This document provides an overview of lean principles and concepts that can impact process performance. It defines key lean terms like process cycle time, work in process, throughput, capacity, and waste. It discusses how reducing cycle time through techniques like eliminating waste and reducing set-up times can increase productivity and profits. Little's Law is introduced, which relates work in process, process cycle time, and throughput. The relationship between these factors and how adjusting one can impact the others is discussed. Overall cycle efficiency and its importance in identifying opportunities for cost reduction is covered. Examples are provided to demonstrate how to calculate process cycle efficiency and determine resource needs based on throughput requirements.
Staying creative is hard, isn’t it?
But it is not a passive process that you can sit back and wait for inspiration to motivate you and help you focus.
An American psychologist Robert J. Sternberg has defined creativity as “the process of producing something that is both original and worthwhile.”
Creativity is nothing but looking for new and better ways to approach situations and solve problems.
Staying creative is hard, isn’t it?
But it is not a passive process that you can sit back and wait for inspiration to motivate you and help you focus.
An American psychologist Robert J. Sternberg has defined creativity as “the process of producing something that is both original and worthwhile.”
Creativity is nothing but looking for new and better ways to approach situations and solve problems.
Critical Chain Project Management - Training Material Extract of 1 Day Europe...MARRIS Consulting
Extract of some of the slides used in the Critical Chain Project Management 1-Day training course hosted regularly in Paris, France by Marris Consulting.
More details about the training course including upcoming dates:
More details: http://www.marris-consulting.com/en/Formation-Chaine-Critique-Description-101.html
Pitch:
"Your projects are often late or suffer significant budget overruns? You must often abandon some original specifications? Critical Chain Project Management, thanks to its innovative principals, has shown over the past 15 years spectacular results (at Boeing, ABB, US Army, Procter & Gamble, Rio Tinto ...). It has for instance enabled companies that deployed it to significantly accelerate their new product development.
Over 400 people have been trained by Marris Consulting in the past 4 years including: ArcelorMittal, Areva, Arkema, Autoliv, Bayer, Bosch, Essilor, Fresenius Vial, GSK, Infineon, Ipsen, Jaeger LeCoultre, Lilly, Merial, Novartis, Pierre Fabre, Procter & Gamble, Pyrex, Nexter, Safran, Saint-Gobain, Salzgitter-Mannesmann, Schlumberger, Seb, SKF, Thales, Visteon, Yves Rocher & Zodiac Aerospace."
CCPM 1 day training extract pdf v1.0 20151018v
A Multi-Team, Full-Cycle, Product-Oriented Scrum (Agile game) Simulation with LEGO Bricks. Based on the lego4scrum.com.
Lego4Scrum is teaching game is used by the Scrum trainers community worldwide including various certification classes, in-house trainings, formal business programs and team workshops.
Agile Retrospective by Manohar Prasad
Topics which are covered -
Agile Manifesto
Agile Principles
Scrum Values
What is Retrospective
Why Retrospectives
How to perform Retrospectives
Best Retrospective Practices
Best Retrospective Methods
An organization should operate like a city. Some parts emerge bottom-up while others are designed top-down. The art of management is finding the right balance between these two approaches.
Learn more:
https://management30.com/grow-structure/scaling-structure/
https://management30.com/practice/meddlers/
Techniques for Effective RetrospectivesProwareness
Every month Prowareness organizes a session called “Mastering Scrum”. In these sessions Scrum Masters share their knowledge about a central theme. On January 19 2012 we focused on Retrospectives.
In these slides we share 15 different ways to gather data and create insights. We hope this will inspire you to have Effective Retrospectives!
Value stream mapping is a practical and highly effective way to learn to see and resolve disconnects, redundancies, and gaps in how work gets done.
This VSM project template helps you and your project team to put together a "storyboard" for effective presentation to your key stakeholders. It includes four key phases:
1) Define and pick product/service family
2) Create a current state map
3) Develop a future state map
4) Develop an implementation plan
This document consists of a VSM project template in Powerpoint format and a set of Excel templates comprising VSM charter, Results table, Implementation Plan and common VSM icons.
The Science of LEGO SERIOUS PLAY - Play, Construction, ImaginationMarko Rillo
The Science of LEGO SERIOUS PLAY - Play, Construction, Imagination (2006) The Lego Group / Executive Discovery Llc.
24-page brochure that summarises the early research carried out by the Imagination Lab Foundation that laid the foundation for the further development of LEGO Serious Play Methodology that is freely available as Open Source tool under Creative Commons 3.0 licence.
Before deciding on a course of action, prudent managers evaluate the situation confronting them. Unfortunately, some managers are cautious to a fault – taking costly steps to defend against unlikely outcomes. Others are overconfident – underestimating the range of potential outcomes. And still, others are highly impressionable – allowing memorable events in the past to dictate their view of what might be possible now.
