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29 Cards in this Set
- Front
- Back
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What are three key problems that every business must deal with?
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defects, delays and variation
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What makes up the sides of the Market Leadership Triangle?
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People (customer satisfaction), Technology (Innovation), and Process (Operational Efficiency)
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SPC
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Statiscal Process Control
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Lean Six Sigma
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Lean Six Sigma is a result-oriented, project-focused approach to quality, productivity, and profitability.
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Focus
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Focus on key problem areas by counting and categorizing your delays, defects, misses, mistakes, errors, and variation.
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Improve
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Improve by eliminating delays, defects, and variation.
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Sustain
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Sustain the improvement by monitoring key measures and responding if they become unstable.
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Honor
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Honor your progress.
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What are the two sources of cash flow?
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External Customers and Internal Processes
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External customers
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External customers give you money for your products and services.
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Internal processes
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Internal processes can leak cash like a rusty bucket. Why are internal processes a source of cash? Because when you plug the leaks in your cash flow you get to keep all that money! And it’s a lot of money—25% to 40% of your expenses.
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What are the two imporvement focuses of every business?
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(1) The core business activity and (2) the supporting operational processes.
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Manufacturing
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Manufacturing involves the development and production of tangible products. Other terms used to describe these are plant floor, production, engineering, or product development. Driven by the marketplace, most manufacturing functions have had to embrace improvement methodologies and statistical process control (SPC) just to survive.
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Services
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Services include sales, finance, marketing, procurement, customer support, logistics, IT, and human resources (HR). A few of the other descriptions of these activities include: transactional, commercial, non-technical, support, and administration.
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Businesses tend to rely on their people to deliver a consistent return on investment. However, businesses should also rely on...
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processess to deliver a return on investment that is just as efficient.
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People-oriented businesses
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...focus their attention on who is doing the job. People-oriented businesses believe that quality and productivity are a function of their people, not their processes. They think: “If I could only get the right person in this job, everything would be peachy”. Unfortunately, great people come at a premium price and when they leave they take their wisdom and processes with them.
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Process-oriented business
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...rely on mistake-proof processes to ensure that care is delivered on time and error-free. Process-oriented companies focus on developing and following the right process. They depend on good processes to produce superior results. With a great process, you can hire and train the lowest skill level people available.
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TQM
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Total Quality Managment
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PDCA
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Plan Do Check Act
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DMAIC
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Define Measure Analyze Improve Control
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DFSS
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Design for Six Sigma
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FISH
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Focus Improve Sustain and Honor
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80/20 Rule
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Pareto’s 80/20 rule states that 20% of what you do will produce over 80% of the results. This is where you should spend your time. You don’t have to improve everything in your business, just a few key things that really matter.
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Voice of the Customer analysis
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Understanding the links between what customers want and what you do.
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Balanced Scorecard
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Establishing key measures and targets for improvement in four key areas: financial, customer satisfaction, quality, and growth.
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Companies have what two "factories?"
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The main factory and the "fix-it" factory.
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The 3x2 Rule
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When you slash your cycle time for your mission-critical processes, you enjoy growth rates three times the industry average and twice the profit margins.
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The 25-2-20 Rule
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Every time you reduce the time required to provide a product or service by 25%, you double productivity and cut costs by 20%
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The 5% Rule
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Most products and services are only worked on for 5% of the total delivery time (value-added). Why does it take so long? Delay. The product or service is sitting idle for far too long between steps in the process (non-value-added).
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