ch16

Chapter 16

Lean Systems

Russell and TaylorOperations Management, 8th Edition

© 2014 John Wiley & Sons, Inc. - Russell and Taylor 8e

Lecture Outline

• Basic Elements of Lean Production – Slide 4• Implementing Lean Systems – Slide 47• Lean Six Sigma – Slide 49• Value Stream Mapping – Slide 50• Lean and the Environment – Slide 54• Lean Services – Slide 56

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Learning Objectives

• Explain how the basic elements of lean eliminate waste, create flow and continuously improve operations

• Assess the benefits of lean, as well as the difficulties in implementing lean systems

• Explain how the complementary concepts of lean and six sigma work together for process improvement

• Construct and interpret a value stream map• Create strategies for implementing lean in service

industries• Use lean concepts and techniques to enhance

environmental initiatives

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Basic Elements of 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

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Waste in Operations

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Waste in Operations

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Waste in Operations

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Elements of Lean Production

1. Flexible resources2. Cellular layouts3. Pull system4. Kanbans5. Small lots6. Quick setups7. Uniform production levels8. Quality at the source9. Total productive

maintenance10. Supplier networks

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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

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Standard Operating Routine for a Worker

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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

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Cells With Worker Routes

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Worker Routes Lengthen as Volume Decreases

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Pull System

• Material is pulled through the system when needed

• Reversal of traditional push system where material is pushed according to a schedule

• Forces cooperation• Prevent over and underproduction• While push systems rely on a predetermined

schedule, pull systems rely on customer requests

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Kanbans

• Card which indicates standard quantity of production

• Derived from two-bin inventory system• Maintain discipline of pull production• Authorize production and movement of goods

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Sample Kanban

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Origin of Kanban

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Types of Kanban

• Production kanban– authorizes production of

goods• Withdrawal kanban

– authorizes movement of goods

• Kanban square– a marked area designated

to hold items

• Signal kanban– triangular kanban to

signal production at the previous workstation

• Material kanban– to order material in

advance of a process• Supplier kanban

– rotates between the factory and suppliers

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Dual Kanban System

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Other Kanbans

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Other Kanbans

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Determining Number of Kanbans

where

N = number of kanbans or containersd = average demand over some time periodL = lead time to replenish an orderS = safety stockC = container size

No. of Kanbans =average demand during lead time + safety stock

container size

N = dL + SC

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d = 150 bottles per hourL = 30 minutes = 0.5 hoursS = 0.10 (150 x 0.5) = 7.5C = 25 bottles

N = =dL + SC

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d = 150 bottles per hourL = 30 minutes = 0.5 hoursS = 0.10 (150 x 0.5) = 7.5C = 25 bottles

Round up to 4 (to allow some slack) or down to 3 (to force improvement)

N = =

= = 3.3 kanbans or containers

dL + SC

(150 x 0.5) + 7.525

75 + 7.525

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Small Lots

• Require less space and capital investment• Move processes closer together• Make quality problems easier to detect• Make processes more dependent on each other

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Inventory Hides Problems

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Less Inventory Exposes Problems

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Components of Lead Time

• Processing time• Reduce number of items or improve efficiency

• Move time• Reduce distances, simplify movements, standardize

routings• Waiting time

• Better scheduling, sufficient capacity• Setup time

• Generally the biggest bottleneck

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Quick Setups

• Internal setup– Can be performed

only when a process is stopped

• External setup– Can be performed in

advance

• SMED Principles– Separate internal setup

from external setup– Convert internal setup

to external setup– Streamline all aspects

of setup– Perform setup

activities in parallel or eliminate them entirely

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Techniques for Reducing Setup Time

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Uniform Production Levels

• Result from smoothing production requirements on final assembly line

• Kanban systems can handle +/- 10% demand changes

• Reduce variability with more accurate forecasts• Smooth demand across planning horizon• Mixed-model assembly steadies component

production

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Mixed-Model Sequencing

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Quality at the Source

• Visual control– makes problems visible

• Poka-yokes– prevent defects from

occurring• Kaizen

– a system of continuous improvement; “change for the good of all”

• Jidoka– authority to stop the

production line• Andons

– call lights that signal quality problems

• Under-capacity scheduling– leaves time for planning,

problem solving, and maintenance

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Examples of Visual Control

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5 Whys

• A key part in an effective Kaizen is finding the root cause of a problem and eliminating it

• A practice of asking “why?” repeatedly until the underlying cause is identified (usually requiring five questions)

• Simple, yet powerful technique for finding the root cause of a problem

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Total Productive Maintenance (TPM)

• Breakdown maintenance• Repairs to make failed machine operational

• Preventive maintenance• System of periodic inspection and maintenance to

keep machines operating• TPM combines preventive maintenance and

total quality concepts

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TPM Requirements

• Design products that can be easily produced on existing machines

• Design machines for easier operation, changeover, maintenance

• Train and retrain workers to operate machines• Purchase machines that maximize productive

potential• Design preventive maintenance plan spanning

life of machine

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5S Workplace Scan


Seiri (sort)

Seiton (set in order)

Seisou (shine)

5S ScanKeep only what you

need

A place for everything and everything in its place

Cleaning, and looking for ways to keep clean and organized

GoalUnneeded equipment, tools, furniture;

unneeded items on walls, bulletins; items blocking aisles or stacked in corners; unneeded inventory, supplies, parts; safety hazards

Items not in their correct places; correct places not obvious; aisles, workstations, & equipment locations not indicated; items not put away immediately after use

Floors, walls, stairs, equipment, & surfaces not clean; cleaning materials not easily accessible; lines, labels, signs broken or unclean; other cleaning problems

Eliminate or Correct

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Seiketsu (standardize)

Shisuke (sustain)

5S ScanMaintaining and

monitoring the first three categories

Sticking to the rules

GoalNecessary information not visible; standards

not known; checklists missing; quantities and limits not easily recognizable; items can’t be located within 30 seconds

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

Eliminate or Correct

5S Workplace Scan

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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

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Benefits of Lean Production

• Reduced inventory• Improved quality• Lower costs• Reduced space requirements• Shorter lead time• Increased productivity

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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

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Implementing Lean Systems

• Use lean production to finely tune an operating system

• Somewhat different in USA than Japan• Lean production is still evolving• Lean production is not for everyone

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Drawbacks of Lean Production

• Highly variable demand• Large variety of low-volume products• Custom engineered products• Mass production parts• Unexpected changes in demand or supply

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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

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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

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VSM Shapes

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VSM for Milling & Welding

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VSM for Emergency Room

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Lean and the Environment

• Identify environmental waste along with other forms

• These can indicate poor process design• Reduce costs of

• material• energy• regulatory compliance

• Reduce worker health and safety risks

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US EPA Recommendations

• Commit to eliminate environmental waste• Involve staff with environmental expertise in

planning for & implementing lean events• Find & drive out environmental waste in specific

processes by using lean tools• Empower & enable workers to eliminate

environmental waste in their work areas• Use environmental, health & safety icons in VSM

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Lean Services

• Basic elements of lean production apply equally to services

• Most prevalent applications• lean retailing• lean banking• lean health care• supply chain

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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

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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”

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Copyright 2014 John Wiley & Sons, Inc.All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.

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