Six Sigma Black Belt Quiz 12

Almost all organizational wastes or process wastes are related to an employee in the organization that holds a traditional belief system.

Understanding variation and decreasing variation is the fundamental underlying foundation of all LSS organizations.

• Value-added is an activity that transforms or shapes raw material or information to meet customer requirements.
• No-value-added is an activity that takes time, resources, or space, but does not add to the value of the product or service itself from the customer perspective.
• No-value-added but necessary is an activity that does not add value to the product or service but is required (e.g., accounting, health and safety, governmental regulations, etc.). In the business process management methodology this is called business value-added.

No-value-added but necessary is an activity that does not add value to the product or service but is required (e.g., accounting, health and safety, governmental regulations, etc.). In the business process management methodology this is called business value-added

NVA entities can be employee activities, materials, information exchanges, and equipment.

Lean has classified waste into eight major categories. These categories were developed based upon visual symptoms in the organization. We have added a ninth waste, behavior waste, which revolves around individual and collective belief systems and how they influence daily behavior. The nine waste categories are:
1. Overproduction
2. Excess inventory
3. Defects
4. Extra processing
5. Waiting
6. Motion
7. Transportation
8. Underutilized people
9. Employee behavior

Overproduction can be traced to many management and employee behaviors. Some of the most common causes are:
•Just-in-case logic
•Unleveled scheduling
•Unbalanced workloads
•Misuse of automation
•Long process setup times

Unleveled scheduling and unbalanced workloads can both lead to overproduction. When these conditions occur and employees continue to produce, even when there is no customer demand, overproduction occurs. In forecast-driven environments unleveled scheduling frequently occurs. In areas where the workload is not balanced properly between two or more process steps, one step will have excess capacity while the next may have excess demand.

Things that cause Excess Inventory include:
•Poor market forecast
•Product complexity
•Unleveled scheduling
•Unbalanced workloads
•Unreliable or poor-quality shipments by suppliers
•Misunderstood communications
•Reward system

These are signs that you are in a poor communication environment:
• Poorly understood customer requirements
• Product or service is frequently delivered late
• Poor customer satisfaction
• Incomplete or inaccurate documentation
• Poor work instructions
• Inadequate information management system
• Barriers between departments
• Conflicting measurements system