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Lean Synchronization: Key Questions
Lean Synchronization: Key Questions
Topic covered in
this chapter
Lean synchronization
Direct
Deliver
Figure 15.2 (a) Traditional and (b) lean synchronized flow between stages
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in the operation. Yet, even though the rocks cannot be seen, they slow
✽ Operations principle the progress of the river’s flow and cause turbulence. Gradually reduc-
Focusing on synchronous flow exposes ing the depth of the water (inventory) exposes the worst of the prob-
sources of waste. lems which can be resolved, after which the water is lowered further,
exposing more problems, and so on. The same argument will also
apply for the flow between whole processes, or whole operations. For example, stages A, B
and C in Figure 15.2 could be a supplier operation, a manufacturer and a customer’s opera-
tion, respectively.
working practices’ are sometimes used to implement the ‘involvement of everyone’ principle.
These include the following:
● Discipline – in following work standards, critical for the safety of staff and the environ-
ment, and for quality.
● Flexibility – to expand responsibilities to the extent of people’s capabilities.
● Equality – in how all staff are treated (which is why some lean companies wear uniforms).
● Autonomy – allowing delegation to people involved in direct activities.
● Development – of staff to create a more capable workforce.
● Quality of working life (QWL) – to include involvement in decision making, security of
employment and enjoyment of working area facilities.
● Creativity – as one of the indispensable elements of motivation.
● Total people involvement – where staff take on more responsibility by participating
in activities such as the selection of new recruits, dealing directly with suppliers and
customers over schedules, quality issues and delivery information, spending improve-
ment budgets and planning and reviewing work done each day through communication
meetings.
Critical commentary
Perspectives on lean
So what exactly is lean? Actually this is not a straightforward question because it can be
viewed as three things: a philosophy; a method of planning and control with useful prescrip-
tions of how to manage day-to-day operations; and a set of improvement tools.
Lean is a philosophy of how to run operations It is a coherent set of principles that are
founded on smoothing flow through processes by doing all the simple things well, on gradu-
ally doing them better, on meeting customer needs exactly and (above all) on squeezing out
waste every step of the way. Three key issues define the lean philosophy: the involvement of
staff in the operation; the drive for continuous improvement; and the elimination of waste.
Other chapters look at the first two issues. We devote the majority of the remainder of this
chapter to the central idea of the elimination of waste.
Lean is a method of planning and controlling operations Many lean ideas are concerned
with how items (materials, information, customers) flow through operations; and more spe-
cifically, how operations managers can manage this flow. For this reason lean can be viewed
as a method of planning and control. Yet it is planning and control activity that is done in
pursuit of lean’s philosophical aims (see above). Unco-ordinated flow causes unpredictability,
and unpredictability causes waste because people hold inventory, capacity or time, to protect
themselves against it. So lean planning and control uses several methods to achieve synchro-
nized flow and reduce waste. Above all it uses ‘pull’ control which was described earlier (see
Chapter 10), in contrast to MRP (described in Chapter 14) which relies on ‘push’ control. This
is usually achieved using some sort of kanban system (described later). In addition, the other
lean planning and control methods which promote smooth flow include levelled scheduling
and delivery, and mixed modelling (again described later).
Lean is a set of tools that improve operations performance The ‘engine room’ of the lean
philosophy is a collection of improvement tools and techniques which are the means for cut-
ting out waste. There are many techniques which could be termed ‘lean techniques’ and,
again, many of them follow on naturally and logically from the overall lean philosophy. What
is just as important to understand is how the introduction of lean as a philosophy helped to
shift the focus of operations management generally towards viewing improvement as its main
purpose. In addition, the rise of lean ideas gave birth to techniques that have now become
mainstream in operations management. Some of these tools and techniques are well known
outside the lean sphere and are covered in other chapters of this book.
Lean in service
Lean (or just-in-time as it was called then) originated in the Japanese manufacturing sec-
tor, most prominently, although not exclusively, at Toyota. Japan’s attitude towards waste
(‘make every grain of rice count’), together with its position as a crowded and virtually
naturally resourceless country, produced ideal conditions in which to devise an approach
map for an industrial air-conditioning installation service. The service process itself is broken
down into five relatively large stages and various items of data for each stage are marked
on the chart. The type of data collected here does vary, but all types of value stream map
compare the total throughput time with the amount of value-added time within the larger
process. In this case, only 8 of the 258 hours of the process is value-adding.
