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1988 Thomas Group, Inc. All Rights Reserved. 63 Summary ? Remember — a good measure: ?Improves as the underlying process improves ?Worsens as the underlying process worsens ?Is viscerally meaningful to the client ?Is applied consistently for similar situations within a client ?Drives correct behavior ?Delivers a justifiable benefit/expense ratio ?Benefits client’s customers and makes client more petitive 。 P3 F3 F2 F1 P2 P1 P0 Cycles of Learning Definition PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 61 The number of opportunities during a calendar year to plete a critical business process and learn from the results. Cycles of Learning ? Work Days Per Year Per Year Cycle Time of Process in Work Days = P = Process F = Feedback (“Feedforward”) One Cycle of Learning Opportunity 174。 1988 Thomas Group, Inc. All Rights Reserved. 59 Subprocess 1 Subprocess 3 Subprocess 2 BOH = 450 INS = 1800 OUTS (inc rework) = 1910 Scrap = 15 Rework (and out) = 60 1. EOH = ? 2. dCT = ? 3. FPY = ? BOH = 510 INS = ? OUTS (inc rework) = 1950 Scrap = 20 Rework (and out) = 45 4. INS = ? 5. EOH = ? 6. dCT = ? 7. FPY = ? BOH = 320 INS = ? OUTS (inc rework) = 1840 Scrap = 5 Rework (and out) = 70 8. INS = ? 9. EOH = ? 10. dCT = ? 11. FPY = ? 12. What are the total FPY and total dCT? Note: All data for 1 day High Volume Measurement Example PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 57 F P Y 5 C T 5 F P Y 4 C T 4 C T 3 F P Y 3 F P Y 2 C T 2 F P Y 1 P5 P4 P3 P2 P1 IN OUT C T 1 Process Measures Cycle Time First Pass Yield Process Total Cycle Time = CT1 + CT2 + CT3 + CT4 + CT5 Process First Pass Yield = FPY1 x FPY2 x FPY3 x FPY4 x FPY5 Combined Measures PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 55 Role of FPY with Cycle Time ? Both measures drive process improvement ?CT drives removal of nonvalueadded steps and assets ?FPY drives identification and removal of specific defect sources ?FPY improvement allows the removal of substitute processes ? CT and FPY interact ?CT provides opportunities for Cycles of Learning ?CT reduces exposure to random defects ?FPY improvement directly causes CT improvement PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 53 FPY: Rules of Thumb ? At subprocess, use constant units of measure, ., drawings, hours, etc. ? Use client’s system where possible ? Use minimal number of data collection points for initial manual system ?Individual contributors know what to measure ?Place measurement point at yield loss source continued... PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 51 So What’s the Answer? ―K I S S‖ Keep it simple and straightforward Elaborate schemes may not yield results PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 49 First Pass Yield Importance ? Measures improved resource effectiveness (plements rollup cycle time) ? Provides problem solving feedback ? Reduces subprocess cycle time PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 47 Contributors to Low First Pass Yield ? FPY failure can result from the variability of the process on which product is built ?Variability due to equipment ?Operating ?Material ?Lack of process definition, roles and responsibilities continued... PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 45 First Pass Yield: Measurements Examples ? Manufacturing ?Percent ining parts neither reworked nor returned ?Percent assembly kits plete when delivered ?Percent cable assemblies/installations plete without rework ?Percent subassemblies into final assembly with no rework continued... PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 43 Unplanned stoppage in the valueadded process (an unstructured rework delay) What is a ―Hold‖? PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 41 total outs rework hold FPY % = total outs + scrap + cancellations total outs Process = Yield % total outs + scrap + cancellations Per given time period X 100 X 100 Actual Yield Calculations PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 39 What are the FPY and process yield here? Scrap Process Boundary Work OK? Rework OK? Process Yield First Pass Yield Yes 90% No 10% Yes 80% No 20% Queue SCOPE Generic First Pass Yield Example PROPRIETARY 169。s that plete a process the first time throug