Block 2.

Operations Management
Unit 4

Operations & Service Management

Tools and Techniques for

Operations Management
Index
Key Ideas 3
4.1. The Universal Framework for Operations
Management 3
4.2. Methodologies for Continuous Improvement 5
4.3. Continuous Improvement Tools 18

In Deep 30

Test 31
 Key Ideas

4.1. The Universal Framework for Operations

Management

To be able to understand the contextual framework of operations management, it is

necessary to first differentiate two interrelated terms: projects and operations.

Projects are defined as unique and

temporary efforts with specific
beginnings and endings. They are also
known as non-continuous activities.

Operations constitute continuous and Figure 1. Project and operations, interrelated

concepts.
repetitive activities within an organization.

In spite of the differences, both concepts are closely related. Both are carried out by
individuals, require planning and control, have limited resources and follow the
objectives set out by the organization.

Projects and operations interact with each other in the key moments of a product's
life cycle. A product's life will include many projects to improve the product, add
new features, etc., and these projects will come and go as necessary. Operations
are continuous, but projects are temporary.

If the main business of an organization is geared towards projects, it must be able

to dominate project management to be successful. This applies to construction,
engineering, finances, education, governments, information technology or any

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other type of industry. The key is to ask ourselves how we can build and implement
quality products or services.

The success of a company could depend on the success of its projects, which means
it is essential to minimize risk as much as possible, and approach projects in a way
that virtually guarantees their success.

Traditionally, a business unit decides on the product to be developed and puts it in

the hands of the project management team that will develop it.

The project manager must ensure that the project is well adjusted to the
execution plan. Therefore, it is obvious that the project manager plays a key role in
achieving project success, among their main responsibilities we can find:

 To obtain the approval for the continuation of the project.

 To determine the scope of the project and its feasibility for the business in
general.
 To ensure that the necessary project resources are identified and assigned.
 To plan the project with the required relevant details.
 To ensure that the project methodology and associated processes are followed.
 To control the project in terms of costs, quality and schedule.
 To identify and monitor project problems and risks.
 To provide updated reports and summaries to the interested parties.
 To provide leadership to the project team.

The people in charge of decision making must often determine whether a project
management methodology can be universally applied to the whole life cycle of all
their projects. We already know the answer to this: no.

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The main objectives for the student in this teaching unit are:

 To understand the difference between projects and operations. Projects have a

beginning and an end (non-continuous activities), while operations are carried
out uninterruptedly (continuous activities).
 To deepen in the Theory of Constraints, Six Sigma and Total Quality Management
as basic methodologies to obtain a sustainable quality in time within
organizations based on continuous improvement.
 To develop tools for continuous improvement in organizations.

4.2. Methodologies for Continuous Improvement

Theory of Constrains (TOC)

The Theory of Constraints, also known as TOC, is a methodology for identifying

what the most restrictive limiting factor is in achieving a goal and then
systematically improve that constraint until it is no longer the limiting factor. They
are often referred to as “bottlenecks”.

TOC takes a scientific approach to improvement and assumes that in any complex
system, including production and logistics processes, composed of multiple
interrelated activities, there is one activity that acts as a constraint on the entire
system.

The concept around which this theory is developed is that each process has a
unique constraint and that the total efficiency of the process can only be improved
when the constraint is reduced, therefore, if we were to optimize the rest of the
activities, we will not obtain significant benefits; only improvements in the
constraint will have a significant impact on the achievement of our objectives.

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TOC seeks to provide a precise and sustained focus in order to improve the current
constraint until it no longer limits performance, at which point the focus moves to
the next constraint.

To achieve these improvements TOC provides a set of tools:

 Thinking processes to analyze and solve problems. They are a sophisticated

problem-solving methodology. They are designed following the cause-effect
principle and are used to identify the fundamental causes of undesirable effects,
and then eliminate them without creating new ones. They are used to answer
the following questions:

• What needs to be changed?

• What should be changed?
• What actions will bring about the change?