These are just three of the well-documented psychological traps that afflict most managers at some point, assert authors John S. Hammond, Ralph L. Keeney, and Howard Raiffa in their 1998 article. Still, more pitfalls distort reasoning ability or cater to our own biases. Examples of the latter include the tendencies to stick with the status quo, to look for evidence confirming one’s preferences, and to throw good money after bad because it’s hard to admit making a mistake.
Luckily, techniques exist to overcome each one of these problems. For instance, since the way a problem is posed can influence how you think about it, try to reframe the question in various ways and ask yourself how your thinking might change for each version. Even if we can’t eradicate the distortions ingrained in the way our minds work, we can build tests like this into our decision-making processes to improve the quality of the choices we make.
Critical Chain Project Management - Training Material Extract of 1 Day Europe...MARRIS Consulting
Extract of some of the slides used in the Critical Chain Project Management 1-Day training course hosted regularly in Paris, France by Marris Consulting.
More details about the training course including upcoming dates:
More details: http://www.marris-consulting.com/en/Formation-Chaine-Critique-Description-101.html
Pitch:
"Your projects are often late or suffer significant budget overruns? You must often abandon some original specifications? Critical Chain Project Management, thanks to its innovative principals, has shown over the past 15 years spectacular results (at Boeing, ABB, US Army, Procter & Gamble, Rio Tinto ...). It has for instance enabled companies that deployed it to significantly accelerate their new product development.
Over 400 people have been trained by Marris Consulting in the past 4 years including: ArcelorMittal, Areva, Arkema, Autoliv, Bayer, Bosch, Essilor, Fresenius Vial, GSK, Infineon, Ipsen, Jaeger LeCoultre, Lilly, Merial, Novartis, Pierre Fabre, Procter & Gamble, Pyrex, Nexter, Safran, Saint-Gobain, Salzgitter-Mannesmann, Schlumberger, Seb, SKF, Thales, Visteon, Yves Rocher & Zodiac Aerospace."
CCPM 1 day training extract pdf v1.0 20151018v
A Multi-Team, Full-Cycle, Product-Oriented Scrum (Agile game) Simulation with LEGO Bricks. Based on the lego4scrum.com.
Lego4Scrum is teaching game is used by the Scrum trainers community worldwide including various certification classes, in-house trainings, formal business programs and team workshops.
Agile Retrospective by Manohar Prasad
Topics which are covered -
Agile Manifesto
Agile Principles
Scrum Values
What is Retrospective
Why Retrospectives
How to perform Retrospectives
Best Retrospective Practices
Best Retrospective Methods
An organization should operate like a city. Some parts emerge bottom-up while others are designed top-down. The art of management is finding the right balance between these two approaches.
Learn more:
https://management30.com/grow-structure/scaling-structure/
https://management30.com/practice/meddlers/
Techniques for Effective RetrospectivesProwareness
Every month Prowareness organizes a session called “Mastering Scrum”. In these sessions Scrum Masters share their knowledge about a central theme. On January 19 2012 we focused on Retrospectives.
In these slides we share 15 different ways to gather data and create insights. We hope this will inspire you to have Effective Retrospectives!
Value stream mapping is a practical and highly effective way to learn to see and resolve disconnects, redundancies, and gaps in how work gets done.
This VSM project template helps you and your project team to put together a "storyboard" for effective presentation to your key stakeholders. It includes four key phases:
1) Define and pick product/service family
2) Create a current state map
3) Develop a future state map
4) Develop an implementation plan
This document consists of a VSM project template in Powerpoint format and a set of Excel templates comprising VSM charter, Results table, Implementation Plan and common VSM icons.
The Science of LEGO SERIOUS PLAY - Play, Construction, ImaginationMarko Rillo
The Science of LEGO SERIOUS PLAY - Play, Construction, Imagination (2006) The Lego Group / Executive Discovery Llc.
24-page brochure that summarises the early research carried out by the Imagination Lab Foundation that laid the foundation for the further development of LEGO Serious Play Methodology that is freely available as Open Source tool under Creative Commons 3.0 licence.
Before deciding on a course of action, prudent managers evaluate the situation confronting them. Unfortunately, some managers are cautious to a fault – taking costly steps to defend against unlikely outcomes. Others are overconfident – underestimating the range of potential outcomes. And still, others are highly impressionable – allowing memorable events in the past to dictate their view of what might be possible now.
These are just three of the well-documented psychological traps that afflict most managers at some point, assert authors John S. Hammond, Ralph L. Keeney, and Howard Raiffa in their 1998 article. Still, more pitfalls distort reasoning ability or cater to our own biases. Examples of the latter include the tendencies to stick with the status quo, to look for evidence confirming one’s preferences, and to throw good money after bad because it’s hard to admit making a mistake.
Luckily, techniques exist to overcome each one of these problems. For instance, since the way a problem is posed can influence how you think about it, try to reframe the question in various ways and ask yourself how your thinking might change for each version. Even if we can’t eradicate the distortions ingrained in the way our minds work, we can build tests like this into our decision-making processes to improve the quality of the choices we make.
