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1、Total cycle time reductionA business achieve total customer satissfaction when its workforceIs trained and empowered to concurrently apply total cycle time reduction tools and qulity improvement tools within cross-functional teamsEmbraces a continuous improvement process which supports measurements

2、and rewards consistent with change objectives that adjust to customer needsTotal cycle timeTotal ycle time is the actual time that passes from the time a customer expresses a need until the customers need is satisfied.CustomerrequestProduct/serviceForcustomerTotal cycle time reduction- a competitive

3、 toolResponsiveness to market and customer needsReduced costImproved profitsImproved total customer satisfactionIncreases asset utilizationBusiness evolves over timeAt first a good process is establishedBuesiness needs gradually change the process.The changes are not always for the bettter.Everyone

4、ties to do their best but the process evolves to the current state.Probably few people have looked at the complete process from start to finish.If we are to improve we must completely understand what we do and how we do itthen we will discover how to do it better.As IsThe present level of performanc

5、e at which a business process or function is operatingShould BeA level of performance that a business can achieve using current resourcesCould BeA level of performance that cant be achieved through the strategic addition of new resourcesIssues Problems,disconnects,and/or opportunities for improvemen

6、t (missing,unnecessary,or poorly performing steps).Total cycle time termsGreast performance improvementachieved with present resourcesCould beShould beAs istime9-12 monthsWith addition resourcesWith present resourceBusiness performanceFlow chartSequential flow of a simple processRelationship mapDiag

7、rams how the pieces of a system interrelate within an organizationCross-functional process mapDiagrams the specific steps taken to accomplish a task,organized by which function is responsible for the stepIncludes time required to perform each stepMapping is used to diagnose cycle time problemsProces

8、s flow chartWalk inDoorWait inLineFill OutFormGive FormtoCounterReceiveFormGive FormtoGarageWait untilReadyDrive CarintoGarageStartDrive CarOn LiftRaiseLiftHaveContainers?SelectContainerDrainOilLowerLiftCallWarehouseDeliverContainersYesNoHaveCorrectOil?Put in OilGive Formto CounterDrive Carto Parkin

9、gLotCallWarehouseDeliverOilYesCollectMoneyCorrectChange?YesPick upCarDriveAwayExitMake ChangeNoRelationship mapping for any businessProductDesigns/ServicesFinanceMkt/SalesNew Product/ServiceSuppliersMfg./Order FulfillmentDistributionMarketPlacePersonnelCapitalRevenuesBudgetsPromotionsLeadsProduct/Se

10、rvice IdeasOrdersRaw Materials/ResourcesHuman ResourcesProductTechnologyAssumptions:basic research complete.model & accessories decided. Approximate $ to spend.car available at dealer.Drive and arrive at dealercustomersalespersonSales managerBusiness managerCycle timeResearch on new carBrowseCars Di

11、cuss car optionsDicuss price2H 48H1H 3HSales person approaches customerPull information on carAs is map purchasing a car是Go to manager for a provalMake an offer20M 2HDiscuss offerDiscuss counter offerReach agreementReview offerPresent counter offervanishBAnoAccept?yesAs is map purchasing a car(cont.

12、)customersalespersonSales managerBusiness managerCycle timeATake customer to business manageryesno15M 1HAccept?BOffer acceptedGo to bussiness manageerGoback to salesCheck out new carDrive off lot5M 30MMeet customerFill out formsFill out formsGo back to salesTotal cycle time = 3H40M 54H 30MAs is map

13、purchasing a car(cont. )customersalespersonSales managerBusiness managerCycle timeGet name of dealer.sales person & price from internet20M 1HReseach car info. On internet10M 20MTotal cycle time = 45M 2h 20mRecive pro customerGo to dealerContrat sales personClose dealRecall cust.Pro systemLeave lotCo

14、mpletePaper workCheck out new car15M 1HcustomersalespersonSales managerBusiness managerCycle timeShould be purchasing a carMajor process cganges takes about 12 monthTeam activity Ongoing involvement of champion/sponsor and steering committee39-52 weeks Identify the process and plan the project4 week