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 The five focusing steps to identify and eliminate constraints:

 Performance accounting through an alternative accounting method that

attempts to eliminate distortions using conventional accounting practices. For
example: inventory is considered an asset in traditional accounting, while TOC
considers it a liability. Surplus inventory increases assets by generating a
fictitious profit based on inventory that may or may not be sold and incurs costs
while it is stored. TOC considers it a liability because it ties up cash that could be
used more productively elsewhere.

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A successful implementation of the Theory of Constraints will have the following
benefits:

 Improvement of the profit of the organization.

 Rapid improvement, as it prioritizes the main constraint.
 Increase in productive capacity.
 Reduction of lead times and inventory.

The main obstacle in the application of TOC is that we need to know the system in
depth, which means that we need a large amount of data to be able to apply the
methodology (activity times, scheduling times, etc.). In addition, in some
environments it is not easy to locate system constraints, as they may change over
time, with the product or with the environment.

In Deep

You might find this useful

Combining TOC and Lean Manufacturing

Although TOC and Lean Manufacturing are based on different approaches,
they can be used in combination to obtain better results.

TOC focuses on identifying and eliminating constraints that limit performance.

Therefore, a successful application tends to increase manufacturing capacity.
Lean Manufacturing focuses on eliminating waste from the manufacturing
process. Therefore, a successful application tends to increase manufacturing
capacity.

In reality, it is not worth optimizing every aspect of every process, and it is not
worth eliminating all waste. In this sense, TOC can serve as a very effective
mechanism for prioritizing improvement projects, while Lean Manufacturing
can provide a good series of improvement techniques. The result:
manufacturing efficiency is significantly increased by eliminating waste from
the parts of the system that are the biggest constraints to timeliness and
profitability.

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Six Sigma (6σ)

Six Sigma is a continuous improvement methodology for eliminating defects in a

product, process or service from a statistical and data-driven approach. It is a
problem-solving management methodology that can be applied to any type of
business process to identify and eliminate the root causes of defects and ultimately
improve key business processes and save costs for the organization.

It was developed by Motorola and Bill Smith in the early 1980s based on the
fundamentals of quality management, and then became a popular management
approach at General Electric (GE) in the early 1990s.

Sigma (σ) is the letter of the Greek alphabet used to represent standard deviation. It
is a statistical measure of variation, which can be interpreted as exceptions to
expected results or as a comparison between results in a group of operations versus
those that do not comply. Conceptually applying six standard deviations, we obtain
3.4 defects per million (99 9997%), in an airline this would mean losing only three
pieces of luggage for every million handled.

The objective of the Six Sigma methodology is to reduce the time, defects and
above all the variability of results of a process or organization. The purpose of

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evaluating defects is not to eliminate them completely, but to strive to improve to
the highest possible level we can achieve. In this methodology anything that does
not satisfy the customer is a defect, so understanding the customer and their
requirements is fundamental to establishing a Six Sigma culture.

This objective is achieved through the use of three strategies:

 Process management, through continuous measurement of the basic processes

of the organization.
 Process improvement, through a focus on problem solving, with the objective of
eliminating the few fundamental causes that generate the majority of defects.
The DMAIC process is used for this purpose (Define, Measure, Analyze, Improve
and Control). DMAIC is an improvement protocol for existing processes that fall
below specification and seek incremental improvement:
• Define: Process improvement objectives are defined that are consistent with
customer expectations and business strategy. (it can be done using VSM, etc.)
• Measure: A system of measurement and validity of the system is created. The
current process is measured and relevant data is collected for future
comparisons.
• Analyze: Sources of variation in performance objectives are identified. It is
analyzed to determine the relationship. (It can be done using RCA, Process
mapping, etc.)
• Improve: discover process relationships and establish new and improved
procedures. Improve or optimize the process based on the analysis. (it can be
done using 5S, Poka-Yoke, Jidoka, Heijunka, etc.)
• Control: maintain profitability by implementing process controls. Control to

ensure that any variations are corrected before they cause defects. Set up
pilot runs to establish process capability, transition to production, and then
continuously measure the process and establish control mechanisms.

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 Figure 4. DMAIC process diagram.