Thomas Axen - Lean Kaizen Applied To Software Testing - EuroSTAR 2010TEST Huddle
EuroSTAR Software Testing Conference 2010 presentation on Lean Kaizen Applied To Software Testing by Thomas Axen . See more at: http://conference.eurostarsoftwaretesting.com/past-presentations/
CPI uses four very important principles for a total improvement to any program/process.
- Lean (Eliminate Waste)
- Six Sigma (Minimize Variation)
- Theory of Constraints (Strengthening Weakest Link)
- Training within Industry (Standard Work)
You can’t just use one……When all four are used together, you can truly see the difference!!!
Chaplin School of Hospitality and Tourism ManagementInternship Lea.docxcravennichole326
Chaplin School of Hospitality and Tourism ManagementInternship Lean 6σ Process Improvement Project
Improving the Speed, Accuracy, Reliability, Cost Effectiveness and Flow of the (Y) process.
A picture of you in front of your company here.
Executive Summary
Executive Summary
Please describe your project in this box. If it does not fit in the box, it is too long, and you must shorten it. Shoot for the 5W’s and the H, but be brief. (Who, what, when, where, why, how)
Please describe your project in this box. If it does not fit in the box, it is too long, and you must shorten it. Shoot for the 5W’s and the H, but be brief. (Who, what, when, where, why, how)
Table of Contents
i
Executive Summaryi
Message from the Professoriii
Why we are using this method in the advanced internship classiii
About Lean 6σiii
Criteria for the Projectiii
Define1
1.1Project Charter and Financial Estimate1
1.2 Current State Process Map2
Measure3
2.1 Data Collection Plan3
2.2 Collection Results4
Analyze5
3.1 Voice of the Customer5
3.2 Voice of the Business5
3.3 Voice of the Employee (WIFM)5
3.4 Waste Analysis – DOWNTIME6
4.1 Addressing gaps in VOC needs7
Improve
4.2Addressing gaps VOB needs7
4.3 Addressing VOE concerns/ Alternate WIFM7
4.4Reduction of Waste8
4.5 Summary of Recommended
Solution
s8
Control9
5.1 Modification to Procedures Manuals (Or Establishment of Internal Controls)9
Lessons Learned10
Supervisor’s Critique11
Message from the Professor
Why we are using this method in the advanced internship class
Our internship students are within a semester or two of entering the workforce as managers. FIU’s Hospitality and Tourism Management School has included a structured internship as part of the curriculum for over a decade to assist students with this transition into management. A substantial part of the course has always included a project where the students were to improve the host company’s operations in a meaningful and lasting way.About Lean 6σ
This project is a scaled down Lean 6σ ( six sigma) project designed to be completed within the term of the semester. Lean 6σ is a continuous process improvement method which has grown in use in U.S. and international corporations since the 1970’s. Employed to great success at companies like Motorola, this method aims to refine a company’s existing processes through data based analysis and evidence based decision making.
U.S.-based quality professionals who complete any Six Sigma training earn on average $12,642 more than those without it. 2011 QP Salary Survey*Criteria for the Project
· The project must be based on a real need in the company, and have the support of the student’s supervisor.
· Must be able to be completed to in 10 weeks or (40 hours)
This template is the intellectual property of Jason L. Stiles, Ph.D. All rights reserved.
2
Define
A description of the current process and proposed financial benefits
1.1 Project Charter and Financial Estimate
Project Charte ...
Meet up Milano 14 _ Axpo Italia_ Migration from Mule3 (On-prem) to.pdfFlorence Consulting
Quattordicesimo Meetup di Milano, tenutosi a Milano il 23 Maggio 2024 dalle ore 17:00 alle ore 18:30 in presenza e da remoto.
Abbiamo parlato di come Axpo Italia S.p.A. ha ridotto il technical debt migrando le proprie APIs da Mule 3.9 a Mule 4.4 passando anche da on-premises a CloudHub 1.0.
Italy Agriculture Equipment Market Outlook to 2027harveenkaur52
Agriculture and Animal Care
Ken Research has an expertise in Agriculture and Animal Care sector and offer vast collection of information related to all major aspects such as Agriculture equipment, Crop Protection, Seed, Agriculture Chemical, Fertilizers, Protected Cultivators, Palm Oil, Hybrid Seed, Animal Feed additives and many more.
Our continuous study and findings in agriculture sector provide better insights to companies dealing with related product and services, government and agriculture associations, researchers and students to well understand the present and expected scenario.
Our Animal care category provides solutions on Animal Healthcare and related products and services, including, animal feed additives, vaccination
Instagram has become one of the most popular social media platforms, allowing people to share photos, videos, and stories with their followers. Sometimes, though, you might want to view someone's story without them knowing.
Bridging the Digital Gap Brad Spiegel Macon, GA Initiative.pptxBrad Spiegel Macon GA
Brad Spiegel Macon GA’s journey exemplifies the profound impact that one individual can have on their community. Through his unwavering dedication to digital inclusion, he’s not only bridging the gap in Macon but also setting an example for others to follow.
