1 10. Lean Operations: Process Synchronization and Improvement Lean Operations: Process Synchronization and Improvement Chapter 10

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<ul><li> Slide 1 </li> <li> 1 10. Lean Operations: Process Synchronization and Improvement Lean Operations: Process Synchronization and Improvement Chapter 10 </li> <li> Slide 2 </li> <li> 2 10. Lean Operations: Process Synchronization and Improvement Introduction Lean Operations: Perfected by Japanese automaker - Toyota A more efficient process Adopted in USA by the aerospace industry in 1990s Some turnaround times were lowered by 30-50% Maintenance productivity improved by 25-50% </li> <li> Slide 3 </li> <li> 3 10. Lean Operations: Process Synchronization and Improvement Introduction Overall: Many industries have adopted lean operations Why?? Improved performance including: uCost uQuality uResponse time $ </li> <li> Slide 4 </li> <li> 4 10. Lean Operations: Process Synchronization and Improvement Introduction Responsiveness Operations Frontier A B C Price HighLow Quick review: </li> <li> Slide 5 </li> <li> 5 10. Lean Operations: Process Synchronization and Improvement 10.1Processing Networks Processing Networks: consists of information and material flows of multiple products through a sequence of interconnected processes. Process 5 Process 1 Process 2 Process 3 Process 4 Process 6 Product A Product B </li> <li> Slide 6 </li> <li> 6 10. Lean Operations: Process Synchronization and Improvement 10.1 Processing Networks Plants &amp; Supply Chains Two different levels: Plants: any singly owned, independently managed and operated facility (i.e., manufacturing site, service unit, storage warehouse) Supply Chain: a network of interconnected facilities uDiverse ownership uFlows of information and materials between the facilities (i.e., raw materials suppliers, finished goods producers, wholesalers, distributors, retailers) </li> <li> Slide 7 </li> <li> 7 10. Lean Operations: Process Synchronization and Improvement 10.2The Process Ideal: Synchronization &amp; Efficiency What is an Ideal Process? A process that achieves synchronization at the lowest possible cost Process Synchronization The ability of the process to meet customer demand in terms of their quantity, time, quality and location requirements. Process Efficiency Measured in terms of the total processing costs. Less cost, more efficient!!. </li> <li> Slide 8 </li> <li> 8 10. Lean Operations: Process Synchronization and Improvement 10.2The Process Ideal: Synchronization &amp; Efficiency Perfectly Synchronized Process that is LEAN will develop, produce and deliver these ONLY on demand: Exactly what is needed (not wrong or defective products) Exactly how much is needed (neither more or less) Exactly when it is needed (not before or after) Exactly where it is needed (not somewhere else) </li> <li> Slide 9 </li> <li> 9 10. Lean Operations: Process Synchronization and Improvement 10.2The Process ideal: Synchronization &amp; Efficiency Just-In-Time (JIT) When the four just rights come together Action is taken only when it becomes necessary!!! In Manufacturing - production of only necessary flow units in necessary quantities at necessary times!!! </li> <li> Slide 10 </li> <li> 10 10. Lean Operations: Process Synchronization and Improvement 10.2The Process ideal: Synchronization &amp; Efficiency Synchronized Networks: Outflow of one process is the inflow to another process!!!! REQUIRES PRECISE MATCHING OF SUPPLY &amp; DEMAND All stages are required to be tightly linked with flow of information and product Ideally the processing stages are achieved for lowest possible cost!!!! </li> <li> Slide 11 </li> <li> 11 10. Lean Operations: Process Synchronization and Improvement 10.3Waste and Its Sources ANYTHING LESS THAN IDEAL PERFORMANCE IS AN OPPORTUNITY FOR IMPROVEMENT!!! Low Efficiency = High Processing Costs Lack of Synchronization Defective products, high inventories, delays, stock outs </li> <li> Slide 12 </li> <li> 12 10. Lean Operations: Process Synchronization and Improvement 10.3Waste and Its Sources Sources of Waste: Producing defective products Producing too much product Carrying inventory Waiting due to unbalanced workloads Unnecessary processing Unnecessary worker movement Transporting materials Waste: producing inefficiently, producing wrong or defective products, producing in quantities that are too small/large, delivering early/late </li> <li> Slide 13 </li> <li> 13 10. Lean Operations: Process Synchronization and Improvement 10.3Waste and Its Sources Waste Elimination: Short term strategies include: Cycle &amp; Safety inventories Safety capacity Non-Value adding activities (transportation, inspection, rework, process control) </li> <li> Slide 14 </li> <li> 14 10. Lean Operations: Process Synchronization and Improvement 10.3Waste and Its Sources Waste Elimination (contd): Long-Term Strategy Improve the overall processes Build in flexibility, predictability, stability to eliminate temporary fixes. i.e. Reduce setup costs to make it more economical to produce small