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Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques by Jon M. Quigley, Kim H. Pries

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x Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques
C. Action 155
D. Results 155
E. Aftermath 155
IV. What Is Six Sigma? 155
V. How Does Six Sigma Relate to Value Engineering? 156
VI. The Phases of Six Sigma 156
VII. Choosing Six Sigma Projects 157
VIII. Costing Six Sigma Projects 158
IX. Using Design for Six Sigma 158
X. Rational Expectations from Six Sigma 159
A. Enterprise Process Management and Metrics 163
B. Dene 176
C. Measure 182
D. Analyze 187
E. Improve 199
F. Control 201
G. Design for Six Sigma (DFSS) Frameworks and Methodologies 203
XI. EXERCISES 203
CHAPTER 9 – Saving Money with Lean Manufacturing 207
I. Rubric for Lean Manufacturing 207
II. Questions to Ponder 209
III. Cost Improvement Scenario 209
A. Situation 209
B. Objective 209
C. Action 210
D. Results 210
E. Aftermath 211
IV. What Is Lean? 211
V. Production Organization or 5S 213
VI. Lead Time Reduction 214
VII. Kanban 214
VIII. Demand Segmentation 215
IX. Production Scheduling 215
Contents xi
X. Inventory Reduction 215
XI. Lean Six Sigma 215
A. Lean Six Sigma Overview 216
B. Lean Six Sigma Goals 216
C. LSS Project Management 217
D. Team Organization and Dynamics 217
E. DeningOpportunities 218
F. Measurement Techniques 219
G. Improvement Techniques 222
XII. EXERCISES 227
CHAPTER 10 – Saving Money with Optimization 229
I. Rubric for Optimization 229
II. Questions to Ponder 230
III. Cost Improvement Scenario 231
A. Situation 231
B. Objective 231
C. Action 231
D. Results 231
E. Aftermath 231
IV. Operations Research Approaches 231
A. Evolution of Operations Research in Academics 232
B. Origin, History, and Developments 233
C. Operational Research Activities 234
D. The Operations Research Approach 240
E. SignicanceofOperationsResearch 240
F. Operations Research in Manufacturing 241
G. The Operations Research Experience in the U.S. 243
H. Growth of Operations Research in Different Sectors 247
I. Challenges in Operations Research 248
J. Future Trends 249
K. Conclusion 249
V. Genetic Algorithms 249
VI. Particle Swarm Optimization (PSO) 250
xii Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques
VII. Ant Path Optimization 250
VIII. Simulations 251
IX. EXERCISES 252
CHAPTER 11 – Regaining Money with Cost Recovery 253
I. Rubric 253
II. Questions to Ponder 256
III. Cost Improvement Scenario 256
A. Situation 256
B. Objective 256
C. Action 257
D. Results 257
E. Aftermath 257
IV. What Is Cost Recovery? 257
V. When to Use Cost Recovery 257
VI. BenetsofCostRecovery 258
VII. Steps to Cost Recovery 258
VIII. Two-Way Cost Recovery 259
IX. EXERCISES 260
CHAPTER 12 – Other Methods 263
I. Rubric for Other Methods 263
II. Questions to Ponder 265
III. Cost Improvement Scenario 265
A. Situation 265
B. Objective 266
C. Action 268
D. Results 268
E. Aftermath 269
IV. Other Tools 269
A. Project Management 269
B. What Is DFA? 270
C. Design for Manufacturing 272
D. Rapid Prototyping 275
V. EXERCISES 280
Contents xiii
CHAPTER 13 – Finding Cost Reductions 283
I. Rubric for Finding Cost Reductions 283
II. Questions to Ponder 285
III. Cost Improvement Scenario 286
A. Situation 286
B. Objectives 286
C. Actions 286
D. Results 286
E. Aftermath 286
IV. Finding Cost Reductions in the Plant 286
A. Operations 287
B. Engineering 289
C. Accounting/Finance 292
D. Purchasing 293
E. Marketing 293
F. Project Management 294
G. Human Resources 294
V. FindingCostReductionsintheOfce 300
A. OfceSupplies 300
B. Equipment 301
C. Copies/Printing 301
D. Paper/Paperless 301
VI. Finding Cost Reductions in Education 302
A. Operations 302
B. Accounting/Finance 302
C. Purchasing 303
D. Project Management 303
E. Human Resources 304
F. Sports and Extracurricular Activities 305
VII. Finding Cost Reductions on the Personal Side 305
A. Used versus New Material 305
B. Quantity versus Quality 305
C. Food 305
xiv Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques
D. Clothing 306
E. Furniture 306
F. Housing 306
G. Vehicles 306
VIII. EXERCISES 306
CHAPTER 14 – When Cost Improvement Goes Wrong 309
I. Rubric 309
II. Questions to Ponder 309
III. Cost Improvement Scenario 1 309
A. Situation 309
B. Objective 309
C. Action 309
D. Results 310
E. Aftermath 311
IV. Cost Improvement Scenario 2 311
A. Situation 311
B. Objective 311
C. Action 311
D. Results 311
E. Aftermath 311
V. Cost Improvement Scenario 3 311
A. Situation 311
B. Objective 312
C. Action 312
D. Results 312
E. Aftermath 312
VI. Material 312
A. Substitution Is a Poor Fit 312
B. Bulb Removal Tool 312
C. Vehicle Diagnostics Connector 313
D. Supplier Selection 314
E. Scope or Design Review 315
F. Material Reuse 318

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