Wednesday, December 23, 2009

My Takeaway from Michael L George’s Lean Six Sigma for Services Part 2

Using the Voice of the Customer



Aligning corporate strategy with LSS
The flow from high-level strategy to individual projects requires an understanding of where and how value creation.


Some definitions:
Economic Profit% = % change in Return on Invested Capital – weighted % cost of Capital
Economic Profit = Owners Earning / Invested capital = (Profit after tax) – (3 year average CAPEX)
+ (D&A) – (Increase in working capital)
Process Cycle Efficiency = Value added time / Total lead time
Lead Time = Amount of WIP / Average completion rate
Waste Driver = (Total Demand) x (Set up Time) x (No. of different offerings) / [1 – (Defect Rate) – (total demand) x (Processing time)]
Capacity constraints limits output whereas a time trap causes the longest delays in the stream

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Health Management in India

http://www.ihmr.org/ - Institute of Health Management
http://www.iphindia.org/joomla/index.php - Institute of Public Health
http://www.who.or.jp/sites/bangalore.html - WHO, Bangalore
http://cghr.org/aboutcghr.html - Center for Global Health Research
http://www.hispindia.org/ - HISP India
- PHFI Newsletter
http://www.epos.in - EPOS India