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Tag Archives | Multifactor Productivity

Lean Six Sigma applies Takt Time and Line Balancing

By on March 4, 2012 in Lean Six Sigma, Uncategorized
Takt Time is the principle that all activity within a business is synchronised by a “drum beat”, set by the customer demand. This brings ‘calendar time’ into the equation.
Notice how neatly Takt time links with line balancing. You set the capacity of each process step to the demand of the customer.

Linking the internal value adding system directly to the customer may seem difficult but is necessary to allow the customer to pull value from the value adding system.

Each process link working in isolation at full speed will cause a mismatch between links. Some areas over-produce, some cannot keep up…

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Lean Six Sigma implementation have a first look at the Traditional Layouts

By on February 28, 2012 in Lean Six Sigma, Uncategorized

During your Lean Six Sigma implementation, have a first look at the Traditional Layoutsof the area, which are often complex and bottlenecks affect the flow of materials, information and value adding capability. Common disadvantages are

•Complex flows of material.
•Reduced vision and ownership of the
•Total value chain.
•Operators concentrate on islands of efficiency.

Better try out Cell Layouts, which are typically U shaped, operations are combined and single piece flow is adopted. Bottlenecks are eliminated by the use of multiple operators or machines. Immediate advantages are usually

•The flow of materials becomes smoother.
•There is no queuing between machines.
•Throughput time is reduced.
•Operators are trained in more than one task.
•Value stream visibility is much high.
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Standard Work and Multi-skilling during Lean Six Sigma

By on February 27, 2012 in Lean Six Sigma, Uncategorized

Standard Work and Multi-skilling during Lean Six Sigma is also important;

  • Value adding steps are broken down into standard work ‘packages’.
  • Standard Operating procedures are written for each package.
  • A skill matrix for a team can then be produced by showing team members vs. work packages that the team need to perform.
  • The skill matrix naturally leads to thinking about training to develop people and fill gaps in team capabilities.

This helps

  • Achieve CONSISTENCY in operations (reduce variation) which leads to robustness and better flow.
  • Process Management.
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lean six sigma and Parallel Processing

By on February 27, 2012 in Lean Six Sigma, Uncategorized

To save Lead time (calendar time) we can, through Lean Six Sigma or Lean engineering the process steps that are currently being completed in series.

Another possibility is to take out some process steps from the series and do them in parallel to other process steps.

This is often called concurrent engineering; the idea being that you can design the different parts of a product at the same time. Unless concurrent or parallel processing is carefully planned and coordinated, it results in chaos.

Two things are required for Parallel processing:

  • The customer (or the business) would value the reduction in lead time
  • Only process steps which are independent of each other can be done in parallel
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Lean Six Sigma and the Baby Boomers

By on February 23, 2012 in Lean Six Sigma, Uncategorized

Europe’s population is aging. More and more workers, especially the Baby Boomers, are or will be approaching retirement age in the very near future. When this group of workers begins to leave the labour force, it will place great demands on the existing workforce and on the economy as a whole. Through Lean Six Sigma and Lean Transformation we might be more efficient with less resources. But how will we deal with the lesser knowledge and experience of the Baby Boomers?

Europeans relocating from other parts of the continent or immigration will not address the full shortage of workers in the European economy. In order to successfully meet the challenges of the demographic shift and the high demands of today’s employers, we need to tackle the labour issue from both the supply and demand sides of the equation.

It is important to understand that all companies compete in a global market place and, more often then not, are competing with companies with a greater cost advantage. To ensure European companies are able to sustain themselves, they must look at how they can improve operational efficiencies to maintain their competitive advantage.

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Translating Customer Needs into Key Process Measures

By on February 6, 2012 in Lean Six Sigma, Lean Six Sigma @de, Uncategorized

Listening to the Voice of the Customer.

Do we really know the answer to these questions?

  1. How does the customer view my process?
  2. When it starts for them?
  3. When it is finished?
  4. What is the customer looking for when measuring the performance of my process ?
  5. How well does my process meet the customer’s expectation of what constitutes value ‘in their eyes’?

We must first understand who the Customer actually is.  We should then define how to listen to the Customer when he is expressing his opinions about the quality of our products or services.  There may already be an established process within your business to extract this valuable information on an ongoing basis (Market Research), however, it may also be the case that the business does not capture such information in a coherent and usable format.  This is often the case with internal customers.  Therefore, specific techniques and deeper analysis is required to understand what the customers requirements for the process output actually are.

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Why does productivity matter?

By on November 15, 2011 in General, Lean Six Sigma, Uncategorized

Productivity growth plays an active role in offsetting inflationary pressure and as well as long tern economic growth. This is achieved through greater resource allocation and human resource efficiency, effectiveness and engagement; increased innovation and technology diffusion and capital investment.

Productivity is an essential component to the success and health of every company in Europe and the overall standard of living.

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Lean Six Sigma , labour and productivity

By on January 17, 2011 in Lean Six Sigma, Uncategorized

What is the difference between labour and multifactor productivity?

Labour productivity is measured as real output per hour worked. Multifactor productivity, a broader measure of efficiency, is measured as real output per unit of combined inputs (capital, labour, etc). In essence, this is the efficiency of all or your factors of production.

Progress in productivity constitutes a significant source of increased standard of living. In the long run, increases in real hourly earnings are tied to productivity gains. The European economy has been able to produce more goods and services over time, not by requiring a proportional increase of resources such as labour, but by making production more efficient. The overall performance of any company, operating in any industry, is comprised of at least seven key criteria:

  • effectiveness
  • efficiency
  • innovation
  • productivity
  • profitability
  • quality
  • quality of work life
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