Basic Lean and Six Sigma Metrics

1. Time is of the essence (Lead, Cycle and Takt) (Define)

Okay, well, it's that time again. Literally, it's that time again. One important concept of lean, or anycontinuous improvement strategy for that matter, is the element of establishing, collecting, analysing, and improving times in your organization. In this lecture, Lean Strategies International will introduce some of the key lean metrics and a few of the various times you most likely want to track. Time helps us track results, identify abnormalities, and really supports the establishment of standards, which can result in big improvements for your organization. Well, we'd better get started. I wouldn't want us to fall off of time. Well, hey there and welcome to this overview of leanmetrics and the various types of time you can use to really help turbocharge your Lean Six Sigma journey. Well, to start off, we should first mention that there are many different types of time that can be used across industries to monitor, analyze, and improve elements of your business. Some of those times are cycle time,lead time, tact time, set up time, change over time, and waiting time. While we would love to go into every element of time with you today, we also want to make sure that your time is used wisely and well. Time is of the essence. So let's get started by first defining our objectives. Well, first we will start off by helping you understand why tracking and establishing times in your organisation is so important. After that, we want to ensure you know exactly what tag time, cycle time, and lead time are. Finally, you should leave here today understanding how to calculate each of those three times. Well, let's get started here with a discussion as to why it's so important that we establish and track times in our organization. The first reason we should talk about why it is so important to establish and maintain a time is for your customers. Well, what we mean specifically is that knowing what your lead time is, you have a better chance of delivering on time. By establishing a tag time, you can tell when something is running behind schedule or if it's running on schedule. So one of the most important reasons to understand these key times is so you can better design your processes, systems, or even procedures to meet the customer's demand. Next, by establishing times, you are better able to identify gaps and processes and work to close those gaps. For instance, if you should be producing four parts per minute, and you notice that, for some oddreason, you are only producing three parts per minute,you have now identified an abnormality, and that gives you the opportunity to improve and get better. Finally, knowing and establishing clearly understood metrics will assist in managing resources in the most effective way possible. Aside from that, we should also mention that clarifying metrics such as Tact cycle and leadtime will help manage capacity over time and can even help make processes like quotations and proposals much easier and more effective, too. Well, we can summarise those great benefits by saying that time is a concept that helps employees understand, track, and produce the necessary actions at the rate that customers need them at. Okay, now that it's clear what the benefits of tracking are, let's jump into a few key measurements. Cycle time is the actual rate of time that units are produced at. Cycle time includes elements like delays, wait times, and processing times. To simplify this whole cycle time concept a little more, we can just say that cycle time is the time it takes from the output of one unit to the output of the next unit. The most common way to calculate cycle time is to break out the old stopwatch, define your starting point and your stopping point, and start gathering some cycle times. Now that we know what tag time and cycle time are, we can look at the most common measurement of time in later lectures. We will share with you an incredibly powerful template that Lean Strategies International,LLC uses to calculate tack time. The template makes conversions much easier and also takes into account elements like downtimebreaks and the allimportant lunch hour. We will also dig a little deeper into the process of gathering cycle times and share a simplified way to get accurate data on those cycle times. And finally, we will show you how calculating your tag time and evaluating cycle times can identify processes that may be out of balance. Along with that, we will dig into what is known as kjunka, and how this Japanese term, which means leveling, can elegantly help your organisation meet demand and reduce waste. So until next time, keep on improving and we'll keep on giving you solutions that ignite your power. I'll contact you shortly.

2. Defects Per Unit (Define)

The age-old adage tells us that if we measure something, it will improve. This concept holds true in Lean and Six Sigma organizations. In this lecture, we will look at defects per unit, or DPU, as it's often abbreviated. By the end of this course, you will know exactly what a DPU is and how to calculate defects per unit. So let's get started. We'll formally define the measurement. Defects per unit refers to the number of defects that you might observe in a specific batch or lot of products. If we break that down a little bit more, we learn that a defect is the number of times the process in question produces an output that does not meet customer requirements,specifications, or expected level of performance. Now, we have to be careful when calculating DPU because it is not always a straight one-to-one defect ratio. In fact, most of the time, it is not one to one. When we calculate the DPU, we must make sure that we account for the total number of defects. For example, if we have one defective shirt,that shirt might have three defects, while another shirt may have five defects associated with it. So we have two shirts with a total of eight defects, making our DPU four. That ultimately means we must be cautious not to figure defective units, but rather the total number of defects when calculating defects per unit. Let's run through one more example before we move on. We have three defective units. In those three defective units, we have five defects in each unit, which means our formula to calculate DPU is 15 defects divided by three units. What is our DPU? Well, our DPU is five because we divided 15 by the three units. Remember, a defect refers to a flaw, error, or discrepancy in an item which does not meet the standard or required specification. That means that a defective unit could contain one or more defects. The number of defects is what we use to calculate defects per unit, not the number of defective units. As a reminder, a defective unit is when the decision has been made that the item is not acceptable based on one or more characteristics of nonconformance or multiple characteristics of nonconformance. Well, that wraps up this lecture on defects per unit. So until next time, my friends, keep improving and we will keep on giving you solutions that ignite your power.

3. Rolled throughput yield (RTY) (Define)

Earlier on, we learned that 3.4 defects per million opportunities is the six-sigma rating. This statistical measure tells us that for every 1 million opportunities, we must have 3.4 defects or less. But what does DPMOor defects per million opportunities mean? Well, by the end of this course,you will know what DPMO is and how to calculate defects per million opportunities. Well, let's get started. First and foremost, let's remind ourselves that the thesigma symbol indicates a deviation from a standard. So in the case of a six sigma rating, the allowable deviation is 3.4 defects per million opportunities. Given that important piece of knowledge, we can define DPMO as the average or ratio of the number of defects in 1 million opportunities. So let's define a few elements of defects per million opportunities before we move forward As a memoryjogger, a defect is any item or event that does not meet the specifications or customer requirements. A unit is the item or service being manufactured. And finally, an opportunity is defined as any number or chance that a defect could occur. We will need to understand each of these elements in order to calculate DPMO. Now that they are clarified, let's figure out how to calculate DPMO. I know it sounds a bit intimidating, but if you have gone through each of the lectures, then you should understand DPO already. And that calculation makes figuring DPMO very simple. Some examples may be that fabric is torn, buttons are not aligned, and sleeves are not the same. Welcome back. Now, you might have noticed already, but the green cell titled "total opportunities brainstormed" counted each time you came up with an idea. I came up with ten ideas. How many did you come up with? Next, we take that number and enter it in the cell titled "opportunities for defects" at the top. And here you should see green populated all the way across until you view the last cell titled DPMO. This cell automatically multiplies the DPO by 1 million, giving us our defects per million opportunities. And that's it. You can use this sheet to figure out DPMO whenever you want. Well, that wraps up this lecture on defects per million opportunities. So until next time, my friends, keep on improving, and we will keep on giving you solutions that ignite your power.

ExamSnap's Six Sigma LSSYB Practice Test Questions and Exam Dumps, study guide, and video training course are complicated in premium bundle. The Exam Updated are monitored by Industry Leading IT Trainers with over 15 years of experience, Six Sigma LSSYB Exam Dumps and Practice Test Questions cover all the Exam Objectives to make sure you pass your exam easily.