Understanding User Behavior with Google Analytics.pdfSEO Article Boost
Unlocking the full potential of Google Analytics is crucial for understanding and optimizing your website’s performance. This guide dives deep into the essential aspects of Google Analytics, from analyzing traffic sources to understanding user demographics and tracking user engagement.
Traffic Sources Analysis:
Discover where your website traffic originates. By examining the Acquisition section, you can identify whether visitors come from organic search, paid campaigns, direct visits, social media, or referral links. This knowledge helps in refining marketing strategies and optimizing resource allocation.
User Demographics Insights:
Gain a comprehensive view of your audience by exploring demographic data in the Audience section. Understand age, gender, and interests to tailor your marketing strategies effectively. Leverage this information to create personalized content and improve user engagement and conversion rates.
Tracking User Engagement:
Learn how to measure user interaction with your site through key metrics like bounce rate, average session duration, and pages per session. Enhance user experience by analyzing engagement metrics and implementing strategies to keep visitors engaged.
Conversion Rate Optimization:
Understand the importance of conversion rates and how to track them using Google Analytics. Set up Goals, analyze conversion funnels, segment your audience, and employ A/B testing to optimize your website for higher conversions. Utilize ecommerce tracking and multi-channel funnels for a detailed view of your sales performance and marketing channel contributions.
Custom Reports and Dashboards:
Create custom reports and dashboards to visualize and interpret data relevant to your business goals. Use advanced filters, segments, and visualization options to gain deeper insights. Incorporate custom dimensions and metrics for tailored data analysis. Integrate external data sources to enrich your analytics and make well-informed decisions.
This guide is designed to help you harness the power of Google Analytics for making data-driven decisions that enhance website performance and achieve your digital marketing objectives. Whether you are looking to improve SEO, refine your social media strategy, or boost conversion rates, understanding and utilizing Google Analytics is essential for your success.
Gen Z and the marketplaces - let's translate their needsLaura Szabó
The product workshop focused on exploring the requirements of Generation Z in relation to marketplace dynamics. We delved into their specific needs, examined the specifics in their shopping preferences, and analyzed their preferred methods for accessing information and making purchases within a marketplace. Through the study of real-life cases , we tried to gain valuable insights into enhancing the marketplace experience for Generation Z.
The workshop was held on the DMA Conference in Vienna June 2024.
1.Wireless Communication System_Wireless communication is a broad term that i...JeyaPerumal1
Wireless communication involves the transmission of information over a distance without the help of wires, cables or any other forms of electrical conductors.
Wireless communication is a broad term that incorporates all procedures and forms of connecting and communicating between two or more devices using a wireless signal through wireless communication technologies and devices.
Features of Wireless Communication
The evolution of wireless technology has brought many advancements with its effective features.
The transmitted distance can be anywhere between a few meters (for example, a television's remote control) and thousands of kilometers (for example, radio communication).
Wireless communication can be used for cellular telephony, wireless access to the internet, wireless home networking, and so on.
APNIC Foundation, presented by Ellisha Heppner at the PNG DNS Forum 2024APNIC
Ellisha Heppner, Grant Management Lead, presented an update on APNIC Foundation to the PNG DNS Forum held from 6 to 10 May, 2024 in Port Moresby, Papua New Guinea.
APNIC Foundation, presented by Ellisha Heppner at the PNG DNS Forum 2024
03 cox lean slides
1. Understanding Lean Principles
that Dramatically Impact
Process Performance
16th Annual SHS Management
Engineering Forum,
Orlando, FL Feb. 20-21, 2004
2. All rights reserved, George Group Consulting LP 2
Facilitators
• Chuck Cox, George Group LLC, Dallas, TX
– Lean Master, Master Black Belt, Certified Six
Sigma Black Belt and Certified Quality
Engineer (ASQ), and Certified Management
Consultant (IMC-USA)
• Chuck Monroe, Pegasus Organization, Inc.,
Scottsdale, AZ
– Master Black Belt, Certified Six Sigma Black
Belt (ASQ) and Certified Management
Consultant (IMC-USA)
3. All rights reserved, George Group Consulting LP 3
Some Lean Principles
• Little’s Law – drives consistency in process’
cycle time and allows rapid re-prioritization
• Process Flow – balances the work load to
increase throughput with same resources
• Set-up time reduction – provides greater
productivity, revenue & profits from expensive
assets and/or constrained resources
• Waste Identification & Elimination – reduces
non-value added operations
4. All rights reserved, George Group Consulting LP 4
TomorrowTomorrow
Process Cycle Time
Cycle Time Interval
Throughput (Capacity)
Key Lean Concepts
TodayToday
TomorrowTomorrow
TodayToday
Goal:
Reduce
Goal:
Increase
Goal:
Reduce cycle time,
Increase no. of cycles,
Decrease amount in each
5. All rights reserved, George Group Consulting LP 5
Key Lean Definitions
• The following definitions are used in describing
the velocity, efficiency, throughput, and
capacity of a process:
– Process Cycle Time (PCT): the time from when
something or someone enters a process until that
item is completed or that person is finished
– Work In Process (WIP): items or persons that are
within the boundaries of the process
– Exit Rate (Throughput): the output of a process
over a defined period of time
6. All rights reserved, George Group Consulting LP 6
• The following terms are used frequently to quantitatively
describe the output of a process:
– Capacity: the maximum amount of output a process
can deliver over a continuous period of time
– Time Trap (Bottleneck): the operation or step that
inserts the largest amount of time delay into a process.
