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Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Lean Production Operations Management - 5 th Edition Chapter 15 Roberta Russell & Bernard W. Taylor, III
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Copyright 2006 John Wiley & Sons, Inc.15-2 Lecture Outline Basic Elements of Lean Production Benefits of Lean Production Implementing Lean Production Lean Services
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Copyright 2006 John Wiley & Sons, Inc.15-3 Lean Production Doing more with less inventory, fewer workers, less space Just-in-time (JIT) smoothing the flow of material to arrive just as it is needed “JIT” and “Lean Production” are used interchangeably Muda waste, anything other than that which adds value to the product or service
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Copyright 2006 John Wiley & Sons, Inc.15-4 Waste in Operations
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Copyright 2006 John Wiley & Sons, Inc.15-5 Waste in Operations (cont.)
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Copyright 2006 John Wiley & Sons, Inc.15-6 Waste in Operations (cont.)
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Copyright 2006 John Wiley & Sons, Inc.15-7 Basic Elements Flexible resources Cellular layouts Pull production system Kanban production control Small lot production Quick setups Uniform production levels Total productive maintenance Supplier networks
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Copyright 2006 John Wiley & Sons, Inc.15-8 Flexible Resources Multifunctional workers perform more than one job general-purpose machines perform several basic functions Cycle time time required for the worker to complete one pass through the operations assigned Takt time paces production to customer demand
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Copyright 2006 John Wiley & Sons, Inc.15-9 Standard Operating Routine for a Worker
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Copyright 2006 John Wiley & Sons, Inc.15-10 Cellular Layouts Manufacturing cells comprised of dissimilar machines brought together to manufacture a family of parts Cycle time is adjusted to match takt time by changing worker paths
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Copyright 2006 John Wiley & Sons, Inc.15-11 Cells with Worker Routes
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Copyright 2006 John Wiley & Sons, Inc.15-12 Worker Routes Lengthen as Volume Decreases
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Copyright 2006 John Wiley & Sons, Inc.15-13 Inventory Hides Problems
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Copyright 2006 John Wiley & Sons, Inc.15-14 Less Inventory Exposes Problems
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Cost Impact of Inventory High inventory high inventory holding costs High inventory hides problems, and the company pays for the cost of the problems In manufacturing, high inventory requires large lot sizes Long manufacturing lead times Long manufacturing lead times Harder to meet changing customer demand Harder to meet changing customer demand Delays in introducing new or improved products Delays in introducing new or improved products
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Reducing Inventory Kanban Pull System Production kanban: authorization to make a container of parts No production can be done without a production kanban and an empty container No production can be done without a production kanban and an empty container Withdrawal kanban: authorization to get a container of parts for use in the next process step Work in process (WIP) inventory WIP < (number of kanbans)(lot size) WIP < (number of kanbans)(lot size) Lot size = number of parts of a certain type produced at one time Lot size = number of parts of a certain type produced at one time
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Reducing Inventory Kanban Pull System
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Copyright 2006 John Wiley & Sons, Inc.15-18 Pull System Material is pulled through the system when needed Reversal of traditional push system where material is pushed according to a schedule Forces cooperation Prevent over and underproduction While push systems rely on a predetermined schedule, pull systems rely on customer requirements
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Reducing Inventory Small Lot Sizes and Quick Setups Benefits of small lot sizes Shorter manufacturing lead time Faster response to changes in customer demand Shorter manufacturing lead time Faster response to changes in customer demand Lower inventory and inventory holding costs Lower inventory and inventory holding costs Small lot sizes require more setups Setups must be done more quickly and at lower costs. This is necessary Setups must be done more quickly and at lower costs. This is necessary To ensure adequate capacity To ensure adequate capacity To control setup costs To control setup costs To avoid production delays To avoid production delays
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Copyright 2006 John Wiley & Sons, Inc.15-20 Uniform Production Levels Result from smoothing production requirements Kanban systems can handle +/- 10% demand changes Smooth demand across planning horizon Mixed-model assembly steadies component production
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Copyright 2006 John Wiley & Sons, Inc.15-21 Mixed-Model Sequencing
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Copyright 2006 John Wiley & Sons, Inc.15-22 Quality at the Source Visual control makes problems visible Poka-yokes prevent defects from occurring Kaizen a system of continuous improvement; “change for the good of all” Jidoka authority to stop the production line Andons call lights that signal quality problems Under-capacity scheduling leaves time for planning, problem solving, and maintenance
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Copyright 2006 John Wiley & Sons, Inc.15-23 Examples of Visual Control
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Examples of Visual Control (2) Copyright 2006 John Wiley & Sons, Inc.15-24
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Copyright 2006 John Wiley & Sons, Inc.15-25 Examples of Visual Control (3)
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Copyright 2006 John Wiley & Sons, Inc.15-26 Total Productive Maintenance (TPM) Breakdown maintenance Repairs to make failed machine operational Repairs to make failed machine operational Preventive maintenance System of periodic inspection and maintenance to keep machines operating System of periodic inspection and maintenance to keep machines operating TPM combines preventive maintenance and total quality management concepts
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Copyright 2006 John Wiley & Sons, Inc.15-27 Unneeded equipment, tools, furniture; unneeded items on walls, bulletins; items blocking aisles or stacked in corners; unneeded inventory, supplies, parts; safety hazards Items not in their correct places; correct places not obvious; aisles, workstations, & equipment locations not indicated; items not put away immediately after use Floors, walls, stairs, equipment, & surfaces not lines, clean; cleaning materials not easily accessible; labels, signs broken or unclean; other cleaning problems Necessary information not visible; standards not known; checklists missing; quantities and limits not easily recognizable; items can’t be located within 30 seconds Number of workers without 5S training; number of daily 5S inspections not performed; number of personal items not stored; number of times job aids not available or up-to-date Keep only what you need A place for everything and everything in its place Cleaning, and looking for ways to keep clean and organized Maintaining and monitoring the first three categories Sticking to the rules Seiri (sort) Seiton (set in order) Seisou (shine) Seiketsu (standardize) Shisuke (sustain) 5S ScanGoalEliminate or Correct
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Copyright 2006 John Wiley & Sons, Inc.15-28 Supplier Networks Long-term supplier contracts Synchronized production with suppliers Supplier certification Mixed loads and frequent deliveries Precise delivery schedules Standardized, sequenced delivery Locating in close proximity to the customer
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Copyright 2006 John Wiley & Sons, Inc.15-29 Benefits of Lean Production Reduced inventory Improved quality Lower costs Reduced space requirements Shorter lead time Increased productivity
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Copyright 2006 John Wiley & Sons, Inc.15-30 Benefits of Lean Production (2) Greater flexibility Better relations with suppliers Simplified scheduling Increased capacity Better use of human resources More product variety than repetitive manufacturing More efficient than intermittent manufacturing
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Limitations of lean production If the company makes only a small number of high-volume items, then mass production or continuous manufacturing will be more efficient Lean production does not work well when many low-volume items make scheduling hard many low-volume items make scheduling hard total demand is seasonal or highly variable total demand is seasonal or highly variable the company must accommodate large rush orders the company must accommodate large rush orders the company is small and cannot afford enough equipment for cellular manufacturing the company is small and cannot afford enough equipment for cellular manufacturing Copyright 2006 John Wiley & Sons, Inc.15-31
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Copyright 2006 John Wiley & Sons, Inc.15-32 Lean Services Basic elements of lean production apply equally to services Most prevalent applications lean retailing lean banking lean health care
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Copyright 2006 John Wiley & Sons, Inc.15-33 Copyright 2006 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.
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