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Chapter 15Chapter 15
Lean ProductionLean ProductionLean ProductionLean Production
Operations Management 5th EditionOperations Management 5th EditionOperations Management - 5th EditionOperations Management - 5th Edition
Roberta Russell & Bernard W. Taylor, IIIRoberta Russell & Bernard W. Taylor, III
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Beni AsllaniBeni Asllani
University of Tennessee at ChattanoogaUniversity of Tennessee at Chattanooga
L O liL O liLecture OutlineLecture Outline
Basic Elements of Lean ProductionBenefits of Lean ProductionImplementing Lean ProductionLean Services
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1515--22
L P d iLean Production
Doing more with less inventory, fewer workers, less spaceJ t i ti (JIT)Just-in-time (JIT)
smoothing the flow of material to arrive just as it is needed“JIT” and “Lean Production” are used interchangeably
Mudawaste, anything other than that which adds value to the product or service
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W i O iW i O iWaste in OperationsWaste in Operations
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W i O i ( )W i O i ( )Waste in Operations (cont.)Waste in Operations (cont.)
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W i O i ( )W i O i ( )Waste in Operations (cont.)Waste in Operations (cont.)
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B i ElB i ElBasic ElementsBasic Elements
1. Flexible resources2. Cellular layouts3. Pull production system4. Kanban production control5. Small lot production6. Quick setups7. Uniform production levels8. Total productive
maintenance9. Supplier networks
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Fl ibl RFlexible Resources
Multifunctional workersperform more than one jobgeneral-purpose machines perform several basic functions
Cycle timeytime required for the worker to complete one pass through the operations assignedg
Takt timepaces production to customer demand
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Standard OperatingStandard Operating Routine for a Worker
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C ll l LCellular Layouts
Manufacturing cellscomprised of dissimilar machines broughtcomprised of dissimilar machines brought together to manufacture a family of parts
Cycle time is adjusted to match takt timeCycle time is adjusted to match takt time by changing worker paths
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C ll i h W k RCells with Worker Routes
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Worker Routes Lengthen asWorker Routes Lengthen as Volume Decreases
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P ll SPull System
Material is pulled through the system when Material is pulled through the system when neededneededReversal of traditional push system where Reversal of traditional push system where material is pushed according to a schedulematerial is pushed according to a scheduleForces cooperationForces cooperationForces cooperationForces cooperationPrevent over and underproductionPrevent over and underproductionWhile push systems rely on a predeterminedWhile push systems rely on a predetermined schedule, pull systems rely on customer requests
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1515--1313
K bK bKanbansKanbans
Card which indicates standard quantity Card which indicates standard quantity of productionof productionof productionof productionDerived from twoDerived from two--bin inventory systembin inventory systemMaintain discipline of pull productionMaintain discipline of pull productionMaintain discipline of pull productionMaintain discipline of pull productionAuthorize production and movement of Authorize production and movement of goodsgoodsgoodsgoods
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S l K bS l K bSample KanbanSample Kanban
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O i i f K bO i i f K bOrigin of KanbanOrigin of Kanbana) Twoa) Two--bin inventory systembin inventory system b) Kanban inventory systemb) Kanban inventory system
Bin 1Bin 1KanbanKanban
Reorder Reorder cardcard
Bin 2Bin 2
Q - Rcardcard Q RRR
QQ = order quantity= order quantityRR = reorder point = reorder point -- demand during lead timedemand during lead time
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T f K bT f K bTypes of KanbanTypes of Kanban
Production kanbanauthorizes production of
Signal kanbana triangular kanban
d t i lp
goodsWithdrawal kanban
authorizes movement of
used to signal production at the previous workstationauthorizes movement of
goodsKanban square
k d d i t d
Material kanbanused to order material in advance of a processa marked area designated
to hold itemsadvance of a process
Supplier kanbanrotates between the
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rotates between the factory and suppliers
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Determining Number ofDetermining Number ofDetermining Number of Determining Number of KanbansKanbans
No. of Kanbans =No. of Kanbans =average demand during lead time + safety stockaverage demand during lead time + safety stock
container sizecontainer size
