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Future State

1/23/2023

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Future State Value Stream Map
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  The future state is a reference to the aim of an individual, team or organization.  It can be seen as technical, organizational or philosophical. 

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Flow

5/26/2022

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Flow
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  In Lean Six Sigma, flow is the term used to refer to a production or service environment that continuously moves value through the value stream without interruptions.  An environment that has flow would have very low levels of muda, muri and mura.

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Fill Rate

4/19/2022

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Fill Rate
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  Formally defined, a fill rate is the percentage of customer orders that a company can ship or, “fill”, immediately from the inventory you have on hand without placing backorders, running out of stock or missing sales.

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First in First Out (FIFO)

3/10/2022

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 First in First out is a method used in inventory valuation for accounting purposes.  The method advocates the practice of using the oldest inventory item first, hence the name "first in" "first out." The principle is also applicable in maintaining precise sequence during and through the production of items because it ensures that the first part into a process or inventory location is also the first part to be used.  The FIFO lane is one method of controlling and regulating a pull system that is between two disconnected (decoupled) processes.  

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Finished Goods

12/14/2021

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Finished Goods
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  Finished goods are products or end items that are sold as a complete item or unit.  These items are commonly subject to a customer order, sales order or purchase order that is linked directly to a customer.  Finished goods and products are an extension of your inventory. They are materials or products that have reached a point in either the manufacturing or transformative process where they are available for consumption. You can calculate finished goods using a formula that will also help create an inventory ratio which determines the value of your goods for sale.  Finished goods inventory is generally considered a short term asset.  Short term assets are expected to sell in less than a year as opposed to long term assets which are typically investments that will be kept for longer than a year.  Let’s look at an example of finished goods.

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Fault Tree Analysis

8/3/2021

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Fault Tree Analysis
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The fault tree analysis is a top-down method used to analyze failures.  It uses Boolean logic to combine a sequence of lower-level occurrences.  In many cases a fault tree is used to analyze the reliability, maintainability and safety of a system.

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Functional Layout

7/28/2021

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Functional Layout
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  Functional layouts are by far the most common layout you will find in organizations.  These layouts can be seen in how machines and people are positioned. A functional layout is a workplace configuration in which operations/processes are organized by the type of work (function) they do.

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Function Check

5/20/2021

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The video above is from Lean Strategies International LLC's Quick Changeover with REDUCE Course.
  ​A function check or functional test will help you measure the ability of your equipment to perform and work as it should.

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Function Check

3/19/2021

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Function Check
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  ​A function check or functional test will help you measure the ability of your equipment to perform and work as it is intended to or should.

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5S System

1/8/2021

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Above video created Apr 28, 2017
  The 5S system is a visual workplace management system that promotes safety, efficiency and teamwork while making abnormalities visible. 

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Fishbone Diagram - Cause and Effect Diagram - Ishikawa Diagram

7/21/2020

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  The fishbone diagram is a structured analysis tool used to organize potential causes associated with a specific effect.  

Other names:
  1. Cause and Effect Diagram
  2. Ishikawa Diagram

Related Blogs:
  • Listen to the Gemba - The fishbone diagram (7 basic quality tools).


Creator:
  • Kaoru Ishikawa​
Learn More Here!
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First time yield (FTY)

10/30/2018

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First Time Yield
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    ​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. 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. The first-time yield can be calculated by dividing the number of good, conforming products or services by the total number of products or services produced in the sample lot or batch.  First time yield is also referred to as first pass yield.
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Fiscal Year

7/5/2018

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Fiscal Year
  A fiscal year usually refers to an accounting year that does not end on December 31. (The accounting year of January 1 thrugh December 31 is usually referred to as a calendar year.) Some examples of the fiscal years used by U.S. corporations include:
  • The 12 months of February 1 through January 31
  • The 12 months of October 1 through September 30
  • The 12 months of June 1 through May 31
  • The 52 weeks (four 13-week quarters) ending on the Saturday closest to January 31 (This will require an occasional fiscal year of 53 weeks since 52 weeks X 7 days = 364 days vs. 365 days per year.)
  One reason a business or other organization will have its accounting year end on a date other than December 31 is to fit its natural business year. For example, school districts will use fiscal years of July 1 through June 30. Retailers often end their fiscal years near the end of January.

Reference: Accounting Coach - Fiscal Year.
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Finished goods to customer VSM shape

1/13/2017

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Finished Goods to Customer VSM Shape
  The image shown above is used on a value stream map to show finished goods to a customer.
Learn more about Value Stream Mapping Online!
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Flowchart

12/19/2016

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  A flowchart is a type of diagram that represents an algorithm, workflow or process, showing the steps and their order by connecting them with arrows. This representation sometimes illustrates a solution model to a given problem. Flowcharts are used in analyzing, designing, documenting or managing a process or program in various fields.


What are the different types of flowcharts?
  • Top-down flowchart
  • Linear flowchart
  • Swimlane


What are the shapes?
  Shapes are used to represent different decision points, process steps, functions, data or starts and stops.  


How do I create a flowchart?
  • See the process at the gemba.
  • Identify Steps in the process.
  • Organize and make visual steps in the process.
  • Check steps with process owners.
  • Identify key points with opportunities to improve.

Challenge:
  Read the story below and build a flow chart.
  1. Tim first starts his process by analyzing inventory against sales requirements.
  2. He then must decide: do I have everything? 
  3. If he has everything he can release the order to the shop floor.
  4. If he does not have everything he must wait until a new order of inventory arrives.
Flowchart
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Learn more about Flowcharts Online!
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Forecast

11/10/2016

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Picture
  A forecast is a prediction of something to come or in the future.  A forecast would take place before any type of action or activity happens.  Forecasts are almost always wrong but they can be used to define a hope-for, goal, target or condition that you believe is attainable based on analysis and assessment.

Examples of Forecast

1. Educated Guessing
​2. Estimating
3. Forethought
4. Foretelling

  For further learning on forecasting techniques the book entitled Forecasting Methods and Applications gives good insight.
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Failure Mode and Effects Analysis (FMEA)

10/28/2016

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FMEA
  Failure mode and effects analysis or FMEA is a tool used to identify possible failure modes of a process, product or design.  FMEA also helps determine the overall impact of the failures on sub-items.  The FMEA process establishes a measurement risk priority number that is often used in continuous improvement initiatives.  
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