What is ANOVA
ANOVA is a lean term used to describe analysis of variance. This is a calculation which is used to analyze variation and its significance by reviewing the relationships between inputs and outputs determining if a common cause exists.
A number of ANOVA methods exist these include one way ANOVA which reviews differences between groups and two way ANOVA which tests how differing factors affect response variables. The methods was originally invented by Sir Ronald A. Fisher. In lean it is commonly used to examine differences between data sets
What is lead time
Lead time is the time taken to satisfy a customer requirement. Lead time is a very important KPI and is often targetted for reduction (for example it can cause delays in production, and create cost, when lead times are excessive). Lead time also forms part of the QCD model (Quality cost and delivery) - measuring lead time can be complicated and requires accurate data to be captured on delivery schedule.
A common example of lead time is that quoted by suppliers at time of purchase e.g. a box of widgets will take 3 weeks to be delivered from time of order.
Defining the seven wastes
One of the fundamental concepts of lean and business improvement activities is the identification of what steps add value and the removal of those that don’t. Removing waste can not only help increase the profitability of the business (through removing inefficiencies) but also facilitate customer satisfaction as the emphasis on production is the customer requirement.
Being able to identify waste, therefore, is a crucial activity in improving processes – the concept of seven wastes originated in Toyota as part of their production system but is applicable to most industries and service sector organizations
The seven wastes are:
Defects – errors during the production process which may result in rework
Transportation – Movement of goods within a process
Overproduction – producing more than is required
Inventory – any materials not used during manufacture
Waiting – lead time between process steps
Motion – excessive motion during the process
Over processing – Steps occurring in the production process which don’t add value
Where businesses attempt to become lean, their first step should be to identify the above and where possible remove them – the resultant impact can have dramatic affect to both performance and operating costs.
Control part 5 of DMAIC
Control is the fifth step in the DMAIC improvement model.
During this stage the solution selected during the improve phase is implemented – this is often accompanied by
• Transition plan
• Standardized and documented processes
• Handover to the customer
It is important that following implementation KPI’s or a monitoring plan is established to ensure that the new process sustains the desired improvements. This may follow an audit of the completed solution to ensure that it complies with customer requirements, is standardized and complies with orginal cost expectations.
This part of DMAIC, often referred to as implementation, can often be resource intensive and require multi disciplined activity including project management, deployment, training through to business analysis and report writing. Businesses should ensure that they have appropriately resourced team prior to commencing this phase.
Improve part 4 of DMAIC
Improve is the fourth step in the DMAIC improvement model. In this step solutions are formulated and tested, the “best” solution is identified and implementation plan established.
Improve should contain a number of sign offs namely that the solutison meets the needs of the customer and that it is in line with the business case and plan established during the define phase. Where the solution is not in line with the business case – further agreement with the project sponsor may be required.
In ascertaining possible solutions a variety of tools may be utilized. It is important for the improvement team to consider any constraints that may exist show the solution can be tested.
Commonly during this stage a to-be process map (or future state value stream map) is produced which will articulate the future shape of the process. The improvement team should look closely at this solution to ensure that it has removed the problems previously identified.
A “pilot phase” may also be undertaken to prove and measure the proposed solution. Note that data will often be captured during the pilot phase in order to obtain accurate measures.
Once a solution has been found, an implementation plan should be designed – the goal of this plan will be to transform the targeted process from the current state to the future state. This plan will include timescales, resources and costs. The implementation plan will also contain appropriate measures to be used following implementation to prove that the new process works.
Analyze Part 3 of DMAIC
Analyze is the third step in the DMAIC improvement model. It utilizes data captured during the Measure stage
Activity undertaken in the Analyze step helps
• Capture possible causes of the problem
• Verify the root causes of the problem
• Prioritize the problems found
There are a variety of tools that can be used during this step such as value add analysis and failure modes and effects analysis , analysis of any value stream maps produced.
Through analysis the gap between current and future goals should be established, both procedurally and financially.
By the end of this stage, data and processes should be analyzed, the process problems and their root causes understood, and gap between current and future state been established.
Measuring performance Part 2 of DMAIC
Measure is the second phase of the DMAIC improvement model. This step captures and analyzes information in the form of data to establish current performance of a process.
The Measure step usually requires a form of Data collection plan. This will usually include both the capture and analysis of data. This will facilitate
• Assigning KPI’s
• Understanding variation in the process
• Setting a baseline
Measures are important part of the Measure section as by defining these – improvements can be calculated once process changes have been implemented, measures will also help when reviewing current performance against the customers desired output.
Following the capture of data and subsequent review – the project charter or initiation document is often updated to take account of a more accurate understanding – the business case may also be reviewed.
