CH 11

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Lesson 1 out of 24: Improve
Introduction When you do something, you should burn

yourself completely, like a good bon ire,
leaving no trace of yourself.
- Shunryu Suzuki
Zen Mind, Beginners Mind
The purpose of this session is to provide the tools to implement improvement actions.
You will probably notice that many of the tools presented throughout this course may
be applied at multiple points in the process. Several tools discussed in the Analyze I
and II sessions also have application in this Improve session, particularly Design of
Experiments. Statistical Process Control is another tool that can be used for different
purposes - to Measure, Analyze, Improve, and Control.
Just as a carpenter may use a hammer throughout the various stages of building a
house, Lean Six Sigma tools may be applied in different contexts at different steps in
the process. Don't be concerned if the tools that you employ do not fit neatly within
one of the conceptual categories of Define-Measure-Analyze-Improve-Control.
Likewise, there is no hard and fast rule as to which tools must be used on a given
project. Some projects will require extensive quantitative analysis while others may rely
on conceptual tools like process flow charts and systems diagrams.
In this session we will present a collection of complementary improvement tools used

to identify and implement specific corrective actions. The learning objectives and
assignments for this session are outlined here.
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Lesson 2 out of 24: Design for Lean Six Sigma (DFSS)
DFSS - Design for Six Sigma
As you work through a Six Sigma project, you may find that efforts to reduce Case Studies:
variability through process management are limited by the process or product
Refrigerator
design. Ultimately, almost every process requires some level of design change Design
in order to achieve performance breakthroughs. Projects with a heavy design Defects by
orientation utilize a methodology called Design for Six Sigma, or DFSS, which Design
follows any of several different roadmaps, including: Define-Concept-Design-
Optimize-Verify (DCDOV), or Define-Measure-Analyze-Design-Verify
(DMADV).
Outside
Design for Six Sigma builds upon an established body of knowledge called DFX: Research:
Design for Manufacturability, Design for Serviceability, Design for Processability, Design for
etc. - a group of design principles used to reduce cost, improve quality, and Manufacturability
reduce time-to-market by making products easy to produce. Studies have (optional)
shown that 80% or more of a product's cost is determined during the design
phase. Decisions made early in the design process largely determine ultimate
product quality as well as cost. Incorporation of DFSS relies upon proactive
cross-functional involvement by all affected functions early in the product
development cycle. The top DFSS design principles are summarized here; many
are interrelated.
It may not be obvious, but these principles apply to design of service

processes as much as they apply to manufacturing. For example, the number of
process steps in a service operation is similar to the number of discrete parts in
an assembly. The number of handoffs between people or departments is similar
to the number of fasteners. Error-proofing is equally, or more important in
service applications, and standardization efforts offer significant savings -
standardized forms, standardized processes, and standardized information
format.
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Lesson 3 out of 24: Benchmarking
Benchmarking
Benchmarking is the process of developing new (higher) performance targets and

standards for your process based on a comparison to other processes. Often the
comparison is made to a competitor with better performance (higher quality, less
errors, lower scrap, lower cost, faster cycle time). The comparison can also be made to
other operations within your own organization. Benchmarking should be based on
tangible, measurable results that are known to be truly superior. After all, there would
be no point in benchmarking operations that perform worse than your own.
Benchmarks help to communicate what is possible to internal team-members who may

not have an external focus. There are many sources to gather benchmarking data,
including direct observations and published information. A few common sources
follow:
Facility Visits Public Financial Reports

Company Publications Tear-Downs
Industry Publications & Trade Journals Books
Third Party Studies
One thing to remember with benchmarking: you may fall into the trap of following
rather than leading. Benchmarking may be a good first step to improve performance,
but it doesn't guarantee that you become the best that you can be.
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Lesson 4 out of 24: Brainstorming
Brainstorming for Creative Solutions
Brainstorming is a team-centered process used to generate new and hopefully

creative ideas to solve a problem. The foundation of brainstorming is an
atmosphere of suspended judgment - no criticism - so that a large number of Dilbert on
ideas freely flow from the participants. Many solutions to complex problems come Brainstorming
from ideas that might seem "crazy" at first, so Brainstorming is intended to (optional)
encourage fresh thinking and "crazy" ideas.
The brainstorming session can be structured so that everyone participates in turn,

or can be unstructured, with people given the opportunity to participate at any
time. The structured session has the dual advantages of encouraging equal Outside
participation by all and not allowing anyone to dominate the exchange, but may Research:
not allow as much spontaneous free flow of ideas. See the link below for tips on 4 Steps to
Successful
how to use Brainstorming techniques - then try your hand at the practice session Brainstorming
(right margin link). (optional)
Brainstorming In
Action
War Story: One of the authors of this course was in a

brainstorming meeting with the CEO of a major consumer
products company when a member of the CEO's senior staff
offered an idea. The CEO responded: "Don't take this
personally, but that's the DUMBEST idea I have ever heard."
The flow of ideas dried up pretty quickly after that bit of
positive reinforcement!
Seeding the Creativity Clouds
Brainstorming practitioners have found that the results of

brainstorming sessions can be improved substantially by "seeding"
the session. Seeding is accomplished by telling the participants about
the problem one or more days in advance of the scheduled group
interaction. This practice allows the participants time to consider the
possibilities more thoughtfully, and as a result, the participants typically bring a
greater number of more creative ideas to the party.
Building on Failures
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Here's a fresh take on creativity: Negative Brainstorming. Instead

of thinking about all of the ways that a process or product could
be improved, get the juices flowing by asking "what are all the
things we would do if we wanted the process/product to fail for
sure." Capture the group's ideas, then work through the list and ask "how many of
these things are we doing now?". You might be surprised at the results. It's a useful
approach to develop a plan for "quick hitters" - simple actions for immediate
improvement. An Affinity Diagram is an excellent tool for organizing brainstormed
items.
We recently heard about a related technique for root cause analysis called
"BlameStorming". Sound interesting? To learn more, click here. And no, it's not
serious.
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Lesson 5 out of 24: Narrowing Down The List of Ideas
Multi-voting
Brainstorming frequently results in a list of ideas that is too extensive to be addressed

all at once. Multi-voting provides a structured means for reducing that long list of
ideas down to a manageable number. The benefits of multi-voting are listed here. The
following steps form the procedure for multi-voting:
1. Generate a list of ideas using a method such as brainstorming
2. Assign a letter to each idea to minimize confusion during voting
3. Vote; click here for details
4. Tally the votes; click here for details
5. Repeat steps 3) and 4) until the list is reduced to the desired number; (max. 5
recommended).
MoreSteam Note: One drawback to Multi-voting is that the

voting is dependent on the subjective opinions of the team
members. However, it has been the experience of
MoreSteam.com that relying on the subjective opinions of a
solid cross-functional team quite often leads to a better list of
alternatives than performing detailed objective analyses. A
more objective approach, presented elsewhere in the course,
can be used to prioritize and select a subset of ideas from a
list generated with multi-voting.
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Lesson 6 out of 24: FMEA Toolset
Overview
Failure Mode and Effects Analysis
Failure Mode and Effects Analysis (FMEA) is a tool used to prioritize potential defects
based on their severity, expected frequency, and likelihood of detection. An FMEA can
be performed on a design or a process, and is used to prompt actions to improve
design or process robustness. The FMEA highlights weaknesses in the current design
or process in terms of the customer, and is an excellent vehicle to prioritize and
organize continuous improvement efforts on areas which offer the greatest return.
The FMEA is a matrix that establishes priorities based on the risk of failure. Scores are
assigned to each potential defect mode of a process in three categories:
Severity - The seriousness of a failure mode.

Occurrence - The likelihood that a given failure mode will happen.
Detection - The likelihood that a given failure mode will be detected if it
occurs, prior to release to a customer.
The combined score conveys the overall risk of a customer problem, called the Risk
Priority Number, or RPN. The worst case is represented by those defects which are
severe, likely to occur, and hard to detect. That combination would have the highest
RPN, and would be the highest priority for improvement. If a severe defect is either less
likely to occur, or more likely to be detected, its priority would be lower.
Example
FMEA Example
Following is an example of a simplified FMEA for a seat belt installation process at an

automobile assembly plant.
Case
Study:
FMEA FMEA and
Process Name: Left Front Seat Belt Install Improved
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Process Number: SBT 445

Date: 1/1/2001 Revision Level: 1.3
PROCESS STEP FAILURE MODE A) SEVERITY B) OCCURRENCE C) DETECTION RISK ACTION REVISED
Rate 1-10 Probability Probability PRIORITY TO RPN
10=Most Rate 1-10 Rate 1-10 NUMBER IMPROVE
Safety
Severe 10=Highest 10=Lowest RPN
Probability Probability AxBxC
1) Select 1) Select
seat wrong seat 5 4 3 60
belt belt color
2) Secure 2) Seat belt not

Seat fully 9 2 8 144
Belt tightened
3) Install 3) Trim cover

trim clip 2 3 4 24
cover misaligned
As you can see, three potential failure modes have been identified. Failure mode
number two has a Risk Priority Number (RPN) of 144, and is therefore the highest
priority for process improvement.
FMEAs are often completed as part of a new product launch process. RPN minimum
targets may be established to ensure a given level of process capability before shipping
product to customers. In that event, it is wise to establish guidelines for assessing the
values for Severity, Occurrence, and Detection to make the RPN as objective as
possible.
How
Constructing An FMEA
The process of constructing an FMEA is very straightforward, and begins by identifying

all of the probable failure modes. Determination of failure modes is based on
experience, review, and brainstorming, and should use actual data if possible. New
designs or processes may not have actual historical data to draw from, but "proxy" data
may be available from similar designs or processes. FMEA
Analysis
FMEA Tutorial
Process Name: Left Front Seat Belt Install
Process Number: SBT 445
Date: 1/1/2001 Revision Level: 1.3
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1) Select 1) Select
Seat wrong seat
Belt belt color
2) Secure 2) Select Belt

Seat Not Fully
Belt Tightened
3) Install 3) Trim Cover

Trim Clip
Cover Misaligned
The next step is to assign a value on a 1-10 scale for the Severity, Probability of
Occurrence, and Probability of Detection columns for each of the potential failure
modes, as shown below:
1) Select 1) Select
Seat wrong seat 5 4 3
Belt belt color

Seat Not Fully 9 2 8
Belt Tightened

Trim Clip 2 3 4
Cover Misaligned
After assigning a value, the three numbers for each failure mode are multiplied
together to yield a Risk Priority Number (RPN), as shown in the highlighted area below.
The RPN becomes a priority value to rank the failure modes, with the highest number
demanding the most urgent improvement activity. Error-proofing, or poka-yoke
actions are often an effective response to high RPNs.
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1) Select 1) Select
Seat wrong seat 5 4 3 60
Belt belt color

Seat Not Fully 9 2 8 144
Belt Tightened

Trim Clip 2 3 4 24
Cover Misaligned
Note: A failure mode with very high severity may warrant

improvement actions to reduce the probability of occurrence,
even if the probability of detection is very high. Detection
processes have a tendency to develop leaks, especially if
human inspection is involved!
When
When To Use An FMEA
The FMEA is used in the Improve phase of the DMAIC process to identify actions that
reduce risk and to prioritize the control strategy for a process. In addition, FMEAs are
frequently employed in the earlier phases of DMAIC to identify and prioritize design
activities.
Answering Questions With FMEAs
FMEAs can be used to answer the

following questions:
What failure modes have the highest

potential impact?
Which process steps are a priority for the
control plan?
What results do improvement activities have
on the risk?
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Practice
Practice - FMEA
An automobile manufacturer has completed a process FMEA on the braking system in

preparation for the launch of a new vehicle. The process step "secure brake-line with
power tool" has an RPN of 150: the severity value is 10, occurrence is 5, and detection
is 3.
Secure Brake line

brake-line not properly
10 5 3 150
with power secured
tool
Click on the Practice Icon below to answer the practice questions:
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Lesson 7 out of 24: Error-proofing
Error-Proofing
Error-proofing, or mistake-proofing, refers to the implementation of fail-safe

mechanisms to prevent a process from producing defects. This activity is also known
by the Japanese term poka-yoke, from poka (inadvertent errors) and yokeru (to avoid) -
pronounced POH-kuh YOH-kay. Although this common-sense concept has been
around for a long time, it was more fully developed and popularized by Shigeo Shingo
in Japan. The philosophy behind error proofing is that it is not acceptable to make even
a very small number of defects, and the only way to achieve this goal is to prevent
them from happening in the first place. In essence, error-proofing becomes a method
of automated 100% inspection at the source rather than down the line, after additional
value has been added (wasted). Achieving extremely high levels of process capability
requires this type of focus on prevention rather than detection.
You may not realize it, but you probably encounter many examples of error-proofing in
your every-day life, as outlined by the link below:
View Using
Examples Error-
of Error- Proofing
Proofing Techniques
After reviewing the examples and application of Error-proofing techniques, practice

