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To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Lean SystemsLean Systems
Chapter 11Chapter 11
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Characteristics of Lean SystemsCharacteristics of Lean Systems
Pull method of materials flowPull method of materials flow Consistent qualityConsistent quality Small lot sizesSmall lot sizes Uniform workstation loadsUniform workstation loads Standardized components and Standardized components and
work methodswork methods Close supplier tiesClose supplier ties Flexible workforceFlexible workforce Line flowsLine flows AutomationAutomation Preventive maintenancePreventive maintenance
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Figure 11.1Figure 11.1
Scrap Unreliable suppliers
Capacity imbalance
Continuous Improvement Continuous Improvement with Lean Systemswith Lean Systems
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving postReceiving post
Kanban card for Kanban card for product 1product 1
Kanban card for Kanban card for product 2product 2
Figure 11.2Figure 11.2
Fabrication Fabrication cellcell
OO11
OO22
OO33
OO22
Storage Storage areaarea
Empty containersEmpty containers
Full containersFull containers
Assembly line 1Assembly line 1
Assembly line 2Assembly line 2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Storage Storage areaarea
Empty containersEmpty containers
Full containersFull containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving postReceiving post
Kanban card for Kanban card for product 1product 1
Kanban card for Kanban card for product 2product 2
Fabrication Fabrication cellcell
OO11
OO22
OO33
OO22
Assembly line 1Assembly line 1
Assembly line 2Assembly line 2
Figure 11.2Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Storage Storage areaarea
Empty containersEmpty containers
Full containersFull containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving postReceiving post
Kanban card for Kanban card for product 1product 1
Kanban card for Kanban card for product 2product 2
Fabrication Fabrication cellcell
OO11
OO22
OO33
OO22
Assembly line 1Assembly line 1
Assembly line 2Assembly line 2
Figure 11.2Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Storage Storage areaarea
Empty containersEmpty containers
Full containersFull containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving postReceiving post
Kanban card for Kanban card for product 1product 1
Kanban card for Kanban card for product 2product 2
Fabrication Fabrication cellcell
OO11
OO22
OO33
OO22
Assembly line 1Assembly line 1
Assembly line 2Assembly line 2
Figure 11.2Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Storage Storage areaarea
Empty containersEmpty containers
Full containersFull containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving postReceiving post
Kanban card for Kanban card for product 1product 1
Kanban card for Kanban card for product 2product 2
Fabrication Fabrication cellcell
OO11
OO22
OO33
OO22
Assembly line 1Assembly line 1
Assembly line 2Assembly line 2
Figure 11.2Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Storage Storage areaarea
Empty containersEmpty containers
Full containersFull containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving postReceiving post
Kanban card for Kanban card for product 1product 1
Kanban card for Kanban card for product 2product 2
Fabrication Fabrication cellcell
OO11
OO22
OO33
OO22
Assembly line 1Assembly line 1
Assembly line 2Assembly line 2
Figure 11.2Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Storage Storage areaarea
Empty containersEmpty containers
Full containersFull containers
Single-Card Kanban SystemSingle-Card Kanban SystemReceiving postReceiving post
Kanban card for Kanban card for product 1product 1
Kanban card for Kanban card for product 2product 2
Fabrication Fabrication cellcell
OO11
OO22
OO33
OO22
Assembly line 1Assembly line 1
Assembly line 2Assembly line 2
Figure 11.2Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
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
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Number of ContainersNumber of Containers
k k = = dd( ( ww + + pp )( 1 + )( 1 + ) )
cc
dd = 2000 units/day = 2000 units/day pp = 0.02 day = 0.02 day = 0.10 = 0.10ww = 0.08 day = 0.08 day cc = 22 units = 22 units
Westerville Auto PartsWesterville Auto Parts
Example 11.1Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Number of ContainersNumber of Containers
k k = = 2000( 0.08 + 0.02 )( 1 + 0.10 )2000( 0.08 + 0.02 )( 1 + 0.10 )
2222
dd = 2000 units/day = 2000 units/day pp = 0.02 day = 0.02 day = 0.10 = 0.10ww = 0.08 day = 0.08 day cc = 22 units = 22 units
Westerville Auto PartsWesterville Auto Parts
Example 11.1Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Number of ContainersNumber of Containers
k k = = 2000( 0.08 + 0.02 )( 1 + 0.10 )2000( 0.08 + 0.02 )( 1 + 0.10 )
2222
dd = 2000 units/day = 2000 units/day pp = 0.02 day = 0.02 day = 0.10 = 0.10ww = 0.08 day = 0.08 day cc = 22 units = 22 units
Westerville Auto PartsWesterville Auto Parts
Example 11.1Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Number of ContainersNumber of Containers
k k = 10 containers= 10 containers
dd = 2000 units/day = 2000 units/day pp = 0.02 day = 0.02 day = 0.10 = 0.10ww = 0.08 day = 0.08 day cc = 22 units = 22 units
Westerville Auto PartsWesterville Auto Parts
Example 11.1Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Number of ContainersNumber of Containers
dd = 2000 units/day = 2000 units/day pp = 0.02 day = 0.02 day = 0.10 = 0.10ww = = 0.060.06 day day cc = 22 units = 22 units
Westerville Auto PartsWesterville Auto Parts
k k = = dd( ( ww + + pp )( 1 + )( 1 + ) )
cc
k k = 10 containers= 10 containers
Example 11.1Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Number of ContainersNumber of Containers
dd = 2000 units/day = 2000 units/day pp = 0.02 day = 0.02 day = 0.10 = 0.10ww = = 0.060.06 day day cc = 22 units = 22 units
Westerville Auto PartsWesterville Auto Parts
k k = = 2000(0.06 + 0.02)(1.10)2000(0.06 + 0.02)(1.10)
2222
k k = 10 containers= 10 containers
Example 11.1Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Number of ContainersNumber of Containers
dd = 2000 units/day = 2000 units/day pp = 0.02 day = 0.02 day = 0.10 = 0.10ww = = 0.060.06 day day cc = 22 units = 22 units
Westerville Auto PartsWesterville Auto Parts
k k = = 2000(0.06 + 0.02)(1.10)2000(0.06 + 0.02)(1.10)
2222
k k = 10 containers= 10 containers
Example 11.1Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Number of ContainersNumber of Containers
dd = 2000 units/day = 2000 units/day pp = 0.02 day = 0.02 day = 0.10 = 0.10ww = = 0.060.06 day day cc = 22 units = 22 units
Westerville Auto PartsWesterville Auto Parts
k k = 8 containers= 8 containers
k k = 10 containers= 10 containers
Example 11.1Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Number of ContainersNumber of ContainersWesterville Auto PartsWesterville 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 11.3Figure 11.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.
Operational BenefitsOperational Benefits Reduce space requirementsReduce space requirements Reduce inventory investmentReduce inventory investment Reduce lead timesReduce lead times Increase labor productivityIncrease labor productivity Increase equipment utilizationIncrease equipment utilization Reduce paperwork and simplify Reduce paperwork and simplify
planning systemsplanning systems Valid priorities for schedulingValid priorities for scheduling Workforce participationWorkforce participation Increase service/product qualityIncrease service/product quality