(There can only be one time trap at a time in a process
and it controls the exit rate from the process)
– Constraint: a time trap that is unable to produce at
the exit rate required to meet customer demand
Key Lean Definitions (cont’d.)
7. All rights reserved, George Group Consulting LP 7
Traditional Processes:
Lots of Stuff in Process = Long Cycle Times
ProcessProcess
Transport
Time
“Touch”
Time Rework
Queue
Time
CycleTime
OUTPUT
Work-In-Progress
INPUT
8. All rights reserved, George Group Consulting LP 8
Lean Processes:
Time Trap Resolution Reduces WIP and PCT
ProcessProcess
Transport
Time
“Touch”
Time Rework
Queue
Time
CycleTime
OUTPUT
Work-In-Progress
INPUT
9. All rights reserved, George Group Consulting LP 9
Relationship Between WIP, PCT and Throughput
• Little’s Law* describes the relationship between WIP,
PCT, and Throughput (also known as the Exit Rate):
PCT=WIP/Exit Rate
• This is the most fundamental relationship for any
process (the “F = ma”, Force = Mass x Acceleration –
accepted law of physics)
• Used to size the inventory, people, paperwork, projects –
in any process, no matter what it handles!
• Shorter Cycle Times = More “Learning Cycles” (Learning
Cycles = no. of instances to learn about my process)
*John D. C. Little
10. All rights reserved, George Group Consulting LP 10
Cycle Time = WIP / Exit Rate
“Your Amusement Park Experience”
Cycle Time =
Cycle Time =
WIP
Exit Rate
=
5
1/minute
5 minutes
• …and then think about them in July…
Cycle Time =
Cycle Time =
WIP
Exit Rate
=
13
1/minute
13 minutes
Think about the lines at Disney World in March…
…conclusion: Fixed Capacity (Exit Rate) + Increased People (WIP) =
Slower Cycle Times (PCT)!
11. All rights reserved, George Group Consulting LP 11
A Project Management Example
• Traditional Approach: Start
all projects at once. Have each
resource (4 in total) split their
time evenly between 2 projects
(each requiring 30 man-days
of work)
Resources spread:
Results accrue at the end
0 20 40 60 80
1
2
3
4
5
6
7
8
P
r
o
j
e
c
t
s
$$$s
Returned
Resources focused:
Results accrue as projects are completed
0 20 40 60 80
1
2
3
4
5
6
7
8
P
r
o
j
e
c
t
s
$$$s
Returned
• Lean Approach: Minimize
the number of projects in
process at any point in time.
Team 2 people on a project.
12. All rights reserved, George Group Consulting LP 12
Cycle Time = WIP / Exit Rate: A reduction in cycle time does not directly yield an increase in capacity
An increase in capacity is obtained by decreasing the process time of the bottleneck operation/step
Present State
Assumes WIP Cap = 6 items
Bottleneck = 10 minutes
Capacity = 6 items/hour (1 item every 10 mins)
PCT = 6 items / 6 items per hour = 1 hour
Capacity Increase
Assumes WIP Cap = 3 items
Bottleneck = 7 minutes
Capacity = 8.5 items/hour (1 item every 7 mins)
PCT = 3 items / 8.5 items per hour = 21 minutes
6 min/
item
10 min/
item
4 min/
item
7 min/
item
10 min/
item
4 min/
item
1.
2.
3. 7 min/
item
6 min/
item
6 min/
item
WIP Reduction
Assumes WIP Cap = 3 items
Bottleneck = 10 minutes
Capacity = 6 items/hour (no improvement)
PCT = 3 items / 6 items per hour = 30 minutes
Cycle Time ≠ Throughput (Capacity)
13. All rights reserved, George Group Consulting LP 13
Cycle Time Effect on Capacity
• Cycle Time indirectly influences Throughput
(and thus Capacity) by:
– Increasing Labor and Constrained Resource
Productivity:
• Fewer items and/or persons being processed at one time by
the process
– Less Lost Paperwork, Information more easily
traceable:
• Fewer patients and patient information at any point in time,
less confusion
• Mistakes easier to catch, caught more quickly
– Increase in Accuracy and Timeliness (decrease in
mistakes; greater ability to recover quickly when they
do occur):
14. All rights reserved, George Group Consulting LP 14
Lean Supply Chain
• Faster feedback on process performance (increased learning cycles)
• Improved first pass yield (results in improved productivity)
• Improved process stability (results in improved throughput)
• Uncovers process deficiencies (forces problem resolution)
• Less in-process & buffer inventories (reduced risk of things being
overlooked)
• Improved customer satisfaction (flexibility and responsiveness)
Cycle Time
Flexibility
Old
process
New
process
Lean
Improvements
Long Cycle Time
Low Flexibility
Short Cycle Time
High Flexibility
Large Amt.
of Inventory
Small
Inventory
15. All rights reserved, George Group Consulting LP 15
What is our Goal?