your error-proofing skills by clicking on the Practice icon in the right margin.
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Lesson 8 out of 24: Prioritizing and Selecting a Solution
Selecting a Solution
After narrowing the list of solution ideas down to a manageable size, one of the ideas
should be selected as an improvement project. Following a structured approach as
presented here to classify, review, prioritize and select a solution has several benefits.
Ensures that solutions with the highest likelihood of success are worked on. Solution
Provides a clear, consistent, process for decision making. Selection
Minimizes the potential for wasting resources. Tutorial
The steps involved in prioritizing and selecting a solution are as follows:
Establish rating criteria. What are the factors upon which the potential
solutions will be evaluated? Typically, these factors include areas such as
strategic fit, investment, technical feasibility, development time, etc.
Weight the criteria. What is the importance of each of the criterion? Most often
this is on a scale of 0 to 1.0 with 1.0 being the most important.
Establish criteria rating descriptions. Define an achievement level for every
criterion corresponding to each level of allowable rating. For example, if the
rating scale is 1 to 5, describe what a rating of 1 would "look like" for each
criteria. Repeat for 2 through 5.
Rate each solution against the criteria. This may be done by a team. Typically
the ratings are on a scale of 1 to 5 with 1 meaning the solution does not satisfy
the criterion and 5 meaning that the solution fully satisfies the criterion.
Sum and rank order the ratings. The solution with the highest sum total is the
one most likely to succeed based on the criteria. If the totals for two or more
solutions are close, another round of review and voting may be called for; or a
more detailed analysis of the potential solutions may be necessary.
War Story: One of the authors of this course was involved in a

process improvement project at a telecommunications
equipment manufacturer. A division that was experiencing low
profitability decided that the worst performing processes in
terms of throughput yield would be improved. The "worst"
process was experiencing single-digit throughput yield and
was selected for an improvement project. The project was
successful, improving throughput yield to over 99%. Within a
few weeks of completing the project, the plant with the
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improved process was sold. Needless to say, the cost

expended to improve the process was not fully recovered. The
sale of the plant had been known about for months. If the
division had used an effective prioritization process, resources
would have been applied in an area which would have allowed
the improvement benefits to be realized.
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Lesson 9 out of 24: The A3 One-Page Report
Reducing Waste when Communicating

Critical Information
The improvement process itself is not immune from waste. For example, it is common
for an organization to require numerous, detailed reports on project progress and
extensive background analyses for decision making. These reports and analyses can
run to several pages and be loaded with acronyms, business jargon, detailed textual
explanations, and countless tables of data. While the information can be valuable and
is often necessary, it does not facilitate communication and often hinders it. Project
teams and decision-makers must often sort through reams of data and paper to get
the information they really need.
In response, many companies have developed one-page reports for documenting the
information that is really needed for progress reporting and decision-making. These
one-page reports frequently draw upon the detailed reports and analyses mentioned
above. Many companies call these reports, simply enough, “One-Pagers”. One-page
reports focus on communicating visually to the reader using graphs and charts, and
succinctly using bullet points.
A sample One-Page Report is shown below. Click on an area of the report to see
specific details.
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Toyota Motor Company has embraced and integrated the one-page report concept
throughout its Toyota Production System and calls it the A3 Report. Any time
information needs to be communicated for a specific purpose, the objective is to use
an A3 sheet of paper to do so. A3 refers to the metric paper size that the report is
produced on - equivalent to a paper size of 11 inches x 17 inches. In an interesting
note on Toyota’s focus on continuous improvement, the A3 Report is often replaced by
the smaller, more concise A4 Report.
Toyota originally developed the A3 report in support of management decision-making

in Kaizen problem solving situations. As such, it can be characterized as a Lean tool
best suited for Kaizen-type problem-solving situations. The Problem Solving A3 Report
summarizes the business case for the recommended solution to a process problem.
The example above adds an optional feature called Results Report and is utilized when
it is desired to use the report to also track progress of the project.
MoreSteam Note: The A3 One Page Report is a Lean tool that

was developed for use in documenting and deciding between
improvement plans for relatively short duration Kaizen
improvement activities. It may not be as useful in a DMAIC
environment or for more complex projects.
There will always need to be some amount of data gathering and analysis in order to
develop information that an organization needs. However, the philosophy behind the
one-page report is that the information needed to communicate with others or
facilitate decision-making should easily fit on one page.
Pareto’s principle of the critical few and trivial many applies well here. A one-page
report can be viewed as identifying the critical few pieces of information needed to
communicate about a particular subject. Everything else is the trivial many and has the
potential to hinder communication if included.
Click here to download a Microsoft PowerPoint® A3 One-Page Report

Template and Example.
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Lesson 10 out of 24: Continuous Flow Toolset
Overview
Continuous Flow - Lean Methods
In many ways, the term Continuous Flow defines Lean Methods, whose purpose is to
eliminate all waste by improving the movement of material or information through a
process - increased process velocity. Continuous Flow means a product or service
Deeper
progresses through a series of value-added steps without delays (inventory) rework
Dive:
(defects) or non-value-added operations. Ideally, a product or service moves directly Lean
from the point of production to the point of consumption. Many Lean Six Sigma Enterprise
projects have a heavy Lean component, particularly those intended to reduce process Overview
cycle time. Reducing cycle time requires achieving a more continuous flow, which in
turn requires a reduction in lot size to more closely match the pace of demand with the
pace of production. This lesson presents a framework for actions to implement
continuous flow.
MoreSteam Note: Inventory is not just a manufacturing term.

While transactional firms may not place an asset value on
service work-in-process, any work to create real value that is
in an uncompleted state represents a delay in the
cash-collection cycle. In other words, if the work were
complete and delivered to the customer, the customer could
be invoiced. And you usually can't collect payment until the
work is completed.
Example
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Example: The Mechanics Behind

Continuous Flow
The Federal Redundant Inspection Security Corp. (FRISC) is a national airport security
screening company that is trying to improve customer experience for passengers of a
Take 2 on
large eastern airport. One of the higher priority improvement actions identified by the Takt Time
team is to reduce wait times of passengers passing through its security screening Analysis
equipment. A Lean Six Sigma team has been chartered to improve customer
satisfaction without sacrificing the integrity of the screening process. Most complaints
are centered on the long lines and long wait times (45 minutes) experienced on Friday
Formula:
afternoons. The team has already completed the Define phase of the project, and has Calculating
good visibility of the process. The team has also identified that passengers would be Takt Time
happy with a wait time no greater than 15 minutes. The next task is to improve the
FLOW of the process in an economical fashion.
Case
The team recognizes that improving the flow of passengers requires balancing the Study:
rate of processing with the rate of customer demand. If the rate of passengers Healthcare
intending to pass through screening exceeds the rate at which they are screened, the Example
queue, or backlog, will continue to grow. As a first step, the team identifies a need to
quantify the demand rate, or Takt Time, experienced on Friday afternoons. You may
recall that we introduced the concept of Takt Time in an earlier toolset. For a review,
click on the link in the right margin. In this case, the team identified a peak demand
of 300 passengers per hour between 3:00 PM and 8:00 PM on Friday afternoons. Takt
Time is therefore 3600 seconds (1hr) divided by 300 customers per hour, or 12.0
seconds; so the screening process must output a passenger every 12.0 seconds to
maintain an even flow. The process' actual performance is somewhat lower, with an
average output during these peak hours of one passenger every 15.0 seconds.
Generally, a central component of improving flow is to Reduce Lot Size - the number
or items or units that are processed at once, In this case, we already have a lot size of
one. Many times, processing takes place in batches, which requires higher levels of
work in process inventory. We'll cover this concept in depth in a subsequent toolset.
Having established the Takt time, the team now needs to understand the relationship
between Takt Time (Demand Rate), Process Cycle Time, and the size of the Queue, or
Passengers In Process (PIP). In the interest of consistency, we'll generally use the term
WIP, or Work In Process. This leads us to a simple but powerful equation called Little's
Law.
MoreSteam Note: The output of this analysis is impacted

significantly by the use of Peak Demand vs. Average Demand.
Since the company desired to design its system to handle
peak demand, the required resources to accommodate higher
throughput varies in direct proportion to the variability in
demand. This highlights another key component of lean
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methods - demand leveling. If a company can use sales and

marketing strategies to level demand, then cycle and service
targets can be consistently maintained over a period of time
with the minimum level of work-in-process. In this case,
demand cannot be leveled, but we can use a simple tool to
maintain the cycle time.
Little's Law
On the surface, the team's task seems simple - they need to either add screeners or
otherwise increase the speed of the screening process - but how many screeners?
And when should they be added? FRISC wants to balance capacity with demand so
that customers are satisfied without paying excess screeners who might be idle at
times.
Little's Law is an equation that provides the answer. The equation states:
Throughput Volume Per Unit of Time = Items-In-Process / Cycle Time
and can be rearranged to solve for the other components:
Items-In-Process = Throughput Volume Per Unit of Time x Cycle Time
Cycle Time = Items-In-Process / Throughput Volume Per Unit of Time
In our example, recall that the wait time reached a high of 45 minutes, and the
processing rate was one every 15 seconds, or 240 per hour (60 x 60 / 15). At the
peak of demand, According to Little's Law, the screening process will have 180
passengers in the queue:
People-In-Process = 240/Hour x .75 Hours
180 = 240 x .75
FRISC has some flexibility in adding screeners on Friday afternoons by redeploying

cross-trained employees from administrative positions. The question is, how many
should be added, and when? If employees are redeployed too early, there will be
excess capacity at the screening stations while the untended administrative work piles
up. It has been determined that each employee added increases the throughput rate
by 30 passengers an hour. So adding 2 employees would raise the processing rate to
300 passengers per hour and match the demand rate (Takt Time). If the additional
screeners are added at the peak, when the queue has reached 180 passengers, what
happens to the cycle time to pass through security? Use the Little's Law calculator
below to find out by entering 180 Passengers In Process and 300 Passengers Per
Hour:
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The cycle time falls, but only to 0.6 hours - far higher than our target of 0.25 hours.
Once the queue has increased, matching the processing rate with demand will not
reduce the queue size - only keep it from growing. So the key is to add capacity
earlier to protect the processing time - but when? Let's set the cycle time at 0.25
hours and set the Passengers Per Hour at 300 to determine the threshold queue size:
The number of Passengers In Process is only 75 with these constraints, so if we set a

target of adding screeners when the queue size reaches 75, we will hold our cycle
time within the range of customer acceptance. This can be done with a simple visual
control. Little's Law tells us some interesting things about our process when we
introduce constraints to the equation.
How
How To Achieve Continuous Flow
Beyond understanding the relationships of flow using Little's Law, achieving

continuous flow of either materials or information requires a combination of conditions
Take 2 on
and activities. Several tools to help achieve these conditions will be covered in greater Littles
detail in subsequent lessons. One of the most crucial actions is reducing the lot size Law
(batch size) as close to 1 as possible.
Key Term: Batch refers to the grouping of a product or service Take 2 on

Work
into larger quantities in order to gain process efficiencies. The Cells
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efficiency benefits from batch processing may be illusory as

there are many hidden costs that creep in as lot sizes increase.
Note: Inventory is not just a manufacturing term. While

transactional firms may not place an asset value on service
work-in-process, any work to create real value that is in an
uncompleted state represents a delay in the cash-collection
cycle. In other words, if the work were complete and delivered
to the customer, the customer could be invoiced. And you
usually can't collect payment until the work is completed.
Deeper
Dive:
There are so many interdependent conditions that a Lean initiative can seem like a big Achieving
chicken and egg proposition with no clear place to start. However, the outline below Process
Balance
can be used as a roadmap to organize your actions, and like most process (Line
improvement activities, it starts with a visual map so that you can see and Balancing)
communicate where you are and where you are going:
1. See the process by creating a Value Stream Map to guide your efforts and
communicate your plan to others. This tool was covered at length in a previous
lesson.
2. Identify non-value-added process steps and other waste using a Value-Added

Flow Chart and/or Spaghetti Diagram. Again, these tools were covered in previous
lessons.
3. Eliminate non-value-added operations

Remove chaos and obvious waste first so that you can see
what is happening. Tools like 5-S, which is covered in a
subsequent lesson, can be used to address workstation
organization.
Streamline the process to improve physical flow by revising
the process layout to a cellular design. Reduction of inventory
between process steps and reduction in lot sizes allows a
reconfiguring of equipment geography, typically into cells
organized by product family. This is quite different than a
job-shop orientation, where similar machines or processes
are located together in departments and the product follows a
tangled path from department to department. Production cells
often utilized smaller, dedicated machines or tools to
eliminate set-ups entirely.
4. Analyze the balance between supply (value creation) and demand (use). Enter the
work-in-progress (inventory) and completion rate per unit time into the Little's
Law calculator in EngineRoom to quantify the impact on cycle time of reducing
work-in-progress. The calculator as provided in EngineRoom is shown below:
Click here to download a Microsoft

