Process Improvement (Lean Concepts) References (sources of graphics): (1)Fiore, Clifford, Accelerated Product Development: Combining Lean and Six Sigma.

Slides:



Advertisements
Similar presentations
Lean Manufacturing.
Advertisements

1 Just-in-Time/Lean Production A repetitive production system in which the processing and movement of materials and goods occur just as they are needed!
Lean Supply Chains Chapter Fourteen McGraw-Hill/Irwin
JIT, TPS, and Lean Operations
Lean Systems Defined Just-in-time (JIT): an older name for lean systems Toyota Production System (TPS): another name for lean systems, specifically as.
Making your Portable Restroom business Lean and mean – How to boost productivity and increase your bottom line.
Just-in-Time and Lean Systems
© 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Chapter 15 Just-In-Time Systems.
To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. OPIM 310 –Lecture #8 Just-In-Time.
Chapter 16 - Lean Systems Focus on operations strategy, process, technology, quality, capacity, layout, supply chains, and inventory. Operations systems.
1 Lean Thinking MGMT Lean Thinking A philosophy Principles Practices For the design, operation, management, control and continuous improvement.
JIT/Lean Production Chapter 13.
 Backdrop – JIT foundation  Understanding your Business … KPI’s  Value Streams … ‘True North’  Lean Partnerships to drive cost improvement  Design.
Lean and Sustainable Supply Chains. 1. Describe how Green and Lean can complement each other. 2. Explain how a production pull system works. 3. Understand.
Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Lean Systems Operations Management Chapter 16 Roberta Russell.
Benefits of Lean Manufacturing: To benefit from Lean Manufacturing, the processes must be maintained consistently and correctly. Everyone involved must.
LEAN MANUFACTURING Jason Prior. Introduction to Lean  Overview of Lean in Toyota video.video  Main Concept: ELIMINATING WASTE  Not an acronym  Not.
Lean operations and JIT
Value Stream Mapping.
© ABSL Power Solutions 2007 © STM Quality Limited STM Quality Limited Introduction to Lean Manufacturing TOTAL QUALITY MANAGEMENT Lean Manufacturing.
Lean for Process Manufacturing QAD Midwest User Group Meeting Stephen Dombroski – September 2011.
Operations Management BA 301 – Spring 2003 Just-in-Time Systems Supplement 12.
JIT and Lean Operations
1 Chapter 16 Just-In-Time Systems. 2 JIT/Lean Production Just-in-time: Repetitive production system in which processing and movement of materials and.
Inventory Management. Inventory Inventory or stock are the materials and goods required to allow for the production of supply of products to the customer.
Lean Management “Making Value Flow”
JIT/Lean Production Chapter 13. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Define Just-in-Time.
1 DSCI 3123 Inputs and Outputs to Aggregate Production Planning Aggregate Production Planning Company Policies Financial Constraints Strategic Objectives.
Just-in-Time (JIT) and Lean Systems Chapter 7. MGMT 326 Foundations of Operations Introduction Strategy Quality Assurance Facilities Planning & Control.
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 15 JIT and Lean Operations.
Value Analysis/ Flow Analysis
The Breakthrough Strategy Process Check
MBA.782.J.I.T.CAJ Operations Management Just-In-Time J.I.T. Philosophy Characteristics of J.I.T. J.I.T. in Services J.I.T. Implementation Issues.
Lean Basics Dewey Warden.
JIT and Lean Operations
New Directions Learning & Development  All Rights Reserved. Lean Your Library: How Lean Six Sigma Strategies Can Improve Operations.
OPERATIONS MANAGEMENT for MBAs Fourth Edition 1 Meredith and Shafer John Wiley and Sons, Inc. Chapter 5: Process Improvement: Reducing Waste Through Lean.
Desigh by Parichat1 JUST IN TIME LIMIT JUST IN TIME JUST ON TIME JUST OUT TIME TIME
PRODUCTION & OPERATIONS MANAGEMENT Module II JIT & LEAN PRODUCTION Prof. A.Das, MIMTS.
Philosophy and Key Concepts
Lean Manufacturing Chapter 15 pp June 29, 2012.
COST MANAGEMENT Accounting & Control Hansen▪Mowen▪Guan COPYRIGHT © 2009 South-Western Publishing, a division of Cengage Learning. Cengage Learning and.
Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high.
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 1 LEAN SYSTEMS TOOLS AND PROCEDURES.
Companies must provide customers with world-class quality, delivery and service. Customers won’t accept anything less. The globalization of markets means.
“Without the Cost of Waste …”
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Chapter 15 Lean operations and.
Process Improvement Methodologies References (sources of graphics): (1)Fiore, Clifford, Accelerated Product Development: Combining Lean and Six Sigma for.
Lean Project Management Principles
Lean Production and the Just-in-Time Philosophy. Lean Production Elimination of All Waste – Waste is Anything that Does Not Add Value to Product. Continuous.
Lean Accounting and Productivity Measurement
1 What is JIT Inventory? The minimum amount of inventory necessary to keep a perfect system running smoothly Objective is to minimize the stock of parts.
Lean Production.
Kaizen Eventing: The process of observation and the elimination of waste in a process.
Operations Fall 2015 Bruce Duggan Providence University College.
Copyright © 2013 Nelson Education Ltd. PowerPoint Presentations for Cornerstones of Cost Accounting First Canadian Edition Adapted by George Gekas Ryerson.
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Lean Supply Chains Chapter 12.
16-1 McGraw-Hill/Irwin Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
“Japanese Manufacturing Techniques” & “Uprooting the Toyota Production System” PRESENTED BY: SLAVIK DEMIN & ALON SIMCHONI Based on the articles by xxxxxx.
A SEMINAR ON “LEAN MANUFACTURING”. What is Lean Manufacturing? Lean manufacturing is a comprehensive term referring to manufacturing methodologies based.
Mel Wendell – Mountain Pointe High School
Lean Manufacturing Series
Lean operations and JIT
Inputs and Outputs to Aggregate Production Planning
Introduction to Lean Emily Varnado.
Welcome to my presentation
MODERN TRENDS IN PRODUCTION ENGINEERING
Just-In-Time and Lean Production
Japanese Production Methods
PRODUCTION AND OPERATIONS MANAGEMENT
Presentation transcript:

