Lecture Operations management: Creating value along the supply chain (Canadian edition) - Chapter 16

Chapter 16 - Lean systems. This chapter includes contents: Basic elements of lean production, benefits of lean production, implementing lean production, lean services, leaning the supply chain, lean six sigma, lean and the environment, value stream mapping.

OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition Robert S Russell, Bernard W Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 16 Lean Systems 6-1 Learning Objectives — Basic Elements of Lean Production — Benefits of Lean Production — Implementing Lean Production — Lean Services — Leaning the Supply Chain — Lean Six Sigma — Lean and the Environment — Value Stream Mapping 6-2 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 product or service 6-3 Seven Wastes in Operations 6-4 Seven Wastes in Operations 6-5 Seven Wastes in Operations 6-6 Basic Elements 11 12 13 14 Flexible resources Cellular layouts Pull system Kanbans Small lots Quick setups Uniform production levels Quality at the source Total productive maintenance 15 Supplier networks 6-7 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 6-8 Standard Operating Routine for a Worker 6-9 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 6-10 5S Workplace Scan 5S Scan Goal Eliminate or Correct Seiketsu (standardize) § Maintaining and monitoring the first three categories § Necessary information not visible; standards not known; checklists missing; quantities and limits not easily recognizable; items can’t be located within 30 seconds § Sticking to the rules § 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 Shisuke (sustain) 6-41 Supplier Networks —Long-term supplier contracts —Synchronized production —Supplier certification —Mixed loads and frequent deliveries —Precise delivery schedules —Standardized, sequenced delivery —Locating in close proximity to the customer 6-42 Benefits of Lean Production —Reduced inventory —Improved quality —Lower costs —Reduced space requirements —Shorter lead time —Increased productivity 6-43 Benefits of Lean Production —Greater flexibility —Better relations with suppliers —Simplified scheduling and control activities —Increased capacity —Better use of human resources —More product variety 6-44 Implementing Lean Production —Use lean production to finely tune an operating system —Somewhat different in North America than Japan —Lean production is still evolving —Lean production is not for everyone 6-45 Lean Production Problems —Highly variable demand —Large variety of low-volume products —Custom engineered products —Mass production parts —Unexpected changes in demand or supply 6-46 Lean Services —Basic elements of lean production apply equally to services —Most prevalent applications —lean retailing —lean banking —lean health care 6-47 Leaning the Supply Chain —“pulling” a smooth flow of material through a series of suppliers to support frequent replenishment orders and changes in customer demand —Firms need to share information and coordinate demand forecasts, production planning, and inventory replenishment with suppliers and supplier’s suppliers throughout supply chain 6-48 Leaning the Supply Chain —Pull a smooth flow of material through the system —Build a highly collaborative business environment —Adopt the technology to support your system —Consider “near shoring” 6-49 Lean Six Sigma —Lean and Six Sigma are natural partners for process improvement —Lean —Eliminates waste and creates flow —More continuous improvement —Six Sigma —Reduces variability and enhances process capabilities —Requires breakthrough improvements 6-50 Value Stream Mapping (VSM) —A tool for analyzing process flows and eliminating waste —Specialized icons related to —lean production —material and information flows —“aha” Kaizen bursts 6-51 VSM Shapes 6-52 VSM for Milling & Welding 6-53 VSM for Emergency Room 6-54 COPYRIGHT Copyright © 2014 John Wiley & Sons Canada, Ltd All rights reserved Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd The purchaser may make back-up copies for his or her own use only and not for distribution or resale The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein ... — Leaning the Supply Chain — Lean Six Sigma — Lean and the Environment — Value Stream Mapping 6-2 Lean Production —Doing more with less inventory, fewer workers, less space —Just-in-time (JIT)... which adds value to product or service 6-3 Seven Wastes in Operations 6-4 Seven Wastes in Operations 6-5 Seven Wastes in Operations 6-6 Basic Elements 11 12 13 14 Flexible resources Cellular layouts... —time required for the worker to complete one pass through the operations assigned —Takt time —paces production to customer demand 6-8 Standard Operating Routine for a Worker 6-9 Cellular Layouts