test 2 (ch 7,8,) Flashcards
(35 cards)
Define lean six sigma in a service business CH 7
“reducing waste through elimination of variation or achieving 3.4 errors from 1.4 million costs) eliminating waste by controlling variation cuz variation produces waste”
Define continuous improvement in a service business CH 7 , 3 components that help attain CI
Continuous improvement is basically when a service business attains to keep on improvement even if they seem to be in a satisfactory spot. CI is an improvement for a business to consider as it is what helps them stay competitive in the market as it is always changing/evolving.As mentioned, the PDCA cycle helps capture continuous improvement. 3 components that help attain CI is by always wanting to satisfy customers, being aware that a business should manage from facts (data/statistical analysis), and having respect for people.
continuous improvement is the process of PDCA, theres always improvement. employees will tell u how to improve which leads to cost reduction
What does the acronym PDCA mean? Define each term CH 7
PDCA is an approach created by deming that is represented by a wheel. In class it was discussed that the PDCA cycle is shown in a y/x-axis chart with a circle. When the circle moves right it is doing it in the direction of a wheel while moving clockwise and up. The circle’s rise in the chart indicates that there is service quality improvement. In a team setting people work together and do PDCA to see if it actually works and improves quality. This cycle is the process of continuous improvement represented by the 4 terms:
Plan: Selecting and analyzing a problem.
Do:Implementing a solution.
Check:Checking the results of the implementation/change.
Act:Implementing the solution within the business standards and reflecting on what was learned.
Describe a deming point. Cite an example of this point CH 7
One Deming point is to drive out fear. It’s basically being able to eliminate the sense of fear in a business setting through the encouragement of communication and expression of ideas. One example I can remember is when it was discussed that Dr. Del Riveros previous boss created fear in the workplace. It was due to him constantly blaming everyone and not taking accountability. It can be proved to be fear because Dr. Del Rivero finally chose to quit. Other employees probably felt like they were walking on eggshells because I felt a sense of fear even though I never met the guy. The description of his actions and demeanor said enough.If the drive out fear was implemented the boss would have been discouraged to act the way he did and would have minimized the act of putting blame on others.
whats chapter 7 about
process improvement
whats process
step by step system to accomplish something
how do u measure improvement?(2)
measuring time, reducing resources used also is improvement
Ex: starbucks is cutting their menu, got rid of 20%. Innout is known to have a basic menu
whats customer satisfaction
delighting customer, making sure what they receive is what they ordered. Always satisfy your customer
whats management by facts
see reality as it is, dont fool yourself. (ex:general electric obtained alot of financial records. See reality as it is and not as what u like it to be. Are u losing customers, are ur suppliers demanding more, are sales declining, dont sugarcoat it)
Facts are unshakable. Face the facts. If ur losing customer and not making money face it. Why are ur employees leaving? Maybe a poorly trained supervisor that doesnt respect employees so u need to face the issues
whats Plan Do Check Act ( PDCA ) cycle? what are its 4 steps// pdca is also known as___
-demings approach is represented by a wheel. it has 4 steps
1. Plan:select and analyze the problem
2Do:implement the solution
3.check:the results of the change
4.act: to standardize the solution and reflect on the learning
These 4 steps are called the PDCA cycle
-The circle is moving up and moving clockwise
-As it rises, quality will improve overtime
-U solve it by bringing people together and do it and see if it actually works
-if u have a problem plan, plan it execute do it execute to increase quality
-a plan do check diagram: y-quality, wheel is moving clockwise up, y and x axis, direction of the wheel, clockwise
pdca is also known as the deming cycle
whats a quality guru
expert in their particular field( michael porter, deming, juran,taguchi,isgikawa)
“we only talked about dr. deming”
whats Benchmarking? what are the 5 steps of benchmarking process?
Benchmarking The practice of comparing one’s performance with that of other firms that are known as “best in class.”
u can benchmark from other industries
comparative analysis; u learn from the best and taking the best and applying it to the process/service . u are copying and assimilating to apply to your own business.
