Chapter 15                   Lean Production             Operations Management -- 5th Edition             Operations Manag...
Lecture Outline   Basic Elements of Lean Production   Benefits of Lean Production   Implementing Lean Production   Lea...
Lean Production Doing more with less inventory, fewer  workers, less space Just-in-time (JIT)        smoothing the flow...
Waste in OperationsCopyright 2006 John Wiley & Sons, Inc.   15-4
Waste in Operations (cont.)Copyright 2006 John Wiley & Sons, Inc.   15-5
Waste in Operations (cont.)Copyright 2006 John Wiley & Sons, Inc.   15-6
Basic Elements1.   Flexible resources2.   Cellular layouts3.   Pull production system4.   Kanban production control5.   Sm...
Flexible Resources   Multifunctional workers         perform more than one job         general-purpose machines perform...
Standard Operating    Routine for a WorkerCopyright 2006 John Wiley & Sons, Inc.   15-9
Cellular Layouts Manufacturing cells      comprised of dissimilar machines brought       together to manufacture a famil...
Cells with Worker RoutesCopyright 2006 John Wiley & Sons, Inc.   15-11
Worker Routes Lengthen as    Volume DecreasesCopyright 2006 John Wiley & Sons, Inc.   15-12
Pull System Material is pulled through the system when  needed Reversal of traditional push system where  material is pu...
Kanbans Card which indicates standard quantity  of production Derived from two-bin inventory system Maintain discipline...
Sample KanbanCopyright 2006 John Wiley & Sons, Inc.   15-15
Origin of Kanban   a) Two-bin inventory system             b) Kanban inventory system           Bin 1                     ...
Types of Kanban Production kanban                         Signal kanban     authorizes production of                  ...
Copyright 2006 John Wiley & Sons, Inc.   15-18
Copyright 2006 John Wiley & Sons, Inc.   15-19
Copyright 2006 John Wiley & Sons, Inc.   15-20
Determining Number of         Kanbans                     average demand during lead time + safety stockNo. of Kanbans =  ...
Determining Number of         Kanbans: Example                   d   = 150 bottles per hour                   L   = 30 min...
Small Lots Require less space and capital  investment Move processes closer together Make quality problems easier to  d...
Inventory Hides ProblemsCopyright 2006 John Wiley & Sons, Inc.   15-24
Less Inventory Exposes ProblemsCopyright 2006 John Wiley & Sons, Inc.   15-25
Components of Lead Time Processing time      Reduce number of items or improve efficiency Move time      Reduce distan...
Quick Setups Internal setup                SMED Principles                                   Separate internal setup fr...
Common Techniques for Reducing    Setup TimeCopyright 2006 John Wiley & Sons, Inc.   15-28
Common Techniques for Reducing    Setup Time (cont.)Copyright 2006 John Wiley & Sons, Inc.   15-29
Common Techniques for Reducing    Setup Time (cont.)Copyright 2006 John Wiley & Sons, Inc.   15-30
Uniform Production Levels    Result from smoothing production     requirements    Kanban systems can handle +/- 10%     ...
Mixed-Model SequencingCopyright 2006 John Wiley & Sons, Inc.   15-32
Quality at the Source Visual control                      Jidoka      makes problems visible               authority t...
Examples of Visual      ControlCopyright 2006 John Wiley & Sons, Inc.   15-34
Examples of Visual      Control (cont.)Copyright 2006 John Wiley & Sons, Inc.   15-35
Examples of Visual      Control (cont.)Copyright 2006 John Wiley & Sons, Inc.   15-36
Total Productive    Maintenance (TPM) Breakdown maintenance      Repairs to make failed machine operational Preventive ...
TPM Requirements Design products that can be easily produced  on existing machines Design machines for easier operation,...
5S Scan                 Goal               Eliminate or Correct   Seiri             Keep only what you       Unneeded e...
Supplier Networks   Long-term supplier contracts   Synchronized production   Supplier certification   Mixed loads and ...
Benefits of Lean    Production            Reduced inventory            Improved quality            Lower costs         ...
Benefits of Lean    Production (cont.)        Greater flexibility        Better relations with suppliers        Simplif...
Implementing Lean Production Use lean production to finely tune an  operating system Somewhat different in USA than Japa...
Lean Services      Basic elements of lean       production apply equally to       services      Most prevalent applicati...
Copyright 2006 John Wiley & Sons, Inc.All rights reserved. Reproduction or translation of this work beyond thatpermitted i...
