incremental Improvement

• represented By an S-curve.

• Gradual improvement at first.

• Accelerated Improvement as understanding increases.

Finally, a Plateau is reached where improvement stops because gains are just to costly for

the results.

These Incremental gains represent the Japanese concept of kaizen.

• When the Limits of incremental improvements are reached, something fundamentally

different Must be adopted.

• This new Approach will have an S-curve as well and the process starts over.

• When the New technology arrives, it is not always embraced by companies in the market.

• Failure to Recognize the future of the new technology (or methodology) can result in

collapse of Market share.

• Improvement Is necessary in order to reduce cost.

• Determining Where to apply improvements is resolved by customer focus

• Incremental Improvement will plateau because Improvements are too costly for the gain


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Improvement As Strategy

Manufacturing Strategy – creating the operating capabilities a company will need for the Future.

Example – Reduce production lead time and inventory.

Reduce batch Size.

Computerized Material requirements planning.

Convert to Lean pull production.

• When the Limits of incremental improvements are reached, something fundamentally

different Must be adopted.

This new Approach will have an S-curve as well and the process starts over.

When the new Technology arrives, it is not always embraced by companies in the market.

Failure to Recognize the future of the new technology (or methodology) can result in Collapse of

market share

Outsourcing And Make/buy assessment

This is a Transfer of technology rather than a make/buy.

Make/buy Determines if an existing supplier can supply the good/service at less cost Than doing it

in house.

This does not Mean a technology transfer.

Outsourcing In this context is to transfer the technology to another company in the belief That

they can do It cheaper or to allow a change in direction.

When Something is outsourced, improvements are under the control of the new Supplier.

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The new Supplier often matures into a competitor in the market such as Toshiba that Makes

televisions Under many American company names and also has their own brand.

Outsourcing Can be risky as it may bring a new competitor into the market.

When Something is outsourced, improvements are controlled by the new supplier.

Advantage;

Make/buy Determines if an existing supplier can supply the good/service at less cost Than doing

it in house.

– This does Not mean a technology transfer.

– Outsourcing In this context is to transfer the technology to another company in the belief

that they can Do it cheaper or to allow a change in direction.

Disadvantage:

– When Something is outsourced, improvements are under the control of the new supplier

new supplier Often matures

Outsourcing Can be risky as it may bring a new competitor into the market.

Value Engineering

Value Engineering (VE) and Value Analysis (VA) are methods to determine the value Content of

the elements Of a product or process.

Value is what People are willing to pay for something rather than the cost of something.

Value Engineering is concerned with Initial design and engineering

VE – first Time design and engineering of a product.

VA – ongoing Improvements of a product.

All Production and support activities add to the cost but not necessarily to the Value.

VA and VE Look at the cost versus value added

Information Gathering. Examine each element of the product., Cost, Requirements, Features

Worth is Estimated based on the least expensive known alternative.

Identify Elements with a highest cost to worth ratio as opportunities to lower cost or Increase

worth.

Value Analysis

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The first Step of value analysis Evaluate the target element by first determining what it Does.

If it is a Step in the process the answer should explain why that step is there.

If it is a Part the answer will explain what it does and why it is needed.

If it is a Product it explains what the product does and why the customer will buy it.

Can it be Made better, faster, or cheaper

Problem-solving Tools typically used in Lean Systems.

Lean systems Typically rely on seven problem solving tools.

Check sheet.

Histogram.

Pareto Analysis.

Scatter Diagram.

Process flow Chart.

Cause-and-effect Analysis.

Run diagram

Histogram

Typically, Frequency distribution of a variable. The tools in a spreadsheet usually have

histogram Type graphing capability.

Histograms do Not indicate the cause of the variation or problem but provide a graphical Means

of viewing The data.

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Check Sheet

A check sheet Is a free form sheet where data and observations are collected and tallied.

It is Tailored to the particular problem under review.

In a Manufacturing environment, this might be a list of defects.

This sheet Must be designed to minimize observer subjectivity.

A spreadsheet May be a good tool for this job.

The main Purpose is to ensure that the data are collected carefully and accurately by Operating

personnel for Process control and problem solving

The form of The check sheet is individualized for each situation and is designed by the Project

team

Check sheets Are designed to show location

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Pareto Analysis

Is tool help Find the vital few items in a field of many items.

This can be Very helpful in determining what problem to address first.

The chart is Similar in appearance to a histogram

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Vilfredo Pareto was an economist who is credited with establishing what is now widely Known

as the Pareto Principle or 80/20 rule.

When he Discovered the principle, it established that 80% of the land in Italy was Owned by

20% of the Population.

Scatter Diagram

Used to Reveal relationship between variables.

The raw data Can be processed through statistical analysis package to get correlation Results.

A graphical Analysis is often a good visual analysis tool.

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Process Flow chart

This show all Of the steps in a process. It is helpful in locating the source of the problem

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Cause-and-effect Analysis

Documents all Of the possible contributors (causes) to the outcome (effect).

This is also Known as a fishbone diagram

Run chart

Shows the Results of observations taken over some prescribed interval.

This is Helpful in identifying defects associated with time of day or shifts.

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Value Stream Map (VSM)

Value stream Mapping (VSM) is another tool used in conjunction with problem solving and

analysis Tools.

VSM is a type Of flow charting system.

Shows process And materials flow.

Looks at Value added and nonvalue added

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Quality Improvement

Improvement Implies that something has been changed for the better.

One form is The improvement of the output to input ratio.

Improvement May also include better working conditions, waste reduction, etc.

Survival and Success in the global market require continuous improvement to reduce costs and

meet changing Requirements.

• Customer Focused quality is the criterion for determining where to apply improvements

and reduce Waste.

• Quality is Determined by the customer.

• An organization That does not continue to improve consistent with customer demand will

become Extinct.

SPC

• If parts And materials meet specifications, the product should meet specification.

• Quality Emphasis uses statistical process control (SPC)

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Cost of Quality

Why is it Important?

Lost Customers

Warranty Work

Good Will

Reputation

Repairs

It is Expensive!

Bad quality Will kill your business!

TQM

Total Quality Management (TQM) is the application of quantitative methods and human

resources to Improve all the processes within an organization and exceed customer needs now

and in the Future.

TQM is a Management approach to focus all functions and levels of an organization on Quality

and Continuous improvement.

Total quality Implies quality for both external and internal customers.

Requires Total participation from everyone in the company.

List five Forms of waste that Lean Manufacturing focuses on identifying and eliminating.

Production Defects

Transportation

Inventory

Overproduction

Wait time

Processing

Motion

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