Excel® template for calculating quantities
using Little's Law.
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Understand Demand Variability by analyzing demand data

over time. Calculate Takt time and also identify any spikes in
demand.
Understand Production Variability between process steps,
and compare to the demand rate. The rate of production or
service delivery must be balanced throughout the system
based on the Takt time. Takt time is defined as the available
production time for a period divided by the average customer
demand for that period. For example, if a two-shift operation
has a net production time of 4,200 minutes per week (7 hours
per shift after subtracting lunch and break time x 2 x 5 days),
and the average customer demand per week is 4,500 units,
then the Takt time is 4,200/4,500, or 0.93 minutes. A unit
must be produced every 0.93 minutes in order to satisfy
demand. The actual production rate is called the Cycle Time.
Production cycle time that is lower than the Takt time will
result in excess inventory. The goal is to balance all processes
to run at this same rate so that there is no in-process
inventory accumulation between process stages.
MoreSteam Note: Think of line balancing

in terms of the typical home washer and
dryer. The washer usually has a cycle time
that is much faster than the dryer. If you
continue to load and unload the washer at
the end of its cycle, inventory of wet
clothes piles up ahead of the dryer because
their cycle times are not balanced.
Identify Set-up, Changeover, and Bottleneck Issues - these

"hard rocks" in the process flow cause unbalanced activity,
and will be addressed in detail in later lessons.
5. Achieve Balance
Level Demand It may be possible to level demand by using
sales and marketing incentives (or lack thereof) to flatten the
spikes. Movie theatres do this by offering discount tickets in
the afternoon to incentivize customers to attend earlier and
reduce peak evening demand. Restaurants do likewise by
offering "early-bird" discounts.
Level Value Creation through improved flexibility. This is the
most important factor in establishing continuous flow -
setup reduction and quick changeovers:
Quick Changeovers - If set-ups or changeovers are lengthy, it is
impossible to process small lots of units. This applies to both service
and manufacturing. In manufacturing, for example, large stamping
dies commonly took hours to change until the development of quick
die change methods (Single Minute Exchange of Die, or SMED). Long
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changeovers necessitate cycle times well below the Takt time, and
hence a buildup of inventory to supply production while the die is
being changed. For a service example, consider changing over the
operating room between surgeries. It may not seem obvious, but there
are strong parallels between the two examples. This subject will be
handled in depth in a subsequent lesson.
Reduced Lot Size - Reduced lot sizes go hand-in-hand with quick
changeovers. The smaller the lot size, the better the flow through the
process. Small lots can be passed continually between processes,
allowing layout changes to link processes into cells, and reducing
inventory and the space it requires. Quality and processing problems
are quickly exposed and problem resolution is forced because there is
no buffer inventory to hide the inefficiencies. With large batches, all
sense of Takt time is lost on the shop floor.
Level Value Creation by improving base operation capability.

Poor quality leads to unpredictable output from a base
operation, which will always result in higher inventory levels
and scheduling problems. In addition to the Lean Six Sigma
quality toolbox, the following traditional Lean activities can
help improve process capability:
Error-Proof operations to reduce or eliminate the possibility of
creating a defect. This is a hallmark of the Toyota Production System,
the pre-cursor to wider Lean efforts. This subject is covered at greater
length in another focused lesson.
Tighten the Linkage: If cycle times are appropriately determined
(equal to Takt time), then the production of defects in any process
causes production shortfall and hence immediate visibility (and pain).
In this sense, just-in-time systems are often described by the analogy
of lowering the water level in a stream to expose the rocks.
Autonomation: In the words of Taiichi Ohno, creator of the Toyota
Production System, "autonomation refers to automating a process to
include inspection at the source. Human attention is necessary only
when a defect is detected (the machine will stop and not continue until
the problem is solved)." This automation with a human touch requires
human involvement only when there is a problem to be solved, so one
operator can tend to multiple machines. A rule of Lean is that no
defective product is ever passed on to a downstream operation.
Standardized Work: In order to achieve a balanced work flow, cycle
time equal to Takt time, and high quality, work is standardized at all
operations for optimum efficiency and consistency. Variability is
removed by eliminating "adjustment", searching for tools and parts,
and awkward ergonomics. The standard work sheet contains the cycle
time, work sequence, and standard inventory, and is well documented
and displayed at the workstation. This subject will be covered at
greater length in a subsequent lesson.
Iterative Improvement
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Becoming lean is not accomplished in one fell swoop by a single project, it requires a
series of efforts over time which build upon themselves, so factor the iterative nature
of this improvement path into your planning. As you improve the flow of your
processes, you will begin to see impediments and opportunities that would not have
been visible when you first started.
When
When To Address Process Flow
There may be no clear distinction between Lean activities and the Six Sigma activities in
a Lean Six Sigma project, and many projects combine elements of both. Use of lean
tools within a project is determined by the need to address the flow of materials or
information, as shown below:
Answering Questions With Continuous Flow Lean Tools
Lean Tools can be used to improve

flow to address the following project
issues:
How can throughput be increased and queue

time be reduced?
Can the lot size be reduced and inventory
levels be lowered?
How can the process cycle time be reduced?
Are there non-value-added operations that
can be rationalized?
How can the physical distance over which
the process travels be minimized?
Practice
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Application of Little's Law
Crystal Creek Canoe provides full-service excursion support for trips down Crystal
Creek, including rental of canoes and kayaks, and transportation back to the base
camp. The company sets a time limit of 5.0 hours for return of equipment rented to
travel the six mile trip. The actual time required to reach the return point is normally
3.0 hours, and customers are given extra time in case they want to stop along the way.
During the latest peak season, the company turned away business for lack of
equipment. The general manager would like to be more accommodating during the
upcoming season, but canoes and kayaks are expensive, so she would like to minimize
her investment in inventory. The current inventory of canoes and kayaks totals 280,
which provides a cushion of about 55 extra during normal times, when hourly demand
averages 45. During the peak season, the general manager expects hourly demand as
high as 70, and wonders how many extra canoes or kayaks she would need to
purchase. Click on the practice icon below to answer the general manager's questions.
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Lesson 11 out of 24: Quick Changeover Toolset
Overview
Quick Changeovers
As lean production is dependent upon small lot sizes, small lot sizes are dependent
upon quick changeovers. If changeovers are lengthy, it is mathematically impossible to
produce small lots of products with low inventory because large in-process inventories
must be maintained to feed production during changeovers (unless there is no product
variety), so quick changeovers are a critical component of the Lean Enterprise.
Reducing changeover time can be one of the highest leverage activities in support of
efforts to reduce inventories and increase process velocity - for both transactional and
manufacturing operations.
MoreSteam Note: You may see the terms "Changeover" and

"Set-up" used interchangeably, but they are not synonymous.
Set-ups are actions that must be taken before a product or
service can be produced. Change-overs are set-ups that must
occur before switching over to produce a different product or
service.
In the manufacturing arena, large stamping dies commonly took hours to change until
the development of quick die change methods (Single Minute Exchange of Die, or
SMED). Long changeovers necessitate cycle times well below the Takt time, and hence a
buildup of inventory to supply production while the die is being changed. Quick
changeover methods have been thoroughly studied and well-documented, with readily
transferable lessons-learned that can be applied outside of the traditional
manufacturing application, as we shall see.
Example
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Changeovers in the
Transactional World
Changeovers that we encounter in daily life have a significant impact on the time
required to complete a range of everyday tasks, from running errands to ordering
lunch in a restaurant. Some of these changeovers are quick, and some are not, as
highlighted below: Outside
Research:
If you are old enough to remember using a PC before the development of Rapid
Setup For
Windows® (unless you had a Mac!), you probably remember waiting each time Service
you moved between applications as they had to launch each time. By allowing Processes
multiple applications to run simultaneously, the changeover between (optional)
applications is essentially eliminated.
In a restaurant setting, the table cleaning and setup is a changeover between
different customers, effecting the rate at which customers are served. Another
example is the changeover between breakfast and the lunch/dinner menu at a Outside
fast food restaurant. If that changeover does not take place quickly, the cycle Research:
"When
time of serving customers will be directly impacted. Couches
When running errands, you can think of the trip to the store as a changeover. By Fly" from
Fast
placing multiple stores in close proximity, shopping malls actually provide a Company
quick changeover between shopping at different stores. This changeover is (optional)
further reduced when you shop online.
In a hospital setting, an operating room must be cleaned, re-provisioned, and
set-up between each procedure. This operating room changeover process is
actually very similar to changing a stamping die, as strange as that may seem,
and has a significant impact on the facility utilization rate.
When it comes to business decision-making processes, committee meetings

are a set-up requirement that can dramatically slow down a process. For
example, banks often use a committee for the credit approval process. The
bank benefits from greater diversity of opinion in the underwriting process, but
the customer may experience delay when waiting for the committee meeting to
be held, especially if all of the participants must get together in the same
physical location.
Call centers experience changeovers when service representatives shift from
one customer to the next. They must retrieve each customer's account
information from their system. This changeover time is a key component of the
overall process cycle time. You have probably experienced call centers where
you are asked to enter your account information through your phone while you
are waiting in the queue. By doing this, the changeover time is reduced, and
representatives can handle more calls.
In the retailing environment, changeovers occur whenever the store wants to
sell different products or run different promotions, so inventory and signage
must be changed within the store. Often this is performed at night when the
store is closed, so the changeover does not impact customer operations.
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However, the merchandising is relatively inflexible in that all customers are

presented with the same experience. Contrast this with Amazon.com, where the
merchandising is adapted according to your previous interests and the
selections that may already be in your shopping cart - now that's a quick
changeover.
MoreSteam Note: Quick changeovers impact more than just

the cycle time of a process - changeovers also have significant
quality implications. A shorter cycle time means a faster
feedback loop to report and resolve quality issues, and lower
inventory levels mean less potential rework if a quality issue is
discovered. This is an example of how Lean efforts to improve
process velocity and Six Sigma efforts to improve quality work
hand-in-hand.
Single Minute Exchange of Die (SMED)
In the manufacturing world, where Lean Methods originated, quick changeover is

closely associated with Single Minute Exchange of Die, or SMED. SMED was developed
by Shigeo Shingo in Japan in the sixties and early seventies at Toyota and other
Japanese firms. The impetus was to reduce costly inventories and improve efficiency.
An important foundation to the SMED system is the distinction between changeover
work that occurs while the machine is not running, called Internal Setup, and
preparatory work that occurs while the machine is running, called External Setup. At
the point in time when SMED was developed, almost all changeover work was
performed while the machine (press) was down, so there was no distinction between
Internal and External Setup - it was all internal setup. The SMED philosophy breaks
down into four stages:
In the preliminary stage, all setup work is combined. There is no distinction

between internal and external work.
In the second stage, external setup and internal setup are identified and
separated.
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In the third stage, work that was previously included in the internal setup is
transferred to external setup.
The fourth stage requires relentless and continuous improvement of all work
elements within the internal and external setup (Kaizen).
MoreSteam Note: The editors are familiar with an appliance

plant that is a good example of changeover problems. In order
to minimize capital investment when the plant was launched,
many stamping dies were designed to make multiple parts.
Not a bad idea in and of itself, but to accomplish this mission,
the dies had to be reconfigured in the tool room in order to
form other parts by adding or removing bolt-on modules. As a
result, changeovers between parts took as long as eight hours.
Massive in-process inventories were required to maintain
production levels while the dies were reconfigured. The
short-term decision to reduce investment through common
dies was more than offset by the increase in inventory and
tool-room costs! The System Dynamics were clearly not
considered when the initial investment decision was made.
Single Minute Operating Room Exchange (SMORE)
Expanding on our earlier example of operating room changeover, the

same SMED principles used to change a die quickly can be applied, so
we might call it "SMORE" - Single Minute Operating Room Exchange.
Many activities, like selecting surgery materials in response to a
physician's preference card, can clearly be moved from internal to
external setup. Quick-release attachments and equipment that can be rolled in and out
as needed speed up the changeover. Other activities may be less obvious, like using
dual sets of equipment so that cleaning and adjustment can be performed in advance
of the changeover and therefore moved from internal to external setup. As with
dedicated die-change equipment, the additional capital expense is offset by higher
utilization of the most expensive facilities and equipment (operating room), which are
often also a bottleneck on the overall process.
A useful comparison is the pit crew of a racing team changing tires. If the tools and
parts are not prepared until the car enters the pit, then the pit stop will be lengthy. If
the parts and tools are prepared beforehand (External Setup), the crew's every move is
choreographed for efficiency, and special tools and fittings are used to increase speed,
then the pit stop will be short.
How
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Quick-Changeover Techniques
Specific techniques to reduce changeover time are listed below. They could apply to
either a manufacturing process or a service, such as an operating room:
Deeper
Staged Equipment, Tooling and Fixtures - If a part or tool must be placed Dive:
into a fixture prior to an operation, such as machining, add a fixture so that Sometimes
while one part or tool is in the machine, the second can be set up in the It Pays To
Be Late
fixture.
Operations Conducted in Parallel - Consider the pit crew example again: if
the four tires are changed simultaneously by four crew members that pit stop
is a lot faster than if the crew moves from tire to tire in sequence.
Standardization - Tools that are the same size with the same attachment
location can be changed much more quickly. Consider how long it would take
a pit crew to change tires if the replacement tire had a different lug nut
configuration. In the same vein, a common die height allows the shut height of
the press to be set to a common dimension. Standardized attachment points
and methods reduce confusion and the number of fasteners - saving time.
Standardization also applies to tool storage organization so that tools can be
quickly located. See the 5S tutorial of the Toolbox for additional discussion of
workstation organization.
Quick Attachments - Clamps, cams, and u-shaped washers are used for quick
attachments. If a bolt can be pre-tightened during external setup, then it only
needs one final turn to provide clamping force during internal setup. Another
example to consider is the quick-release hub on a bicycle tire, which facilitates
rapid changeover by a lever and cam device so that a wrench and the time that
goes with it is not required.
No-Adjust Equipment and Tooling - Use locating pins, guides, and fixtures to
completely eliminate adjustment.
Duplicate Equipment and Tooling - Duplicate tooling can minimize or
eliminate the need for changeovers, and the cost can quickly be offset by
reduction in inventory and set-up labor costs. Simple pre-set gauges and
templates can speed up changeovers without large expense.
Assisted Tool Movement - Large stamping dies or other heavy tools can be
moved much faster using dedicated die carts, roller tables, or small conveyors
than with forklifts or cranes. Mechanized tool change equipment allows
pre-staging of the replacement tool, and may also facilitate changeovers by
the base equipment operator without additional indirect labor.
By incorporating these methods, even massive metal stamping dies are commonly
changed in less than 10 minutes - setups that used to take hours. Benefits of reduced
changeover time extend beyond the direct reduction of inventory to include:
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Reduced lead times and improved responsiveness to customers

