1. Continuous Improvement”
Lean Operations
“Eliminate Waste
Through
Continuous Improvement”

2. TPS: Toyota Production System
A system that continually searches for and eliminates waste throughout the value chain.
Views every enterprise activity as an operation and applies its waste reduction concepts to each activity - from Customers to the Board of Directors to Support Staff to Production Plants to Suppliers.

3. Reducing Waste: Push versus Pull System
Material Flow
Information Flow
FGI
Customer
Raw
Material
Supplier
Final
Assembly
PUSH
FGI
Customer
Raw
Material
Supplier
Final
Assembly
PULL
TPS System uses Kanbans

4. Penville Game Compare the performance of Push system Pull system
Team system

5. Push System
Every worker maximizes own output, making as many products as possible
Pros and cons:
Focuses on keeping individual operators and workstations busy rather than efficient use of materials
Volumes of defective work may be produced
Throughput time will increase as work-in-process increases (Little’s Law)
Line bottlenecks and inventories of unfinished products will occur
Hard to respond to special orders and order changes due to long throughput time

6. Pull System
Production line is controlled by the last operation, Kanban cards control WIP
Pros and cons
Controls maximum WIP and eliminates WIP accumulating at bottlenecks
Keeps materials busy, not operators. Operators work only when there is a signal to produce.
If a problem arises, there is no slack in the system
Throughput time and WIP are decreased, faster reaction to defects and less opportunity to create defects

7. Team System
Group of cross-trained workers have overlapping responsibility
Pros and cons:
Cross-training and team efforts reduces WIP or the bottleneck concept
Most efficient use of both materials and labor
Cross training means one worker can step out if a problem arises
Higher process responsibility and ownership
Cross training can be costly