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RPM
Risk Priority Number is the product of indices from the previous three columns. RPM=P*S*D
DMADV
Define, measure, analyze, design, verify
Define
the project goals and customer deliverables
Measure
and determine customer needs and specifications
Analyze
the process options to meet the customer’s needs
Design
the process details to meet the customer’s needs
Verify
the design performance and ability to meet the customer’s needs
TOC
Theory of constraints. Effect cause effect, evaporating clouds, prerequisite trees
Seven Muda
Transportation, Inventory, Motion, waiting, overproduction, overprocessing, defects
Throughput
the rate at which the system generates money through sales
Inventory
all the money the system has invested in purchasing things it intends to sell
Womack
introduced the term lean production in book the machine that changed the world
value
must be defined by the customer
lean
target cost is the manufacturing cost if muda were eliminated
Target cost method (lean)
target selling price=target cost + selling expenses + profit
lean requires
conversion from batch process to continuous flow process or a one piece flow
Continuous flow
reduces cycle time, inventory, transportation
perceptual maps
appropriate questions to help quantify and prioritize the needs of the customer
Hauser
house of quality
cause and effect matrix
can help prioritize the importance of key process input variables
Juran
stated needs, real needs, perceived needs, cultural needs, unintended needs
QFD
Quality function deployment, the voice of the customer
Surveys should have
25-30 questions
Customer expectations
basic, expected, desired, unanticipated
Consumer v Business markets
Consumer-large number, small purchases, simple transaction, consumer not knowledgeable, supplier doesn’t share proprietary info. Business-small number, large transaction, customer may know more about requirements than producer, supplier may allow access to info
Customer retention
acquisition, retention, attrition, defection, reacquisition
Reacquisition
Highest cost
Business level
shareholders, top management, employees
Operations level
external customers who purchase the product, internal customers who manage production operations
Process level
primarily internal, frequent data collection
Team size
15-20 lose participation, 4 or less not enough ideas
Storming
consists of conflict and resistance to the groups task and structure. Conflict occurs
Norming
a sense of group cohesion develops
Six sigma teams
works on specific process or customer based projects of importance. Disbands upon project completion
DMAIC
Define, measure, analyze, improve, control
Measure
collect data to measure response variables
Analyze
identify root causes of defects
Improve
reduce variability or eliminate the cause
Control
monitor process to sustain improvements
heads 3/5 times
31%

10 units, 15%

complement of P(A)=0.2
0.8
0.51 defects
