Seasonality is the characteristic of data that is predictable and more often than not can be seen in predictable and repetitive patterns. The patterns can occur: annually (or longer), monthly, weekly, daily, hourly, by the minute, second or less if you can measure it.
A make to order production environment is one in which manufacturing or in the case of a service, service, starts only after receiving a customer's order.
One of the best ways to understand what is going on is to go to the Gemba and see for yourself. This is the central idea behind the term Genchi Genbutsu, which is a core principle in both Lean and Six Sigma.
Risk tolerance is the degree of risk or uncertainty that is acceptable to an organization. It can also be defined as the level of risk that you are willing to accept in pursuit of strategic goals and objectives.
First time yield is a metric used to determine how a process is performing in relation to the number of good parts or services it produces. In other words FTY measures the percent of non-defective units that are successfully produced from a process the first time through. The metric is more specifically used to measure the ratio of parts made correctly the first time through. First time through yield can help gauge whether or not a cell is making parts correctly the first time through.
We’ve all heard that Lean and the Just in Time System are the Same. And, while there are some similarities, the two systems are in fact, different. Generally speaking, the Just In Time System makes up one pillar of a Lean Organization and although the principles and techniques can be applied to service environments, the Just In Time philosophy is mainly used in manufacturing. The philosophy helps an organization achieve three main focuses:
A primary metric or a primary process metric is used to measure process level performance. The metric is generally reported in a time series format showing the baseline or current state data, target or future state data and actual performance data. The primary metrics must be aligned and consistent with the problem statement the team defines and these types of metrics can be used to track progress towards your project goals and objectives as defined in the project charter. The primary metric will ultimately measure or determine your level of success as it pertains to your project.
When a Kanban system is running internally, the transfer of classical kanbans into different areas can be established fairly easily. But, what if you have parts that are made by suppliers and need to be transferred externally? In this case a supplier kanban is used in place of a withdrawal or a move kanban. A supplier Kanban process is usually described as a connection between your external vendors and the internal kanban system. This can also work with different locations of the same company. The companies can be linked together into a supply-chain process via Kanban and replenish effectively.
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