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Digitization is the adoption of digital, real-time and networked products and services and related information. In real terms, digitization is about choice, efficiency, and responding to customer needs. All of this digitization requires the skills of operations managers to implement and oversee.
Reference - Kettering University, 01/12/2017, Operations Management and Technology.
Demand is an economic principle that describes a consumer's desire and willingness to pay a price for a specific good or service. Holding all other factors constant, an increase in the price of a good or service will decrease demand, and vice versa.
Reference : Investopedia - Demand
The term decoupling is defined by dictionary.com as: to cause to become separated, disconnected, or divergent; uncouple. It also defines decoupling as: to separate or diverge from an existing connection; uncouple. When we apply this definition to the concept of inventory it becomes much easier to understand decoupling. The Apics dictionary 14'th edition defines decoupling as "creating independence between supply and use of material."
A data box is a box drawn on a value stream map to illustrate and show data that is related to the process on the value stream map. Some types of data that are commonly held within a data box are:
A process by which products are designed with ease of assembly in mind. If a product contains fewer parts it will take less time to assemble, thereby reducing assembly costs. In addition, if the parts are provided with features which make it easier to grasp, move, orient and insert them, this will also reduce assembly time and assembly costs. The reduction of the number of parts in an assembly has the added benefit of generally reducing the total cost of parts in the assembly. This is usually where the major cost benefits of the application of design for assembly occur.
Demand stability refers to the reduction of variation that happens with supply and demand.
Design for manufacturability is the process of designing products to optimize manufacturing functions such as fabrication, assembly and test. DFM focuses on the simplification of parts, products and processes to improve quality and reduce manufacturing costs.
DMADV is the methodology used when designing new processes that did not exist prior to their design. DMADV can also be used on processes that have attempted improvement with another methodology but the improvement failed to meet the required objectives or critical to quality measures.
The door to door value stream refers to a value stream map or value stream process of internal operations/activities as they pertain to an organization. The door to door value stream stretches from the very first process step to the last activity within the organization.
Organizations will generally start their lean journey or identification process from the door to door level. This is because the organization has more influence on internal activities than they do at any other level of the value stream.
What is the very first step within your organization? What is the very last step within your organization?
**Place answers in the comments tab**
Dashboards allow the appropriate party to see at a glance, Key Performance Indicators (KPI's).
Examples of Dashboards:
Qualities of a good dashboard:
For more information on Dashboards visit our recommended reading: The Balanced Scorecard: Translating Strategy into Action, by Robert S. Kaplan and David P. Norton.
DMAIC overview Slides - Download a Free Copy Here!
The DMAIC Method is a problem solving methodology used within a six sigma strategy. The methodology focuses on improving business processes, specifically through the improvement of quality and reducing variation. It is an Integral part of six sigma.
The average or ratio of the number of defects per unit observed during an average production or service run divided by the total number of opportunities to make a defect on a product or service normalized to the number 1,000,000.
-To Calculate DPMO from DPO simply multiply DPO by 1,000,000.
- To Calculate DPMO from DPU - DPU/(opportunities/unit) x 1,000,000.
Defects per opportunity is a common metric that can be used to indicate the number of defects in a process or product per opportunity. It is calculated by dividing the total number of defects in the sample lot or batch by the total number of opportunities.
A team determines that each shirt can have 10 opportunities for defects we have 500 shirts in our sample lot. This gives us 5,000 opportunities (10 opportunities x # in sample batch) for a defect to occur. The inspector observed 50 defects in the sample lot. Making our DPO .01 (50 divided by 5,000). To learn more visit our recent blog post on Listen to the Gemba entitled Calculating Defects Per Opportunity (DPO).
A defective unit is an item or service that is considered to be unacceptable for use. Every item is either defective or not. A defect is not the same thing as defective. The main difference is that a defect may be considered okay for use, however a defective unit has been deemed unacceptable.
A Defect is any output from a service or a product that does not meet the customer required specifications, standards or requirements. A defect is not the same as defective. There may be more than one defect in a defective product or process. A Defect is also one of the 8 forms of waste or muda.
DPU or Defects per unit is the average number of defects observed in a sample lot or batch. The defects per unit is a fundamental measurement used in six sigma. As shown above in the formula the measurement means that a process producing U (the total number of units) outputs, with D (total number of defects observed) then on average each unit will contain such number of defects per unit (D/U).
The ABC's of