batches. </li> <li> Slide 15 </li> <li> 15 10. Lean Operations: Process Synchronization and Improvement 10.3Waste and Its Sources The River Analogy: The boat can sail in shallow water (lean operations) if we are able to find ways to remove the imperfections on the river bottom!!! FM WIP FG Defective Materials Machine Breakdowns Defects Long Setups Long Lead TimesUnsuitable Equipment Uneven Schedules Unreliable Suppliers Inefficient Layouts Absenteeism Rigid Work Rules </li> <li> Slide 16 </li> <li> 16 10. Lean Operations: Process Synchronization and Improvement 10.4Improving Flows in a Plant: Basic Principles of Lean Operations Many buzz-words for managing and achieving efficiency within a plant: Lean operations Just-in-time production Zero inventory program Synchronous manufacturing Agile manufacturing Toyota Production System (TPS) </li> <li> Slide 17 </li> <li> 17 10. Lean Operations: Process Synchronization and Improvement 10.4Improving Flows in a Plant: Basic Principles of Lean Operations LEAN OPERATIONS HAS FOUR OBJECTIVES: 1.To improve process flows Efficient plant layout and fast/accurate flow of materials and information 2.To increase process flexibility Reducing equipment changeover times &amp; cross-functional training 3.To decrease process variability Flow rates, processing times, and quality 4.To minimize processing costs Eliminate non-value adding activities (transportation, inspection, rework) </li> <li> Slide 18 </li> <li> 18 10. Lean Operations: Process Synchronization and Improvement 10.4Improving Flows in a Plant: Basic Principles of Lean Operations WHY????? First three goals improve Process Synchronization Last goal improves Cost Efficiency </li> <li> Slide 19 </li> <li> 19 10. Lean Operations: Process Synchronization and Improvement 10.4Improving Flows in a Plant: Basic Principles of Lean Operations Classic Example: Efficiency/Synchronization for mass production: Henry Fords Rouge, Michigan plant Totally integrated with steel mill, glass factory, machine tools, electrical systems, assembly line, well- trained (well-paid) workers Minimal low time &amp; cost Everything in place except product variety! </li> <li> Slide 20 </li> <li> 20 10. Lean Operations: Process Synchronization and Improvement 10.4Improving Flows in a Plant: Basic Principles of Lean Operations Efficiency/Synchronization for Mass Production Ford Motor Company 1910 Rouge, Michigan Plant Source: </li> <li> Slide 21 </li> <li> 21 10. Lean Operations: Process Synchronization and Improvement 10.4.1Improving Process Architecture: Cellular Layouts Process Architecture: the network of activities and resources One method: FUNCTIONAL LAYOUTS Different product types follow different routings through the resource poolsenabling each flow unit to be sent to any available station in the pool. </li> <li> Slide 22 </li> <li> 22 10. Lean Operations: Process Synchronization and Improvement 10.4.1Review of Process Architectures: Job Shop A C B D Product 1 Output Input Product 2 Functional Layout: Resources that perform the same function are physically pooled together JOB SHOPS </li> <li> Slide 23 </li> <li> 23 10. Lean Operations: Process Synchronization and Improvement 10.4.1Improving Process Architecture: Cellular Layouts Alternate to Process-based Functional Layout: CELLULAR LAYOUT All workstations that perform successive operations on a given product are grouped together to form a CELL </li> <li> Slide 24 </li> <li> 24 10. Lean Operations: Process Synchronization and Improvement 10.4.1Improving Process Architecture: Cellular Layouts OutputInput ACB Product 1 Example: Henry Fords Assembly Line for the Model T </li> <li> Slide 25 </li> <li> 25 10. Lean Operations: Process Synchronization and Improvement 10.4.1Improving Process Architecture: Cellular Layouts Facilitates synchronous flow of information and materials between processing stations Physical proximity of cells reduce transportation of low units Moves small batches of flow units quickly Encourages teamwork &amp; cross functional skill development Improved communication between stations Improves synchronization where each station produces parts only if the next station needs them Easier to recognize and report problems Quicker ability to correct defects ADVANTAGES ++ </li> <li> Slide 26 </li> <li> 26 10. Lean Operations: Process Synchronization and Improvement 10.4.1Improving Process Architecture: Cellular Layouts Resources are dedicated to specific cells Resources cannot be used by other cells Lose advantage of resource pooling Worker incentives must be team oriented, not individual performance based REMEDIES: Use flexible resources that are cross functional Peer pressure to control productivity of team members DISADVANTAGES - - </li> <li> Slide 27 </li> <li> 27 10. Lean Operations: Process Synchronization and Improvement 10.4.2Improving Information &amp; Material Flow: Demand Pull TWO APPROACHES 1.PUSH : Input availability triggers production where emphasis is on keeping busy and maximize resource utilization (as long as there is work) Planning Tool: MRP (Material Requirements Planning) MRP: End-Product demand forecasts are exploded backwards to determine parts requirements at each station </li> <li> Slide 28 </li> <li> 28 10. Lean Operations: Process Synchronization and Improvement 10.4.2Improving Information &amp; Material Flow: Demand Pull PUSH works well under these conditions if: All information is accurate Forecasts of finished goods are correct There is no variability in processing times If one of these conditions at any stages is not met will DISTURB PLANNED FLOW AND DESTROY SYNCHRONIZATION THROUGHOUT THE PROCESS!! </li> <li> Slide 29 </li> <li> 29 10. Lean Operations: Process Synchronization and Improvement 10.4.2Improving Information &amp; Material Flow: Demand Pull 2.Demand-Pull: Where demand from a customer station triggers production. Consequences of Demand-Pull -- -- -- Each station produces only on demand from its customer station The demand is actually downstream Two requirements to make a pull system work: 1.Must have a well-defined customer with a well-defined supplier process. 2.Must produce the quantity needed only when signaled to do so by its customer </li> <li> Slide 30 </li> <li> 30 10. Lean Operations: Process Synchronization and Improvement 10.4.2Improving Information &amp; Material Flow: Demand Pull SUPPLY PUSH: Input availability triggers production DEMAND PULL: Output need triggers production Supplier Inputs Process Outputs Customer Information Flow:Material Flow: </li> <li> Slide 31 </li> <li> 31 10. Lean Operations: Process Synchronization and Improvement 10.4.2Improving Information &amp; Material Flow: Demand Pull Demand Signaling: Customer needs a way to signal (inform) the supplier of its need. Customers demand starts a chain reaction For withdrawals and replenishments of intermediate parts EOQ-ROP system is a Pull system where ROP triggers production at the supplier and EOQ determines the quantity produced </li> <li> Slide 32 </li> <li> 32 10. Lean Operations: Process Synchronization and Improvement 10.4.2Improving Information &amp; Material Flow: Demand Pull Synchronized Pull: When the delivery of parts are in sequence [Suppliers must have greater ability and capability to achieve a synchronized pull effectively] </li> <li> Slide 33 </li> <li> 33 10. Lean Operations: Process Synchronization and Improvement 10.4.3Improving Process Flexibility: Batch-Size Reduction Each station must know HOW MUCH TO PRODUCE AT A TIME Level Production: where small quantities are produced frequently to mach customer demand [i.e., if demand is 10000 sedans and 5000 SUVs, the production would call for producing 2 sedans and then 1 SUV, and then repeat the sequence] Changeover Costs and Batch Reduction: Goal of level production is reduction of changeover costs (fixed setup or transportation costs of each batch) I.E. In auto production expensive parts like seats are produced in batches of one, wipers in larger batches uStudy the Changeover process to: use special tools to speed it up, customize some machines, keep some machines already set up. uConsider small-batch production </li> <li> Slide 34 </li> <li> 34 10. Lean Operations: Process Synchronization and Improvement 10.4.4Quality at Source: Defect Prevention &amp; Early Detection Defective flow units increase average flow time and cost!!! WHY? It necessitates inspection and rework!!! Anticipate and then Compensate for the problem: Hold extra safety inventory in the buffer This increases avg. flow time and cost Plan and control Quality: 1.Prevent defects for occurring in the first place 2.Detect and correct them as soon as they appear </li> <li> Slide 35 </li> <li> 35 10. Lean Operations: Process Synchronization and Improvement 10.4.4Quality at Source: Defect Prevention &amp; Early Detection Defect Prevention Careful design of both product and process Simplification &amp; standardization Mistake-proofing (poka yoke) Parts are designed to halt automatically when defective units are fed into them (parts are designed to minimize chances of incorrect assembly) Defect Visibility Early detection/correctionsmore effective &amp; economical </li> <li> Slide 36 </li> <li> 36 10. Lean Operations: Process Synchronization and Improvement 10.4.4Quality at Source: Defect Prevention &amp; Early Detection Defect visibility (contd) Early detection helps tracing to the source Contribution to better synchronization and lower costs Early detection requires constant vigilance and monitoring!! Decentralized Control Employees must be empowered with authority and the means to identify &amp; correct problems at the local level </li> <li> Slide 37 </li> <li> 37 10. Lean Operations: Process Synchronization and Improvement 10.4.4Quality at Source: Defect Prevention &amp; Early Detection Decentralized Control (contd) In typical plants, line workers dont feel the responsibility, motivation or security to point out problems. BEST STRATEGIES OF LEAN OPERATIONS ARE: 1.Preventing problems through better planning 2.Highlighting problems as soon as they occur 3.Delegating problem solving to the local level </li>...</ul>

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