Concept is u bench mark the best performers in any industry
-adopting/copying the best practices (can be a competitor or the expert)
-example: fedex has reputation for a consistent overnight delivery, nordstrom have attentive salespersons
5 steps:
(1) select a critical process that needs improvement; (2) identify an organization that excels in the process; (3) contact the benchmark firm, make a visit, and study the process; (4) analyze the findings; and (5) improve your process accordingly.
whats a pareto chart? what does it present? how is it used? Hes only going to ask about the top 3 errors;Define pareto chart and physical walking pareto, lay it out
Pareto chart Presents problems in a bar graph by their relative frequency in descending order.
A Pareto chart orders problems by their relative frequency in a descending bar graph to focus efforts on the problem that offers the greatest potential improvement.
-Pareto used histograms to identify mistakes
-Only work at top 3
-Control systems are essentials
-he said he would have quality people to physically lay out the top3 errors on the floor and brought his staff to all look at the errors.
-80/20 rule;80 percent of a retailer’s sales are generated by 20 percent of the customers
physical pareto:
Lay out the problem, why are the watches not being assembled
Laying out the problems to designated teams to solve it. If problem cant be seen , u need a bigger team. //always work with 3. laying out 3 parts.have teams created from all levels to see from their pov,(“they see the forest u still the trees everyday, we come fixated “some are so fixated u accept the errors and poor quality need new eyes,)physical pareto is a good technique as u take ppl out to the floor and show them the actual mistake and ask them what’s causing this
a walking pareto is a process improvement example
a histogram
Whats baldrige national quality award?:whats ISO 9001 and its 3 component cycle?
fr edward deming after ww2 the US govt sent him to japan to rebuild japan. He taught the japanese spc. US companies or unis compete to win quality standard
ISO 9001: ISO 9001 An international program that certifies a firm as having a quality management system to ensure consistent output quality.generic guidelines, requirement for doing business in many industries. “say what you do and do what you say”.
3: planning,controlling,documentation
whats six sigma, what happens to companies that use it? what does it use?what are its goals? what are the 6 roles?
Six Sigma A rigorous and disciplined methodology to improve a firm’s operational performance by eliminating process defects.
“reducing waste through elimination of variation or achieving 3.4 errors from 1.4 million costs) eliminating waste by controlling variation cuz variation produces waste”
is a set of techniques and tools for process improvement.
-Six sigma is 6 steps to minimize errors, do more with less.
-Dont obtain more than 3.4 errors, dont create a million car with 3.4 defects
-By nature theres variation on everything
-Companies who implement do much more effective
-it uses DMAIC
-* To reduce process variation: only 3.4 defects per million by a process that involves a high volume of manufactured units or service transactions on a continuous basis.
* Provide a framework & methodologies to analyze and evaluate business processes & reduce waste.
-“Six Sigma is a rigorous and disciplined methodology that uses data and statistical analysis to measure and improve a company’s operational performance by identifying and eliminating defects to enhance customer satisfaction. Six Sigma requires that an organization adopt a culture whereby everyone at all levels embraces a passion for continuous improvement with the ultimate aim of achieving virtual perfection equal to 3.4 errors per million customer encounters. “
6 roles:
executive, project member, green belts, black belts, master black belt, champion
define DMAIC
Define measure analyzie improve control
Define: Define project objectives, and internal and external customers.
Measure: Measure the current level of performance.
Analyze: Determine causes of current problems.
Improve: Identify how the process can be improved to eliminate the problems.
Control: Develop mechanisms for controlling the improved process.
What are the 3 parts that are the foundations of continuous improvement (CI) who made it?
1.Customer satisfaction; Focusing on satisfying customers’ needs should be paramount in workers’ minds. This requires an attitude of putting the customer first and a belief that this principle is the object of one’s work.
2.Management by fact: To encourage scientific thinking, objective data must be collected and presented to management for decision making. This approach requires formal data gathering and statistical analysis of the data by the quality improvement teams.
3.Respect for people:A companywide quality-improvement program assumes that all employees have a capacity for self-motivation and for creative thought. Employees are given support, and their ideas are solicited in an environment of mutual respect. (“respect for people regards customer and employee”)
continuous improvement is captured in the plan-do-check-act (PDCA) cycle proposed by W. Edwards Deming
At the corporate level, organizations embrace continuous improvement through personnel development programs, competing for the Baldrige National Quality Award, adopting process quality captured in ISO 9000 standards, and adopting programs such as Six Sigma and Lean Service.
