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P0 F1 P1 Time Three Cycle of Learning Opportunities 174。 1988 Thomas Group, Inc. All Rights Reserved. 54 FPY: Rules of Thumb ? Do not measure FPY for inherently experimental subprocesses ? If FPY measurement installation takes longer than cycle time installation, FPY measurement is too hard ? Be prepared to enhance measure based on Cycles of Learning (COL’s) ? FPY tends to get worse before getting better PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 46 First Pass Yield: Measurements Examples ? Test ?Percent passing each test first time with no waits and no rework ? Purchasing ?Percent purchase requests okay to order with no change ?Percent ining goods able to be received immediately PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 38 Process Boundary Work OK? Rework OK? Scrap Process Yield First Pass Yield Yes No Yes No Queue SCOPE This boundary is determined by the data available Generic First Pass Yield Model PROPRIETARY 169。s Processing Speed Static Cycle Time ? Lagging Indicator ? Formula involves only cycle times of pleted actions ? Good for low transaction process steps Completed CT1 +...+Completed CTn n = = Static and Dynamic Cycle Time Comparison PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 29 Dynamic Cycle Time = Actions in Process Speed of the Line Understanding Dynamic Cycle Time PROPRIETARY 169。s Out) / 2 ?When process speed is changing quickly (special case) PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 20 ? Time to plete existing AIP39。 1988 Thomas Group, Inc. All Rights Reserved. 12 ? Fulfillment: Supplying existing products – time to delivery ? Development: Creating new products – time to market ? Product: Managing product portfolios – life cycle ? Customer – Identifying and supporting customers – OTD, response time ? Materials Mgmt. – Suppliers, inventory, logistics – lead time/days of supply ? Growth – Identifying and exploiting new opportunities TCT Basic: Focus on Key Interrelated Business Processes PRODUCTS S A L E S M A R K E T I N G S E R V I C E S U P P L I E R S CUSTOMER S U P P L I E R S P R O D U C T P L A N N I N G PROJECTS NEW PRODUCTS ORDERS PARTS QUOTES E N G I N E E R I N G D I S T R I B U T I O N M A N U F A C T U R I N G PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 6 Measurement Manipulation Example OnTime Delivery Reported Measurement Criteria Performance Percent of line items ontime to latest weekly schedule, within a sixday window 94% Ontime to oneday window 88% Ontime to latest monthly schedule 82% Ontime to latest customer schedule 58% Ontime for three product kit 20% Ontime without spec waivers 14% PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 3 Which Measurements Are Really Needed? ? Measurements that are: ? Limited in number ? Timely ? Difficult to manipulate ? Reflect the time state of the processes ? Understood by everyone ? Used to drive change PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 10 Developing ―New‖ Metrics 4. Link all measurements to the critical processes and strategies of the business 5. Determine the key measures of the critical business processes and use them to drive improvement 6. Eliminate the old measurements PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 17 A product test that starts on June 12 and concludes on July 19, has a static cycle time of 37 days. Start June 12 Stop July 19 Static Cycle Time = 37 Days Population of one Static Cycle Time continued... PROPRIETARY 169。s ?Number at specific time in measurement period ?Average of the number at beginning and end of measurement period ?Average numbers from samples during the measurement period ? Processing Speed ?(AIP39。 1988 Thomas Group, Inc. All Rights Reserved. 26 Or increase the output rate The black ball exits in one second. OneFifth Second Actuator Understanding Dynamic Cycle Time PROPRIETARY 169。 onhold portion processed = 300 ? What is the overall order entry cycle time? ? What is the onhold cycle time? ? What is the nonhold order cycle time? PROPRIETARY 169。s pleted first time through according to specs x 100 Total AIP39。 1988 Thomas Group, Inc. All Rights Reserved. 43 Unplanned stoppage in the valueadded process (an unstructured rework delay