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
Basic philosophy of Lean Ops
Methods for synchronization & waste reduction
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: In Search for the Holy Grail
= 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. 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

7. Synchronize: Heijunka Uniform Plant Loading
This does not mean building a single product.
Rather:
maintain a stable mix of products,
and firm frozen schedules
Costs: Must reduce changeover costs
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

8. 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

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

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

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

12. 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

13. 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.
Synchronize process flows
From The Goal “Balance flows”
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops

14. 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

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

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

17. 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: through small batch sizes, heijunka, pulling of work,quality at source, and cellular manufacturing
Continuous Improvement (Kaizen): through visibility, stress, and empowerment
S. Chopra/Operations/Lean Ops
....
S. Chopra/Operations/Lean Ops

18. 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 closer to ideal
S. Chopra/Operations/Lean Ops
S. Chopra/Operations/Lean Ops