• The goal of Lean Six Sigma Improvement projects
is to reduce variability in, and improve the speed of,
a process.
– Controlling and reducing Cycle Time, and cycle time
variability, will generate faster feedback cycles on
improvement projects (increase process velocity and,
thus, more cycles of learning).
– In addition, controlling and reducing cycle time (and
cycle time variability) is a key driver for:
• Increasing utilization of expensive capital resources
• Facilitating productivity and capacity improvements
• Remember: reducing cycle time shows us “where the rocks
are!”
16. All rights reserved, George Group Consulting LP 16
More Lean Definitions
• The following definitions are used in Lean Six
Sigma to describe the relationship between the
velocity and efficiency of a process:
– Process Cycle Efficiency (PCE): the efficiency of a process
is based upon the time in which value is added versus the total
amount of time spent in the process
– Value-Add Time (VA Time): the amount of time that value is
actually applied to a product while it is “in process”
17. All rights reserved, George Group Consulting LP 17
Why Cycle Efficiency Matters
“Any process with low cycle efficiency will have great
opportunities for cost reduction (and increases in
service level). Most processes whether in service,
business, transactional, or product development run
at cycle efficiencies of less than 10%. The result of
this (are) hidden costs in overhead, rework, invested
capital...and unhappy customers.”
Mike George, Lean Six Sigma, McGraw-Hill 2002
18. All rights reserved, George Group Consulting LP 18
Process Cycle Efficiency
TimeCycleProcess
TimeAdd"ValueCustomer"
EfficiencyCycleProcess =
PCT
TimeVA
PCE =
19. All rights reserved, George Group Consulting LP 19
Exercise:
Determine Process Cycle Efficiency
• Transactional Example
In analyzing the billing operations of a hospital, it
was noted that the bill goes through 9 steps, and the
average “touch time” per bill was 19 minutes. Over a
week’s time, 30 bills were time stamped going into
the process and again as they left the process. The
average time they were in the process was 3.75
days (7 working hrs. per day).
The PCE was .32 hrs./3.75 x 7 = .32/26.25 = 1.22%
TimeCycleProcessObservedTotal
TimeProcessalued"Customer V"
EfficiencyCycleProcess =
20. All rights reserved, George Group Consulting LP 20
Process Sizing
Variables:
• WIP – Patients, Receivables, Documents, Inventory
• Exit Rate – The customer required output, expressed in Items/Time (equal to
the rate of the constraining operation)
• Process Cycle Time – Current cycle time, Requirement cycle time, Theoretical
cycle time
PCT = WIP / Exit Rate
Exit Rate = WIP / PCT
Buffer
Process
Exit Rate
WIP
Process Cycle Time
ProcessProcess
WIPWIP
21. All rights reserved, George Group Consulting LP 21
Process Sizing Example
• Example:
– A regional medical system issues approximately 1500 PO’s per week to its
suppliers. It has been determined the average value-add time for a PO is 30
minutes. Assuming a buyer is 75% efficient, how many buyers are required
to issue PO’s?
Buffer
Process
Exit Rate
WIP
Cycle Time
ProcessProcess
WIPWIP
22. All rights reserved, George Group Consulting LP 22
Process Sizing Example
Buffer
Process
Exit Rate
WIP
PCT
ProcessProcess
WIPWIP
Given:
Exit Rate = 1,500 / week
= 37.5 / hour (40 hr week)
= 0.625 / minute
VA Time = 30 minutes/PO
PCE = 75%
Solution:
PCE = “Customer Value Add” Time
Process Cycle Time
PCT = “Customer Value Add” Time = 30 min. / 0.75 = 40 minutes
PCE
Buyers Required = (Exit Rate x PCT) / Working Hours per Buyer
= (1,500 per wk x 40 min.) / 40 hours
= 60,000 min.s per week / 2,400 min.s
= 25 Buyers
23. All rights reserved, George Group Consulting LP 23
What About Variability?
“We have tended to use all our energy and Six Sigma
science to move the mean [delivery time] to…12 days.
The problem is, as has been said, ‘the mean never
happens,’ and the customer is still seeing variances in
when the deliveries actually occur – a heroic 4-day
delivery time on one order, with an awful 20-day delay
on another, and no real consistency…
Variation is evil.” – Jack Welch, 1998
24. All rights reserved, George Group Consulting LP 24
Can We Tolerate Variability?
• There will always be some variation present
• We can tolerate this variation if:
– The process is on target, meeting performance specs.
– The variation is small compared to the process specs.