Example: airline maintenance4 Aircraft maintenance is important. Planes have a distressing
tendency to fall out of the sky unless they are checked, repaired and generally maintained
regularly. So the overriding objective of the operations that maintain aircraft must be the
quality of maintenance activities. But it is not the only objective. Improving maintenance
turnaround time can reduce the number of aircraft an airline needs to own, because they
are not out of action for as long. Also, the more efficient the maintenance process, the more
profitable is the activity and the more likely it is that a major airline with established main-
tenance operations can create additional revenue streams by doing maintenance for other
airlines. Figure 15.7 shows how one airline maintenance operation applied lean principles
to achieve all these objectives. The objectives of the lean analysis were to preserve, or even
improve, quality levels, while at the same time improving the cost of maintaining airframes
and increasing the availability of airframes by reducing turnaround time.
The lean analysis focused on identifying waste in the maintenance process. Two findings
emerged from this. First, the sequence of activities on the airframe itself was being set by
the tasks identified in the technical manuals supplied by the engine, body and control sys-
tem manufacturers, and other suppliers. No one had considered all the individual activities
together to work out a sequence that would save maintenance staff time and effort. The over-
all sequence of activities was defined and allocated with structured work preparation of tools,
materials, and equipment. Figure 15.7 shows the path taken by maintenance staff before and
Before: After:
• Maintenance staff follow the steps as detailed in • The overall sequence of tasks is defined and
the technical documentation. allocated to minimize non-value-added.
• The overall sequence of tasks is not optimized. • Preparation work and set-ups may be done
• Preparation work and set-ups included as part of ahead of time to minimize aircraft contact time.
the task. • Increased productivity and reduced aircraft
waiting time.
after the lean analysis. Second, maintenance staff would often be waiting until the airframe
became available. Yet some of the preparatory work and set-ups did not need to be done while
the airframe was present. Therefore, why not get maintenance staff to do these tasks when
they would otherwise be waiting before the airframe became available? The result of these
changes was a substantial improvement in cost and availability. In addition, work prepara-
tion was conducted in a more rigorous and routine manner, and maintenance staff were
more motivated because many minor frustrations and barriers to their efficient working were
removed.
Visual management
Visual management is one of the lean techniques designed to make the current and planned
state of the operation or process transparent to everyone, so that anyone (whether working
in the process or not) can very quickly see what is going on. It usually employs some kind of
visual sign, such as a noticeboard, computer screen, or simply lights or other signals which
convey what is happening. Although a seemingly trivial and usually simple device, visual
management has several benefits, such as helping to:
● act as a common focus for team meetings;
● demonstrate methods for safe and effective working practice;
● communicate to everyone how performance is being judged;
● assess at a glance the current status of the operation;
● understand tasks and work priorities;
● judge your and others’ performance;
● identify the flow of work – what has been and is being done;
● identify when something is not going to plan;
● show what agreed standards should be;
● provide real-time feedback on performance to everyone involved;
● reduce the reliance on formal meetings.
Figure 15.8 Using several small machines rather than one large one allows simultaneous
processing, is more robust, and is more flexible
Pull control
The exact matching of supply and demand is often best served by using ‘pull control’ wher-
ever possible (discussed in Chapter 10). At its simplest, consider how some fast-food restau-
rants cook and assemble food and place it in the warm area only when the customer-facing
server has sold an item. Production is being triggered only by real customer demand. Some
construction companies make it a rule to call for material deliveries to its sites only the day
before those items are actually needed. This not only reduces clutter and the chances of theft,
it speeds up throughput time and reduces confusion and inventories. The essence of pull con-
trol is to let the downstream stage in a process, operation or supply network pull items through
the system rather than have them ‘pushed’ to them by the supplying stage. As Richard Hall,
an authority on lean operations, put it, ‘Don’t send nothing nowhere, make ’em come and get it.’6
Kanbans
The use of kanbans is one method of operationalizing pull control. Kanban is the Japanese
for card or signal. It is sometimes called the ‘invisible conveyor’ that controls the transfer of
items between the stages of an operation. In its simplest form, it is a card used by a customer
stage to instruct its supplier stage to send more items. Kanbans can also take other forms. In
some Japanese companies, they are solid plastic markers or even coloured ping-pong balls.