Flexibility to respond to changes in demand
Improved product quality from quicker information feedback
Improved visual control and plant communication, and
Reduction of indirect costs for material movement, counting, and transaction
processing
MoreSteam Note: In the transactional arena, quick

changeovers are often driven by information technology,
whether the process involves a call center quickly pulling up a
different customer record, an airline gate agent assigning a
different seat, or an insurance agent quoting different rates
for different coverages.
Recommended Books:
Shigeo Shingo, A Revolution in Manufacturing: The SMED System ( 1985,

Productivity Press), ISBN: 0915299038
Productivity Press Development Team, Quick Changeover for Operators: The
Smed System (Shopfloor Series), (1996, Productivity Press), ISBN 1563271257
When
Application of Quick Changeovers
Quick Changeover techniques can be employed at any phase of the DMAIC process, but
are primarily used in the Improve phase of the cycle. After identifying the value stream,
Quick Changeover techniques are useful in establishing FLOW by reducing lot sizes.
Small lot sizes are a necessary prerequisite to move from a "push" system to a "pull"
system - the essence of becoming Lean.
Use of Quick Changeover techniques is determined by the need to answer certain

critical questions, as shown below:
Answering Questions With Quick Changeovers
Quick Changeover techniques can be

used to answer the following
questions:
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How can the process cycle time be reduced?

How can lot size be reduced?
How can work-in-process inventory levels
be reduced?
Practice
Quick Changeover Practice
To practice Quick Changeover techniques, we'll use a common example from everyday
domestic life since the exercise requires familiarization with the process. While this
example may seem simplistic, the principles can be readily transferred to a more
complex service or manufacturing setting.
Click on the Practice Icon below to view and answer the practice question:
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Lesson 12 out of 24: Cellular Processing Toolset
Overview
Introduction to Cellular Processing
Cellular Processing is a form of workplace organization where a single product or

transaction is processed through a series of dedicated operations linked closely
together, generally using a single piece flow, with minimum work-in-process (WIP)
Deeper Dive:
inventory, and usually (and ideally) based on pull scheduling. The work cell is Cellular
usually configured in the shape of a C or U to facilitate visual control, provide easy Processing vs.
communication, and reduce walking distances. Work cell sizes vary, but are Batch &
Queue
generally small and focused operations staffed by 2-15 people.
Cellular processing is an effective method of reducing cycle time while eliminating Outside
waste. Close proximity and single-piece flow eliminates overproduction, excess Research:
movement, excess inventory, and the requirement to move large batches - all Cellular
Manufacturing
inherent problems in "batch & queue" systems where processing is and the
compartmentalized by function rather than by product. Work cells also provide Environment
quick feedback on quality problems since issues are identified before whole
batches of defects are produced, encouraging process capability at the source.
The foundation of work cell function is simplicity: simple movement, simple

scheduling, simple communication, simple organization, simple equipment, simple
maintenance, and simple management. Work cells are most appropriate when none
of the process steps require large, complex, or hazardous equipment which cannot
easily or safely be distributed to multiple points of use, such as painting or other
chemical treatments. In such situations, it may be necessary to continue large
volume processing through specialized departments, and limit cellular processing
to more flexible machining, assembly, or service operations.
Example
Work Cells in Action
Cellular processing can apply to service operations as well as manufacturing. In fact,

you have probably seen work cells many times in the service arena, particularly at
"build-to-order" restaurants, such as Chipotle Mexican Grill in the U.S., where an order
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passes through a short cell with 2-4 operators who each perform sequential tasks to
complete the order. Another example is the security screening operation at an airport
(although they have not been very successful at reducing WIP!). Other general examples
include co-located product development teams, Emergency Department trauma cells,
and local diagnostic testing at a physician's office that bypasses the normal batch
processing of samples at an outside laboratory. In a larger sense, you can even think of
a cross-functional Lean Six Sigma project team as a work cell - where all of the critical
functional expertise is represented by active team members rather than solely in a
functional department.
Better Service in Financial Services
A large diversified financial services company was wrestling with market pressures to
decrease transaction costs in order to maintain margins. One of the opportunities was
to improve the productivity and cycle time of the process to send out printed financial
information to its network of brokers. The firm commissioned a Lean Six Sigma team to
reorganize a 13-step batch-oriented process into a more productive work cell with
only 8 steps (5 non-value-added steps were eliminated). You can see the comparison
of two spaghetti charts below.
As a result of the work flow redesign, the company

realized significant gains:
31% improvement in service delivery cycle

time
33% improvement in productivity
32% savings in unit cost
Faster Refrigerator Production = Cool Savings
A leading appliance manufacturer was struggling with an inflexible batch-oriented

production process which resulted in excess work-in-process and finished goods
inventories, and high cost due to inefficiencies from moving and storing parts (and
sometimes damaging them in the process). In particular, the cabinet fabrication
process and paint process both required lengthy changeovers, and therefore large
batch sizes. Total inventory (WIP and Finished Goods) turned over only 6 times each
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year. The company implemented two major facility changes in Lean transformation:
flexible cabinet fabrication, and use of prepainted steel. This move significantly
reduced the large bank of formed cabinets, and completely eliminated the entire paint
process, while reducing the number of major process steps from 10 to 7, as shown
below:
As a result of the projects, the appliance manufacturer

realized substantial gains in several areas:
72% reduction in average dock to dock cycle time

40% of plant's floor space freed up
Inventory turns increased from 6 times per year to
almost 15 times
How
Implementing Cellular Processing
The successful migration to cellular processing requires careful planning, Outside

teamwork, and direct involvement of the operators who run the process. The Research:
physical realignment of processing steps is an obvious component of the change, Cellular
but no less important are the human realignments that must be planned and Manufacturing
managed. Operators who previously performed narrow duties in isolation from (optional)
other processes and people will now need to assume a broader range of skills and
responsibilities, and will be expected to work in close proximity to new
teammates.
The D-M-A-I-C process provides a practical and flexible roadmap to organize your
actions to develop and launch a work cell, as shown below:
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Step 1 - DEFINE: Evaluate the Current State
Like all Lean Six Sigma projects, the process improvement journey starts by
understanding where you are and where you want to go. Mapping the current
process and collecting baseline performance data defines the mission, as detailed
below:
Create a Value Stream Map (VSM) of the current process.

Augment the Value Stream Map with a Spaghetti Diagram to understand the
physical movement of materials and location of process steps.
Collect baseline performance data on productivity, quality, cycle time,
space requirements, inventory levels, and indirect labor support
requirements.
Step 2 - MEASURE: Examine Product Mix Volume Data & Establish Product
Families
In the Measure Phase, detailed data is collected to establish parameters for

realigning the process. Resource loading and product flow commonalities help
guide the restructuring toward cellular processing, as outlined below:
Create a linear map of process steps for each product/service.

Examine equipment loading at each process step.
Identify any batch limitations (e.g. ovens or chemical treatments in
manufacturing, or meetings in a transactional setting).
Measure process times not captured on VSM: setups, equipment time,
labor times, and processing times so that resource requirements can be
estimated. Compare required processing time to Takt time.
Compare data generated in the steps above to identify families of
products following shared process paths.
Step 3 - ANALYZE: Create the Future State Map
In the Analyze Phase, the high level future state map starts to emerge. Data
collected earlier on resource requirements by product should be used to identify
any needs for additional equipment. It is not uncommon to replace large
"monolithic" type equipment with smaller, more focused (and often older and
cheaper) equipment or machines. Any loss in high volume efficiency incurred by
moving to smaller dedicated equipment can be offset by lower inventory levels,
less material handling, higher quality, greater flexibility and responsiveness. The
actions below are suggestions for the Analyze phase of a cellular transformation:
Identify required equipment capacities so that right-sized equipment can
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be used.
Identify needs for any additional dedicated equipment.
Create preliminary Future State Map with reorganized process steps and
right-sized equipment.
Establish pull signals between process steps to call for the transfer of
materials, resources, or information.
Step 4 - IMPROVE I: Design the Physical Layout
In this step, a specific physical layout of the cell is created to govern placement of
machines, workstations, lighting, energy, and material handling equipment.
Whenever possible, equipment and facilities should be small and mobile, even
mounted on wheels, to facilitate easy rearrangement.
Create a site plan that shows the physical location of equipment and
workstations.
Add required infrastructure to the map: electricity, water, compressed air,
network access, etc.
Add material handling equipment to the map as required.
Note any lighting or ventilation requirements.
Be sure to involve the operators of the process in the development of the
plan, and ask them to review the plan before moving equipment and
workstations. You may want to mock up the new cell with tables and
carboard boxes to make sure the space requirements are accurate.
Developed a detailed project plan including what is to be moved or
installed, by whom, and by when.
Step 4 Continued - IMPROVE II: Pilot and Launch the New Cell
A pilot or trial of the new process will allow details to be fine-tuned and errors
corrected in a controlled low-volume run. The pilot provides a vehicle to capture
and address the voice of the operators, whose buy-in is crucial to a successful
launch. After optimizing workstations and resolving any issues identified in the
pilot, volume can be ramped up with greater confidence that no serious problems
will be encountered. At this point, it is also useful to conduct a "Fresh Eyes" review,
inviting people unfamiliar with the process to take a fresh unbiased look for
potential safety, ergonomic or quality problems. Specific actions are detailed
below:
Move equipment and build the workstations.

Conduct operator training.
Develop line balance plan to allocate tasks between operators for expected
volume.
Establish operator quality self-checks for each operation.
Develop operator self-maintenance requirements and conduct required
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training.
Identify autonomation opportunities.
Conduct ergonomic and safety assessment.
Document Standardized Work.
Step 5 - CONTROL: Continuously Improve
As volume is ramped up to meet demand, the Control Phase activities are

undertaken to confirm and consolidate the gains, while setting the stage for
further continuous improvement to tweak the process.
Implement error-proofing.
Collect data on all losses (downtime, defects, excess inventory,
overmanning, etc.).
Kaizen activities to improve cycle time and eliminate losses.
Identify and resolve capacity constraints.
Apply 5-S principles on an ongoing basis.
When
When to Implement Work Cells
Work Cells are an effective method to streamline the processing of manufacturing or

transactional process steps, provided that the flow is reasonably continuous with small
lot sizes. They are a natural outgrowth of Kaizen activities. It may be necessary to work
on reduced set-ups or changeovers prior to launching a work cell.
Addressing Processing Problems With Work Cells
Work Cell adoption is indicated by the

following process conditions:
Material and information moves through a

batch & queue system, with excess inventory
and movement.
Set-ups and changeovers can be improved
to reduce lot size and move toward
continuous flow.
There are poor visual linkages between
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processing steps.
Machinery and equipment can be moved,
rearranged, or downsized to facilitate
dedicated processing.
Practice
Practice - Cellular Processing
Refurbian is large repair and maintenance organization, specializing in commercial

aircraft engines. Customers have recently been complaining about having equipment out
of service for excessively long time periods. A process improvement team is working on
a Lean project to set up a work cell at one of the firm's facilities in order to streamline
operations. The Spaghetti Diagram to the right shows the process flow for three
products.
Click on the Practice Icon below to answer the practice questions regarding the work cell
design. It may be helpful to print this page for reference.
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Lesson 13 out of 24: Balancing Capacity with Demand
Line Balancing
Line Balancing is a process management technique whose goal is to balance process

capacity against demand. Line Balancing is accomplished as follows:
1. Map the process to be studied using a flow diagram or value stream map.
2. Determine the takt time of the process. For example, consider a 4-step
process. Customer demand is 345 units per day. The available working time
is 8 hours minus 2 - 10 minute breaks = 460 minutes. Takt time = Available
Work Time/Demand = 460 minutes/345 units per day = 80 seconds.
3. Analyze the proposed combination. Step One has a cycle time that is close to
the takt time so no changes are required. Steps Two and Four both exceed
the takt time while Step Three is substantially lower. Step Three, therefore,
appears to have some capacity for work to be switched from Steps Two and
Four. See the image below for the current state of the process.
MoreSteam Note: In a linear process flow with no

branching, the analysis is straightforward as shown
above. With branches and processing options, line
balancing analysis is best accomplished with software
designed for the purpose.
4. Reconfigure the work assignments so that all of the process step cycle times
are less than or equal to the takt time. Click and drag a work assignment to
move it from one process step to the next:
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Lesson 14 out of 24: The Theory of Constraints (TOC) Toolset
Overview
Eliminating the Impact of Bottlenecks
The Theory of Constraints (TOC) is an operational management approach developed by

