007_Process Metrics (PowerPoint PPT)

Being able to measure a processes performance is a hallmark of Lean Six Sigma and selecting the appropriate metric is critical. LSS metrics fall into one of three categories: cost, quality, delivery. In this module we explore cost of poor quality, yield metrics, defect metrics, and waste elimination metrics.

Cost of poor quality represents the difference between the actual cost of product or service and what the cost would be if the process were effective in manufacturing products that met the customer needs and were defect free.

Yield metrics include Final Yield, Throughput Yield, Rolled Throughput Yield and Normalized Yield. These metrics are particularly adept at exposing the so called hidden factory – those activities that are necessary for acceptable quality because of one or more failures in the standard processes.

Defect metrics are used when the defect rate is a Key Process Output Variable or when the data is of the attribute type or when multiple opportunities (defects) exist per unit produced. This module covers the not well published but very important conversion from yield metrics to defect metrics and vice versa.

Waste elimination metrics are those that expose one or more of the seven wastes: transportation, inventory, motion, waiting, over production, over processing and defects. Common metrics include Takt Time, Cycle Time, Lead Time, Changeover Time.

This material is suitable for independent study or formal classroom training and includes a list of tools, an exercise, and quiz questions.

Comes with one Excel template: Yield and Defect Metrics