Whichever kind of kanban is being used, the principle is always the same: the receipt of a
kanban triggers the movement, production or supply of one unit or a standard container of
units. If two kanbans are received, this triggers the movement, production or supply of two
units or standard containers of units, and so on. Kanbans are the only means by which move-
ment, production or supply can be authorized. Some companies use ‘kanban squares’. These
are marked spaces on the shop floor or bench that are drawn to fit one or more work pieces or
containers. Only the existence of an empty square triggers production at the stage that sup-
plies the square. As one would expect, at Toyota the key control tool is its kanban system. The
kanban is seen as serving three purposes:
● It is an instruction for the preceding process to send more.
● It is a visual control tool to show up areas of over-production and lack of synchronization.
● It is a tool for kaizen (continuous improvement). Toyota’s rules state that ‘the number of
kanbans should be reduced over time’.
There are a number of methods of using kanbans, of which the ‘single-card system’ is most
often used because it is by far the simplest system to operate. Figure 15.9 shows the operation
of a single-card kanban system. At each stage (only two stages are shown, A and B) there is
a work centre and an area for holding inventory. All production and inventory are contained
in standard containers, all of which contain exactly the same number of parts. When stage B
requires some more parts to work on, it withdraws a standard container from the output stock
point of stage A. After work centre B has used the parts in the container, it places the move
kanban in a holding area and sends the empty container to the work centre at stage A. The
arrival of the empty containers at stage A’s work centre is the signal for production to take
place at work centre A. The move kanban is taken from the holding box back to the output
stock point of stage A. This acts as authorization for the collection of a further full container to
be moved from the output stock of stage A through to the work centre at stage B. Two closed
loops effectively control the flow of materials between the stages. The move kanban loop
(illustrated by the thin arrows) keeps materials circulating between the stages, and the con-
tainer loop (illustrated by the thicker arrows) connects the work centres with the stock point
between them and circulates the containers, full from A to B and empty back from B to A. This
sequence of actions and the flow of kanbans may at first seem complicated. However, in prac-
tice their use provides a straightforward and transparent method of calling for material only
when it is needed and limiting the inventory which accumulates between stages. The number
of kanbans put into the loops between the stages or between the stock points and the work
centres is equal to the number of containers in the system and therefore the inventory which
can accumulate. Taking a kanban out of the loop has the effect of reducing the inventory.
Torchbox is an independently-owned web-design and ‘kanban’ approach to controlling its work as it progresses
development company based in Oxfordshire (see the through the web-design process. ‘We know that kanban
short case in Chapter 1 ‘Torchbox: award-winning web control originated from car manufacturers like Toyota, but
designers’ for more details). It provides high-quality, cost- our development teams can also benefit from its basic
effective and ethical solutions for its clients. And although principles’, says Edward Kay, the Head of Production at
it is a company that relies on its staff’s creative capabilities, Torchbox. ‘It is a way of scheduling work based on what
this does not mean that lean techniques have no place needs to be produced and what resources are available
in its operations. On the contrary, it makes full use of the to produce it with. At Torchbox we use a large magnetic
Source: Shutterstock.com/alphaspirit
with a physical limitation. When one feature enters the
“done” column, another one can be pulled through into “dis-
covery”. There’s a pulling process, where completing work
allows you to start on something new.’
At the start of every day, the team has a stand-up meet-
ing at the kanban board where each member quickly runs
through what they did the day before, and what they’ll
do in the coming day. Each developer has a few tokens
which they place on the features they’re working on. This
helps link up the ‘big picture’ of how a design’s features are as efficiently as possible. If we’re finding that a project’s
developing, with the ‘little picture’ of what each developer features keep getting held up in the design stage, we can
is working on each day, and helps teams to make sure that bring more designers onto the project to widen the bot-
all work being done is being tracked across the board. tleneck. Using kanban with feature-driven development
‘One of the big benefits of using kanban,’ says Edward helps us constantly deliver value to our clients. This more
Kay, ‘is that because we’re visualizing the steps a feature measured and controlled approach to handling and con-
goes through to be completed, we’re able to see where the trolling incoming work helps ensure that every hour we
bottlenecks are that work gets held up on. Because we can work produces an hour’s worth of value. Ultimately, it’s all
see where work is being held up, we’re then able to con- about delivering great products on time and to budget,
tinually improve our processes to make sure we’re working and kanban is a great tool to help achieve this.’
in a time period (usually a month), a batch size would be calculated for each item and the
batches produced in some sequence. Figure 15.10(a) shows three items that are produced in
a 20-day time period in an operation.
