Cellular layouts are the optimal flow based layout. A cell is a close arrangement or setup of people, machines or workstations. The purpose of a cellular layout is to fulfill a processing sequence while simultaneously reducing wait times, transportation and other forms of muda. In addition to removing various forms of waste, cells are very effective and promote and facilitate effective flow. Cells can be in many different shapes and attempt to spread work evenly amongst the resources.
Capital costs are the costs required to purchase raw material or inventory items along with financing fees, loan maintenance fees, and interest. They refer to the money that is invested in your inventory.
One of the most important components of standard work is understanding what the cycle time of a process is. Cycle time is sometimes referred to as standard cycle time. Cycle time is the amount of time it takes to complete an individual operation or task from start to finish. In other words, the amount of time required to process one part. This includes processing time on a machine, any manual work that may be required, waiting, inspection, walking and any other activities involved in processing the one part.
Continuous improvement is the act of making incremental and regular improvements, which is often referred to as kaizen.
Cash to cash cycle time looks at the amount of time, usually days, of working capital a business has tied up in managing its inventory or supply chain. Like many metrics, the more efficient the cash-to-cash cycle time is, the fewer days an organization's cash is unavailable for use.
A component could be a raw material, subassembly or a part. However the identifying difference is that a component which could be a part, raw material or subassembly goes into a higher level assembly, item or part.
The above video is from Lean Strategies International LLC's Lean Six Sigma White Belt Course.
A Customer is any party that receives or requests goods or services. Customers are oftenties considered to be one of the most important participants in a supply chain. They drive value. They create demand and they express wants and needs that can be transformed.
The cause and effect diagram, fishbone diagram or Ishikawa diagram is a tool used to discover possible causes of an effect.
Critical Characteristics are the attributes or, "characteristics" of a product or piece of information that must function properly so that no failure of the product or needed information occurs.
A checklist is a tool that can be used to ensure that you have everything required to set up and run your next operation. It may also be used to ensure that important steps or actions have been taken that are important for an operation. A checklist is different than a checksheet. A checklist is used to show completion of a particular activity.
A changeover is the work required to change a specific machine, resource, work center or line from making the last good piece of an item to making the first good piece of another item. That means that if the first good piece after the changeover is not good the changeover is not complete.
A certificate of compliance is a certification that is provided by a supplier which certifies that the supplies or the services supplied meet the required specifications. In other words, a certificate of compliance certifies that an individual or company has met the required set of conditions for a product or service.
The check sheet is a structured data-recording tool. This generic tool is designed by users to facilitate, organize and track their interpretation of results. The check sheet is one of the seven basic quality tools.
The core values of an organization are the principles, fundamental beliefs and ethical guideposts that serve as guidelines for the organizations behaviors.
The fishbone diagram is a structured analysis tool used to organize potential causes associated with a specific effect.
A constraint is any factor or element such as cost, schedule and scope that prevents a system from performing at the highest level possible in relation to its objective. There are many types of constraints that prohibit performance. Continuous Improvement strategies such as: Lean, Six Sigma and the Theory of Constraints are effective ways to reduce or remove constraints.
1. Cost/ Resources
2. Schedule/ Time
3. Scope/ Quality
5. Policy or Procedure
A cost driver is any factor or factors that causes a change (increase/decrease) in an activities cost. Activities often have more than one cost driver attached to them.
Change management is a method or an approach that is generally systematic in the way it works. Different change management approaches can be used when dealing with the transformation or transition of a business or organizations objectives, goals, processes, culture and of course technology. It even works with behavior. One of the main purpose of change management is simply to guide or manage the change that a company, department or individual will experience during transitions. This can help an organization better prepare its people to adapt to the many different elements of change that will certainly come to pass. Along with supporting transition change management can also help people to understand; the driving intentions of the organization’s change, how to take action during the change, how to manage the resilience or opposition during a change and to help others understand why people will respond differently during the different forms of change. Below is a simple format you can follow when changing. ©WECHANGE can be used at different levels of an organization (strategic, business, operational, departmental and individual).
The current state is the as is, or present circumstances. When looking at the current state it is very important that the review is done not as it should be happening but as it is happening.
Cycle stock is the average amount of inventory a business needs to meet customer demand. The stock will generally deplete gradually as a business or organization receives orders from customers and replenish according to a cycle as suppliers provide the necessary orders.
Does your company make goods only after receiving an order? Do they make goods before and then stock them? These two questions can help clarify how your organization plans and schedules the production or execution of goods and services. There are many different methods that companies may use, some examples are: Make to stock, Make to order and Assemble to order. Whichever strategy a company selects will have a varying degree on the amount of inventory a company holds, how they will produce and how resources are spread through the organization. The biggest impact is the amount of inventory the company carries which as you may know already is cash availability.
The chase strategy is one method organizations use to maintain a level inventory while producing at varying rates in order to support demand. The chase strategy is sometimes referred to as demand matching because the strategy varies production to meet demand.
The main benefits associated with a chase strategy are:
When you go to a restaurant for food and place an order the staff will normally pull supplies from a "stable inventory" level and make the order, or in other words "chase the demand."
A countermeasure is a measure or action that is taken to counter or offset another one. In the context of Lean Six Sigma the countermeasure is an action that either a team or an individual takes to bring something back into conformance or compliance with the expected level of performance.
A lean six sigma champion is an individual with a firm understanding of the company's vision, mission and values. They help to deploy and support the success of an organizational strategy and projects associated with the strategy. Champions also assist in identifying resources, team leaders and in removing roadblocks. The champion is accountable for the results of projects and the recognition, definition and assignments which will help achieve a defined level of performance.
A cross-functional team is a group of people with different functional expertise, working towards a common goal. It may include people from operations, engineering, quality and human resources departments. Generally, employees from all levels of an organization are included. Some members may come from outside the organization to add experience, expertise or a neutral unbiased view.
Cross-functional teams often function as self-directed teams assigned to a specific task which calls for the input and expertise of numerous departments.
Reference: Wikipedia - Cross-functional team.
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