1. Lean Operations (JIT) Module
Operations Management:
Lean Operations (JIT) Module
MBPF House Manufacturing Game
The transition to Lean Ops
The Paradigm of Lean Operations: The ideal
Methods for synchronization & waste reduction
Increasing visibility for continuous improvement
Approaching the ideal with Product Variety: TPS
Managing variety & flexibiltiy
Toyota Production System (TPS)
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

2. MBPF Inc. Factory Layout
Production Control
Roof Punch
Base Punch
Roof Form
Base Form
Notes:
Base Weld
Final Assembly
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

3. Paradigm of Lean Operations: The Ideal Process
Synchronization of all flows
1 x 1
production on demand
defect free
At lowest possible cost
Waste = Gap between ideal and actual
How do we set up a system to continually reduce waste ?
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

4. Toyota’s waste elimination in Operations
1. Overproduction
2. Waiting
3. Inessential handling
4. Non-value adding processing
5. Inventory in excess of immediate needs
6. Inessential motion
7. Correction necessitated by defects
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

5. Synchronize: Cut Batch Sizes
Example Process: A B
1 min/job C
1 min/job D
1 min/job
1 min/job
Batch Mfg (Lotsize = 5)
Flow Mfg (Lotsize = 1) 5
Space 1
Space 1 2 3 4 5 1 2 3 4 5 1 1 1 1 5 A B C D A B C D 5 10 10
Time 5 15 15 5 20 20
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

6. Synchronization with demand: customer demand pulls product
Supplier
inputs
outputs
Process
Customer
PUSH: Inputs availability triggers execution
PULL: Outputs need triggers execution
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

7. Implementation: Kanban Production Control Systems
Processing center i
Processing center i + 1
WIP
Job
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

8. Reducing Waste: Quality at the Source
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

9. Reducing Waste: Quality at the Source
Fool-proof/Fail-safe design (Poka-Yoke)
Inspection
Self
Automated (Jidoka)
Line-stopping empowerment (Andon)
Human infrastructure
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

10. Reducing Waste: Flexible Resources
Cross training of workforce
Use of IT in services
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

11. Reducing Waste: From Functional Layout to Cells
Production
Control FA
Base
Cut
Roof
Assy P r o d u c t i n C l R f B a s e F A y Q
Production
Control FA
Base
Cut
Roof
Assy
Production
Control FA
Base
Cut
Roof
Assy
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

12. Synchronize: Just-In-Time operations
JIT = have exactly what is needed, in the quantity it is needed, when it is needed, where it is needed.
Reduce transfer batches
Pull rather than push work
Quality at source
Flexible resources
Set up cells
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

13. THE DICE GAME Play The Game INPUT Buffer OUTPUT Buffer
Unfair Dice which rolls into either 3 or 4
6 Face Fair Dice
Average Capacity of Each Step =
Average Capacity of Each Stage =
Average Process Capacity =
Average Capacity of The Process =
Play The Game
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

14. The impact of inventory and variability: Output of Match Game
135
145
155
165
175
185
195 5 10 15 20 25
Starting Inventory in each Buffer
Output after 50 Runs
Series1
Series2
Series3
Series4
Series5
Average
2-face die (s=0.7)
6-face die (s=1.9)
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

15. Reducing waste: Increase Problem Visibility
Reducing waste: Increase Problem Visibility Lower the Water to Expose the Rocks
Scrap &
Rework
Missed Due Dates
Too Much Space
Late Deliveries
Poor Quality
Machine Downtime
Engineering Change Orders
Long queues
Too much paperwork
100% inspection
Inventory
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

16. Lean Operations: Causal Link Diagram
Source: Lieberman and Demeester
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

17. Time plays the role of Inventory in Lean Service Operations
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

18. Continuous Improvement: Kaizen
Increase visibility of waste
Targeted improvements
Active worker involvement
Time for experimentation
Supplier involvement
Exploratory stress
Human infrastructure
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

19. Learning Objectives Basic Lean Operations
Paradigm of Lean Operations:
Strive for the ideal by eliminating waste
Synchronize
Reduced batch sizes
Pull production control systems (vs. push): Kanban
Quality at source
Layout: Cellular operations
Improve
Increase problem visibility (river analogy)
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

20. How to run Lean Operations: Managing Variety
Monthly Production Requirement:
How should production be scheduled for the month?
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

21. Synchronize: Heijunka Mixed Level/Balanced Production
Batch Production Schedule Mixed Production Schedule
(AAAABBBB..) (ABAB...)
Product Apr/ Apr/ A B
time
FGI
time
FGI
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

22. Reducing Waste: Reduced Setup Times
What happens if we have long setup/changeover times?
How to synchronize production with variety (discuss Midwest Molding)?
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

23. Reducing Waste: Mixed-Load Pickup and Delivery
Part A Plant
Individual
Pickup
Assembly
Line
Part B Plant
Part C Plant
Part A Plant
Mixed-Load
Pickup
Assembly
Line
Part B Plant
Part C Plant
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

24. Lean Operations: Best Implementation is TPS
TPS is a production management system that aims for the “ideal” through continuous improvement
Includes, but goes way beyond JIT. Pillars:
Synchronization
Quality at Source
Continuous Improvement (Kaizen): through visibility & empowerment
S. Chopra/Operations/Lean Ops
....
S. Chopra/Operations/Lean Ops

25. Learning Objectives: Lean Operations for Variety
Lean Operations: In Search for the Holy Grail and zero Waste
Level Mixed Production: Heijunka
Reduced batch sizes
Pull Execution: Kanbans
Quality at source: Jidoka
Efficient Workflow: Cellular Layout
Continuous Improvement: Kaizen
Flow Synchronization
Low Cost
Get ever closer to ideal
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops