The activity ratio is a measure of how quickly work moves through a process. It is simply the sum of the process times divided by the total lead time. For example, if the processing time was 30 minutes and the lead time was 2 hours, the activity ratio would be Read more…
The Balanced Scorecard is a management tool developed by Robert Kaplan and David Norton and published in their book titled The Balanced Scorecard. The book focuses on four areas: Financial performance Customer knowledge Internal business processes Learning and growth The term “balanced”, as explained in their preface, is many faceted. Read more…
In Lean, there are certainly some things that are open for debate. How aggressively to set goals, for example. When the criteria used to select a course of action are different for both sides, there is likely to be a disagreement. (See my recent video on using a decision matrix Read more…
I answered a question on a forum earlier this week, and it has had me thinking. It asked how we thought efforts to improve quality would be different in the future. My answer was that I saw a more predictive approach to quality. That just means that more companies will Read more…
I saw this sign at a coffee shop a while ago, and spent the whole day moderately amused. First of all, I am a big coffee fan. I joke that I can’t give blood because the caffeine in my veins would wake up patients during surgery. Second, I am not Read more…
A future state value stream map (VSM) is simply a projection of how a value stream should look in the future, generally 6 to 12 months. When a current state value stream map is created, problem areas become apparent. The bottlenecks where inventory piles up, processes with poor quality, and Read more…
Murphy’s law has been stated in various ways, but essential boils down to “If something can go wrong, it will.” There are many addendums to the law, such as “in the worst possible way” or “at the worst possible time”. The origin of Murphy’s law is somewhat murky but seems Read more…
Like many Japanese terms surrounding continuous improvement, there are several slight variations of translations of these three terms. In general, muda is the most commonly used of this group of terms. In practice, it has come to mean “waste”. Muda really means wasteful activity. Mura means the waste of inconsistency Read more…
Often, something occurs over a short period, but needs to be compared to a full year. This is known as annualizing. An example: You are applying for auto insurance, and the agent asks you what your yearly mileage is. You know that you drove 1,000 miles in the last month. Read more…
The American National Standards Institute (ANSI) is a US government organization that coordinates the creation of voluntary national standards. It is the official US representative to the International Organization for Standardization (ISO). More detailed information is available at www.ansi.org. ANSI works towards promoting national standards. These standards help consumers in Read more…