Variance is the difference between what is expected and what is actually happening. In statistics variance is a measurement of dispersion of data.
Reference: Apics Dictionary, 2015.
* What are some examples of variance that you see each day?
Vendor Managed Inventory programs are a powerful way to leverage an organization's strengths and focus on your core competencies. Vendor Managed Inventory places the responsibility of selected services and or items on a chosen supplier. In most cases the supplier will handle all agreed upon aspects, Which would include:
Visual control refers to methods, devices, activities and or systems which are designed to assist in the management or control of our activities, processes, parts and or machines through visual and or other sensory means. Visual controls help to:
The vision of an organization is a compelling image or inspirational description of what an organization would like to achieve or accomplish. It is a forward looking and inspirational idea of where you would like to be. The vision guides the decisions of the current and future activities of the organization.
What does a vision do?
Value added work is the actual work that a customer is willing to pay for. It can be described as the the activities that transform a product or service from one condition to another only if the customer is willing to pay for it and the activity is done correctly the first time through.
John receives an order for a part he must machine. John begins machining his part and completes it correctly the first time through. This is seen as value added because the customer is willing to pay for it, the transformation occurred on the machine and he machined the part correctly the first time through.
If you are unsure whether something is value added ask yourself these three questions:
If any of your answers were a no the activity can not be value added.
John receives a second order for parts he needs to machine. He begins machining the parts however one hole is undersized. Because it is undersized he can rework the hole. Is this activity still value added?
**Place answers in the comments tab below.**
Value Stream mapping is a lean and six sigma tool used to visually understand the flow of materials and information for a given process such as supplier to customer. The value stream map includes both information and material flow that are value added and nonvalue added activities. A value stream map is often used as a critical tool to lead waste reduction projects, cycle time reductions and to lead improvements in process flow.
Toyota often refers to "value stream mapping" as material and information flow mapping.
The Value Stream is the entire sequence of activities that are required to design, produce and provide services or goods. The value stream includes both information and material flows which identify value-added and nonvalue-added activities.
Variation is the term used to describe the consistency of a processes outputs. Reducing variation is one of the most important objectives in Lean and Six Sigma. The reduction of variation improves sigma rating and creates more stable processes that can be improved upon. There are two types of variation: Common cause variation and Special cause variation.
The voice of the customer is a process that is often used in business to collect requirements, needs, wants, expectations and feedback from customers. The voice of the customer is both internal and external. The voice of the customer allows organizations and individuals to be proactive in understanding the customer allowing them to be innovative and make the proper changes to meet customer expectations. A great resource when using the voice of the customer in Lean or Six Sigma is a book entitled Voice of the Customer: Capture and analysis.
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