Process Improvement (Lean Concepts) References (sources of graphics): (1)Fiore, Clifford, Accelerated Product Development: Combining Lean and Six Sigma for Peak Performance, Productivity Press, NY, NY, (2)Hamilton, Bruce, “Toast Kaizen, An Introduction to Continuous Improvement & Lean Principles,” Greater Boston Manufacturing Partnership, University of Massachusetts, Boston, MA, 2005 (DVD). (3)Insights On Implementation-Improved Flow: Collected Practices and Cases, Ralph Bernstein, Editor, Productivity Press, (4)Jacobs, Robert F. and Chase, Richard B., Operations and Supply Management: The Core, McGraw-Hill/Irwin, NY, NY, (5)Nahmias, Steven, Production & Operations Analysis, 5 th Edition, McGraw-Hill/Irwin, NY, NY, 2005.

Origins of Lean Lean concepts evolved from the JIT philosophy pioneered in Japan by Toyota and embodied in their Toyota Production System Lean concepts evolved from the JIT philosophy pioneered in Japan by Toyota and embodied in their Toyota Production System The emphasis of JIT is the elimination of waste throughout the supply chain The emphasis of JIT is the elimination of waste throughout the supply chain In the 1990's companies adopted the term lean in place of JIT In the 1990's companies adopted the term lean in place of JIT