 Process redesign, by creating a new process to achieve exponential

improvement and or meet the changing demands of customers, technology and
competition. It is also known as Design for Six Sigma (DFSS). The DMADV (Define,
Measure, Analyze, Design and Verify) process is used for this purpose. DMADV is
an improvement protocol used to develop new processes or products at Six
Sigma quality levels. It can also be used if a current process requires something
more than an incremental improvement:

• Define: the objectives of the design activity are defined to be consistent with
the demands of the client and the business strategy.

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 • Measure: product capabilities, production process capabilities and risk
assessments are measured and identified.
• Analyze: it is analyzed in order to develop and design alternatives.
• Design: design details are designed, the design is optimized and design
verification is planned. This phase usually requires simulations.
• Verify: design is validated, pilot tests are set up, the production process is
implemented and delivered to the process owners.

The 6 pillars of Six Sigma are:

 To focus on the customer, first and foremost. Simply understanding your

customer can lead to monumental improvements. Six Sigma improvements are
measured by the customer through their level of satisfaction and their value
chain.
 Management based on facts, not forecasts. Six Sigma clarifies the key metrics
that measure organizational performance.
 To focus on the process. Six Sigma focuses on the process rather than the end
result. By analyzing and fixing the process itself, it allows for a much higher
quality Speed. The most powerful part of Six Sigma is: by mastering the process,
companies can create a competitive advantage by delivering value to consumers.
 Proactive management. Management defines ambitious objectives and reviews
them frequently, setting clear priorities to prevent problems rather than
improvising as they arise.
 Collaboration without borders. Leaders must work to break down barriers and
improve teamwork among all internal and external parties in the organization.
 Strive for perfection but tolerate failure. It is important to create a culture of
tolerance for failure in order to learn from mistakes and continue to improve.

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 Figure 5. The pillars of Six Sigma.

The application of Six Sigma is very interesting whenever an organization has a

strong desire to improve business performance by identifying each and every key
process for improvement, the starting point does not matter in Six Sigma. These
are some of the triggers that may suggest its implementation:

 A significant reduction in the level of customer satisfaction.

 A strategic positioning in the market based on quality.
 A loss of market share due to quality.
 A heavy reliance of product quality on human inspection skills rather than being
built into the production process.
 Excessive immobility in the organization: processes or objectives that have not
been updated for a long time.

Six Sigma is an extremely beneficial approach in production processes. The main

advantages of this methodology are:

 Error reduction: the ultimate goal of the Six Sigma strategy is to reduce defects
and irregularities in production to 3.4 per million units.

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 Sustained quality: Six Sigma methods help companies find the root cause of the
problem, then review strategies to improve overall quality and avoid these
defect-causing problems in the future.
 Compliance: Six Sigma has a strong focus on quality standards and regulatory
bodies responsible for monitoring companies and products, facilitating auditing
processes.
 Training: like many lean manufacturing methods, it places great emphasis on
continuous education, increasing the know-how of the organization and
therefore its capacity.

But there is also a disadvantage, Six Sigma inspects business processes on a minute-
by-minute basis and generates large amounts of empirical data, leading to complex
procedures that require time-consuming procedures and analysis tools, which often
leads to an increase in overall costs.

Did You Know...

Six Sigma has its own organization structured in levels of expertise with different
roles within the implementation of the methodology. Each level is assigned a belt
color in analogy to martial arts:
1. Master Black Belt: they train black belts and green belts. They work more at the
Six Sigma programming level by developing metrics and strategies.
2. Black Belt: They lead projects at this level in Six Sigma. They train project teams.
3. Green Belt: they assist with data collection and analysis for previous level
projects. The lead projects or teams at this intermediate level.
4. Yellow Belt: they are part of the project teams. They review process
improvements that support the assigned project.
5. White Belt: They may work on local problem-solving teams, but are not usually a
formal part of any Six Sigma project team.

There are several organization offering six Sigma certification programs, the council for Six
Sigma is a professional association devoted to help both, the Six Sigma industry, as well as
the businesses and business professionals who use Six Sigma to improve their projects
and performance. https://www.sixsigmacouncil.org/

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Unit 4. Key Ideas
This video shows the basics of Lean Six Sigma in 8 minutes!

Video 1. Lean Six Sigma In 8 Minutes | What Is Lean Six Sigma?

https://www.youtube.com/watch?v=s2HCrhNVfak&t=58s

Total Quality Management (TQM)

Total Quality Management, commonly known by its acronym TQM, is defined as a

management approach to long-term success through customer satisfaction.

TQM aims to make all parties involved in the process responsible for the quality of
the final product or service, in other words, it seeks a structured effort from all
employees to continuously improve quality through feedback and research.
Ensuring the superior quality of a product or service is not the responsibility of a
single member. In Japan this is known as kaizen.

Kaizen is the idea that people at all levels of the organization are responsible for
finding inefficiencies and suggesting improvements. It is a strategy in which
employees at all levels of an organization work together in a proactive way to
achieve gradual and regular improvements in a process. In a sense, it combines the
collective talents within a company to create a powerful force for improvement.

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Unit 4. Key Ideas
The 8 principles of TQM are as follows:

 Focus on the customer: the customer ultimately determines the level of quality.
Regardless of what an organization does to foster quality improvement, the
customer determines whether the efforts were worthwhile.
 Total employee involvement: all employees participate in working towards
common goals.
 Focus on process: a fundamental part of TQM is a focus on process thinking. The
steps necessary to carry out the process are defined and performance measures
are continuously monitored to detect unexpected variations.
 System integration: although an organization may consist of many different
functional specialties, TQM focuses on the horizontal processes that
interconnect these functions.
 Strategic and systematic approach: Strategic planning must integrate quality as
a central component to achieve the vision, mission and goals of the organization.
 Continuous improvement: Continuous improvement drives an organization to
be both analytical and creative in finding ways to become more competitive and
more effective in meeting customer demands.
 Analytical decision making: you can only improve what you can measure. TQM
requires an organization to continuously collect and analyze data to improve the
accuracy of decision making.
 Effective communication: communication plays a very important role in
maintaining employee motivation at all levels. Communications involves
strategy, method and opportunity.

TQM processes are often divided into four sequential categories: Plan, Do, Check
and Act. This iterative model is also known as PDCA (Plan-Do-Check-Act).

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Unit 4. Key Ideas
 Figure 6. PDCA diagram (or Deming cycle).

PDCA and DMAIC are similar and complementary tools. Some consider DMAIC an
evolution of PDCA. The main difference between the two is that in DMAIC planning
is usually done in a more detailed way through a more exhaustive study than is
done in PDCA, often resorting to statistical methods.

W. Edwards Deming, Joseph M.

Did You Know...
Juran and Armand V.
Six Sigma uses statistics to analyze business
Feigenbaum jointly developed processes, while Kaizen generally does not use this
the concept of Total Quality type of analysis. Six Sigma aims at perfection, or zero
defects as often as possible, while Kaizen aims at
Management in the improving the overall work environment, the
manufacturing sector, but it can systems implemented and the strategies used
without focusing on percentage success rates.
be applied to almost any
organization. These techniques
can also be applied to all departments within an individual organization. This helps
to ensure that all employees are working towards the objectives set for the
company, improving the function in each area.

Key Concepts

 TOC is a very effective methodology to identify which is the most limiting factor
to achieve an objective within a process.

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Unit 4. Key Ideas
 Six Sigma is a methodology to seek excellence with the objective of reducing
time loss, defects and above all the variability of results of a process.
 TQM takes a management approach to long-term success through customer
satisfaction in which ALL employees in an organization work together proactively
to achieve gradual and regular improvements in all processes.
 The combination of several of these methodologies, with each other and with
the Lean Manufacturing methodology, obtains extraordinary results in the
continuous improvement of any organization and allows us to optimize in a
systematic way.

4.3. Continuous Improvement Tools

Value Stream Mapping (VSM)

What is it?

Value Stream Mapping (VSM) is a graphical representation (visual illustration) of all

the activities necessary to manufacture a product through the main flow, from the
collection of raw materials until it reaches the customer.

VSM is a lean tool that helps create an implementation plan to maximize available
resources while enabling us to visualize the current state of the process and
directing us towards opportunities for improvement.

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Unit 4. Key Ideas
When is this used?

VSM is a fantastic tool for identifying non-value-added activities (considered waste

or muda in the lean approach). The initial goal of VSM is to identify all the actions
required to make a product by organizing them as:

 Those that really create value for the customer.

 Those that do not create value, but which are currently required.
 Those that do not create value and are dispensable.

Once those in the third set have been eliminated, attention is focused on the
remaining activities that do not create value but are necessary.

VSM is closely linked to another lean analytical tool, Process Mapping. VSM
establishes improvement opportunities at a high level, while Process mapping
provides a detailed analysis of these specific process areas.

What is it about?

The “value stream” part of VSM focuses on how value can be added to a product or
service by changing the form or function to meet customer needs. This includes
adding features and functionalities to a product or service that benefit the customer
without increasing waste of time and materials.

The steps to be taken in VSM implementation are:

1. Select the family of products or processes to be improved in the organization.

2. Draw the current process diagram, identifying each component of production
from source to delivery point.
3. Sequentially assign the entire supply chain of the product or process (for
example throughout ordering, purchasing, manufacturing, packaging and
shipping).

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Unit 4. Key Ideas
4. Record quantitative data for each activity (for example, storage time, distance
traveled, process time, etc.).
5. Evaluate the current status of each process activity to determine the extent to
which it adds value to the quality and/or process for obtaining the product or
service.
6. The activities are then classified according to the above order (they add value,
they do not add value but are necessary, they do not add value and are
dispensable).
7. Finally, future improvement opportunities are established based on the current
mapping and an action plan is proposed.

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Unit 4. Key Ideas
Figure 7. Example of VSM. Source: https://leansolutions.co/conceptos-lean/lean-manufacturing/vsm-value-
stream-mapping/

Advantages and disadvantages

VSM quickly provides broad visibility of the overall process and is very effective in
identifying non-value-added activities at a macro level.

Unfortunately, VSM can only analyze one product family at a time and only provides
a point-in-time view of the process (the time at which the data is collected).

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Unit 4. Key Ideas
How to Value Stream Map [STEP BY STEP] / Are you wondering how to value stream
map? Value stream mapping can really help you improve a process and find where
issues lie.

Video 2. How to Value Stream Map [STEP BY STEP].

https://www.youtube.com/watch?v=7wD7R6x3Pv4

5S

What is it?

The 5S quality tool is a tool for optimizing processes. Its origin comes from Japan
and derives from five Japanese terms beginning with the letter “S”, it is used to
organize a workplace in an efficient and effective way, suitable for control and lean
production:

 Seiri (Sort): Separate what is essential from what is not.

 Seiton (Set in order): classify and organize the necessary elements in an orderly
manner and in a clearly marked space for easy location.

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Unit 4. Key Ideas
  Seiso (Shine): keep the work area clean and tidy, making sure it contains only
that which generates value.
 Seiketsu (Standardize): Schedule regular cleaning and maintenance using Seiri,
Seiton and Seiso.
 Shitsuke (Sustain/Self-discipline): Strengthen the established procedure by
applying the 5S rules.

When is this used?

The 5S method is a structured sequential program to improve the organization and

standardization of any workplace. 5S improves safety, efficiency and process order.
5S is used in organizations operating Lean Sigma, Just-in-Time (JIT), or Total Quality
Management (TQM). This principle is widely applicable not only for the production
line, but also for the office.

What is it about?

Its basic stages are:

1. Sorting, eliminating excess materials and equipment in the workplace.

2. Tidying up, organizing and identifying useful items in a work area to ensure their
effective retrieval. All storage areas (cabinets, shelves, etc.) must be properly
labeled.
3. Cleaning, leaving only what is strictly necessary, that which generates value, in
optimal conditions for its use.
4. Standardizing, simplifying and establishing cleaning, coding and organization
procedures in the process to ensure that the first three steps remain effective.
5. Sustaining, making 5S a way of life. To achieve this, it is advisable to:

• Recognize and reward employee effort.

• Raise awareness and support from top management.
• Communicate the benefits that are being obtained.

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Unit 4. Key Ideas
 • Train and maintain these standards systematically.

