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Lean Lean SystemsSystems
Characteristics of Lean Systems: Characteristics of Lean Systems: Just-in-TimeJust-in-Time Pull method of materials flowPull method of materials flow Consistently high qualityConsistently high quality Small lot sizesSmall lot sizes Uniform workstation loadsUniform workstation loads Standardized components and work methodsStandardized components and work methods Close supplier tiesClose supplier ties Flexible workforceFlexible workforce Line flowsLine flows Automated productionAutomated production Preventive maintenancePreventive maintenance
Lot Size and Cycle InventoryLot Size and Cycle Inventory
Lot Size and Cycle InventoryLot Size and Cycle Inventory
Lot size = 100
On
-han
d in
ven
tory
5 10 15 20 25 30
Time (hours)
100 –
75 –
50 –
25 –
0 –
Average cycle inventory
Figure 16.1
Lot Size and Cycle InventoryLot Size and Cycle Inventory
Average cycle inventory
Lot size = 100
On
-han
d in
ven
tory
5 10 15 20 25 30
Time (hours)
100 –
75 –
50 –
25 –
0 –
Figure 16.1
Lot Size and Cycle InventoryLot Size and Cycle Inventory
Average cycle inventory
Lot size = 100
Lot size = 50On
-han
d in
ven
tory
5 10 15 20 25 30
Time (hours)
100 –
75 –
50 –
25 –
0 –
Figure 16.1
Lot Size and Cycle InventoryLot Size and Cycle Inventory
Average cycle inventory
Lot size = 100
Lot size = 50On
-han
d in
ven
tory
5 10 15 20 25 30
Time (hours)
100 –
75 –
50 –
25 –
0 –
Figure 16.1
Lot Size and Cycle InventoryLot Size and Cycle Inventory
Average cycle inventory
Lot size = 100
Lot size = 50On
-han
d in
ven
tory
5 10 15 20 25 30
Time (hours)
100 –
75 –
50 –
25 –
0 –
Figure 16.1
Figure 16.2
Scrap Unreliable suppliers
Capacity imbalance
Continuous Improvement with Lean Systems
Continuous Improvement with Lean Systems
Single-Card Kanban SystemSingle-Card Kanban System
Storage area
Empty containers
Full containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving post
Kanban card for product 1
Kanban card for product 2
Figure 16.3
Fabrication cell
O1
O2
O3
O2
Assembly line 1
Assembly line 2
Storage area
Empty containers
Full containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving post
Kanban card for product 1
Kanban card for product 2
Figure 16.3
Fabrication cell
O1
O2
O3
O2
Assembly line 1
Assembly line 2
Storage area
Empty containers
Full containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving post
Kanban card for product 1
Kanban card for product 2
Figure 16.3
Fabrication cell
O1
O2
O3
O2
Assembly line 1
Assembly line 2
Storage area
Empty containers
Full containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving post
Kanban card for product 1
Kanban card for product 2
Figure 16.3
Fabrication cell
O1
O2
O3
O2
Assembly line 1
Assembly line 2
Storage area
Empty containers
Full containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving post
Kanban card for product 1
Kanban card for product 2
Figure 16.3
Fabrication cell
O1
O2
O3
O2
Assembly line 1
Assembly line 2
Storage area
Empty containers
Full containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving post
Kanban card for product 1
Kanban card for product 2
Figure 16.3
Fabrication cell
O1
O2
O3
O2
Assembly line 1
Assembly line 2
Storage area
Empty containers
Full containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving post
Kanban card for product 1
Kanban card for product 2
Figure 16.3
Fabrication cell
O1
O2
O3
O2
Assembly line 1
Assembly line 2
Single-Card Kanban SystemSingle-Card Kanban SystemK
AN
BA
N
Part N
um
ber:
1234567Z
Lo
cation
:A
isle 5B
in 47
Lo
t Qu
antity:
6
Su
pp
lier:W
S 83
Cu
stom
er:W
S 116
Each container must have a cardEach container must have a card Assembly always withdraws from Assembly always withdraws from
fabrication (pull system)fabrication (pull system) Containers cannot be moved Containers cannot be moved
without a kanbanwithout a kanban Containers should contain the Containers should contain the
same number of partssame number of parts Only good parts are passed alongOnly good parts are passed along Production should not exceed Production should not exceed
authorizationauthorization
Number of ContainersNumber of Containers
Number of ContainersNumber of Containers
k = d( w + p )( 1 + )
c
d = 2000 units/day p = 0.02 day = 0.10w = 0.08 day c = 22 units
Westerville Auto Parts
Example 16.1
Number of ContainersNumber of Containers
k = 2000( 0.08 + 0.02 )( 1 + 0.10 )
22
d = 2000 units/day p = 0.02 day = 0.10w = 0.08 day c = 22 units
Westerville Auto Parts
Example 16.1
Number of ContainersNumber of Containers
k = 2000( 0.08 + 0.02 )( 1 + 0.10 )
22
d = 2000 units/day p = 0.02 day = 0.10w = 0.08 day c = 22 units
Westerville Auto Parts
Example 16.1
Number of ContainersNumber of Containers
k = 10 containers
d = 2000 units/day p = 0.02 day = 0.10w = 0.08 day c = 22 units
Westerville Auto Parts
Example 16.1
Number of ContainersNumber of Containers
d = 2000 units/day p = 0.02 day = 0.10w = 0.060.06 day c = 22 units
Westerville Auto Parts
k = d( w + p )( 1 + )
c
k = 10 containers
Example 16.1
Number of ContainersNumber of Containers
d = 2000 units/day p = 0.02 day = 0.10w = 0.060.06 day c = 22 units
Westerville Auto Parts
k = 2000(0.06 + 0.02)(1.10)
22
k = 10 containers
Example 16.1
Number of ContainersNumber of Containers
d = 2000 units/day p = 0.02 day = 0.10w = 0.060.06 day c = 22 units
Westerville Auto Parts
k = 2000(0.06 + 0.02)(1.10)
22
k = 10 containers
Example 16.1
Number of ContainersNumber of Containers
d = 2000 units/day p = 0.02 day = 0.10w = 0.060.06 day c = 22 units
Westerville Auto Parts
k = 8 containers
k = 10 containers
Example 16.1
Number of ContainersNumber of ContainersWesterville Auto Parts
d = 2000 units/day p = 0.02 day = 0.10w = 0.060.06 day c = 22 units
k = 8 containers
k = 10 containers
Figure 16.4
Lean Systems in ServicesLean Systems in Services
Consistently high quality Uniform facility loads Standardized work methods Close supplier ties Flexible workforce Automation Preventive maintenance Pull method of materials flow Line flows
Operational BenefitsOperational Benefits Reduce space requirements Reduce inventory investment Reduce lead times Increase labor productivity Increase equipment utilization Reduce paperwork and simple
planning systems Valid priorities for scheduling Workforce participation Increase product quality