2. Lean Systems Defined
Just-in-time (JIT): an older name for lean systems
Toyota Production System (TPS): another name for lean systems, specifically as implemented at Toyota
Lean Systems Approach: a philosophy of minimizing the resources needed for processes
What is needed
At the time needed
In the amount needed
8–2

3. Lean Systems video
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&feature=related
8–3

4. 5 Principles of Lean system
Precisely specify value of each specific product
Identify the value stream for each product
Make value flow without interruption
Let the customer pull value from the producer
Pursue perfection
8–4 4

5. Principle 1: Specify Value
Customers determine value
Suppliers must provide products/services with customer desired
Outcomes
Product features
Functionality
Capabilities
Anything that doesn’t add value is waste
8–5 5

6. Principle 2: Indentify Value Stream
Waste is a symptom of a problem, and does not add value
Overproduction: processing more than needed
Waiting: resources waiting for work/materials
Transportation: units moved unnecessarily
Processing: excessive or unnecessary steps
Inventory: units waiting for processing or delivery
Motion: unnecessary or excessive resource activity
Defects: scrap, rework or correction
8–6

7. Waste in Operations

8. Waste in Operations (cont.)

9. Waste in Operations (cont.)

10. Principle 3 : Make Value Flow w/o interruption
Inventory hides problems
8–10

11. Principle 3 : Make Value Flow w/o interruption
8–11

12. Principle 3 : Make Value Flow w/o interruption
8–12

13. Principle 4: Customers Pull Value
Pull System: processes are activated by actual, not forecasted demand
Push system:
Customers get
what they want
when they want
where they want
8–13 13

14. Real world example of Lean Systems video
ture=related
8–14

15. Principle 5: Pursue Perfection
Lean System Culture: places a high value on respect for people
Acceptance: agree to goals, veterans teach new employees
Flexibility: responsive pull systems
Teams: cross-functional & cross-organizational
Employee empowerment: employees work to attack waste
Manage with data: objective over subjective
Waste as a symptom: attack root cause
Goals are met: set realistic, achievable goals
Standardization: reduces variation, simplifies problem solving
Process focus: process change for outcome change
8–15 15

16. Lean Tools and Techniques
Total Productive Maintenance (TPM): prevention of breakdowns
Group Technology: bring together resources to process a family of items
Focused Factories: processes designed to satisfy specific customer segment
8–16 16

17. Lean Tools and Techniques
Takt Time: synchronizing output rate with demand rate
Level, Mixed Model : Apportions batches of each product to be produced evenly throughout the day
8–17 17

18. Lean Tools and Techniques
Kanban (Pull): output generated in response to actual demand,
production kanban,
withdrawal kanban
8–18 18

19. Lean Tools and Techniques cont’d
Set-up Reduction: shorter, easier change- over leads to smaller batches
Single Minute Exchange of Dies (SMED): Process for reducing set-up
SMED(single-minute exchange of die) Principles
Separate internal setup from external setup
Convert internal setup to external setup
Streamline all activities in a setup
Internal setup
Can be performed only when a process is stopped
External setup
Can be performed in advance
8–19 19

20. Lean Tools and Techniques cont’d
Statistical Process Control (SPC): use of statistical tools to monitor processes
Visual Control: performance and problems easily, immediately visible
Bulletin boards
SPC charts
Large electronic displays
Lighting systems
8–20 20

21. Lean Tools and Techniques cont’d
Quality at the source : Eliminating defects at their origination points
Jidoka
Stop-and Fix System
Andons
Kaizen Events: short-term, cross-functional focused, intense process improvement
Gemba Kaizen: go see it in person
8–21 21

22. Lean Tools and Techniques cont’d
5-S: effective housekeeping (sort, straighten, scrub, systematize, standardize)
Sort: decide which items are needed to accomplish the work, and keep only items.
Straighten: organize the workplace so that the needed items can be accessed quickly and easily
Scrub: keep the workplace clean and ready for work. Perform equipment maintenance regularly.
Systematize: make cleaning and checking routine
Standardize: Standardize the previous four steps into one process and continuously improve it.
8–22 22

23. Real world example of 5-s (LMI inc.)
8–23 23

24. Real world example of 5-s (LMI inc.)
8–24 24

25. Lean Tools and Techniques cont’d
Poka-Yoke: redesign so mistakes are impossible or immediately detectable
Simplification/Standardization: removing non-value add steps, making processes exactly repeatable
8–25 25

26. Comparison of JIT and Traditional
Factor
Traditional
JIT
Inventory
Much to offset forecast errors, late deliveries
Minimal necessary to operate
Deliveries
Few, large
Many, small
Lot sizes
Large
Small
Setup; runs
Few, long runs
Many, short runs
Vendors
Long-term relationships are unusual
Partners
Workers
Necessary to do the work
Assets

27. Homework problems in ch 8
Do problems of 2,3,4,10, and 15 on page 256 and 257
8–27 27