The Basis of Lean Thinking Lean means producing Lean means producing –What is needed –When it is needed –With the minimum amount of materials, equipment, labor, and space Producing what is required, when it is required, but with minimal investment Producing what is required, when it is required, but with minimal investment The goal of an enterprise adopting lean The goal of an enterprise adopting lean –Make each process as efficient and effective as possible –Connecting those processes in a stream or continuous chain that is focused on flow and maximizing customer value

Flow Flow is defined as continuous movement of products and information through a value stream Flow is defined as continuous movement of products and information through a value stream The goal of a lean enterprise is to minimize idle time in the value stream (idle time equates to inefficiency and waste) The goal of a lean enterprise is to minimize idle time in the value stream (idle time equates to inefficiency and waste) Winona Sandwich Company example Winona Sandwich Company example –Daily special –Custom order –Example parameters –Other factors could potentially influence process time Resource levels Resource levels Material availability Material availability WIP inventory levels WIP inventory levels

Winona Sandwich Company Daily Special How long before first sandwich ready? How long before first sandwich ready? Majority of time is idle time - no work is being performed on a sandwich Majority of time is idle time - no work is being performed on a sandwich Batch process Batch process –Push system Completes a predetermined quantity of work from an established work queue or forecast Completes a predetermined quantity of work from an established work queue or forecast Typically, the work queue or forecast is offset to the actual customer demand to allow time for production and delivery Typically, the work queue or forecast is offset to the actual customer demand to allow time for production and delivery –High inventory –High degree of risk –Yet a great convenience for customers in a hurry No flow No flow

Single-piece Flow Process Winona Sandwich Company Custom order Winona Sandwich Company Custom order Single-piece flow process Single-piece flow process –Process of creating a sandwich is triggered only when a customer order initiates the process –Pull System Completes a quantity of work that is directly linked to customer demand Completes a quantity of work that is directly linked to customer demand Materials are staged at the point of consumption Materials are staged at the point of consumption As materials are consumed, signals (kanban) are sent to previous steps in the process to pull forward sufficient materials to replenish only those that have been consumed As materials are consumed, signals (kanban) are sent to previous steps in the process to pull forward sufficient materials to replenish only those that have been consumed Total flow Total flow Ultimately selection of the model to be implemented should be dictated by marketplace demands with the goal of maximizing customer value Ultimately selection of the model to be implemented should be dictated by marketplace demands with the goal of maximizing customer value

Customer Value Customer value refers to specific activities that add value to the products and services customers buy Customer value refers to specific activities that add value to the products and services customers buy Determination of what is value-added is made from the customer’s perspective Determination of what is value-added is made from the customer’s perspective Under lean philosophy for an activity to be value-added it must meet the following three criteria: Under lean philosophy for an activity to be value-added it must meet the following three criteria: (1) The customer must be willing to pay for the activity (2) The part or the object must change (movement?, inspection?) (3) It must be done right the first time Non-value-added activity → waste Non-value-added activity → waste Viewing a process in the context of what is truly value-added, a different perspective will emerge for the opportunities for improvement Viewing a process in the context of what is truly value-added, a different perspective will emerge for the opportunities for improvement

Waste A key tenet under the philosophy of lean and continuous improvement is to minimize non-value-added tasks and eliminate the sources of waste A key tenet under the philosophy of lean and continuous improvement is to minimize non-value-added tasks and eliminate the sources of waste Seven sources of waste, DOTWIMP (ref: Fiore, Clifford) Seven sources of waste, DOTWIMP (ref: Fiore, Clifford) Types of Waste Factory Waste Example Defects - Part failing functional test - Part feature violating drawing dimensions Over-production - Machining parts with no usage requirement Transportation - Moving parts from one machine to another Waiting - Partially machined parts on the shop floor queued for the next operation Inventory - Completed parts that have not been purchased Motion - Extra process steps Processing - Part inspection