NN ==dLdL + + SS
CCwherewhere
NN = number of kanbans or containers= number of kanbans or containersdd = average demand over some time period= average demand over some time periodLL = lead time to replenish an order= lead time to replenish an orderSS = safety stock= safety stock
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CC = container size= container size
Determining Number of Determining Number of ggKanbans: ExampleKanbans: Example
dd = 150 bottles per hour= 150 bottles per hourLL = 30 minutes = 0.5 hours= 30 minutes = 0.5 hoursSS = 0 10(150 x 0 5) = 7 5= 0 10(150 x 0 5) = 7 5SS 0.10(150 x 0.5) 7.5 0.10(150 x 0.5) 7.5CC = 25 bottles= 25 bottles
dLdL SS (150 0 5) + 7 5(150 0 5) + 7 5NN = == =
= = 3.3 kanbans or containers= = 3.3 kanbans or containers
dLdL + + SSCC
(150 x 0.5) + 7.5(150 x 0.5) + 7.52525
75 + 7.575 + 7.52525
Round up to 4 (to allow some slack) or Round up to 4 (to allow some slack) or d t 3 (t f i t)d t 3 (t f i t)
2525
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down to 3 (to force improvement)down to 3 (to force improvement)
S ll LS ll LSmall LotsSmall Lots
Require less space and capital Require less space and capital investmentinvestmentinvestmentinvestmentMove processes closer togetherMove processes closer togetherMake quality problems easier to Make quality problems easier to detectdetectMake processes more dependent Make processes more dependent on each otheron each other
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o eac ot eo eac ot e
Inventory Hides ProblemsInventory Hides Problems
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Less Inventory Exposes ProblemsLess Inventory Exposes Problems
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C f L d TiC f L d TiComponents of Lead TimeComponents of Lead Time
Processing timeProcessing timeReduce number of items or improve efficiencyReduce number of items or improve efficiencyReduce number of items or improve efficiencyReduce number of items or improve efficiency
Move timeMove timeReduce distances, simplify movements, standardize Reduce distances, simplify movements, standardize routingsroutings
Waiting timeWaiting timeBetter scheduling sufficient capacityBetter scheduling sufficient capacityBetter scheduling, sufficient capacityBetter scheduling, sufficient capacity
Setup timeSetup timeGenerally the biggest bottleneckGenerally the biggest bottleneck
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Generally the biggest bottleneckGenerally the biggest bottleneck
Q i k SQ i k SQuick SetupsQuick Setups
Internal setupInternal setupC b f dC b f d
SMED PrinciplesSMED PrinciplesSeparate internal setup from Separate internal setup from Can be performed Can be performed
only when a only when a process is stoppedprocess is stopped
E t l tE t l t
p pp pexternal setupexternal setupConvert internal setup to external Convert internal setup to external setupsetup
External setupExternal setupCan be performed Can be performed in advancein advance
ppStreamline all aspects of setupStreamline all aspects of setupPerform setup activities in Perform setup activities in parallel or eliminate them entirelyparallel or eliminate them entirelyparallel or eliminate them entirelyparallel or eliminate them entirely
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Common Techniques for ReducingCommon Techniques for ReducingCommon Techniques for Reducing Common Techniques for Reducing Setup TimeSetup Time
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Common Techniques for ReducingCommon Techniques for ReducingCommon Techniques for Reducing Common Techniques for Reducing Setup Time (cont.)Setup Time (cont.)
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Common Techniques for ReducingCommon Techniques for ReducingCommon Techniques for Reducing Common Techniques for Reducing Setup Time (cont.)Setup Time (cont.)
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U if P d i L lUniform Production Levels
Result from smoothing production requirementsrequirementsKanban systems can handle +/Kanban systems can handle +/-- 10% 10% demand changesdemand changesggSmooth demand across planning Smooth demand across planning horizonhorizonMixedMixed--model assembly steadies model assembly steadies component productioncomponent production
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MixedMixed--Model SequencingModel SequencingMixedMixed Model SequencingModel Sequencing
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Q li h SQuality at the Source
Visual controlmakes problems visible
Jidokaauthority to stop the
Poka-yokesprevent defects from
production lineAndons
call lights that signal prevent defects from occurring
Kaizena system of continuous
g gquality problems
Under-capacity schedulinga system of continuous
improvement; “change for the good of all”
gleaves time for planning, problem solving, and maintenance
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Examples of VisualExamples of VisualExamples of Visual Examples of Visual ControlControl
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Examples of VisualExamples of VisualExamples of Visual Examples of Visual Control (cont.)Control (cont.)
