SCM 4367 EXAM 1 & 2 STUDY GUIDE
Lean - Answer -Improves the organization at a macro-level
•Easily utilized by most people in an organization
•Establishes a foundational culture of continuous improvement
Six Sigma - Answer -Improves individual processes at a micro-level
•Utilized primarily by statistically trained professionals
•Provides statistical tools used to address specific problems
Theory of Constraints (TOC) - Answer -Informs us where to improve
Thinking People System (TPS) - Answer -•We must think about processes, productivity,
quality differently
•Requires creativity, imagination, inventiveness, ingenuity
•Requires system-thinking:
•Not if A changes, then Z will happen
•Instead, A, B, C, D influences W, X, Y, Z simultaneously
Process (Define) - Answer -A process is a collection of activities that transforms inputs
into outputs that offer value to a customer
Process (Purpose) - Answer -•Increase Value to a Customer
•Increase performance (product or service functionality)
•Increase speed (decreased lead time)
•Increase quality (consistency, durability, reliability, aesthetics)
•Increase flexibility (product or service variation)
•Decrease cost
In order to alter the value delivered to a customer, you must alter the process(es) used
to create that value
Customer Focus - Answer -•Process improvement must be customer focused
•Identify the customers of a process
•Define what the customer wants (define value for the customer)
Internal/External/End Users Customers
Order Qualifiers - Answer -These are traits the customer expects. The customer will not
pay for a product or service unless these traits are present.
Order Winners - Answer -These are traits that, if provided, will differentiate your product
or service from competition
, Order Losers - Answer -These are traits that, if present, will cause the customer to
decline a product or service
Lean Drivers - Answer --Perfect Quality
-Zero Waste
-Exact Quantity
-Instant and Complete Customer Satisfaction
-Minimum Cost
-Ability to instantly adapt to market and competitive changes
Lean Historical Roots - Answer -Misconception- identification of lean be a set of tools
used in lean implementations (JIT, Kanban, & 5S)
Continuous improvement
Systems viewpoint
Continuous Learning
-Lean can vary from company to company
-Each company has a unique name for lean and is developed to fit their organization
Lean contains the following elements: - Answer -Foundation: common elements
throughout the org.
Columns/Walls/Pillars:
-Continuous improvement tools & respect for people A)Process Flow Tools: how work
flows through the org. B)Improvement Tools: how processes are improved C)People
Systems: how people and teams are utilized
Roof: Enterprise goals and deployment strategy
Six Sigma Characteristics - Answer -• Utilizes a standardized improvement process:
DMAIC
o Define
o Measure
o Analyze
o Improve
o Control
• Focused improvement on individual process utilizing rigorous collection and statistical
analysis
Six Sigma Professionals - Answer -• Levels: Yellow->Green->Black->Master Black
Belt->Champions
• Annual projected savings per professional: > 1Million
• Expected to mentor other professionals
• Teach line workers how to implement tools
• Coach line workers in using tools
• Transfer knowledge to others
• Identify new opportunities for applying six sigma concepts
Lean - Answer -Improves the organization at a macro-level
•Easily utilized by most people in an organization
•Establishes a foundational culture of continuous improvement
Six Sigma - Answer -Improves individual processes at a micro-level
•Utilized primarily by statistically trained professionals
•Provides statistical tools used to address specific problems
Theory of Constraints (TOC) - Answer -Informs us where to improve
Thinking People System (TPS) - Answer -•We must think about processes, productivity,
quality differently
•Requires creativity, imagination, inventiveness, ingenuity
•Requires system-thinking:
•Not if A changes, then Z will happen
•Instead, A, B, C, D influences W, X, Y, Z simultaneously
Process (Define) - Answer -A process is a collection of activities that transforms inputs
into outputs that offer value to a customer
Process (Purpose) - Answer -•Increase Value to a Customer
•Increase performance (product or service functionality)
•Increase speed (decreased lead time)
•Increase quality (consistency, durability, reliability, aesthetics)
•Increase flexibility (product or service variation)
•Decrease cost
In order to alter the value delivered to a customer, you must alter the process(es) used
to create that value
Customer Focus - Answer -•Process improvement must be customer focused
•Identify the customers of a process
•Define what the customer wants (define value for the customer)
Internal/External/End Users Customers
Order Qualifiers - Answer -These are traits the customer expects. The customer will not
pay for a product or service unless these traits are present.
Order Winners - Answer -These are traits that, if provided, will differentiate your product
or service from competition
, Order Losers - Answer -These are traits that, if present, will cause the customer to
decline a product or service
Lean Drivers - Answer --Perfect Quality
-Zero Waste
-Exact Quantity
-Instant and Complete Customer Satisfaction
-Minimum Cost
-Ability to instantly adapt to market and competitive changes
Lean Historical Roots - Answer -Misconception- identification of lean be a set of tools
used in lean implementations (JIT, Kanban, & 5S)
Continuous improvement
Systems viewpoint
Continuous Learning
-Lean can vary from company to company
-Each company has a unique name for lean and is developed to fit their organization
Lean contains the following elements: - Answer -Foundation: common elements
throughout the org.
Columns/Walls/Pillars:
-Continuous improvement tools & respect for people A)Process Flow Tools: how work
flows through the org. B)Improvement Tools: how processes are improved C)People
Systems: how people and teams are utilized
Roof: Enterprise goals and deployment strategy
Six Sigma Characteristics - Answer -• Utilizes a standardized improvement process:
DMAIC
o Define
o Measure
o Analyze
o Improve
o Control
• Focused improvement on individual process utilizing rigorous collection and statistical
analysis
Six Sigma Professionals - Answer -• Levels: Yellow->Green->Black->Master Black
Belt->Champions
• Annual projected savings per professional: > 1Million
• Expected to mentor other professionals
• Teach line workers how to implement tools
• Coach line workers in using tools
• Transfer knowledge to others
• Identify new opportunities for applying six sigma concepts
