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EK - Operations Management - Sustainability and Supply Chain Management, Thirteenth Edition
EK - Operations Management - Sustainability and Supply Chain Management, Thirteenth Edition
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Learning Objectives (2 of 2) Lean Operations (1 of 3)
When you complete this chapter you should be able to: • Lean operations supply the customer with exactly what
the customer wants when the customer wants it, without
16.5 Define kanban
waste, through continuous improvement
16.6 Compute the required number of kanbans
• Driven by “pulling” customer orders
16.7 Identify six attributes of Lean organizations
16.8 Explain how Lean applies to services
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Eliminate Waste (2 of 2) The 5Ss (1 of 2)
• Other resources such as energy, water, and air are often • Sort/segregate – when in doubt, throw it out
wasted
• Simplify/straighten – methods analysis tools
• Efficient, sustainable production minimizes inputs, reduces
• Shine/sweep – clean daily
waste
• Standardize – remove variations from processes
• Traditional "housekeeping" has been expanded to the 5Ss
• Sustain/self-discipline – review work and recognize
progress
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Sources of Variability (2 of 2)
Sources of Variability (1 of 2) • Poor processes resulting in improper quantities, late, or non-
conforming units
• Poor processes resulting in improper quantities, late, or • Inadequate maintenance
non-conforming units
• Unknown and changing customer demands
• Inadequate maintenance
• Incomplete or inaccurate drawings, specifications, or bills of
• Unknown and changing customer demands material
• Incomplete or inaccurate drawings, specifications, or bills
of material
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Improve Throughput (1 of 2) Improve Throughput (2 of 2)
• The rate at which units move through a process • By pulling material in small lots, inventory cushions are
removed, exposing problems and emphasizing continual
• Each wasted minute products are in the process, costs
improvement
accumulate and competitive advantage is lost
• Manufacturing cycle time is reduced
• A pull system increases throughput
• Push systems dump orders on the downstream stations
regardless of the need
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JIT Partnerships Concerns of Suppliers
Figure 16.2 • Diversification – ties to only one customer increases risk
• Scheduling – don't believe customers can create a smooth
schedule
• Lead time – short lead times mean engineering or
specification changes can create problems
• Quality – limited by capital budgets, processes, or
technology
• Lot sizes – small lot sizes may transfer costs to suppliers
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Reduced Space and Inventory Lean Inventory
• With reduced space, inventory must be in very small lots • Inventory is at the minimum level necessary to keep
operations running
• Units are always moving because there is no storage
Table 16.2
Lean 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
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Reduce Lot Sizes (1 of 2) Reduce Lot Sizes (2 of 2)
Figure 16.4 • Ideal situation is to have lot sizes of one pulled from one
process to the next
• Often not feasible
• Can use EOQ analysis to calculate desired setup time
• Two key changes necessary
– Improve material handling
– Reduce setup time
2 DS
Q*p =
H [1 − (d / p )]
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Lean Scheduling (1 of 2) Lean Scheduling (2 of 2)
• Schedules must be communicated inside and outside the • Better scheduling improves performance
organization
Table 16.3
• Level schedules Lean Scheduling Tactics
– Process frequent small batches Make level schedules
– Freezing the schedule helps stability Use kanbans
Communicate schedules to suppliers
• Kanban Freeze part of the schedule
– Signals used in a pull system Perform to schedule
Seek one-piece-make and one-piece-move
Eliminate waste
Produce in small lots
Make each operation produce a perfect part
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Kanban (1 of 6) Kanban (2 of 6)
• Kanban is the Japanese Figure 16.8
word for card
• The card is an authorization
for the next container of
material to be produced
• A sequence of kanbans
pulls material through the
process
• Many different sorts of
signals are used, but the
system is still called a
kanban
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Kanban (3 of 6) Kanban (4 of 6)
• When there is visual contact
– The user removes a standard-size container of parts
from a small storage area, as shown in Figure 16.8.
– The signal at the storage area is seen by the producing
department as authorization to replenish the using
department or storage area. Because there is an
optimum lot size, the producing department may make
several containers at a time.
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Kanban (5 of 6) Kanban (6 of 6)
• When the producer and user are not in visual contact, a • Kanban cards provide a direct control and limit on the
card can be used; otherwise, a light or flag or empty spot amount of work-in-process between cells
on the floor may be adequate
• A complicating factor in a manufacturing firm is the time
• Usually each card controls a specific quantity of parts needed for actual manufacturing (production) to take place
although multiple card systems may be used if there are
several components or if the lot size is different from the
move size
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1,000 + 250
Number of kanbans = =5
250
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Advantages of Kanban Lean Quality
• Small containers require tight schedules, smooth • Strong relationship
operations, little variability – Lean cuts the cost of obtaining good quality because
• Shortages create an immediate impact Lean exposes poor quality
– Because lead times are shorter, quality problems are
• Places emphasis on meeting schedules, reducing lead exposed sooner
time and setups, and economic material handling
– Better quality means fewer buffers and allows simpler
• Standardized containers reduce weight, disposal costs, Lean systems to be used
wasted space, and labor
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Lean Organizations Building a Lean Organization (1 of 2)
• Understanding the customer and the customer's • Transitioning to a Lean system can be difficult
expectations
• Build a culture of continual improvement
• Functional areas communicate and collaborate to make
• Open communication
sure customer expectations are met
• Demonstrated respect for people
• Implement the tools of Lean throughout the organization
• Gemba walks to see work being performed
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