– The process is stable over time.
• However, as variability increases, cycle time
increases.
• We need to recognize that variation should be
minimized - the key is not just moving the mean,
but reducing the span as well
25. All rights reserved, George Group Consulting LP 25
Ratio of Actual Wait Time/ Machine time per unit,
can be reduced by Total Productive Maintenance
R2
= 0.8723
R2
= 0.8908
R2
= 0.8162
0
5
10
15
20
25
30
35
40
60% 70% 80% 90% 100%
Utilization Percent
WaitTime/ServiceTime
High Variation
Moderate Variation
Lower Variation
Results based on over 5000 simulation runs of
an 11 station, single part workstation
Reduction in Cycle Time Variation
Gives Additional Utilization of Scare Resources
Ratio of Wait Time to Actual (Value-Added) Time per Item or per Patient
26. All rights reserved, George Group Consulting LP 26
Why Use Work Control Systems?
• Stabilize processes to make it easier to apply analysis and
improvement tools (Six Sigma and Lean tools)
• Control and reduce the number of items in a process, allowing
sharper focus on problem areas (less “stuff” to get in the way of
analysis efforts)
• Control and reduce Cycle Time to generate faster feedback cycles on
improvement projects (increase process speed and thus cycles of
learning)
The primary goals of a work control system are to stabilize and
then reduce process cycle time and cycle time variability
Work Control Systems limit the amount of “Stuff
in Process” in order to control cycle time.
Work Control Systems limit the amount of “Stuff
in Process” in order to control cycle time.
Governing Principle:
Start Rate = Exit Rate
Governing Principle:
Start Rate = Exit Rate
27. All rights reserved, George Group Consulting LP 27
WIP Cap
ExitsStarts
Trigger
Work Control System Defined
Definition:
• A Work Control System establishes a WIP Cap on the amount
of “stuff” within a predefined physical work area or process.
• To maintain the WIP Cap, the Exits from the process trigger
Starts into the process.
Establishing and maintaining the WIP Cap is the key to cycle time reduction!
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
28. All rights reserved, George Group Consulting LP 28
The Power of a WIP Cap
With WIP Cap - Cycle time is both: reduced & stable
No WIP Cap - Cycle time fluctuates with the amount of WIP
Cycle Time
Cycle Time
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
29. All rights reserved, George Group Consulting LP 29
Work Control System Benefits
• Efficiency: A pull system can attain the same throughput as a
traditional push system, with less average WIP (and therefore, a
shorter cycle time)
• Productivity: Less WIP means less “stuff” to get in the way,
and thus more time spent adding value to the process
• Ease of Control: Pull systems rely on setting easily controllable
WIP levels, creating a much more manageable process
• Quality Improvement: Low WIP (and associated cycle time)
systems are more sensitive to quality (and therefore, force
problem resolution) and facilitate it (by improving feedback and
learning cycles)
30. All rights reserved, George Group Consulting LP 30
Work Control Systems:
Classic Example
• A classic example of a Work Control System is
the admitting process at an Emergency Room:
– Limited number of ER beds are available for patient
use
– As patients arrive, their status is assessed by ER
doctors and each patient is assigned a priority
• Critical patients are admitted into the process immediately –
bed space and qualified resources may have to be “added” to
accommodate surges in demand but will be removed as soon
as possible
• The “backlog” of patients is managed such that Marginal and
Non-Critical patients are admitted as bed space is freed up
31. All rights reserved, George Group Consulting LP 31
How to Size a Work Control System
1. Determine current Process Cycle Time
(PCT)
2. Determine current Process Cycle
Efficiency (PCE)
3. Identify appropriate target PCE
4. Calculate theoretical best PCT
5. Calculate WIP Cap
32. All rights reserved, George Group Consulting LP 32
•PCT: time from release of a product into a process
until it’s completion, approximated by using Little’s
Law
•WIP: “number of things in process” at any given time
•EXIT RATE: amount of work completed over a given
period of time, which should also equal customer
demand (“completions per hour”)
Step 1: Determine the Current
Process Cycle Time (PCT)
RATEEXIT
WIP
PCT =
33. All rights reserved, George Group Consulting LP 33
PCT = ???
Exit Rate =
20 orders/day
WIP = Sum of all “things in process” = 100 orders
Our Example PCT is:
PCT = 100 orders / 20 orders per day
PCT = 5 days
Example:
Step 1. Calculating Current PCT
Customer
Orders
Finished
Goods
Schedule
Orders
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Credit
Check
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Enter
Orders
Take
Orders
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
34. All rights reserved, George Group Consulting LP 34
PCE: measure of relative efficiency in a process - it
represents the percentage of value-add time
(changing form, fit, function) that a product
experiences in its production.
PCE is THE performance indicator for Work Control
Systems.