Eliyahu M. Goldratt and expressed in a series of novels starting in 1984 with The Goal.
TOC emphasizes the need to identify and eliminate the negative impact of constraints
Deeper
(also called bottlenecks) within a process, system or organization.
Dive: The
Primary
The goal is what the organization, system or process is trying to achieve. In The Goal , Rule of
the only goal is to make money. While this might be true in some cases, there are many TOC
organizations, non-profit hospitals for example, where making money is not
necessarily the goal. A constraint is anything (policy, procedure, equipment, resource,
etc.) that prevents performance at the level necessary to achieve a goal - like summer
Deeper
highway construction that snarls traffic. For example, in a process with sequential
Dive:
steps, the step with the longest processing time (cycle time) is the physical constraint
TOC
on the entire process. This process step would have the lowest throughput. TOC would Measures
be applied at the constraint to increase the throughput.
TOC focuses on increasing throughput by balancing flow with respect to constraints

(known as the Drum-Buffer-Rope method). When there is no variation in process step Deeper
cycle time, the problem reduces to a deterministic solution using the Lean Six Sigma Dive: Line
tool Little's Law and is called Line Balancing within Lean Six Sigma. When there is Balancing
variability in the process step cycle time, the process becomes stochastic and requires
more sophisticated Lean Six Sigma tools such as Monte Carlo analysis, discrete event
simulation or continuous flow simulation.
Example
TOC in a Procurement Process
Consider the advertising agency SigmaSlick. SigmaSlick develops advertising

campaigns for many types of customers and contracts with outside suppliers for the
creation of collateral required by the campaign.
Deeper Dive:
Deterministic
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The Current State
The Procurement request for proposal (RFP) process below has the purpose of
identifying and contracting with suppliers for new advertising campaigns identified
by the Business Development group. In the current state, the Business Development
group identifies new campaigns at the rate of one every six days. The current
Procurement Process cycle time is 36 days with 6 RFPs in process at any one time.
versus
According to Little’s Law, the expected throughput rate is 6 RFPs in process divided Stochastic
by 36 days cycle time = 0.167 RFPs per day. Assumptions
Case Study:
The Impact
of Variation
on a Subway
Station
Outside
Research:
TOC with the
Marine Corp
(optional
requires
Adobe
Acrobat)
The table in the lower left of the image compares the expected performance of the
model calculated with Little’s Law to the performance as predicted using a
simulation model running for 265 days. For simplicity, all the simulation models are
deterministic, assuming no variation in the process step cycle times.
Click here to see a graph of Cycle Time and RFPs in Process versus calendar Time.
Note how the cycle time is steady at 36 days. This is a good indication that there are
no bottlenecks - just a slow process.
When viewed narrowly, the Procurement Process could be looked at as a “push”

process as Business Development pushes newly identified campaigns into the
process to be sourced. However, when looking at the overall organization, the end
customer of the campaign is expecting a certain delivery date based on the
commitment from Business Development and the expected cycle time of the
Procurement Process. So, in the wider view, the Procurement Process is actually
responding to customer demand and can be viewed as a pull system.
The management team was satisfied with the performance of the Procurement
Process and did not see any reason to change it, even though most process steps
had excess capacity.
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An Unintended Consequence
As an outgrowth of the Company's aggressive expansion plans, SigmaSlick

purchased a competing advertising firm, with the intention of consolidating support
operations since the existing systems had excess capacity. The newly combined
Business Development group aggressively sold new advertising campaigns and soon
was obtaining new business at the rate of one new campaign every other day.
Unfortunately, the progress in boosting sales was not communicated to the rest of
the organization in advance, and the procurement department was not prepared for
the influx of new campaigns as shown in the image below.
The Procurement Manager noticed an immediate backup of orders and ran a

simulation to predict what would happen over the next year. Little’s Law predicted
an increase in RFPs in process in order to maintain the cycle time and throughput
rate. However, the simulation shows that only the throughput is maintained over the
course of the year. RFPs in process and cycle time increase significantly.
Click here to see an animation of the process. Note the piling up of RFPs in process
at the front end.
Note how the cycle time and RFPs in process are steadily increasing with calendar
time. This is a strong indication that there is a bottleneck.
The Non-Analytical Reaction
Noticing the large amount of RFPs in process on either side of Step #1, the
management team quickly decided to add a person to help out with Step #1. The
results are shown below:
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What happened is that all of the RFPs in process now appear in front of Step #2.
Click here to see an animation of the process. Note the continued piling up of RFPs
in process at the front end.
Note how the cycle time and RFPs in process are steadily increasing with calendar
time as well as the fact that the rate of increase is the same.
It is clear that neither Step #1 nor Step #2 had the throughput capability to match
the demand of 0.5 campaigns per day.
Adding a resource to Step #1 increased its throughput to 0.67/day which is

sufficient. Step #2 was still at 0.25/day which is not sufficient to meet demand (this
would have been predicted if the correct measurements had been used to drive the
decision on resource placement).
The Ultimate Solution
The Supply Chain Vice President was furious with the performance of the
Procurement Process. Meeting with the management team, it became clear the Step
#2 was the bottleneck in the system and adding a resource to increase throughput
capacity was the solution. The results are shown below:
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The expected and predicted Cycle Time, Throughput and RFPs in process measures
all matched and the process performed as expected.
Note how the cycle time is once again steady at 36 days.
MoreSteam Note: This is a simple example to illustrate the

impact of a constraint in a process. It is not intended to
demonstrate the detailed capabilities of TOC such as
Drum-Buffer-Rope. Because there is no variation in the cycle
times with this situation, the problem could have been
solved using Line Balancing and Little's Law. The "no
variation in cycle time" assumption was maintained for
simplicity. To model the system in the presence of
variability, a more complex simulation could be constructed
to add probability distributions for cycle time or rework
probability distributions.
How
How to Apply TOC
To fully demonstrate the TOC methodology, an example similar to the previous

example will be expanded based on the following assumptions.
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Consider an eight step process that produces three types of products, Type A, Type B
and Type C.
The following table summarizes the process routing, cycle time, profitability and
monthly demand of each type of product:
Product Routing (steps) Cycle Time (min) Profitability Monthly Demand
A 4,7,8 595 $1750 7 Case

B 1,2,3,6,7,8 1045 $3000 15 Study:
Revenge
C 3,4,5,6,7,8 1495 $4500 8 of the
Dyno
You can also click the product type names on the image below to see a visual
representation of the routing for that product type. This image also shows the cycle
time for each process step and which of three available resources (J,K and L) work on
that step. Each resource is available 10,400 minutes per month.
The TOC methodology will be explained by applying each of the five TOC steps to the
above situation.
Step 1 - Identify the system's constraints
It is clear that there is a possible market constraint on this process as the demand for
products is finite. In other words, if the process could produce twice what the market
demanded, there would be a lot of unsold product sitting in the factory. Thus, the
market demand is a constraint on the process.
In addition, there may also be a resource constraint in that the amount of time
available for each resource is constrained. If any one of the resources has a utilization
over 100% in trying to meet the market demand, then that resource is also a constraint.
The question of whether any resource is a constraint is answered by calculating the

resource utilization based on the demand placed on that resource.
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For example, resource J is used on Steps 1,2 and 3. Product Type A does not use these
steps. Product Type B uses all 3 and Product Type C uses only Step 3. The demand for
resource J, therefore is, Type B (150 min + 250 min + 150 min ) x the demand for Type
B (15) + Type C (150 min) x the demand for Type C (8) = 9450 min.
The utilization for resource J is 9450 min divided by the available time of 10,400
minutes = 91%. The demand and utilization for resources K and L are calculated in the
same way.
The table below shows the resource demands and utilization:
Resource Demand (min) Utilization
J 9450 91%
K 9950 96%
L 12,400 119%
The process cannot meet market demand because resource L is constrained at 119%
utilization.
Step 2 - Determine how to exploit the system's constraints
This step entails developing several approaches for evaluating the constraints (market
demand and resource L) and determining the impact on profits.
In this situation, there will be three evaluations performed. Each approach will establish
a processing priority for the three products. Each product will be processed according
to its priority until either a) the customer demand is met or b) a resource is fully
utilized. When no further processing is possible (due to meeting demand or exceeding
resource availability) the total profits for each product will be determined and totaled
for that approach.
The approach that delivers the highest overall profit will be selected. This is what is
meant be "exploiting" the constraints. The constraints are exploited to maximize profit.
In this case, maximixing profit (making money) is the goal of the process. There could
be alternate service-related metrics.
The three approaches to be used are:
Process the products in order of product profitability

Process the products according to cycle time
Process the products according to contribution of the constrained resource to
profitability
Step 3 - Subordinate everything else to the decision made in Step 2
In this step, the actual production, resource usage and profit for each of the
approaches identified in Step 2 are calculated.
Product Profitability
This is the most intuitive approach, "build the most profitable products first". With this
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approach the processing order will be C ($4500), B ($3000) and then A ($1750).
Meeting the demand of product Type C (8 units) does not exhaust any resources. Only
13 units of Type B (demand is 15) can be met before exhausting resource L. Type A
products cannot be made because the process requires resource L. The total profit for
this approach is Type C (8 x $4500 = $36,000) + Type B (13 x $3000 = $39,000) =
$75,000.
The table below summarizes the resource usage for this approach:
Product A B C
Demand Resource Use (min)
7 15 8
(given) 10,400 Max
Actual 0 13 8
Resource J 0 7150 1200 8350
Resource K 0 0 6800 6800
Resource L 0 6435 3960 10395
Cycle Time
Process the products with the lowest cycle time first. With this approach the processing
order will be Type A (595 min), Type B (1045 min) and then Type C (1495 min).
All of the demand for product Type A (7 units) and Type B (15 units) can be met Only 3
of the 8 demanded units of Type C can be produced before resource L is exhausted.
The total profit for this approach is Type A (7 x $1750 = $12,250) + Type B (15 x
$3000 = $45,000) + Type C (3 x $4500 = $13,500) = $70,750.
Product A B C
Resource Use
Demand
7 15 8 (min)
10,400 Max
(given)
Actual 7 15 3
Resource J 0 8250 450 8700
Resource
3150 0 2550 5700
K
Resource L 1015 7425 2550 9925
Contribution of the Constrained Resource

Divide the profitability of each product by the total labor minutes of resource L
required. With this approach the processing order will be Type A ($1750/145 min =
$12.07 per min), Type C ($4500/495min = $9.09 per min), and then Type B
($3000/495min = $6.06 per min).
All of the demand for product Type A (7 units) and Type C (8 units) can be met without
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exhausting any resources. Only 10 of the 15 demanded units of Type B can be

produced before resource L is exhausted. The total profit for this approach is Type A (7
x $1750 = $12,500) + Type C (8 x $4500 = $36,000) + Type B (10 x $3000 =
$30,000) = $78,250.
Product A B C
Resource Use
Demand
7 15 8 (min)
10,400 Max
(given)
Actual 7 10 8
Resource J 0 5500 1200 6700
Resource
3150 0 6800 9950
K
Resource L 1015 4950 3960 9925
The third approach produces the highest profit ($78,250) for the organization. The
first approach is not far behind but results in no product Type A being produced. In
conclusion, two reasons to go with the third approach are a) it produces the highest
profit and b) a mix of all of the product types is produced.
Step 4 - Elevate the constraints so a higher performance level can be reached
At this point, the constraints have been fully exploited and throughput has been
maximized, essentially with no investment. However, the constraints remain so we
must continue. If the constraints had been eliminated in the previous step, this step
would be skipped.
In our situation, the constraint remains because the demand is not being fully met.
Elevating the constraint most often requires investment with the objective of increasing
the capacity of the constraint. There are several methods that can be employed here:
Training so that operators can perform their tasks more efficiently and
effectively
Process improvement to reduce process step cycle time or eliminate rework
Better equipment to reduce errors in processing and increase availability
Additional staff to fill in when needed
The addition of small buffer inventories ahead of the constraint so that it is
never starved of input
Once the constraints have been elevated to the point where they are eliminated (in our
case, resources are not over-utilized, demand is met and profit is maximized), the next
step can be approached.
Step 5 - Go back to Step 1, but don't let inertia become the new constraint
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If the constraints identified previously have been broken, then it is time to start over
again and find the new constraints in the system. It is important to not be satisfied
with the good results that were produced by the first four steps. Becoming complacent
with the status quo means that organizational inertia has set in. This will prevent any
further improvement and become a constraint itself.
When
When To Employ The Theory of

