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Producing goods at a rate faster than required or producing more than is required. Overproduction leads to increased levels of all other types of waste. Correction ? The quality of our product can only be as good as the quality of the worst ponent, (remember the RTY calculation). The waste in our process is magnified by the cost associated with correcting the defect as well as the costs associated by delaying further production while waiting for the correction ? The waste of correction is often ? amplified by overproduction. Not ? only have we generated the mistake ? once, but unknowingly we have ? generated the same defect ? multiple times. Inventory $$$ ? Inventory costs money. ? As we build excess inventory to acmodate problems in our process, the costs escalate. ? Safety stock levels are driven by downtime, quality problems, supplier delivery problems, line imbalances etc. Lowering the amount of in process inventory forces us to improve our processes. Processing Everything we do in our anization is part of a process. However… We sometimes OVER PROCESS. We use systems and tools that are really the equivalent of using a surgeon to remove a splinter. Remember, resources cost money and when we over process, we use the anizations resources that are not required. WASTING RESOURCES Conveyance $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ EVERY TIME, you move a part, you add cost to that part. Unfortunately, the added cost does not translate to added value. We cannot charge our customer more because we have shuffled our products around the plant or around the world. We must MINIMIZE conveyance in order to preserve our product margins. Motion ? Waste of motion can occur in many forms. People moving to gather needed tools and ponents to perform their work. Movement of equipment that adds no value like machining “air cuts”, multispindle indexes etc. ? In most cases, just recognizing the opportunity is the most difficult part of reducing this waste. Waiting ? We cannot wait in line anywhere without growing impatient. EXCEPT… When we are at work. It is often with a sigh of relief that we accept a waiting period at work. ? Waiting for “batch produced” WIP from a previous process. Waiting for a document from a previous department. Waiting for inventory (raw ponents) to be delivered etc… All types of waiting cost $$$ ? To minimize waste we must see out opportunities to eliminate the waste of waiting. Remember… The waste of waiting is 100% waste, whenever it is identified the cost is reduced by ALL of the amount of wait time you have eliminated. Adapted from Womack, J. P. and D. T. Jones, 1996, Lean Thinking, Simon amp。Lean Six Sigma Fundamentals Training Classroom Logistics ? Safety – Exit routes and emergency procedures of the facility – Safety hazards ? Logistics – Location of restrooms, soda machines, LAN access, etc. ? Courtesy and Respect – Turn off all cell phones and puters during class – Be engaged and participative TRAINING Objectives To provide participants with an awareness of: – Lean Six Sigma – Lean Six Sigma Principles – Kaizen Events Lean Six Sigma (LSS) ? A systematic approach of identifying and eliminating nonvalueadded activities through continuous improvement. ? Built on the premise that the lowest cost and highest velocity is achieved when quality is at it?s highest. This includes quality of all business processes and services, not simply product quality. ? It maximizes employee involvement to solve problems and improve processes. ? Relentless focus on elimination of waste and creating greater customer value. Producing what is needed, when it is needed, with right amount of materials, equipment, labor, and space Lean Six Sigma (LSS) Why Lean Six Sigma (LSS)? ? LSS focuses on customer value keeping us petitive in the longterm horizon. ? Effective LSS initiatives empower employees and build trust within the pany. ? LSS provides a mon sense approach to continuous improvement that focuses on waste elimination. ? LSS extends beyond manufacturing and is applied to all processes or functions. ? A successful LSS journey will have significant impact on an anization?s performance. Lean Six Sigma Philosophy Too early Too late Delivery Time Too early Too late Delivery Time Defects Too late? Missed sales... Lost revenue, lost customers Defects Too early? Too much inventory on hand…Asset costs too high! Rath amp。 Schuster. Lean Six