Quality tools for analysis and problem solving; what do quality improvement teams use?what are the dif charts used?// “explain quality tools for analysis and problem solving (at least work for 3)”
quality improvement teams use many tools in the PDCA process.they provide a foundation for decision making
check sheet:historical record of observations and represents the source of data to begin the analysis and problem identification.usually seen on excel now to facilitate data interpretation
run chart:tracks change in an important process variable over time to detect trends,shifts, or cycles in performance.easy to interpret and useful in predicting trends,teams can use it to compare performance measure before/after implementation of a solution
histogram:presents data collected over a period of time as a frequency distribution chart is formed
pareto chart,flowchart,cause and effect diagram,scatter diagram, control chart
describe Cause and effect diagram( Ishikawa), whats its purpose(address and solve what kind of problems)? can u define each 6 spines, know the concept, whats its shape?how are causes uncovered?
Cause-and-effect analysis A process using a chart shaped like a fishbone to discover the root cause of a service quality problem.
he said all problems can be solved with the Ishikawa diagram; plane delays can be caused by weather
-offers structured approach for a team to identify,explore, and display graphically,in creasing detail, all of the possible causes related to a problem in order to discover the root cause
-also known as fishbone chart
6 categories:
information,customers,material,procedures,personnel.equipment
-can be used to eliminate the causes of delayed departure through the process of discussion and consensus
-causes are uncovered by asking who what when where why and how
How do u face profitability in a business?why is cash flow important, what is king?what is queen?
Financial statements ; 3 statements: income statement (profit/loss,balance sheet(assets+liability),statement of cashflow ) red means youre losing money.
If ur pnl is positive+ if ur balance sheet is not balance, can u still go bankrupt? Yes because u may not have a cashflow. If u dont have the cashflow to pay shortterm obligations u can go broke. Cash is king.you must have a cashflow to sustain short term obligations. Credit is queen. Respect for people is critical.
whats demings 14-point program; what does it focus on for continuous improvement
Management needed to refocus attention on meeting customer needs and on continuous improvement to stay ahead of the competition. His philosophy is captured in a 14-point program
here are some examples:
- drive out fear
-institute vigorous program of education and training
-breakdown barriers between departments
-cease dependance on mass inspection
what a lean service?example? what are its 3 guiding principles
Lean Service A process improvement philosophy based on eliminating non-value-added activities.
doing more with less, accomplishing with less, accomplishing with less access
-move extra employees to another division
The lean philosophy has three guiding principles:
1Satisfy the needs of the customer by performing only those activities that add value in the eyes of the customer.
2.Define the “value stream” by flowcharting the process to identify both value-added and non-value-added activities.
3.Eliminate waste. Waste in the value stream is any activity for which the customer is not willing to pay.
Define the concept of the ishikawa diagram
Describe a cause and effect diagram and label its components
1.The ishikawa diagram is a cause and effect analysis. It’s a process using a chart shaped like a fishbone to find out the root cause of an issue concerning service quality. During class it was said that all problems can be solved with this diagram, one example being able to eliminate the causes of plane delays. The reason why this diagram works is because it offers a structured approach for the business team to be able to identify the issue, explore, and display it. The detail the diagram offers the team helps pinpoint the possible causes related to the issue in order to discover the root cause. Causes are found by asking questions such as who, what, or when. Then when the causes are found action can be made to eliminate them.
2.The cause and effect diagram has a fish bone structure and was created by Ishikawa. Its 6 components are information,customers,material,procedures,personnel, and equipment.
define process improvement, Tell him from a service perspective how u can improve. give examples
Process improvement is the bedrock principle of a cost leadership strategy.
Process improvement is basically the ongoing approach where issues are identified and analyzed so then existing business processes are enhanced to be up to date and efficient/effective as performance is optimized as well as raise in quality.
From a service perspective one can improve by understanding customer needs, increase the use of technology, continuous employee training, remove bottlenecks, monitor and measure performance.
example: to decrease wait times in person for a order, implement mobile orders into the business so there’s less unpleasant customers waiting a long time. if a customer desires to not be waiting for a long time, mobile orders will satisfy their needs,
or implement hotel mobile check ins so the process to get to a room is faster