Constraints
The Theory of Constraints is a valuable tool that may be paired with other analysis
techniques to model process situations. Use TOC and Line Balancing when there is
little or no variability in the demand or process step cycle time. Use TOC and Monte
Carlo analysis or process simulation to model the situation and assess alternatives if
there is variability in process cycle time or demand.
Answering Questions With The Theory of Constraints
The Theory of Constraints can be used

to answer the following questions:
What constraints are preventing our

organization from achieving its goals?
How can we exploit the constraints so that
their impact is minimized?
What must we do to eliminate the
constraints?
Once we have eliminated the constraints,
where are the next ones?
Practice
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Application of The Theory of Constraints
Eastwest Airlines operates out of a single airport hub. The hub operates 24 hours per
day. Click here for background on Eastwest Airlines current situation and then click the
practice icon below to answer a practice question.
After reading the background, click on the practice icon below to answer questions
about Eastwest.
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Lesson 15 out of 24: Pull System Overview
Introduction to Pull Scheduling
One of the core principles of Lean Methods is that goods and services should be
produced only in response to customer demand. In other words, production should be
Deeper
"pulled" through the value stream by customer orders rather than "pushed" through
Dive:
the system in advance of customer demand. Linking the creation of goods and services
Creating
closely with demand minimizes waste in all its various forms: excess inventory from Pull in
making too many or the wrong items, or unfilled orders from making too few or the the Office
wrong items. Why? Because forecasting is rarely very accurate - and less so the longer
the time horizon. In our experience, the one certainty about any forecast is that it will
be wrong; it's just a question of HOW wrong.
The simulation below contrasts a simple process governed by a "pull" system with the
same system operating with "push" scheduling. Note that the "units" being processed
could represent either a manufactured part or a service activity, and work-in-process is
referred to as "WIP".
Results: If you play the simulation to the end, you will see a
stark difference between the peformance of the two systems:
The Push system keeps customers waiting 29 times longer, on
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average, has twice as much work-in-process inventory, and

suffers a total cycle time that is almost twice as long!
In the Lean world, the word Pull refers to the fundamental concept that all activity in
any process should be the direct result of customer demand. When Voice-of-the-
Customer data are collected and analyzed to define the specific customer needs, one
key requirement is the time the product or service is needed. This is where the Lean
concept of Pull enters the discussion. Delivering the required product or service on
time - not before or after it is needed - is the fundamental goal of Pull. The Voice-
of-the-Customer, in terms of Lean Philosophy, means responding to customer demand
and delivering the requested product or service at the customer’s expected delivery
time.
The Lean interpretation of Voice-of-the-Customer as a "Pull Signal" is quite different

from the traditional interpretation of the customer’s expectation for lead-time.
Traditional "Push" systems rely on forecasts to force materials through the process in
anticipation of customer demand. The quality and reliability of the forecasts used to
push material through the process are often questionable, and can become a topic of
heated debate within an organization. If the amount of time spent creating,
manipulating, checking, debating, and redoing forecasts in an organization were
instead spent improving process responsiveness, the need for a forecast might be
eliminated completely. The process of creating and managing a forecast, while perhaps
a needed business activity in the short-term, is not value-added for the customer.
MoreSteam Note: The "fat" in a process is inventory, so Lean

systems seek to minimize inventory. With little inventory, the
output from an upstream process often arrives "just in time",
so the term Just-in-Time, or JIT, is sometimes used as a label
for Lean.
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Lesson 16 out of 24: Pull Scheduling
Pull Scheduling / JIT - Overview
Pull Scheduling is generally synonymous with Just-In-Time (JIT) inventory

management - a system of production scheduling that pulls products or services
Take 2 -
through the value-stream in a continuous flow rather than pushing it through in What is
batches. Prior to the development of JIT at Toyota (the Toyota Production System), Kanban
part production was generally scheduled centrally in batches for all upstream and
downstream processes. The size of the batch was a function of the set-up time of Outside
the producing equipment. Batches were delivered to downstream processes whether Research:
they needed them or not, commonly resulting in excess inventory. Establishing
A Basic Pull
System
The pull system was developed to eliminate overproduction, and hence in-process
inventory - seen as a manifestation of waste. In addition to the wasted capital tied up (optional,
requires
in excess inventory, other forms of waste include excess production resources,
excess storage space, unnecessary movement of inventory, unnecessary inventory Adobe
Acrobat)
transactions, delayed feedback on quality problems, lengthened cycle times, and
poor communication from visual obstruction of the workplace (you can't measure
what you can't see).
Case Study:
Not-so-JIT
Material on Demand
In a JIT system, downstream processes withdraw material or information as needed

from upstream processes in small lots (ideally lot sizes of one). The mechanism to
call for material is a Kanban - a notification specifying how many units are to be
moved. Traditionally, a Kanban is a physical card, but it can also be expressed as an
electronic message. A JIT system is tightly linked, with little or no buffer inventory
between workstations and little tolerance for variability, so several interdependent
conditions are required in order to function:
Capable Processes - Variability from inconsistent base operation quality is

crippling to a Just-In-Time operation. Without predictable high quality,
rework results, which inevitably leads to elevated inventory levels.
Small Lot Sizes - Small lot sizes are required in order to operate as close to a
continuous flow as possible, thus minimizing the amount of work-in-process
inventory. Small lot sizes are in turn dependent upon Quick Changeovers.
Close Supplier Network - Pull scheduling and small lot sizes require frequent
deliveries, which translates into demanding logistics requirements. A
far-flung supplier network increases the variability of delivery cycle time, so
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reducing that variability requires that suppliers be located in close proximity

to avoid offsetting variability with inventory.
Reliable Equipment - Another source of processing variability is equipment
uptime, so equipment reliability is a requirement in order to eliminate the
need for buffer inventory. We'll discuss this topic at greater length in a
subsequent Session.
Stable Demand - Variability in demand may create a need for buffer inventory
in order to maintain service levels if the production system cannot react
quickly enough. Stable demand patterns allow for even flow throughout the
system, which in turn facilitates lower inventory levels. Efforts to stablize
demand so that production can be leveled are also known by the Japanese
term Heijunka.
MoreSteam Note: Reducing inventory in a system is like

draining a lake: it exposes the "rocks" - hazards that would
otherwise be hidden below the surface. Because lean systems
have little tolerance for variability (waste), action to reduce
variability is demanded by the system. In the presence of
large "just-in-case" inventories, many sins are hidden from
view and remain unresolved because they have no visibility.
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Lesson 17 out of 24: Pull Systems
Types of Pull Systems
There are three primary types of pull systems used in Lean to make the Pull concept
a reality. You can see each of the systems working in the simulation below:
Replenishment
Pull System
Tutorial
Outside
Research:
Pull Systems
Must fit your
Production
Needs
(optional,
requires
Adobe
Acrobat)
Following is a more detailed description of the Pull systems illustrated above:
Core Process Pull - The Core Process Pull System (also known as
"Internal Pull") is used to manage the internal movement of
material and information in a process. Core Process Pull Systems
are a key Lean tool for stabilizing an out-of-control process.
They are also a critical element in maintaining stable work-in-
process and stable customer lead-times in any process.
"Kanban" is a Japanese word meaning "card" which is often

associated with pull systems. A Kanban style pull system is often
an Internal Pull system using physical cards to manage the
amount and movement of work in the process.
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Replenishment Pull Systems - Replenishment Pull Systems are

used in a variety of locations in the supply chain, but their
primary use is to manage the replenishment of supplies, raw
materials, and subassemblies from one location or company to
another. While Internal Pull systems are primarily concerned with
stabilizing the process and maintaining stabile lead times
through the process, Replenishment Pull systems are concerned
with insuring that the needed process inputs are always available
and that inventory investment remains stable and predictable.
Kanban style card systems are also often used to implement

Replenishment Pull systems. For many, many years, the physical
movement of Kanban cards was the only method Toyota used to
authorize the movement of all materials related to the
production of automobiles. More recently, electronic versions of
Replenishment Pull systems have become popular to link all of
the elements of the supply chain.
Two-Bin Pull Systems - Two-Bin Pull systems are a simplified

version of a Replenishment Pull system. While traditional
Replenishment Pull systems are used to manage the movement
of materials within the supply chain, Two-Bin systems are
typically used to manage the distribution and movement of
material within a single location.
Single-Bin and Multi-Bin systems are also used in some cases,

but the vast majority of "bin" based systems will be the Two-Bin
style pull system. Two-Bin pull systems are typically used in
conjunction with a routine schedule (often called a "milk run") to
check for empty bins and deliver full bins. Another set of Lean
tools, Material Presentation or Point-of-Use Planning, is used in
concert with the Milk Runs and Two-Bin Pull system to provide a
complete, integrated solution to Lean material management.
Each of the three Pull Systems described above is covered in greater detail in more
advanced lessons. Additional lean topics that may be important aids in designing
and implementing a Pull System for your business include:
Part Stratification - The creation of logical part families

Material Presentation - To understand the importance of how material is
presented for use
Batch Sizing - Understanding the impact of batches on the amount and flow
of inventory in a system
Safety Stock Sizing - Determining the key factors in your business which
will determine the best method for sizing (and when to re-size) your Pull
System safety stock
MoreSteam Note: Pull Systems are an integral part of any
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Lean organization, and are equally well suited for service or

transactional environments as well as manufacturing
settings. There is almost no situation which would not
benefit from a Core Process Pull system.
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Lesson 18 out of 24: Core Process Pull Toolset
Overview
Core Process Pull Systems

(Internal Pull Systems)
A Core Process Pull System is used to manage the core internal movement of work
product in a process, which may include tangible (material) and/or intangible
(information). Because this system focuses on internal processes, it is also known as an
Internal Pull System. Core Process Pull Systems are a key Lean tool for bringing order
out of chaos by maintaining stable work-in-process and producing stable customer
lead-times (total process cycle time).
Some everyday examples of Core Process Pull Systems include the following:
Hospital emergency rooms use a triage process to determine which

patients are most critically in need of help. The number of patients
admitted to the emergency department for treatment (and not still in the
waiting room) is limited by a maximum capacity that is determined by
the number of nurses, doctors, and beds available. Maintaining this
work-in-process control ensures that life-threatening injuries can always
be dealt with because excessive numbers of minor injuries have not
consumed all available resources. Of course the downside to this use of a
Core Process Pull System is that wait times for minor injuries can be very
long if there are more serious injuries that must be treated.
Kanban card systems in factories limit the amount of material that can be
present in the factory (work in process). New work is not allowed to begin
processing until an existing piece of work is completed and a Kanban
card is available.
Car dealers limit the amount of cars they will work on by making
appointments for service. Each appointment has an estimated time to
complete the work. This use of Core Process Pull Systems with a
time-based measure of work ensures that the dealership maintains a
stable and predictable cycle time for repairs and customers are not left
waiting endlessly for their cars (well...usually).
MoreSteam Note: Core Process Pull Systems operate on a very
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simple principle – no work can enter a process until an

equivalent amount of work has completed and exited the
process. Core Process Pull systems also help determine where
work should be buffered between process steps in order to
maximize the effectiveness of the process while minimizing
the cost of the work in the process.
Example
Applying Core Process Pull to

Transactional Processes
IT departments worldwide are waging a constant battle against long lead-times.

