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2. Note on the use of these slides These slides provide the
basic theory that I would like you to know. There are many more
techniques on the slides that came with the textbook, which are
also available on eFundi. As I talk you through this slide show,
please stop where you don't understand, go to either the textbook
(Heizer and Render) or the Heizer & Render slides and make sure
you understand them. If you still do not understand, on the first
page that you have to submit is space for you to tell me what you
do not understand so that I can cover it in class. Once you have
gone through the slides, go to the template on eFundi and prepare
your submissions for the next contact session.
4. Outcomes for today's contact OUTCOMES OF THEME O Describe
the principles of lean operations and critically analyse any
manufacturing or service process for benefits that could accrue
through lean principles Demonstrate their systematic understanding
of the principles of lean operations in a case study Demonstrate a
thorough understanding of the concepts by applying the theory to a
real-life community organisation. OUTCOMES OF THEME P Demonstrate a
thorough understanding of maintenance concepts by applying the
theory to a real-life community organisation.
5. Chapter 16 Theory Lean operations
6. What is lean production? Lean Production can be defined as
an integrated set of activities designed to achieve high-volume
production using minimal inventories (raw materials, work in
process, and finished goods) Lean Production also involves the
elimination of waste in production effort Lean Production also
involves the timing of production resources (i.e., parts arrive at
the next workstation just in time) Good housekeeping (5 Ss)
7. The Toyota Production System Based on two philosophies: 1.
Elimination of waste 2. Respect for people
8. Saw Saw Lathe PressPress Grinder LatheLathe Saw Press Heat
Treat Grinder Press Lathe Grinder Grinder A 2 BSaw Heat Treat
LatheSaw Lathe PressLathe 1 Elimination of Waste 1. Focused factory
networks 2. Group technology 3. Quality at the source 4. JIT
production 5. Uniform plant loading 6. Kanban production control
system 7. Minimized setup times
9. Monthly forecast Monthly forecast Daily Lead Time 828 hours
Total Cycle Time 316 hours Total Work Time 316 hours Daily Daily
Daily Daily Daily Daily Hours CT 2 CT 11 CT 3 CT 180 CT 110 CT 10
C/O C/O 22 C/O 5 C/O 240 C/O 280 C/O 10 Lot 345 Lot 345 Lot 345 Lot
345 Lot 345 Lot 345 Avail 10.5 Avail 10.5 Avail 10.5 Avail 10.5
Avail 10.5 Avail 10.5 Uptime 99% Uptime 60% Uptime 88% Uptime 88%
Uptime 88% Uptime 99% HOURS DAYS AT Available Time CT Cycle Time SI
Stage Inspection CO Changeover Time IT Idle time UT Uptime 72 2 11
3 180 110 10 12 12 96 60 264 1 1 8 5 22 120Housespermonth 6 0.17
0.92 0.25 15.00 9.17 0.83 Inspections 26 Earthworks Foundations
Plumbing Services Wet Trades Finishing trades 312 Production
Control Supplier I Customer I I I I I Site agents
10. Respect for People Level payrolls Cooperative employee
unions Subcontractor networks Bottom-round management style Quality
circles (Small Group Involvement Activities or SGIAs)
11. The seven wastes Over-processing Over-production Waiting
Defects Inventory Motion Transport (Talent)
13. Implementing Lean Link operations Balance workstation
capacities Redesign layout for flow Emphasize preventive
maintenance Reduce lot sizes Reduce setup/changeover time
14. Lean in Services (Examples) Organize Problem-Solving Groups
Upgrade Housekeeping Upgrade Quality Clarify Process Flows Revise
Equipment and Process Technologies Level the Facility Load
Eliminate Unnecessary Activities Reorganize Physical Configuration
Introduce Demand-Pull Scheduling Develop Supplier Networks
15. The 5 Ss Sort/segregate when in doubt, throw it out
Simplify/straighten methods analysis tools Shine/sweep clean daily
Standardize remove variations from processes
Sustain/self-discipline review work and recognize progress Two
additional Ss Safety build in good practices Support/maintenance
reduce variability and unplanned downtime
16. Remove Variability JIT systems require managers to reduce
variability caused by both internal and external factors
Variability is any deviation from the optimum process Inventory
hides variability Less variability results in less waste
17. Just-In-Time (JIT) Powerful strategy for improving
operations Materials arrive where they are needed when they are
needed Identifying problems and driving out waste reduces costs and
variability and improves throughput Requires a meaningful
buyer-supplier relationship
18. Inventory Inventory is at the minimum level necessary to
