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Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Lean Production Operations Management - 5 th Edition Roberta Russell & Bernard W. Taylor, III

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  • Copyright 2006 John Wiley & Sons, Inc. Beni Asllani

    University of Tennessee at Chattanooga

    Lean Production

    Operations Management - 5th Edition

    Roberta Russell & Bernard W. Taylor, III

  • Copyright 2006 John Wiley & Sons, Inc. 15-2

    Lecture Outline

    w Basic Elements of Lean Productionw Benefits of Lean Productionw Implementing Lean Productionw Lean Services

  • Copyright 2006 John Wiley & Sons, Inc. 15-3

    Lean Production

    w Doing more with less inventory, fewer workers, less space

    w Just-in-time (JIT)n smoothing the flow of material to arrive

    just as it is neededn JIT and Lean Production are used

    interchangeablyw Muda

    n waste, anything other than that which adds value to the product or service

  • Copyright 2006 John Wiley & Sons, Inc. 15-4

    Waste in Operations

  • Copyright 2006 John Wiley & Sons, Inc. 15-5

    Waste in Operations (cont.)

  • Copyright 2006 John Wiley & Sons, Inc. 15-6

    Waste in Operations (cont.)

  • Copyright 2006 John Wiley & Sons, Inc. 15-7

    Basic Elements

    1. Flexible resources2. Cellular layouts3. Pull production system4. Kanban production control5. Small lot production6. Quick setups7. Uniform production levels8. Total productive

    maintenance9. Supplier networks

  • Copyright 2006 John Wiley & Sons, Inc. 15-8

    Flexible Resources

    w Multifunctional workersn perform more than one jobn general-purpose machines perform

    several basic functionsw Cycle time

    n time required for the worker to complete one pass through the operations assigned

    w Takt timen paces production to customer demand

  • Copyright 2006 John Wiley & Sons, Inc. 15-9

    Standard Operating Routine for a Worker

  • Copyright 2006 John Wiley & Sons, Inc. 15-10

    Cellular Layouts

    w Manufacturing cellsn comprised of dissimilar machines brought

    together to manufacture a family of partsw Cycle time is adjusted to match takt time

    by changing worker paths

  • Copyright 2006 John Wiley & Sons, Inc. 15-11

    Cells with Worker Routes

  • Copyright 2006 John Wiley & Sons, Inc. 15-12

    Worker Routes Lengthen as Volume Decreases

  • Copyright 2006 John Wiley & Sons, Inc. 15-13

    Pull System

    w Material is pulled through the system when needed

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

    w Forces cooperationw Prevent over and underproductionw While push systems rely on a predetermined

    schedule, pull systems rely on customer requests

  • Copyright 2006 John Wiley & Sons, Inc. 15-14

    Kanbans

    w Card which indicates standard quantity of production

    w Derived from two-bin inventory systemw Maintain discipline of pull productionw Authorize production and movement of

    goods

  • Copyright 2006 John Wiley & Sons, Inc. 15-15

    Sample Kanban

  • Copyright 2006 John Wiley & Sons, Inc. 15-16

    Origin of Kanban a) Two-bin inventory system b) Kanban inventory system

    Reorder card

    Bin 1

    Bin 2

    Q - R

    Kanban

    R R

    Q = order quantity R = reorder point - demand during lead time

  • Copyright 2006 John Wiley & Sons, Inc. 15-17

    Types of Kanban

    w Production kanbann authorizes production of

    goodsw Withdrawal kanban

    n authorizes movement of goods

    w Kanban squaren a marked area designated

    to hold items

    w Signal kanbann a triangular kanban

    used to signal production at the previous workstation

    w Material kanbann used to order material in

    advance of a processw Supplier kanban

    n rotates between the factory and suppliers

  • Copyright 2006 John Wiley & Sons, Inc. 15-18

  • Copyright 2006 John Wiley & Sons, Inc. 15-19

  • Copyright 2006 John Wiley & Sons, Inc. 15-20

  • Copyright 2006 John Wiley & Sons, Inc. 15-21

    Determining Number of Kanbans

    where

    N = number of kanbans or containers d = average demand over some time period L = lead time to replenish an order S = safety stock C = container size

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

    container size

    N = dL + S C

  • Copyright 2006 John Wiley & Sons, Inc. 15-22

    Determining Number of Kanbans: Example

    d = 150 bottles per hour L = 30 minutes = 0.5 hours S = 0.10(150 x 0.5) = 7.5 C = 25 bottles

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

    N = =

    = = 3.3 kanbans or containers

    dL + S C

    (150 x 0.5) + 7.5 25

    75 + 7.5 25

  • Copyright 2006 John Wiley & Sons, Inc. 15-23

    Small Lots

    w Require less space and capital investment

    w Move processes closer togetherw Make quality problems easier to

    detectw Make processes more dependent

    on each other

  • Copyright 2006 John Wiley & Sons, Inc. 15-24

    Inventory Hides Problems

  • Copyright 2006 John Wiley & Sons, Inc. 15-25

    Less Inventory Exposes Problems

  • Copyright 2006 John Wiley & Sons, Inc. 15-26

    Components of Lead Time

    w Processing timen Reduce number of items or improve efficiency

    w Move timen Reduce distances, simplify movements, standardize

    routingsw Waiting time

    n Better scheduling, sufficient capacityw Setup time

    n Generally the biggest bottleneck

  • Copyright 2006 John Wiley & Sons, Inc. 15-27

    Quick Setups

    w Internal setupn Can be performed

    only when a process is stopped

    w External setupn Can be performed

    in advance

    w SMED Principlesn Separate internal setup from

    external setupn Convert internal setup to external

    setupn Streamline all aspects of setupn Perform setup activities in

    parallel or eliminate them entirely

  • Copyright 2006 John Wiley & Sons, Inc. 15-28

    Common Techniques for Reducing Setup Time

  • Copyright 2006 John Wiley & Sons, Inc. 15-29

    Common Techniques for Reducing Setup Time (cont.)

  • Copyright 2006 John Wiley & Sons, Inc. 15-30

    Common Techniques for Reducing Setup Time (cont.)

  • Copyright 2006 John Wiley & Sons, Inc. 15-31

    Uniform Production Levels

    w Result from smoothing production requirements

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

    w Smooth demand across planning horizon

    w Mixed-model assembly steadies component production

  • Copyright 2006 John Wiley & Sons, Inc. 15-32

    Mixed-Model Sequencing

  • Copyright 2006 John Wiley & Sons, Inc. 15-33

    Quality at the Source

    w Visual controln makes problems visible

    w Poka-yokesn prevent defects from

    occurringw Kaizen

    n a system of continuous improvement; change for the good of all

    w Jidokan authority to stop the

    production linew Andons

    n call lights that signal quality problems

    w Under-capacity schedulingn leaves time for planning,

    problem solving, and maintenance

  • Copyright 2006 John Wiley & Sons, Inc. 15-34

    Examples of Visual Control

  • Copyright 2006 John Wiley & Sons, Inc. 15-35

    Examples of Visual Control (cont.)

  • Copyright 2006 John Wiley & Sons, Inc. 15-36

    Examples of Visual Control (cont.)

  • Copyright 2006 John Wiley & Sons, Inc. 15-37

    Total Productive Maintenance (TPM)

    w Breakdown maintenancen Repairs to make failed machine operational

    w Preventive maintenancen System of periodic inspection and

    maintenance to keep machines operatingw TPM combines preventive maintenance

    and total quality concepts

  • Copyright 2006 John Wiley & Sons, Inc. 15-38

    TPM Requirements

    w Design products that can be easily produced on existing machines

    w Design machines for easier operation, changeover, maintenance

    w Train and retrain workers to operate machinesw Purchase machines that maximize productive

    potentialw Design preventive maintenance plan spanning

    life of machine

  • Copyright 2006 John Wiley & Sons, Inc. 15-39

    Unneeded 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 lines, clean; cleaning materials not easily accessible; labels, signs broken or unclean; other cleaning problems Necessary information not visible; standards

    not known; checklists missing; quantities and limits not easily recognizable; items cant 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

    Keep only what you need

    A place for everything and everything in its place Cleaning, and

    looking for ways to keep clean and organized

    Maintaining and monitoring the first three categories Sticking to the rules

    Seiri (sort)

    Seiton (set in order)

    Seisou (shine)

    Seiketsu (standardize)

    Shisuke (sustain)

    5S Scan Goal Eliminate or Correct

  • Copyright 2006 John Wiley & Sons, Inc. 15-40

    Supplier Networks

    w Long-term supplier contractsw Synchronized productionw Supplier certificationw Mixed loads and frequent deliveriesw Precise delivery schedulesw Standardized, sequenced deliveryw Locating in close proximity to the customer

  • Copyright 2006 John Wiley & Sons, Inc. 15-41

    Benefits of Lean Production

    w Reduced inventoryw Improved qualityw Lower costsw Reduced space requirementsw Shorter lead timew Increased productivity

  • Copyright 2006 John Wiley & Sons, Inc. 15-42

    Benefits of Lean Production (cont.)

    w Greater flexibilityw Better relations with suppliersw Simplified scheduling and control activitiesw Increased capacityw Better use of human resourcesw More product variety

  • Copyright 2006 John Wiley & Sons, Inc. 15-43

    Implementing Lean Production

    w Use lean production to finely tune an operating system

    w Somewhat different in USA than Japanw Lean production is still evolvingw Lean production isnt for everyone

  • Copyright 2006 John Wiley & Sons, Inc. 15-44

    Lean Services

    w Basic elements of lean production apply equally to services

    w Most prevalent applicationsn lean retailingn lean bankingn lean health care

  • Copyright 2006 John Wiley & Sons, Inc. 15-45

    Copyright 2006 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.