Requests for new computers, maintenance on existing computers, report generation,
network maintenance, and installation of new software, etc. come in day and night in a
Deeper
never ending stream. Often, these requests are instantly routed to an inbox somewhere
Dive:
where they begin their long wait before work begins and the task is completed. A Lean Fast
typical IT department process might look like this: Food
- Sort Of
Outside
Research:
Multi-
tasking
Makes Us
Stupid
(optional,
requires
Adobe
In this process, work is assigned to each person in the IT department, perhaps based Acrobat)
on their skills, perhaps based on their perceived load, or perhaps just randomly. Some
requests are important, and some are just trivial "time-wasters", but they are rarely
screened before they are assigned. As a result, the amount of work in the system on
any given day can vary tremendously. An important update may wait behind an
unnecessary report in the queue and could be delayed for weeks. How often have you
been given a specific promised lead-time for an IT request?
Core Process Pull systems are an effective tool for stabilizing the lead-time of a
process and prioritizing the work that enters the process. The Core Process Pull system
relies on the principle set forth in Little’s Law to stabilize the process.
Recall that Little’s Law says that the lead-time through a process is equal to the work
or load currently in the process, divided by the capacity or rate which work can exit
from the system. The Core Process Pull system puts a cap, or limit, on the amount of
work-in-process that is allowed into the process (WIP Cap). All other work is held in a
single queue at the beginning of the process and new work is only allowed to enter the
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process when existing work has completed and exited the process. Returning to Little’s
Law, if the WIP (numerator) is stable, and the Capacity (denominator) is stable, then the
resulting lead-time through the process will be stable.
You can see an example of a simple Core Process Pull system below, using Kanban
cards to control work-in-process (WIP). Set different caps on the amount of WIP and
see how the process reacts.
Returning now to the IT department, to implement a Core Process Pull system, a single
queue of incoming requests would be placed at the beginning of the process. Each
person in the process (the ‘capacity’ of the process) would have a very limited number
of requests they would be working on. This would also increase efficiency by reducing
distracting change-overs between projects. New work in the queue would be
prioritized based on the urgency of the need and whether or not all required
information is available to complete the task. No new work would enter the process
until a current task is completed.
Beyond more predictable total cycle times, an additional benefit of this system design
is to make the queue more visible, which reduces the need for status updates - a
generally non-value-added activity.
How
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Implementing Core Process Pull
Implementation of a basic Core Process Pull system is straightforward and theoretically

simple, although there are always practical complexities. As with all continuous
improvement tools, you will need to understand your process and evaluate many
Deeper
options as you finalize the design and implementation of a Core Process Pull system -
Dive:
with cycles of learning and adjustment. Core
Process
Pull
Sizing the
Span
Outside
The design and implementation of a Core Process Pull system can be broken down into Research:
7 steps, which can be grouped to follow the DMAIC methodology, as presented below. Little's
Law in
Action
Step 1 - DEFINE: Map your process - a Value Stream Mapping approach is probably (MP4 Format)
most useful. (optional)
You may have already mapped the process, but data will be required before moving
forward. You will need to know the existing capacity of the process, expressed as
"volume over a period of time" (see Little’s Law). You will also need to know the current
amount of work in process (WIP) in the system and take a sample of lead-times for
several items flowing through the process.
Step 2 - MEASURE: Validate the WIP in the process and confirm Little’s Law
When you first calculate the expected lead-time of your process using
Little’s Law, you will almost always get an answer that is different from the
actual lead-times you observed during your Value Stream Mapping of the
process. This is because most processes have some amount of WIP which is
no longer moving in the process - it is stuck for some reason and will stay
stuck in the process until some special action is taken to move it along. As part of your
improvement project, you will need to find and un-stick this WIP and either discard it
or have it complete the process. No process can be allowed to have dead WIP stuck in
the process.
Recall that Little’s Law provides a simple equation to calculate the lead-time or cycle
time through a process based on the amount of work in the process and the rate at
which work is completed.
Cycle Time or Lead Time = Items-In-Process / Throughput Volume Per Unit of Time
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In the case of Core Process Pull Systems, we want the lead-time through the process to
be stable and predictable. Having a stable lead-time will allow us to make promises to
our customers on how long their wait will be. If we assume that our process output will
remain stable in the short-term (we are not adding any extra staff or capacity), then
the only way to have a stable lead-time through the process is to have a stable amount
of work in the process. Little’s Law shows us this relationship.
The calculation of this maximum value of work in the process, often referred to as a
WIP-CAP or CONWIP (Constant Work In Process), is very straight-forward:
1. Determine the throughput rate per unit of time for your process. How many people
or widgets per hour can you process?
2. Determine the target cycle time for the process. What do your customers expect
for lead-time?
3. Use Little’s Law to calculate the amount of work you can have in your process.
As you can see, the calculation is not complicated. However, as always, there are a few
more wrinkles that will need to be ironed out.
Step 3 - ANALYZE: Determine the span of the Core Process Pull system.
Several factors impact what portions of the process should have a Core Process Pull
system:
1. Find the Bottleneck: The bottleneck of the process is the step in the process which
is most highly constrained and determines the capacity of the process. WIP will
almost always tend to accumulate in front of the bottleneck, therefore the
bottleneck must be included within the span of the Core Process pull system. In
general, the Core Process Pull system must span every step in the process from the
beginning of the process up to the bottleneck step.
2. What can you See: Another critical factor in determining the span of a Core
Process Pull system is the physical layout of the process. In some cases it is simple
to see the entire process. Perhaps the process exists in a single office or building
and you can easily and reliably see all the exits and entries to the process. In other
cases, the process may span multiple locations, states, countries, and continents.
In this case, it may be very difficult to see the entire process, so you may need to
shorten the span of your Core Process pull system and consider placing several
Core Process Pull systems end-to-end in the process.
Step 4 - ANALYZE: Determine Your Target Lead-Time.
In Step 1 you will have collected samples and determined the average
lead-time through the process as well as an estimate of the amount of
variation in that lead-time. The Core Process Pull system will help eliminate
the variation and allow your process to attain a new target lead-time.
Determining the target lead-time is driven by a single factor: Customer
Expectation of Lead-Time (Total Process Cycle Time).
What does your customer, whether internal or external, require of the process? In order
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for the process to be effective, it must meet customer expectations. However,

exceeding customer expectations is not always a good idea. All improvement efforts
cost money. Each process should be improved, starting with the worst process, to the
point that it consistently satisfies customer expectations. Once a process has been
improved to that point, the next-worst process should be improved. Don’t make the
mistake of over-investing and over-improving one process at the expense of failing to
fix another critical process. Customer satisfaction only comes from ALL processes
meeting customer expectations as a system.
Step 5 - ANALYZE: Size the Core Process Pull System.
Step 1 tells us where we are in terms of our current lead-time performance and the
amount of WIP in the process. Step 4 tells us where we need to be in terms of the
future-state lead-time. We can now return to Little’s Law to determine the maximum
amount of WIP we can allow in our process to achieve the lead-time target set by the
customer.
In Step 2 we used Little’s Law to calculate the current lead-time based on the current
WIP in the process. Now, we will rearrange the terms in Little’s Law and use it to
calculate the new WIP target for the process:
WIP = Lead-Time Target X Throughput Volume over Time
The result of this calculation is the WIP CAP that will be used for sizing the Core
Process Pull system.
Click here to download

a Microsoft Excel® template for Core
Process Pull Sizing
Step 6 - IMPROVE: Implement the Core Process Pull System.
Three main issues need to be considered when implementing a Core Process Pull
system.
1. Measuring Exits and Entries: The first decision is where to measure the exits and
entries from the process. This is related to the span you determined in Step 3, but
now you will have to implement specific, preferably visual, mechanisms for
measuring the WIP in the process and identifying when an exit has occurred.
2. The Unit of Measure:

Most of the time your Core Process Pull system can just get a count of the number
of pieces in the process. However, in some cases the amount of work required for
each individual item may vary significantly. Follow the link to the right for more
information on how to determine the best unit of measure.
3. Getting to the Target:

In most cases, the current amount of WIP in the system will be far larger than the
target WIP CAP for the process. You should NEVER go immediately from the current
state to the target state. A shock of that magnitude can easily destabilize the
system and cause unanticipated effects to the process. A better method for
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achieving the lower WIP level is to move slowly, in 5 to 10 intermediate steps, to

the new target. At each step in the process, check the process to see if the process
is remaining stable. Often, issues that were not apparent in the initial Value Stream
Map become visible as the WIP is lowered. By lowering the WIP in small,
incremental steps you will have an opportunity to identify these new problems and
fix them before they cause a problem and stop the process.
Step 7 - CONTROL: Monitor and Adjust the Core Process Pull System
Every process needs to be monitored and measured to ensure that it remains on target.
For Core Process Pull systems the main metric is Work In Process. A simple dashboard
can be created to log starts, WIP, and exits, or a more complex layout can be created to
help track the flow of WIP through the process. A histogram of actual lead-time results
for the process is useful to make sure the WIP cap is still in place and that proper first-
in-first-out queue discipline is being followed.
MoreSteam Note: No process stays unchanged for long, so the

Core Process Pull system will need to be re-examined
whenever process inputs, process steps, or customer
expectations change.
When
Application of Core Process Pull
Core Process Pull Systems provide a containment function around total process cycle
time (or lead time) - to reliably move a process from a state of chaos into a state of
stability.
Core Process Pull Systems are universally applicable to almost any process, and because
they immediately stabilize the cycle time through the process, they are an excellent
"first-responder" tool to make a process leaner. Since stable cycle time is almost always a
critical customer requirement, it would be hard to imagine many continuous
improvement projects being successful if they did not have some ability to control the
cycle time of the process. After achieving cycle time stability, further steps can then be
taken to resolve the root causes of variation and waste.
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Practice
Setting Up Core Process Pull
In this practice exercise, you will be introduced to a somewhat non-traditional

application of Core Process Pull within a software company that is struggling to
stabilize the lead time within its project portfolio. Core Process Pull could be similarly
used in any transactional environment - it could be applied to marketing campaigns,
engineering change orders, or real estate transactions.
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Lesson 19 out of 24: Kaizen Toolset
Overview
Kaizen - Continuous Improvement
Lean Six Sigma projects focus on bringing about significant process improvement
through the reduction of defects and the elimination of waste. Very often,
sometimes as early as the Define phase of a project, the team becomes aware of
Deeper
low-risk, incremental improvement actions that could be implemented in a short
Dive:
period of time, usually three to five days, while providing an immediate benefit to Kaizen
the organization. Kaizen provides a framework for accelerating and managing the Characteristics
implementation of such actions.
Origins of
Kaizen is a Japanese word derived from two other Japanese Kaizen
words: Kai meaning change and Zen meaning good, improve or
virtuous. In application, Kaizen means to continually change for
Types of
the better through small incremental improvements - typically Kaizen
with little capital cost.
Within the Western world, Kaizen refers to specific team-based activities or events
focused on incremental change. These events are called Kaizen Blitzes, Kaizen
Events, Kaizen Workshops, Rapid Problem Solving or Rapid Improvement Events.
The remainder of this lesson will use the term Kaizen Event. Kaizen Events can be
executed independently or within the context of a Lean Six Sigma project.
Example
Kaizen Examples
Payroll Process - Kaizen Event
A corporate payroll office required payroll requirements from

remote locations by Monday at 11am in order to meet a Friday
payroll. The process of remote sites providing payroll information
was stable but missing the Monday 11am deadline by an average
of six hours.
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This caused the corporate office to be continually warning that each Friday's payroll
would be in jeopardy unless they worked considerable overtime to make it happen.
A Kaizen Event was held and the first thing the team did was to create a value stream
map of the payroll process. The mapping showed that the corporate office performed
four hours of work on the payroll before authorizing checks to be written. It was
discovered through analysis of lead times that the actual deadline for remote sites
should be Thursday mornings at 8am.
Analysis of time sheets by the Kaizen team showed that the corporate office payroll
employees had not worked any overtime in several months. This conflicted with the
recent weekly warnings from the same employees that payroll was in jeopardy due to
the lateness of the remote sites.
In other words, the corporate office was significantly padding its lead time
requirements. What seemed like a very difficult situation was easily resolved through
the value stream mapping and time sheet analysis activities of the Kaizen Event.
Note in this example that it is quite possible that this problem could have been
addressed by chartering a Lean Six Sigma Project. With an understanding of how Kaizen
works, it is believed that the Lean Six Sigma project team would discover the same
realities by creating a value stream map in the Define phase and quickly implement the
same improvement to the process while also studying other aspects in search of
additional opportunities.
Dual-language Airport Guides - Teian Kaizen
A large international airport in Quebec, Canada distributed one-page airport guides for
its visitors. By Canadian law, the airport had to provide the guide maps in both French
and English. A common problem was that the airport management had a difficult time
predicting which guide a visitor would take - the French version or the English - and
was always running out of one or the other.
The solution was provided through an employee suggestion. It was to

simply print the guide with French on one side of a page and English
on the other. While this solution may seem obvious to the reader, it
must be agreed that if the solution was so obvious, the problem
would not have occurred in the first place.
This is an example of Teian Kaizen – or improvements based on

employee suggestions without scheduling an event. This example embraces well the
Japanese approach to Kaizen – the individual always looking for ways to effect small,
incremental improvements.
How
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Conducting a Kaizen Event
This section describes how to organize and manage a team-based Kaizen Event. Kaizen
Events
A Kaizen Event can be a stand-alone activity or employed within the context of a Lean and
DMAIC
Six Sigma project. A typical approach would be to spend a week planning the event –
analogous to the Define phase of DMAIC and another week running the event.
Sufficient time should be allotted between planning and holding the event to allow
participants time to prepare themselves.
The Kaizen Event process will be explained within the context of the Shewhart/Deming
PDCA (Plan-Do-Check-Act) cycle upon which it is based. See the side margin link for
an explanation within the context of DMAIC.
Plan
Prior to holding the Kaizen Event, two to five days of planning and preparation is
necessary.
1. Identify the Kaizen Event leader.
2. Clearly define the problem and the objective of the Kaizen Event. Many
organizations use their Lean Six Sigma project charter for this step.
3. Identify and notify the Kaizen Event team. Obtain authorization to be relieved
of normal responsibilities for the duration of the Kaizen Event.
4. Identify and arrange for support that may be required.
5. Logistics – schedule, food, materials, location, etc.
6. Prepare any necessary training material. Consider elearning to conserve

Kaizen Event time.
7. Background material: process maps, value stream maps, existing data,

preliminary data.
Kaizen Event Day 1
1. Confirm the value stream map.
2. Review background material and the problem statement.
3. Go view the process and collect any additional data needed to understand the
situation.
Kaizen Event Days 2 and 3
1. Identify and validate root cause of the problem.
2. Review relevant improvement techniques previously identified by the leader.
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3. Brainstorm potential solutions.
Do
1. Prioritize and select solution to pursue.
2. Develop concise implementation plan.
3. Implement the solution.
Check
Kaizen Event Day 4
1. Verify the effectiveness of the solution.
Act
1. Update affected procedures and policies.
2. Present outcomes to management.
When
When To Use Kaizen
A Kaizen Event can be used at any time in the following

circumstances:
The problem scope is clearly defined.