Step 2. Determine the Current
Process Cycle Efficiency (PCE)
( )100x
PCT
TimeAddValue
PCE% =
35. All rights reserved, George Group Consulting LP 35
Example:
Step 2. Calculating Current PCE
PCT = 5 days
Exit Rate =
20 units/day
WIP = Sum of all “things in process” = 100 units
Our Example PCE is:
PCE = 1.5 hrs / 5 days
PCE = 4.0%
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
BVA =
0.4 hrs
BVA =
0.3 hrs
BVA =
0.3 hrs
BVA =
0.5 hrs
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Order
5 each:
A, B, C
Note: 7.5 hrs. per day
36. All rights reserved, George Group Consulting LP 36
Step 3. Determine Target PCE
Target PCE: the Process Cycle Efficiency for a “world-class” environment by type of process (based on
experience with over 100 companies).
80%30%Test/Continuous
Process
25%5%Business Processes
(creative/cognitive)
50%10%Business Processes
(transactional)
High End PCE
(World-Class PCE)
Low End PCE
(Typical PCE)Application
Rules of Thumb:
If current PCE << Low End Target, multiply current PCE by 10 for conservative Target
If current PCE is < Low End Target, use Low End as Target PCE
If current PCE ≅ or > Low End Target, use High End as Target PCE
37. All rights reserved, George Group Consulting LP 37
Step 4. Calculate Theoretical Best
PCT
Theoretical Best PCT is ...
…the “best” or lowest process cycle time achievable based
on the process characteristics. It is measured as:
PCETarget
TimeVA
PCTTB =
Our Example PCTTB is:
PCTTB = 1.5 hrs / 0.1
= 15 hrs
PCTTB = 2.0 days
VACP is the value add time along the critical path. It does
not include the value-add time of parallel process steps.
CP
38. All rights reserved, George Group Consulting LP 38
Step 5. Calculate the WIP Cap
The WIP Cap: determines the maximum WIP
allowed within the process at any time.
Measured as:
RateExitPCTCapWIP TB ×=
Our Example WIP Cap is:
WIP Cap = 2.0 days x 20 orders/day
WIP Cap = 40 orders
39. All rights reserved, George Group Consulting LP 39
Example:
Summary
Beginning State:
Desired State:
PCT = 5 days
WIP Cap = 100 orders
Exit Rate =
20 orders/day
Value Add time = 1.5 hrs
PCE = 4.0%
PCT = 2.0 days
WIP Cap = 40 orders
Exit Rate =
20 orders/day
Value Add time = 1.5 hrs
PCE = 10%
Rremember that you can’t go from “Beginning” to “Desired”
immediately – you have to transition to it at a reasonable pace!
40. All rights reserved, George Group Consulting LP 40
How to Release WIP into
a Work Control System
Release logic for Work Control Systems
is all about discipline.
1. Count the WIP in your process
2. Determine if you can release work or not:
– If the WIP >= WIP Cap, do not release any
more work
– If the WIP < WIP Cap, release enough work to
get to the WIP Cap or slightly above
41. All rights reserved, George Group Consulting LP 41
Time WIP PCT PCE
Current Month 0 1.5 hrs 20 /day 100 5.00 4.0%
Step 1 Month 1 1.5 hrs 20 /day 80 4.00 5.0%
Step 2 Month 2 1.5 hrs 20 /day 67 3.33 6.0%
Step 3 Month 3 1.5 hrs 20 /day 50 2.50 8.0%
Step 4 Month 4 1.5 hrs 20 /day 40 2.00 10.0%
WIP Reduction Plan Example
Value Add Exits
Transitioning to WIP Cap
Typically the current WIP level will be significantly greater
than the WIP Cap level. Therefore, a plan must be
developed to reduce the WIP in steps.
42. All rights reserved, George Group Consulting LP 42
Applying the Tools for Results
Distribution
Lean Six Sigma Reduces Process Cycle Time, Improving
On- Time Delivery Performance for Tier One Auto Supplier
(Average Reduced from 14 Days to 2 Days, Variance from 2 Days to 4 Hours)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0 2 4 6 8 10 12 14 16 18 20
Lead-Time to Customer (days)
%Distribution
Mean Delivery Time Reduced
Time Variation Reduced
Lean Six Sigma Reduces Process Cycle Time and the
Variation of Cycle Time for Overall Performance Improvement
43. All rights reserved, George Group Consulting LP 43
This is a Workshop
• That means we get to do some work and
learn for ourselves about some of the
Lean Principles
• Let’s get some experience with 2 Lean
Principles
– WIP Cap will stabilize our process’ cycle time
– Balancing will allow us to accomplish more
with the same resources
44. All rights reserved, George Group Consulting LP 44
Alphabet Exercise
Workshop
• Form teams of Five
• Explain Process
• Run Three Production Runs with and
without WIP Cap
• Analyze Results
• Discuss Results
45. All rights reserved, George Group Consulting LP 45
References
• Little, John D. C., “Tautologies, Models
and Theories: Can We Find ‘Laws’ of
Manufacturing?”, IIE Transactions 24:7 13
More about Prof. Little:
http://www.informs.org/Prizes/whoisLittle.html