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Operations Overview

Operations Overview. Lean Six Sigma Green Belt. Overview: Demand Characteristics. What is Ops ? Managing resources efficiently/effectively to create products/services to meet demand. Demand Characteristics Volume – repeatability – affects standardization

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Operations Overview

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  1. Operations Overview Lean Six Sigma Green Belt

  2. Overview: Demand Characteristics • What is Ops? • Managing resources efficiently/effectively to create products/services to meet demand. • Demand Characteristics • Volume – repeatability – affects standardization • Variety – range of products – affects inputs, setup cost • Variation – predictability – affects inventory, lead time • Visibility – customer contact – needs interpersonal skills

  3. Operations Goals • Quality – Meet specs, Low variation • Speed – Lead times for order taking, delivery • Dependability – Keep promises, keep them informed • Flexibility – Customization, ability to change midstream • Cost - minimization

  4. Operations Decision Areas • Capacity Planning • Match capacity to demand • Supply Networks • Vertical integration – how much to own? How many suppliers? Types of Relationships • Process Technology • Converting resources to product/service efficiently • Organization/Process Improvement • Reporting structure, LSS, Change Management

  5. Operations Strategy Matrix Assignment: How does your organization manage the four decision areas to achieve its operational objectives?

  6. Introduction to Lean • Toyota Motor Corp. • Elimination of waste • Smooth flow • Quick Implementation • 5S Philosophy • Seiri- Sort/Separate – Get rid of the unnecessary • Seiton - Straighten – Put things where most needed • Seiso - Sweep/Shine – Clean, paint • Seiketsu – Standardize – Create agreed upon procedures • Shitsuke – Sustain – Discipline – Make it a habit Practice being this, not just doing it once. https://www.pinterest.com/pin/423971752400603921/

  7. Introduction to Six Sigma Started by Motorola, GE • Improve Quality • Data/Analysis focus • Reduction of variation • Ideal: Six standard deviations (Sigmas) on either side of mean must fit within the customer specs. • Can take a few months to implement

  8. Standard Deviation (Sigma) Exercise 1

  9. Standard Deviation (Sigma) Exercise 2

  10. Interpretation • What do the two sigma values we computed tell us about the respective datasets?

  11. Excel Exercise in Computing Sigma • See dataset provided.

  12. Interpretation • How many data points fall within +/- One Sigma from the Mean? • How many fall within • +/- 2 sigma? • +/- 3 sigma? • …. • +/- 6 sigma?

  13. What is 6 sigma Quality? • Roughly 3.4 defects per million opportunities.

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