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  1. 1. Chapter 15 Lean Production Operations Management -- 5th Edition Operations Management 5th Edition Roberta Russell & Bernard W. Taylor, III Beni AsllaniCopyright 2006 John Wiley & Sons, Inc. University of Tennessee at Chattanooga
  2. 2. Lecture Outline Basic Elements of Lean Production Benefits of Lean Production Implementing Lean Production Lean ServicesCopyright 2006 John Wiley & Sons, Inc. 15-2
  3. 3. Lean Production Doing more with less inventory, fewer workers, less space Just-in-time (JIT)  smoothing the flow of material to arrive just as it is needed  “JIT” and “Lean Production” are used interchangeably Muda  waste, anything other than that which adds value to the product or serviceCopyright 2006 John Wiley & Sons, Inc. 15-3
  4. 4. Waste in OperationsCopyright 2006 John Wiley & Sons, Inc. 15-4
  5. 5. Waste in Operations (cont.)Copyright 2006 John Wiley & Sons, Inc. 15-5
  6. 6. Waste in Operations (cont.)Copyright 2006 John Wiley & Sons, Inc. 15-6
  7. 7. Basic Elements1. Flexible resources2. Cellular layouts3. Pull production system4. Kanban production control5. Small lot production6. Quick setups7. Uniform production levels8. Total productive maintenance9. Supplier networksCopyright 2006 John Wiley & Sons, Inc. 15-7
  8. 8. Flexible Resources  Multifunctional workers  perform more than one job  general-purpose machines perform several basic functions  Cycle time  time required for the worker to complete one pass through the operations assigned  Takt time  paces production to customer demandCopyright 2006 John Wiley & Sons, Inc. 15-8
  9. 9. Standard Operating Routine for a WorkerCopyright 2006 John Wiley & Sons, Inc. 15-9
  10. 10. Cellular Layouts Manufacturing cells  comprised of dissimilar machines brought together to manufacture a family of parts Cycle time is adjusted to match takt time by changing worker pathsCopyright 2006 John Wiley & Sons, Inc. 15-10
  11. 11. Cells with Worker RoutesCopyright 2006 John Wiley & Sons, Inc. 15-11
  12. 12. Worker Routes Lengthen as Volume DecreasesCopyright 2006 John Wiley & Sons, Inc. 15-12
  13. 13. Pull System Material is pulled through the system when needed Reversal of traditional push system where material is pushed according to a schedule Forces cooperation Prevent over and underproduction While push systems rely on a predetermined schedule, pull systems rely on customer requestsCopyright 2006 John Wiley & Sons, Inc. 15-13
  14. 14. Kanbans Card which indicates standard quantity of production Derived from two-bin inventory system Maintain discipline of pull production Authorize production and movement of goodsCopyright 2006 John Wiley & Sons, Inc. 15-14
  15. 15. Sample KanbanCopyright 2006 John Wiley & Sons, Inc. 15-15
  16. 16. Origin of Kanban a) Two-bin inventory system b) Kanban inventory system Bin 1 Kanban Bin 2Reordercard Q-R R R Q = order quantity R = reorder point - demand during lead time Copyright 2006 John Wiley & Sons, Inc. 15-16
  17. 17. Types of Kanban Production kanban  Signal kanban  authorizes production of  a triangular kanban goods used to signal Withdrawal kanban production at the previous workstation  authorizes movement of goods  Material kanban Kanban square  used to order material in  a marked area designated advance of a process to hold items  Supplier kanban  rotates between the factory and suppliers Copyright 2006 John Wiley & Sons, Inc. 15-17
  18. 18. Copyright 2006 John Wiley & Sons, Inc. 15-18
  19. 19. Copyright 2006 John Wiley & Sons, Inc. 15-19
  20. 20. Copyright 2006 John Wiley & Sons, Inc. 15-20
  21. 21. Determining Number of Kanbans average demand during lead time + safety stockNo. of Kanbans = container size dL + S N = C where N = number of kanbans or containers d = average demand over some time period L = lead time to replenish an order S = safety stock C = container size Copyright 2006 John Wiley & Sons, Inc. 15-21
  22. 22. Determining Number of Kanbans: Example d = 150 bottles per hour L = 30 minutes = 0.5 hours S = 0.10(150 x 0.5) = 7.5 C = 25 bottles dL + S (150 x 0.5) + 7.5 N= = C 25 75 + 7.5 = = 3.3 kanbans or containers 25 Round up to 4 (to allow some slack) or down to 3 (to force improvement)Copyright 2006 John Wiley & Sons, Inc. 15-22
  23. 23. Small Lots Require less space and capital investment Move processes closer together Make quality problems easier to detect Make processes more dependent on each otherCopyright 2006 John Wiley & Sons, Inc. 15-23
  24. 24. Inventory Hides ProblemsCopyright 2006 John Wiley & Sons, Inc. 15-24
  25. 25. Less Inventory Exposes ProblemsCopyright 2006 John Wiley & Sons, Inc. 15-25
  26. 26. Components of Lead Time Processing time  Reduce number of items or improve efficiency Move time  Reduce distances, simplify movements, standardize routings Waiting time  Better scheduling, sufficient capacity Setup time  Generally the biggest bottleneckCopyright 2006 John Wiley & Sons, Inc. 15-26
  27. 27. Quick Setups Internal setup  SMED Principles  Separate internal setup from  Can be performed external setup only when a process is stopped  Convert internal setup to external setup External setup  Streamline all aspects of setup  Can be performed  Perform setup activities in in advance parallel or eliminate them entirelyCopyright 2006 John Wiley & Sons, Inc. 15-27