Required Waste vs Pure Waste Waste can be further classified as required waste and pure waste Waste can be further classified as required waste and pure waste Required waste represents activities that do not meet the three criteria for a value-added task but are still necessary to support the creation of a product Required waste represents activities that do not meet the three criteria for a value-added task but are still necessary to support the creation of a product Activities may be mandated by the customer and/or government regulation (i.e. inspections/tests) Activities may be mandated by the customer and/or government regulation (i.e. inspections/tests) The most obvious examples of pure waste (greatest opportunity for improvement) are associated with the idle time within a process The most obvious examples of pure waste (greatest opportunity for improvement) are associated with the idle time within a process Pure waste activities represent the top priority for elimination Pure waste activities represent the top priority for elimination Video Video

Single Minute Exchange of Die (SMED) Tool/die changeovers disrupt production – production is stopped while tools/dies are changed Tool/die changeovers disrupt production – production is stopped while tools/dies are changed Idea behind SMED (originated at Toyota around 1970 by Shigeo Shingo) is that a significant portion of the die-changing operation can be done off-line while the previous die is still in place and the line continues to operate Idea behind SMED (originated at Toyota around 1970 by Shigeo Shingo) is that a significant portion of the die-changing operation can be done off-line while the previous die is still in place and the line continues to operate Die-changing operation is divided into two components: inside exchange of die (IED) and outside exchange of die (OID) Die-changing operation is divided into two components: inside exchange of die (IED) and outside exchange of die (OID) OID portion is performed while the line is operating in advance of the actual exchange – the goal is to structure die change so that there are as many steps as possible in the OID portion OID portion is performed while the line is operating in advance of the actual exchange – the goal is to structure die change so that there are as many steps as possible in the OID portion Tool/die changeovers typically reduced from hours to minutes Tool/die changeovers typically reduced from hours to minutes Additional rules for reducing set-up times (Kodak) Additional rules for reducing set-up times (Kodak) –Eliminate, simplify, automate steps – only in that order –One way, the right way, the same way – every time –Build the required level of precision in the system – not the setup (convert adjustments into settings)

Five S (5S) Methodology 5S transforms and maintains a work environment that supports lean implementation 5S transforms and maintains a work environment that supports lean implementation

Additional Benefits of 5S Methodology 5S provides the foundation for creating discipline in the workplace 5S provides the foundation for creating discipline in the workplace It helps cultivate relationships in the company and raises employee morale It helps cultivate relationships in the company and raises employee morale Work areas that are neat and clean will gain credibility with customers, suppliers, and visitors to the company Work areas that are neat and clean will gain credibility with customers, suppliers, and visitors to the company

Value Stream The value stream represents the linkage of all value-added and non-value-added activities associated with the creation of a product or service desired by a customer The value stream represents the linkage of all value-added and non-value-added activities associated with the creation of a product or service desired by a customer –In manufacturing: raw materials → finished product –In product development: design concerns → technical data package (drawings) The goal in reviewing/studying the value stream is to maximize customer value The goal in reviewing/studying the value stream is to maximize customer value

Value Stream Map

Benefits of Developing a Value Stream Map Allows more than just the visualization of the activities in the process Allows more than just the visualization of the activities in the process Helps identify the sources of waste and impediments to flow Helps identify the sources of waste and impediments to flow Helps identify the information flows as well as the product and material flows in a process Helps identify the information flows as well as the product and material flows in a process Helps reduce “cherry picking” of improvement projects Helps reduce “cherry picking” of improvement projects

Five Lean Principles (1) Specify value in the eyes of the customer (1) Specify value in the eyes of the customer (2) Identify the value stream and eliminate the waste (2) Identify the value stream and eliminate the waste (3) Make value flow at the pull of the customer (3) Make value flow at the pull of the customer (4) Involve and empower employees (there is no better source of insight than the employees who are performing the work) (4) Involve and empower employees (there is no better source of insight than the employees who are performing the work) (5) Continuously improve (kaizen) in pursuit of perfection (5) Continuously improve (kaizen) in pursuit of perfection