Normal distribution is a statistical representation where most distributions that are observed are relatively close to one mean (average). If there is deviation associated with the mean, which there normally is, the deviation remains almost identical on the plus side as the deviation on the minus side. When normal distribution is graphed (histogram) it generally takes the shape of a bell showing "normal" or even distribution from the mean.
The term supermarket or grocery store in lean six sigma refers to a predetermined market (storage/inventory). The supermarket carries the necessary "supplies" for a work area that is close by. When a customer (internal/external) needs an item they can retrieve the item from the supermarket. The supermarket then replenishes or restocks their supplies based on the downstream demand. Supermarkets prevent overstocking and help lower inventory levels.
Statistical process control is the application of statistical techniques to monitor and adjust a process so that the process can perform at its full potential.
Standard work in process is the minimum necessary level of items or materials needed to maintain the proper flow in a production environment.
Standard work is all of the steps needed for a person to complete one work cycle. Standard work is not restrictive, rather it is meant to be improved like all other types of work within a business. Each standard creates a new baseline for kaizen. Additionally, the standard work being performed should represent the most effective, efficient combination of manpower, materials and machines.
Standardized work is a crucial element of a lean strategy. Without standard work in place there is no accurate means of measuring improvements or monitoring gaps in performance. Standard work will help make your implementation a success.
Special Causes of Variation is when something happens to cause a variation in the output (Y) that is unusual and is not consistent or constant. Special causes of variation are often referred to as assignable causes because they can be eliminated with a response or a solution to individual variations. Control Charts can be used to differentiate between common causes and special causes of variation.
Example: In the photo above three arrows hit the target dead center. One arrow hit the target high and to the left. The arrow that landed high and to the left is an example of a special cause of variation.
Single minute exchange of die is a concept developed by Shigeo Shingo which seeks to perform all setup/changeover times under ten minutes (single minute).
Lot reduction and set up time reduction had actually been going on in the Toyota Production System since about 1945. In 1955 while visiting the US, Taiichi Ohno observed Danly stamping presses with rapid die change capability. Subsequently, Toyota bought multiple Danly presses for the Motomachi plant. And Toyota started to work on improving the changeover time of their presses. This was known as Quick Die Change, or QDC for short. They developed a structured approach based on a framework from the US World War II Training within Industry (TWI) program, called ECRS – Eliminate, Combine, Rearrange, and Simplify. Over time they reduced these changeover times from hours to just 180 seconds by 1990s.
Reference: Wikepedia Single Minute Exchange of Die
The reduce methodology is a simplified method of performing quick changeover or smed improvements. The steps in the ©REDUCE methodology are:
For more information on improving changeover or setup times message Lean Strategies International LLC at: firstname.lastname@example.org
Setup Reduction refers to a decrease in the changeover time. The setup reduction attempts to reduce every possible second from the changeover or setup time. Because the changeover or setup is not transforming any materials or services that a customer has agreed to pay for, both setup and changeover can be considered a form of waste/muda. In most cases a setup reduction can reduce the setup time by 50% or more.
The ©REDUCE methodology by Lean Strategies International LLC is a systematic way of reducing both setup and changeover times. For more information on the ©Reduce Methodology visit our recent blog post on Listen to the Gemba, Changing things around.
Mixed-Model Production is the practice of making, assembling or producing several different parts or products (this can also be applicable to services) in varying lot sizes so that the organization produces close to the same mix of products/services that will be sold on the same day. The goal of a mixed-model production tactic is to smooth out the demand of upstream workcenters, cells, suppliers and vendors which results in a reduced inventory, faster changeovers and more accurate replenishment of products ultimately working towards building and or producing in accordance with daily demand.
The purpose of Lean Accounting is to support the lean enterprise as a business strategy. It seeks to move from traditional accounting methods to a system that measures and motivates excellent business practices in the lean enterprise. Applying Lean principles is part of this system.
The Vision for Lean Accounting
Ref: Wikepedia, Lean accounting
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