Quantity of item A required = 3,000
Quantity of item B required = 1,000
Quantity of item C required = 1,000
Figure 15.11 Delivering smaller quantities more often can reduce inventory levels
Remember the section on supply chain vulnerability earlier (see Chapter 13) where it
was argued that lean principles can be taken to an extreme. When just-in-time ideas
first started to have an impact on operations practice in the West, some authorities
advocated the reduction of between-process inventories to zero. While in the long
term this provides the ultimate in motivation for operations managers to ensure the
efficiency and reliability of each process stage, it does not admit the possibility of some
processes always being intrinsically less than totally reliable. An alternative view is to
allow inventories (albeit small ones) around process stages with higher than average
uncertainty. This at least allows some protection for the rest of the system. The same
ideas apply to just-in-time delivery between factories. Severe disruption to supply
chains, as from the effects of the Japanese tsunami, caused many overseas Japanese
factories to close down for a time because of a shortage of key parts.
Achieve Focusing on the constraints (the Eliminating waste and adding value
improvement by. . . ‘weakest links’) in the process by considering the entire process,
operation or supply network
Check and improve your understanding of this chapter using self-assessment questions and a
personalized study plan, a video case study, and an eText – all at www.myomlab.com.
The National Tax Service (NTS) was the government agency 1 minute, replying to 80 per cent of emails within 5 work-
that assessed and collected taxes from citizens and busi- ing days and processing refunds within 30 days. In return
nesses. The organization was committed to providing an it expected its customers to complete their tax returns
excellent service by applying the tax laws fairly and making promptly, give accurate and complete information, keep
it simple and convenient for their ‘customers’ to fulfil their proper records and pay their tax on time.
tax obligations. Its staff aimed to be polite, prompt, com- Despite the organization’s success in meeting its service
petent, clear and consistent. The NTS had a set of service standards, Max Serwotka, director of the NTS, explained
standards including answering 85 per cent of calls within his reasons for initiating the Lean Programme: ‘We are
These problems and applications will help to improve your analysis of operations. You can find more
practice problems as well as worked examples and guided solutions on MyOMLab at www.myomlab.com.
1 Think about the last time that you travelled by air. Analyse the journey in terms of value-
added time (actually going somewhere) and non-value-added time (the time spent queuing,
etc.) from the time you left home to the exact time you arrived at your ultimate destination.
Calculate the value-added time for the journey.
3 In the example above, the operations manager in charge of the process re-allocates the
work at each stage to improve the ‘balance’ of the process. Now each stage has an average
of 64 minutes of work. Also, the work-in-progress in front of stages B, C, and D is 75, 80, and
82 units respectively. How has this changed the throughput efficiency of the process?
4 A production process is required to produce 1,400 of product X, 840 of product Y, and 420
of product Z in a 4-week period. If the process works 7 hours per day and 5 days per week,
devise a mixed model schedule, in terms of the number of each products required to be pro-
duced every hour, that would satisfy demand.
5 Revisit the ‘Operations in action’ at the beginning of this chapter, and (a) list all the different
techniques and practices which Toyota adopts, and (b) describe how operations objectives
(quality, speed, dependability, flexibility, cost) are influenced by the practices which Toyota
adopts.
6 Consider how set-up reduction principles can be used on the following:
a. changing a tyre at the side of the road (following a puncture);
b. cleaning out an aircraft and preparing it for the next flight between an aircraft on its
inbound flight landing and disembarking its passengers, and the same aircraft being ready
to take-off on its outbound flight;
c. the time between the finish of one surgical procedure in a hospital’s operating theatre, and
the start of the next one;
d. the ‘pitstop’ activities during a Formula 1 race (how does this compare to (a) above?).
USEFUL WEBSITES
www.lean.org Site of the Lean Enterprise Institute, set up by one of the founders of the Lean think-
ing movement.
www.iee.org The site of the Institution of Electrical Engineers (which includes manufacturing engi-
neers, surprisingly) has material on this and related topics, as well as other issues covered in this
book.
www.mfgeng.com The Manufacturing Engineering site.
www.myomlab.com Test which sections you have mastered and which you need to review, with
questions, a personalized study plan, video clips, revision tips, and cases.
www.opsman.org Useful materials.
http://operationsroom.wordpress.com/ Stanford University’s take on topical operations stories.
www.iomnet.org The Institute of Operations Management site. One of the main professional
bodies for the subject.
www.poms.org A US academic society for production and operations management. Academic,
but some useful material, including a link to an encyclopedia of operations management terms.
Now that you have finished reading this chapter, why not visit MyOMLab at
www.myomlab.com where you'll find more learning resources to help you make
the most of your studies and get a better grade.