  28. 28. Common Techniques for Reducing Setup TimeCopyright 2006 John Wiley & Sons, Inc. 15-28
  29. 29. Common Techniques for Reducing Setup Time (cont.)Copyright 2006 John Wiley & Sons, Inc. 15-29
  30. 30. Common Techniques for Reducing Setup Time (cont.)Copyright 2006 John Wiley & Sons, Inc. 15-30
  31. 31. Uniform Production Levels  Result from smoothing production requirements  Kanban systems can handle +/- 10% demand changes  Smooth demand across planning horizon  Mixed-model assembly steadies component productionCopyright 2006 John Wiley & Sons, Inc. 15-31
  32. 32. Mixed-Model SequencingCopyright 2006 John Wiley & Sons, Inc. 15-32
  33. 33. Quality at the Source Visual control  Jidoka  makes problems visible  authority to stop the production line Poka-yokes  Andons  call lights that signal  prevent defects from quality problems occurring Kaizen  Under-capacity  a system of continuous scheduling improvement; “change for  leaves time for planning, the good of all” problem solving, and maintenanceCopyright 2006 John Wiley & Sons, Inc. 15-33
  34. 34. Examples of Visual ControlCopyright 2006 John Wiley & Sons, Inc. 15-34
  35. 35. Examples of Visual Control (cont.)Copyright 2006 John Wiley & Sons, Inc. 15-35
  36. 36. Examples of Visual Control (cont.)Copyright 2006 John Wiley & Sons, Inc. 15-36
  37. 37. Total Productive Maintenance (TPM) Breakdown maintenance  Repairs to make failed machine operational Preventive maintenance  System of periodic inspection and maintenance to keep machines operating TPM combines preventive maintenance and total quality conceptsCopyright 2006 John Wiley & Sons, Inc. 15-37
  38. 38. TPM Requirements Design products that can be easily produced on existing machines Design machines for easier operation, changeover, maintenance Train and retrain workers to operate machines Purchase machines that maximize productive potential Design preventive maintenance plan spanning life of machineCopyright 2006 John Wiley & Sons, Inc. 15-38
  39. 39. 5S Scan Goal Eliminate or Correct Seiri  Keep only what you  Unneeded equipment, tools, furniture; (sort) need unneeded items on walls, bulletins; items blocking aisles or stacked in corners; unneeded inventory, supplies, parts; safety hazards  A place for  Items not in their correct places; correct everything and places not obvious; aisles, workstations, & Seiton everything in its equipment locations not indicated; items not (set in order) place put away immediately after use  Cleaning, and  Floors, walls, stairs, equipment, & surfaces Seisou looking for ways to not lines, clean; cleaning materials not easily (shine) keep clean and accessible; labels, signs broken or unclean; organized other cleaning problems  Necessary information not visible; standards  Maintaining and not known; checklists missing; quantities and Seiketsu monitoring the first limits not easily recognizable; items can’t be (standardize) three categories located within 30 seconds  Sticking to the rules  Number of workers without 5S training; Shisuke number of daily 5S inspections not performed; (sustain) number of personal items not stored; number of times job aids not available or up-to-date Copyright 2006 John Wiley & Sons, Inc. 15-39
  40. 40. Supplier Networks Long-term supplier contracts Synchronized production Supplier certification Mixed loads and frequent deliveries Precise delivery schedules Standardized, sequenced delivery Locating in close proximity to the customerCopyright 2006 John Wiley & Sons, Inc. 15-40
  41. 41. Benefits of Lean Production  Reduced inventory  Improved quality  Lower costs  Reduced space requirements  Shorter lead time  Increased productivityCopyright 2006 John Wiley & Sons, Inc. 15-41
  42. 42. Benefits of Lean Production (cont.)  Greater flexibility  Better relations with suppliers  Simplified scheduling and control activities  Increased capacity  Better use of human resources  More product varietyCopyright 2006 John Wiley & Sons, Inc. 15-42
  43. 43. Implementing Lean Production Use lean production to finely tune an operating system Somewhat different in USA than Japan Lean production is still evolving Lean production isn’t for everyone Copyright 2006 John Wiley & Sons, Inc. 15-43
  44. 44. Lean Services  Basic elements of lean production apply equally to services  Most prevalent applications  lean retailing  lean banking  lean health careCopyright 2006 John Wiley & Sons, Inc. 15-44
  45. 45. Copyright 2006 John Wiley & Sons, Inc.All rights reserved. Reproduction or translation of this work beyond thatpermitted in section 117 of the 1976 United States Copyright Act withoutexpress permission of the copyright owner is unlawful. Request for furtherinformation should be addressed to the Permission Department, John Wiley &Sons, Inc. The purchaser may make back-up copies for his/her own use only andnot for distribution or resale. The Publisher assumes no responsibility forerrors, omissions, or damages caused by the use of these programs or from theuse of the information herein.Copyright 2006 John Wiley & Sons, Inc. 15-45
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