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Operations Management
Chapter 7, Lean Thinking and Lean Systems
5e, Schroeder
McGraw-Hill/Irwin
Chapter Outline
Evolution of Lean
Lean Tenets
The Lean System
Stabilizing the Master Schedule
Controlling Flow with the Kanban System
Reducing Setup Time and Lot Sizes
Changing Layout and Maintaining Equipment
Cross-Training, Rewarding, and Engaging Workers
Guaranteeing Quality
Changing Relationships with Suppliers
Implementation of Lean
7-2
Evolution of Lean
Toyota Production System (TPS)
Developed in the 1960s in Japan
Also known as Just-in-Time (JIT) manufacturing
Lean Tenets
Specify exactly what creates value
Improve the value stream
Design the flow to avoid waste
Produce only what the customer pulls
Strive for perfection
5 Whys
5S
Poka-yoke (mistake proofing)
7-4
7-6
Inventory as Waste
If all our suppliers are guessing, you end
up with inventory, which is the physical
embodiment of bad information.
Paul Bell, Dell, Inc. Europe.
Source: Economist, 1 April 2000, p. 57.
7-7
Water Level
Bad
Design
Lengthy
Setups
Inefficient
Layout
Poor
Quality
Machine
Breakdown
Unreliable
Supplier
7-8
Water Level
Bad
Design
Lengthy
Setups
Inefficient
Layout
Poor
Quality
Machine
Breakdown
Unreliable
Supplier
7-9
Water Level
7-10
Lot sizing
Scheduling
Layout
Suppliers
Labor relations
Engineering
Marketing
HR
Finance
7-11
Kanban System
Kanban means marker
A pull production system
A physical (normally visual) control system
Normally composed of cards and containers
(production card and withdrawal card), but
can be any type of signal
Number of containers: n DT
C
7-13
7-15
7-16
Final
Assembly
Stockrooms
Supplier A
Supplier B
7-19
Lean Layout
Final
Assembly
Supplier A
Supplier B
7-20
Line 1
Line 2
Supplier A
Supplier B
7-21
Engaging Workers
Multifunction workers
Cross-training
New pay system to reflect skills variety
Teamwork
Suggestion systems
Need full worker understanding and
cooperation
7-22
Guaranteeing Quality
Quality is essential in a lean system
Defects produce waste
No inventory to cover up mistakes
Defects discovered quickly by the next process
System designed to expose errors and get them
corrected
Makes continuous improvement possible
7-23
design phase
Family of part sourcing to allow supplier to
take advantage of Group Technology
Long-term relationships with small number of
suppliers
Paperwork reduction in receiving and
inspection to reduce costs
7-25
7-26
Summary
Evolution of Lean
Lean Tenets
The Lean System
Stabilizing the Master Schedule
Controlling Flow with the Kanban System
Reducing Setup Time and Lot Sizes
Changing Layout and Maintaining Equipment
Cross-Training, Rewarding, and Engaging Workers
Guaranteeing Quality
Changing Relationships with Suppliers
Implementation of Lean
7-27
7-28