Advantages and disadvantages

Obviously, the productivity of the organization is increased by reducing the time

spent searching for tools or materials needed at each workstation. Other benefits
are:

 Security improvement.
 Increased equipment availability (production capacity).
 Lower defect rates.
 Reduced costs.
 Increased production agility and flexibility.
 Increased employee motivation.

Some of the disadvantages to consider in its application are:

 It can become a one-off program or tool rather than an ongoing process that
requires continuous thinking and learning different ways to use the process.
 Organizations tend to copy rather than develop their own so that 5S becomes an
imitation procedure, detracting from its true effectiveness.

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Unit 4. Key Ideas
Learn how to use and apply the 5S tool in any industry to create a safer, cleaner and
more productive environment.

Video 3. 5Ss Animated Example.

Access the vídeo through the virtual classroom or from the following website:
https://www.youtube.com/watch?v=ARMD92alRXc

Root Cause Analysis (RCA)

What is it?

We can define Root Cause Analysis (RCA) as a collective term that describes a wide
range of approaches, techniques and tools to uncover the root causes of identified
problems. Root cause analysis is part of a more general problem-solving process
and an integral part of continuous improvement. Therefore, it is important to keep
in mind that root cause analysis will not produce any results in and of itself; it must
be part of a larger problem-solving effort.

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When is this used? Did You Know...
One of the most widely used tools in RCA is the cause-
effect diagram (or Ishikawa diagram). It is an illustration
Knowing that an
used to explore the potential or actual causes of the quality
undesirable situation problem. The causes are usually organized into five main
exists is the starting entries: materials, machines, manpower, methods and
measurement.
point. RCA is a simple but
very effective tool that
can be used to identify
the root causes of a
problem and therefore
has application in a wide
range of situations where
in-depth analysis is
necessary.
Figure 8. Example of a Cause-Effect diagram. Source: PXS Diario de la
Excelencia.
What is it about?

While a single person can use many root cause analysis tools, the result is generally
better when a group of people work together to find the causes of the problem. A
typical root cause analysis design in an organization might follow these steps:

1. To identify the problem and the parts of the process affected.

2. To define the possible causes.
3. To identify the most significant one.
4. To propose solutions.
5. To implement the solution with the highest expectations of success.

Advantages and disadvantages

RCA is a simple tool that brings together causes from diverse sources and links them
through logical relationships. It eliminates emotions, focuses thinking and facilitates

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Unit 4. Key Ideas
review. Effective solutions become clear and opportunities for learning and
development across the company are maximized.

Some of the limitations of RCA derive from subjectivity, due to variations in the
approach of each person performing the analysis, the lack of objective data to get
to the root cause and the focus of the method on finding a single cause for each
problem.

Poka-Yoke (Mistake-proofing)

What is it?

Poka-Yoke or mistake-proofing is a lean

Did You Know...
improvement tool to prevent errors from Another very important
becoming defects. It comprises two main Lean tool, together with
activities: preventing the occurrence of a defect Poka-Yoke, is Just in Time,
which we will see in depth
and detecting the defect itself. The original term
when we talk about
Poka-Yoke was developed by Shigeo Shingo and inventories.
the term comes from the Japanese words “Poka”
(inadverted error) and “Yoke” (prevent).

When is this used?

The Poka-Yoke technique can be used whenever an error can occur or something
can be done wrong, in other words, everywhere.

Error correction emphasizes the detection and correction of errors at the design
stage before they become defects. This is then further checked. It is achieved by
100% inspection while the work is in progress by the operator and not by quality
inspectors. This inspection is an integral part of the work process.

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What is it about?

The error correction process consists of paying special attention to each activity and
then placing the appropriate checks at each step of the process:

1. To perform the initial inspection at the design stage. In it we can identify possible
errors that may occur despite preventive actions.
2. To ensure that the operator performs a 100% inspection to detect that an error
is occurring or imminent.
3. To provide immediate feedback for corrective actions. There are three basic
actions (in order of preference):

• Control: an action that self-corrects the error.

• Shutdown: a device that shuts down the process when an error occurs.
• Warning: an alert to the operator that some error is imminent.