15、sPart-time “As is Session3-5 days Involve others withmap andissues 3-5 weeksPart-time “Should be Session3-5 days Action item TeamsDevelopPlans3-5 weeksPart-time Detailed Design andimplentation7-10 monthsCross-functional process mapping123451245“As is cycle time“should be cycle timeRemoved wasteReduc

16、e cycle timeEliminate wasterWaste is everything other than the absolute minimum resources of material,machines and workforces required to add calue to the productAll non-value added activity is considered wasteIncrease effectiveness of current activities.Simplify the processReduce costFind he causes

17、 of errors and eliminateRedefine the process currently being used.Why cross-functional process mappingChoose the process to be mapedOne of your critical processA process that crosses the organizationA process that is in troubleOne of the key processesA process to serve as a “Test BedChoose the champ

18、ion & steering committeeGuide and monitor the activityRemove roadblocksKeep senior management informed of status of CTRCommunicate to all employees the effectiveness and status of the CTREncourage the teamInsure frequent meetings are heldMntor the action item ownersSelect a cross-functional mapping

19、team“doers who are involved in every step of the process(85 - 90% of the team)Representatives of all management levlesRepresentatives of all locations involved in the processesChoose from the best employees(keepers)Team size from 8 to 75Empower,secure the team & limit capital investmentSenior manage

20、ment allows the team to implement their aolutionsRegular management reviewsAll team members position with the company are assured if their function is eliminatedNo additional capitalNo additional peopleChoose two outside facilitatorsTwo facilitataos requiredUse trained facilitatorsSomeone impartialN

21、ot involoved in the processConduct the “as is sessionUsually 3 to 5 continuous daysMajor output Define issues60%Build the team 20%Understand the complete process15%Develop the map 5%Review with othersShow the map to many people in the organizationCover all the issues with as many associates as possi

22、bleSolicit additional issues from othersBuild enthusiasm to fix/improve the processCollect ideas for the should beObtain buy-in of the change processUsually 3 to 5 continuous daysMajor outputDevelop a set of action item 40%Transfer ownership of the process to those who do the work30%Develop a pictur

23、e of the should be15%Establishment of change agents at yur company 15% Develop the should be map(vision)Incorporate projec management trainingDevelop project objective statementIdentify deliverablesDevelop flexibility matrix & work breakdown structureEstablish schedule and gantt chartCreat risk mana

24、gement planMonitor project to schedule any change from as ia to th e should be require an action itemA team member becomes the action item ownerAction items are spread around so each team member has at least oneTypically 30 to 60 action itemsThe sum of the action items is the action planFull time te

25、am leader manager the implementationPrepare action planEach action item ownerLeads the sub teamChoose the team membersEstablishes the action plan with his teamManagers all stages of the teams activity through implementationTeam member lead the action itemAssociates outside of the team are recruited

26、to participateTypically 100-250 additionla people got involvedBuilds excitement to see it happenOthers in the organization are asked to assist Most critical aspectRun by the team leaderMininum of monthly meetingsEncourage as many others to participateImplement action itemsInstitutionalize the “shoul

27、d beprocessImplement action plan each action item to be measurable Establish measurement points Begin measuring Show actual versus should be goal If progress does not occur determine why and fixMeasure results Re-map every 18-30 months Spread awareness through training Senjor management continued in

28、terest and attention Reward and recongnition should tie to CTRContinuous improvementindustrystepsValueAddedSteps PercentStepsValueaddedValueAddedTime glass (tableware)food (ingredient process)textile (yarn mfg. & weaving)metal (wheel cylinder)electronics(cable assy.)Consumer products (disp. Razor)Mf

29、g. support (order entry) 72 37105184239105 98 6 41114191015 8%11%10% 8% 8%10%15%1%1%1%1%1%1%1%Value-added activity list seven industriesFor manufacturing:65-70% reductionFor administratice and service functions: 80-95% reductionTypical experience in total cycle time reductionCycle time reductionhas

30、many benefitsMotorola Pagers40 daysLess than 1 hour1987 closing 3s 9 daysApril 1990 closing 5s 4 daysJune 1992 closing 6s 2 daysHit a brick wallPresent objective close on demandMotorola financial closingCycle timeTotal procurement cycle timeTotal delinquencies to customer request06121824303642485460Jan.Feb.Mar.Apr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.0102030

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