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.
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.
Pipeline inventory is the inventory that is still being transported through your network including, distribution and any intermediate stocking points. This inventory pipeline is one of the biggest reasons for low inventory accuracy. As you might have guessed when inventory items are in transit they are normally considered to be the shipper's inventory if the customer has not yet paid for the inventory, but if the customer has paid for the inventory, ownership normally transfers to the customer even if the customer has not obtained custody of their order yet. This is important to understand because ownership of the in-transit inventory more often than not tells us who's inventory list the order will go on.
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:
Process Control is the activities involved in controlling a process. The includes making the process as predictable as possible, reducing variation, stabilizing and continuously improving so that the process will continue to perform or exceed the standard of performance.
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.
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.
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 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.
One very common everyday example of a pull system is at a grocery store. Items are not replenished until a customer "pulls" the item from the shelf.
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