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A push system is the production or performance of any item or activity performed at required times by a given schedule that has been planned in advance. Many push systems are built mainly to forecast. Push systems can also include issuing material or performing an activity based on a schedule rather than need. Push systems create excess inventory which is one of the 8 forms of waste.
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 Click on the image to subscribe to our YouTube Channel. The 5 core principles of a Lean Organization were first written about in a book entitled: Lean Thinking by James P. Womack and Daniel T. Jones. The 5 core principles are widely accepted as a means implementing and establishing a lean organization. The 5 core principles have been adapted from the 5 original principles that were defined by Dr. Womack and Daniel T. Jones:
 Click on the Photo to Subscribe to Our YouTube Channel. In Transit or Pipeline Inventory is Inventory that is in transit. Typically the inventory that has left the shipping dock of the seller or supplier, but not yet reached the receiving dock of the buyer or customer. Any inventory that is in the “pipeline” is inventory that is moving within the supply chain.
 Click on the Photo to Visit our Training Page. A process is a sequence of interdependent and linked procedures designed to transform inputs into the desired outputs. Each stage of a process consumes some type of resource (e.g. time, energy). Some parts of a process are intended to create value while other parts of a process are intended to support the creation of value.
Poka-yoke (ポカヨケ) is a Japanese term that means "mistake-proofing". It is derived from poka o yokeru (ポカを除ける), a term in shogi and igo referring to avoiding an unthinkably bad move.
 Click on the picture to visit our training page. Perception in one regard is defined as the ability to see, hear, or become aware of something through the senses. Quality on the other hand is defined as; how well a product or service meets the needs of a customer according to some said standard. Perceived quality is one of eight dimensions of quality defined by David Garvin in and article from 1987 entitled "Competing on the Eight Dimensions of Quality". It refers to an assessment of a product’s or services quality based on criteria defined or established by the observer, generally an outside party.
 Click on the picture to visit our training page. Product costs are the costs allocated or the costs accumulated to create a product. In general, Product costs will include direct labor, direct materials, consumable production supplies (MRO), and factory overhead. A product cost is typically calculated on a single unit or on a batch of units and divided by the number of units manufactured. This is why ordering in "bulk" or "batch" is often times more cost effective, because the cost of the batch is spread over the entire group rather than accumulated to one piece. Keep in mind that product costs are initially recorded as inventory on a companies records. Once the product is sold, it then becomes an expense (cost of goods sold).
 Click on the photo above to see Lean Strategies International LLC's Training. PDCA or plan-do-check-act is a four step method used in lean, quality improvements and other continuous improvement strategies.
 Click on the photo above to see Lean Strategies International LLC's Training. 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.
Challenge: After reviewing the examples below answer the question below and receive a coupon for one of Lean Strategies International LLC's courses:  Click on the photo above to see Lean Strategies International LLC's Services. Process time is the time that the product or service is actually being worked on by an operator or employee. Process times can be observed and gathered using a stopwatch.
 Click on the photo to visit Lean Strategies International LLC's Service Page. Pareto’s concept suggests that most effects come from relatively few causes. To be even more specific Pareto’s concept suggests that 80% of effects are directly related to 20% of causes. The principle is often used in the narrowing down of choices and focusing in on priorities. To Learn more about Pareto's Concept visit our recent post in our blog entitled Listen to the Gemba, "The Pareto Chart." You can also learn more about the Pareto Chart and learn how to build your own in our Lean Six Sigma Yellow Belt Course.
 A pilot test is used to ensure that an experiment, process, tool or method works. The pilot test can be done with a lot, batch or single piece with the objective of proving something new that has not been used before.
 Click here for an easy to use tool for performing cost to benefit analysis on potential projects The Pareto Priority Index or PPI is a method of performing a cost to benefit analysis. It is used in quantifying potential projects. The analysis weighs the savings and probability of success against the cost and time of completion. It is important to keep in mind that unless historical data is gathered and used the index is largely qualitative and often includes no customer input. When prioritizing your project options it is a good idea to take into consideration customer surveys and other qualitative means before final project selections are made.
 Process variability is the variation or lack of consistency in a process. The variation causes the process to deviate from a fixed pattern in such a way that results in inconsistent, unpredictable and non-repeatable outputs (Y).
 Process Stability is the consistency of a process in relation to important/critical process characteristics such as dimensions. When a processes outputs show consistency over a period of time that process can be considered stable or in control. Processes often become stable when variation in a process is reduced, resulting in a more consistent, repeatable outcome.
 Process improvement is any activity that is designed to close a process or systems performance gap. This can be done through the identification and elimination of COPQ, variation or various types of waste. Some methods that are commonly used in process improvement projects are:
 The boundaries/scope of a charter make it clear to the team what the starting and stopping point are and to what level. The scope includes lateral and longitudinal scope. Starting and stopping points are usually outlined with a SIPOC map or a flow chart. Scope sets the in’s and out’s or the boundaries for team members.
 A problem statement describes what, where, how big and when the problem occurs. The statement is intended to be very clear and concise, focusing only on the issue or opportunity that was initially discovered. The statement should be neutral and not suggest any type of solutions or assumed causes. The objective of the statement is to define clearly what the problem is (symptoms) and quantify in some way their effects on the organization.
Example: Our cash to cash cycle at the accounting process has not been meeting the standard of 30 days. As a result of this our funds are invested in inventory 50% longer than we expect. It is crucial that we improve this because we are not getting a return on our investments quick enough. Sample Format: Our (category of problem) at the (where is the problem) have not been meeting (what is the problem). As a result of this (connect a metric with the magnitude/impact of the problem). It is crucial that we (correct or improve) this because (why it is important). A pull system is a technique used to produce only what has a demand attached to it. Pull systems are also used to replace inventory items or information which may have been taken to fulfill a demand. Pull systems use triggers to notify individuals when a demand or a need has been generated for the part or service.
 A project budget is a comprehensive assessment or estimate of all costs related to a project. The project budget is more detailed than a high-level budget that may have been developed in the initial stages of project development.
What is included in a project budget? 1. Labor or manpower costs. 2. Material costs. 3. Direct costs such as training 4. Equipment costs including ongoing equipment fees. 5. Overhang and consulting fees 6. Project reserves or contingency planning 7. Subcontracting costs or vendor fees. There may be other costs unique to your project. Keep in mind the project budget is your best estimate of how much the project will cost and ultimately determine the initial cost to benefit analysis for sponsorships decision.  A product family are products which pass through similar processing steps and share common equipment prior to leaving your company (shipping to customer). In general product families share about 80% or more processing steps or equipment. The significance of the "product family" as it relates to lean or six sigma is that the value streams of our organizations are in some way related to a product/service, when we group them into product/service families we are then able to see which product/services share the same processes and which value stream will be the greatest improvement opportunity for the organization.
 Process mapping refers to a tool used to make business processes visual. The process map documents an entire process step by step. The process map is generally used towards the beginning of initiatives in order to understand the flow of a process but it can also be used in support of almost every phase of improvement projects.
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