Advantages and disadvantages

It is a simple, inexpensive and highly effective tool to prevent errors from the
outset.

Special care must be taken in the way we implement Poka-Yoke so as not to

introduce inefficiencies in the process (as it would go against Lean principles).

In Deep

Other Improvement Tools

There are a multitude of tools for continuous improvement, the ones

seen in this chapter are only some of the most representative, but there
are many more.

Related topics: Lean, TOC, Six Sigma, TQM.

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Unit 4. Key Ideas
 You can check the In Deep section to expand your knowledge on this
subject.

Key Concepts

 Value Stream Mapping (VSM) is a tool that quickly provides broad visibility of the
overall process and is very effective in identifying non-value-added activities at a
macro level.
 5S is an improvement tool based on order and cleanliness that improves the
visual control of all types of work areas, whether in manufacturing or service.
 RCA is a systematic approach to determining the root cause of a problem, and is
a term that embraces a wide range of tools, techniques and approaches.
 Poka-Yoke is a way of assuring quality without actually having a quality assurance
process, as it focuses on preventing defects from appearing in the first place.

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 In Deep

Other Improvement Tools

Heijunka (Leveling)

Heijunka is a Japanese word that is generally translated as leveling. It is a form of

production scheduling that intentionally forces manufacturing into much smaller
batches by sequencing (mixing) product variants within the same process. This
reduces lead times (since each product or variant is manufactured more frequently)
and inventory (since batches are smaller).

Access the website through the virtual classroom or from the following address:
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Jidoka (Autonomation)

Jidoka is a Japanese word that is generally translated as autonomation. But at

Toyota, Jidoka refers to the ability to hold production in the event that any quality
problems arise, either by machines with the ability to detect abnormalities or by
employees.

Access the website through the virtual classroom or from the following address:
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Unit 4. In Deep
 Test
1. What is the difference between operations and project management?
A. Projects are defined as unique and temporary efforts with specific beginnings
and endings, while operations constitute continuous and repetitive activities
within an organization.
B. Operations are defined as unique and temporary efforts with specific
beginnings and endings, while projects constitute continuous and repetitive
activities within an organization.
C. Both terms are interchangeable.
D. None of the above.

2. TOC allows prioritizing continuous improvement, since it identifies which is the

main limitation of the system and focuses on its improvement.
A. True.
B. False.

3. Which of the following is not part of the five focusing steps of the Theory of
Constraints?
A. Identify.
B. Exploit.
C. Elevate.
D. Discard.

4. Which process would a company use to launch a new product created from
scratch according to the Six Sigma methodology?
A. Define – Measure – Analyze – Improve – Control.
B. Define – Measure – Analyze – Design – Verify.
C. Create – Measure – Analyze – Design – Control.
D. Create – Measure – Analyze – Design – Verify.

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Unit 4. Test
5. What is one of the keys to the success of TQM or Total Quality?
A. All individuals at all levels of the organization should be responsible for finding
inefficiencies and suggesting improvements.
B. Only the individuals on the organization's quality team should be responsible
for finding inefficiencies and suggesting improvements.
C. Only the management of the company should be responsible for finding
inefficiencies and suggesting improvements.
D. All individuals at all levels of the organization should be responsible for finding
inefficiencies and resolving them on the spot.

6. The Six Sigma methodology is incompatible with the principles of Lean

Manufacturing.
A. True.
B. False.

7. Which methodology would you use to reduce the variability of results in a

production process?
A. TOC.
B. Six Sigma.
C. TQM.
D. Any of the above.

8. Which improvement tool would you use to improve the workspace?

A. Value Streamlining Map (VSM).
B. Leveling (Heijunka).
C. 5S.
D. Root Cause Analysis (RCA).

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Unit 4. Test
9. Poka-Yoke is a collective term that describes a wide range of approaches,
techniques and tools for uncovering the root causes of identified problems.
A. True.
B. False.

10. Which improvement tool would you use to identify non-value adding activities in
a process?
A. Value Streamlining Map (VSM).
B. Leveling (Heijunka).
C. 5S.
D. Root Cause Analysis (RCA).

Operations and Logistics Management

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Unit 4. Test