BUAD306 Lean Operations
Jan 02, 2016
Lean Operations
A flexible system of operation that uses considerably less resources than a traditional systemTend to achieve
• Greater productivity• Lower costs• Shorter cycle times• Higher quality
Lean Operations
Three basic elements are present in a lean operating environment:Demand drivenWaste reductionCulture dedicated to continuous
improvement
Lean Operations Goals
Ultimate Goal: A balanced system that achieves a smooth, rapid flow of materials through the system to match supply to customer demand
Supporting Goals:Eliminate disruptionsMake system flexibleEliminate waste
Sources of Waste
Inventory Waste from overproduction Waiting time Unnecessary transport Processing waste Product defects/rework Inefficient work methods Underutilization of employees
Lean Operations Building Blocks
Product design Process design Personnel/organizational elements Manufacturing planning and control
Lean Ops – Product Design
Standard parts Modular design Highly capable production systems Concurrent engineering
Announcements
QuizzesLast 2 – Pick up from meAll Others: Outside office
Extra Credits – Due Weds Exam Breakdown – Tomorrow Course Evals – this week Professionalism
Lean Ops – Process Design
Small lot sizes Set up time reduction Manufacturing cells Efficiencies Limited WIP Inventory Quality Improvement Production flexibility – reduced
bottlenecks Little inventory storage
Small-Lot Production
Ideal size = 1 Requires less space (lower inventory costs) &
capital investment Moves processes closer together (increased
efficiency) Allows for greater flexibility in scheduling Makes quality problems easier to detect Makes processes more dependent on each
other (increases responsibility and quality) Requires set-up time reduction!
Inventory Considerations
Inventory Hides ProblemsBad designPoor qualityMachine breakdownsUnreliable supplierInefficient layout
Decrease inventory to expose problems
Process Design: Fail-Safe Methods
Building safeguards into a process to reduce or eliminate the potential for errors during a process
ExamplesElectric breakersSeatbelt fastener warningsATMs that signal if a card is let in a
machine
Lean Ops – Personnel/ Organizational Elements
Workers as assets Cross-trained workers Continuous improvement Cost accounting Leadership/project management
Lean Ops – Manufacturing Planning & Control
Level loading (smooth production) Pull systems – work moves in response to
demand from next step Visual systems (Kanban) Close vendor relationships Reduced transaction processing Preventive maintenance, etc.
Converting to Lean Ops
Get top management commitment Decide which parts need most effort by
studying the current process and identifying bottlenecks
Obtain support of workers Start by trying to reduce setup times Gradually convert operations Convert suppliers to JIT Prepare for obstacles*
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Obstacles to Conversion
Workers/management may not be cooperative – education is essential
Suppliers may resist the demands of a lean system
Management may not be committed Entails a change to the corporate
culture– not easy to achieve
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Lean Service Industries
Focus is on the time needed to perform the service
Speed is often order winner for services
Examples:Domino’s Pizza, Fed-X, Jiffy Lube,
911, JIT publishing, etc.
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