The problem and solution are self-evident.
The risk of implementing is minimal.
Answering Questions with Kaizen Events
Kaizen Events can be used to answer

the following questions:
What can be done immediately to improve

the process?
What are the benefits that will be realized
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today from this improvement?

What needs to change to maintain this
improvement?
Practice
Practice - Kaizen
This practice exercise allows you to demonstrate your knowledge of the measurable
benefits a Kaizen event is expected to accomplish.
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Lesson 20 out of 24: Corrective Action Matrix
Corrective Action Matrix
No action is effective unless it is implemented, and no action gets implemented unless

someone is responsible to make it happen. The Corrective Action Matrix is used by
problem-solving teams to keep track of WHO is doing WHAT - by WHEN. The matrix
can be either simple or very complicated. The following example shows a spreadsheet
matrix along with an explanation of the headings. Corrective
Action
1 2 3 4 5 6 Matrix
Reference Target Current Tutorial
Action Champion Effectiveness
Number Date Status
Key:
1. Reference Number - Tracking number that may also be tied in with a project
priority list, or linked to a numbered Cause & Effect (Fishbone) chart.
2. Action - Summary of the improvement action being implemented.
3. Champion - Person with primary responsibility to implement the action.
4. Target Date - Due date for implementation.
5. Effectiveness - Often overlooked: When the action is implemented, how

much of the problem will be corrected.
6. Current Status - Provides details of current status to identify any risk of

missing the target date.
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Lesson 21 out of 24: Piloting a Solution
Piloting Solutions
What happens when a solution is fully implemented without verifying it first? In many Reasons
cases there is no negative impact and the solution is a success. However, there can to
Pilot
often be unanticipated factors that adversely impact or completely negate the intent of
the solution. Piloting a solution means that it is verified on a smaller scale in an
When to
environment that is as close as possible to what is intended. Pilot
There are several reasons why a pilot should be considered and certain circumstances
under which a pilot should be run. The process for executing a pilot is straightforward Pilot
Steps
but there are several critical questions that must be addressed when establishing the
scope and responsibilities.
Critical
To illustrate the importance of the critical questions, consider the case of a Questions
When
multinational operator of fast food restaurants. A new cooking system was designed to Piloting
allow greater flexibility for customization and build-to-order. When the new system
was launched, the chain experienced a significant increase in customer wait time Evaluating
during the rush hours around lunch and dinner. Why? The pilots did not have a broad Pilot
enough scope. They were not conducted during peak times using a full range of Results
customization requests.
After a pilot is completed, an evaluation should be performed to determine if the

results are satisfactory.
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Lesson 22 out of 24: System Dynamics Toolset
Overview
Introduction
System Dynamics is the study of the behavior of complex systems - seeking to

understand the web of relationships between activities and to identify the linkage
between cause and effect. System Diagrams are models used to visually express the
dynamic forces acting upon the components of a process and the interactions between
those forces.
System Diagrams are more than process flow charts. They include feedback loops and
other factors that influence how decisions are made, including attitudes, perceptions,
and behaviors. If you are familiar with the terms "vicious circle", "downward spiral",
"the law of unintended consequences", or "the cure is worse than the disease" you
are familiar with some of the basic concepts of System Dynamics. System Diagrams
provide a common language to help organizations think about these complex issues.
Efforts to improve the performance of complex systems inevitably touch on many areas
directly and indirectly, so it is critically important to understand the potential for
unintended consequences. It is also important to understand the true leverage points
to improve a system, which probably won't be obvious.
Systems Thinking initiatives strive to broaden organizational perspective by moving the

organization away from a focus on Events (reaction) to recognizing Patterns of
Behavior, then understanding Systems, and finally to master the Mental Models which
frame the perspectives of the people who drive the system and ultimately determine its
performance.
Example
Characteristics of Dynamic Systems No good deed goes unpunished.
-Author Unknown
As you work to understand System Dynamics, you will undoubtedly encounter the Outside
following phenomena, many of which may already be familiar: Research:
System
As George E.P. Box and W. Edwards Deming have said: "All models are wrong. Dynamics
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Some models are useful." * System Dynamics stresses that there is no single
right answer. There are often trade-offs that require choices. Those choices
may be influenced by a particular point of view.
* This quote is variously attributed to both Box and Deming. We're not sure who said it first.
Cause and effect are separated by a lot more time and distance than you
think. Time delays greatly complicate the effort to firmly connect cause with
effect - particularly when there are multiple causes and multiple effects.
in Action
The more you try to improve the system, the stronger the resistance to at Honda
change. This is the result of "balancing loops" - forces that counteract changes. (optional)
There are unintended consequences and indirect effects. Sometimes the most
obvious solution makes a problem worse
Things can get worse before they get better. Consider a company with poor
cash flow that has under-invested in its plant and equipment. In the short term,
catching up on the investment will depress cash flow further, although the long
term impact may be positive.
Reinforcing Loops amplify small changes into big changes.
Creating System Diagrams is the first step to develop the System Thinking skills
needed to understand and manage these complex phenomena.
Example 1
The best way to gain an understanding of Systems Thinking is to review some real
world examples:
A company implemented an incentive system to improve the

organization's performance. The incentive system was based
on departmental performance rather than total company
results. It didn't work because people pursued departmental
goals that were often counter to the interests of the total
company. In another example, a company eliminated
individual incentives for salespeople because those incentives
were prompting unfavorable behavior. You can read an article
from Harvard Business School describing the unintended
consequences of goal-setting, and then review the system
diagram below which describes a classic "Fix that Backfires."
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Example 2
The second example is another fix that backfired - in a big way:
An automobile manufacturer was suffering from poor financial

performance, so it launched an aggressive cost reduction
program aimed at purchased material. The supply base was
pressured to cut prices significantly, which in turn prompted
internal cost reduction activities. However, engineering
changes were processed without adequate testing. Short term
financial goals were met, but component reliability suffered,
and the indirect consequences of poor quality vastly
outweighed the direct cost reductions that were realized. This
case is a perfect example of the need to take a Systems
Thinking approach to process improvement projects - to
anticipate the possible unintended consequences, and place
adequate countermeasures in place on a proactive basis. The
system diagram is shown below:
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How
Applying System Dynamics
To create a system diagram, recall the hierarchy of system understanding - with the
goal of moving away from managing events (reactive) to managing systems and mental
models (proactive):
For an example, we'll use a sales and profitability example from an appliance
manufacturer trapped in a downward spiral of price discounting to maintain sales
volume.
1. The first step is to identify events:

Sales are short of expectations.
Profits are terrible.
2. Next, look at patterns of behavior. Graph the indicators that help describe the
problem:
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3. Third, identify the activities that are involved, and draw linkages to show forces
and feedback loops, as in the diagram below. Use the 5-Why Analysis from the
Toolbox to help identify the root cause of behaviors and patterns.
Note: In this diagram, all of the feedback loops are Reinforcing Loops, amplifying
the main effect of price discounting - a strong engine of decline.
4. Lastly, examine the mental models (perceptions, attitudes) that perpetuate the
system.
Division President -"We will meet our monthly target no
matter what. If we try to break our price promotion pattern,
sales will suffer, and I'll be looking for a job."
V. P. of Marketing - "My bonus is based on sales growth. If
the logistics people can't meet their budget, that's their
problem."
Salesperson - "I got my orders in during the month, well the
last couple of days, anyhow. The orders are there, so the
logistics people ought to get them shipped so I get my
commission (which is based on sales only, without regard to
costs)."
Customer - " All I have to do is out-wait them for a better
price at the end of the month. They do it every time."
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When
When To Use System Dynamics
Answering Questions With System Dynamics
System Dynamics can be used to

address the following questions:
How might the system respond to our

improvement actions?
What are the potential unintended
consequences of our improvement actions?
How do specific patterns of behavior affect
the system?
What are the balancing and reinforcing
actions in the system?
How do delays affect the system?
Practice
Summary and Practice
Process improvement is not a linear, mechanical exercise. It is inherently messy and

somewhat unpredictable because of the attitudes and behaviors of the people who
drive the capability of many processes. System Thinking can contribute to an
understanding of the inter-relationships at the root of the "messiness" that causes
fixes to backfire and other unintended consequences.
We strongly recommend these books for further reading.
Click the icon below to practice your skill with system dynamics.
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Lesson 23 out of 24: Improve Tollgate - Progress Review
At this point, you have finished the Improve phase of the D-M-A-I-C cycle, so it's a
good time to check on the deliverables of your project - the critical questions that
should be answered:
What improvement actions are necessary to achieve targeted performance

Master
levels?
Black Belt
Has a process been established to track implementation - with defined Tollgate
responsibility and target dates?
Perspectives
Are there any obstacles to improvement? Unintended consequences? Indirect
effects?
How might the system push back?
Is continuous process flow being established?
Is the process moving from "Push" to "Pull"?
Have improvement action alternatives been evaluated for relative
attractiveness?
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Lesson 24 out of 24: Exercises and Quiz
Supplemental Exercises:
Exercises are thought-prompters designed to apply the Six Sigma concepts presented
in this session. Exercises are to be self-scored by referring back to the material in the
session as required. Exercises are also discussed within the Discussion Forum, where
comments may be added by the course instructor.
1. Create a Corrective Action Matrix or Gantt chart to document planned

improvement actions.
2. Develop a System Diagram for a process associated with your Six Sigma
project. Identify reinforcing loops and balancing loops.
3. Select one of the other improvement tools presented in this session and apply
it in your Six Sigma project. Example: use Brainstorming to identify
relationships for the Systems Diagram.
Quiz - Overview
Quiz questions are offered to facilitate learning by providing prompt feedback. You
may refer to material previously presented in the session before answering the
questions. If you miss an answer, you will have the option of linking back to the page
from which the question was drawn.
Take the QUIZ
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83 of 83 7/9/2016 3:29 PM

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All Pages in Session 11 https://www.moresteam.com/university/cfdocs/printses.cfm?user_id=49...

Lesson 1 out of 24: Improve

Introduction When you do something, you should burn

In this session we will present a collection of complementary improvement tools used

Lesson 2 out of 24: Design for Lean Six Sigma (DFSS)

DFSS - Design for Six Sigma

It may not be obvious, but these principles apply to design of service

Lesson 3 out of 24: Benchmarking

Benchmarking is the process of developing new (higher) performance targets and

Benchmarks help to communicate what is possible to internal team-members who may

Facility Visits Public Financial Reports

Lesson 4 out of 24: Brainstorming

Brainstorming for Creative Solutions

Brainstorming is a team-centered process used to generate new and hopefully

The brainstorming session can be structured so that everyone participates in turn,

War Story: One of the authors of this course was in a

Seeding the Creativity Clouds

Brainstorming practitioners have found that the results of

Here's a fresh take on creativity: Negative Brainstorming. Instead

Lesson 5 out of 24: Narrowing Down The List of Ideas

Brainstorming frequently results in a list of ideas that is too extensive to be addressed

1. Generate a list of ideas using a method such as brainstorming

2. Assign a letter to each idea to minimize confusion during voting

3. Vote; click here for details

4. Tally the votes; click here for details

MoreSteam Note: One drawback to Multi-voting is that the

Lesson 6 out of 24: FMEA Toolset

Failure Mode and Effects Analysis

Severity - The seriousness of a failure mode.

Following is an example of a simplified FMEA for a seat belt installation process at an

Process Number: SBT 445

Rate 1-10 Probability Probability PRIORITY TO RPN

10=Most Rate 1-10 Rate 1-10 NUMBER IMPROVE

Probability Probability AxBxC

2) Secure 2) Seat belt not

3) Install 3) Trim cover

The process of constructing an FMEA is very straightforward, and begins by identifying

Rate 1-10 Probability Probability PRIORITY TO RPN

10=Most Rate 1-10 Rate 1-10 NUMBER IMPROVE

Severe 10=Highest 10=Lowest RPN

Probability Probability AxBxC

2) Secure 2) Select Belt

3) Install 3) Trim Cover

Rate 1-10 Probability Probability PRIORITY TO RPN

10=Most Rate 1-10 Rate 1-10 NUMBER IMPROVE

Severe 10=Highest 10=Lowest RPN

Probability Probability AxBxC

2) Secure 2) Select Belt

3) Install 3) Trim Cover

Rate 1-10 Probability Probability PRIORITY TO RPN

10=Most Rate 1-10 Rate 1-10 NUMBER IMPROVE

Severe 10=Highest 10=Lowest RPN

Probability Probability AxBxC

2) Secure 2) Select Belt

3) Install 3) Trim Cover

Note: A failure mode with very high severity may warrant

When To Use An FMEA

Answering Questions With FMEAs

FMEAs can be used to answer the

What failure modes have the highest

An automobile manufacturer has completed a process FMEA on the braking system in

Rate 1-10 Probability Probability PRIORITY TO RPN

10=Most Rate 1-10 Rate 1-10 NUMBER IMPROVE