keep operations running JIT Inventory Tactics Use a pull system to
move inventory Reduce lot sizes Develop just-in-time delivery
systems with suppliers Deliver directly to point of use Perform to
schedule Reduce setup time Use group technology Table 16.2
19. Reduce Lot Sizes Figure 16.4 200 100 Inventory Time Q2 When
average order size = 100 average inventory is 50 Q1 When average
order size = 200 average inventory is 100
20. Lower Setup Costs Figure 16.5 Sum of ordering and holding
costs Holding cost Setup cost curves (S1, S2) T1 S1 T2 S2 Cost Lot
size
21. Quality Strong relationship JIT cuts the cost of obtaining
good quality because JIT exposes poor quality Because lead times
are shorter, quality problems are exposed sooner Better quality
means fewer buffers and allows simpler JIT systems to be used
22. Chapter 17 Theory Maintenance and reliability
23. Strategic Importance of Maintenance and Reliability Failure
has far reaching effects on a firms Operation Reputation
Profitability Dissatisfied customers Idle employees Profits
becoming losses Reduced value of investment in plant and
equipment
24. Maintenance and Reliability The objective of maintenance
and reliability is to maintain the capability of the system while
controlling costs Maintenance is all activities involved in keeping
a systems equipment in working order Reliability is the probability
that a machine will function properly for a specified time
25. Maintenance Strategy Employee Involvement Information
sharing Skill training Reward system Employee empowerment
Maintenance and Reliability Procedures Clean and lubricate Monitor
and adjust Make minor repair Keep computerized records Results
Reduced inventory Improved quality Improved capacity Reputation for
quality Continuous improvement Reduced variability Figure 17.1
26. Maintenance Two types of maintenance Preventive maintenance
routine inspection and servicing to keep facilities in good repair
Breakdown maintenance emergency or priority repairs on failed
equipment
27. Computerized Maintenance System Figure 17.3 Output Reports
Inventory and purchasing reports Equipment parts list Equipment
history reports Cost analysis (Actual vs. standard) Work orders
Preventive maintenance Scheduled downtime Emergency maintenance
Data entry Work requests Purchase requests Time reporting Contract
work Data Files Personnel data with skills, wages, etc. Equipment
file with parts list Maintenance and work order schedule Inventory
of spare parts Repair history file
28. Maintenance Costs Figure 17.4 (a) Total costs Breakdown
maintenance costs Costs Maintenance commitment Traditional View
Preventive maintenance costs Optimal point (lowest cost maintenance
policy)
29. Total Productive Maintenance (TPM) Designing machines that
are reliable, easy to operate, and easy to maintain Emphasizing
total cost of ownership when purchasing machines, so that service
and maintenance are included in the cost Developing preventive
maintenance plans that utilize the best practices of operators,
maintenance departments, and depot service Training workers to
operate and maintain their own machines
30. Your assignment Step 1: Make sure you understand the
concepts that are covered in this slide show. If necessary, go
through it again or study the textbook. The slides by Heizer &
Render (available on eFundi) also give valuable extra information.
Step 2: Prepare a one-page summary of the theory. Make sure it fits
into the template in the study guide. Remember to make a note of
those issues that you want explained in class. Step 3: Find out how
new product development and quality management takes place in your
organisation. Give a one-page summary on the template. Step 4:
Critique the way quality management takes place in your
organisation. Where necessary, suggest improvements. Give a
one-page summary on the template. (If there are diagrams, you are
allowed a fourth page for them). Step 5: Submit your three-page
report on efundi before Thursday night 23:59. This counts towards
your individual assignment and your final pass mark! Step 6: For
your group assignment, prepare a three-slide PowerPoint show: Slide
1: Briefly present the essence of quality management to your
community organisation. (If it is important to them, you could do
new product development instead. Slide 2: Explain whether/how they
presently do quality management. Slide 3: Give them advice on how
to improve their quality management process. Use the template that
is on eFundi. One group member must submit on efundi before
Thursday night 23:59 as well! Names of both documents must be as
indicated in your study guide.