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Examples of VisualExamples of VisualExamples of Visual Examples of Visual Control (cont.)Control (cont.)
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Total ProductiveTotal ProductiveTotal Productive Total Productive Maintenance (TPM)Maintenance (TPM)
Breakdown maintenanceBreakdown maintenanceR i t k f il d hi ti lR i t k f il d hi ti lRepairs to make failed machine operationalRepairs to make failed machine operational
Preventive maintenancePreventive maintenanceSystem of periodic inspection and System of periodic inspection and maintenance to keep machines operatingmaintenance to keep machines operating
TPM combines preventive maintenance TPM combines preventive maintenance and total quality conceptsand total quality concepts
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TPM R iTPM R iTPM RequirementsTPM Requirements
Design products that can be easily produced Design products that can be easily produced on existing machineson existing machinesDesign machines for easier operation, Design machines for easier operation, changeover, maintenancechangeover, maintenanceTrain and retrain workers to operate machinesTrain and retrain workers to operate machinesTrain and retrain workers to operate machinesTrain and retrain workers to operate machinesPurchase machines that maximize productive Purchase machines that maximize productive potentialpotentialDesign preventive maintenance plan spanning Design preventive maintenance plan spanning life of machinelife of machine
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5S Scan Goal Eliminate or CorrectUnneeded equipment, tools, furniture; unneeded items on walls, bulletins; items blocking aisles or stacked in corners; unneeded inventory, supplies, parts; safety
Keep only what you need
Seiri(sort)
y pp p yhazardsItems not in their correct places; correct places not obvious; aisles, workstations, & equipment locations not indicated; items not
A place for everything and everything in its Seiton
( t i d )q p
put away immediately after useFloors, walls, stairs, equipment, & surfaces not lines, clean; cleaning materials not easily accessible; labels, signs broken or unclean;
y gplace Cleaning, and looking for ways to keep clean and
(set in order)
Seisou(shine) g
other cleaning problemsNecessary information not visible; standards not known; checklists missing; quantities and limits not easily recognizable; items can’t be
porganized
Maintaining and monitoring the first
(shine)
Seiketsu(standardi e)
y glocated within 30 secondsNumber of workers without 5S training; number of daily 5S inspections not performed; number of personal items not stored; number
gthree categoriesSticking to the rules
(standardize)
Shisuke(sustain)
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of times job aids not available or up-to-date( )
S li N kSupplier Networks
Long-term supplier contractsSynchronized productionSynchronized productionSupplier certificationMixed loads and frequent deliveriesMixed loads and frequent deliveriesPrecise delivery schedulesSt d di d d d liStandardized, sequenced deliveryLocating in close proximity to the customer
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1515--4040
Benefits of LeanBenefits of Lean Production
Reduced inventoryImproved qualityImproved qualityLower costsReduced space requirementsReduced space requirementsShorter lead timeIncreased productivityIncreased productivity
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Benefits of LeanBenefits of Lean Production (cont.)
Greater flexibilityBetter relations with suppliersBetter relations with suppliersSimplified scheduling and control activitiesIncreased capacityIncreased capacityBetter use of human resourcesMore product varietyMore product variety
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I l i L P d iImplementing Lean Production
Use lean production to finely tune anUse lean production to finely tune anUse lean production to finely tune an Use lean production to finely tune an operating systemoperating systemSomewhat different in USA than JapanSomewhat different in USA than JapanSomewhat different in USA than JapanSomewhat different in USA than JapanLean production is still evolvingLean production is still evolvingLean production isn’t for everyoneLean production isn’t for everyone
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L S iL S iLean ServicesLean Services
Basic elements of lean Basic elements of lean production apply equally toproduction apply equally toproduction apply equally to production apply equally to servicesservicesM t l t li tiMost prevalent applications
lean retailinglean bankinglean health care
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