Six Sigma Pizza A fresh thought was brewing in my mind as I was working on the previous series of articles on the origin of operational excellence practices. The thought came from the responses and interaction based on those articles. Many wanted to see the implementation of Six Sigma methodology in solving the business problems in the form of a story - seamlessly connecting the tools and techniques. Attempting to meet the expectation. Click here to read the full article
What is Cash to Cash Cycle? Cash to cash cycle time is the time lapse between payment to suppliers and getting payment from the customers. Every business exists to provide a tangible or intangible product to the people in need and make money out of those provisions in the form of profit. A company has to invest money in the business. There are 2 types of investments - Asset Capital and Working Capital. When a company spends money on creating...
What is Lead Time? Lead time is the time required to complete the set of processes - from start to finish. There are 3 types of such measures in Business Process. Order LT The time required to complete the order - from order receipt to product/service delivery to the consumer. Processing LT The time required to convert the Raw Material into Finished Product (or Production LT) or The time required to convert input information into output information (Service Production LT)...
Muda Muda is a Japanese word meaning Waste. So, any activity that consumes time and effort and fails to produce the desired outcome is termed as Waste. In a production plant, people transport materials from one place to another for storage of for next processing. The activity of transporting consumes their time and effort. But the material does not get any value addition because of the mere transportation. Hence, transportation is termed as waste. Origin Muda is one of the fundamental...
What is Takt Time? Takt time is the time given by the client to the manufacturer to pull out one piece of finished material from the plant. In other words, it is the time (frequency) at which the manufacturing plant to complete one unit of its product. We can also describe it as the demanded exit rate of a plant. How to Calculate Takt time? Calculate monthly average demand for the product/product family (we can calculate takt time for a...
What is Cycle Time? Cycle Time is the time required by an operation or by a machine to complete the processing of one component. How to calculate Cycle Time? Start your stopwatch when a completed component comes out of a machine (or a person completes working on a component). Stop your timer when the next (consecutive) piece comes out of the machine (or a person completes working on the next component) Repeat this for 5 or more times and calculate...
CSense SME Lean Case Study Can ERP bring down inventory? The Company When we visited the company first time, we were surprised to see an SME version of advanced ERP in that company. When we had our Gemba walk, we understood the pain and the trigger point for the decision to invest such a huge amount for ERP. Can ERP alone bring down the inventory levels? Let us discuss in this SME Lean Case Study. They are one of the...
CSense SME Consulting Case Study Will Technology Solve your Problems? Ever increasing Labour Cost Slowly it was dawning on them that to be successful tomorrow, you need to wake up today - that too as an SME you need to wake up early. That is a small company run by two brothers. They design, manufacture the furniture and equipment used in hospitals and laboratories. The business has never been phenomenal but it kept 'running'. With more than a decade in...
Lean Training with Value Stream Mapping (VSM) Lean Training with VSM is designed for people who are interested in learning the Lean Transformation using VSM. Value Stream Mapping – the mapping of Material and Information Flow – as it is known in Toyota is the fundamental tool of Lean Transformation. It helps us in mapping flow of information and material in a single process map. Lean is a strategic tool that has to be adapted and applied by the Top...
TRUE-LEAN GREEN BELT Unleash the True Potential of Lean! What is True-Lean? Lean is more than just doing a project as in the case of Six Sigma. Six Sigma is an effective tool and no one can doubt its ability to deliver results and its guarantee to succeed with the efficient DMAIC framework. But Lean will not fit into the premise of Six Sigma and we strongly believe that Lean Manufacturing is best on its own. By utilising Lean in the framework...