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BeniAsllaniUniversityofTennesseeatChattanoogaLeanProductionOperationsManagement-5thEditionChapter15RobertaRussell&BernardW.Taylor,IIICopyright2006JohnWiley&Sons,Inc. LectureOutlineBasicElementsofLeanProductionBenefitsofLeanProductionImplementingLeanProductionLeanServices2Copyright2006JohnWiley&Sons,Inc. LeanProductionDoingmorewithlessinventory,fewerworkers,lessspaceJust-in-time(JIT)smoothingtheflowofmaterialtoarrivejustasitisneeded“JIT”and“LeanProduction”areusedinterchangeablyMudawaste,anythingotherthanthatwhichaddsvaluetotheproductorservice3Copyright2006JohnWiley&Sons,Inc. WasteinOperations4Copyright2006JohnWiley&Sons,Inc. WasteinOperations(cont.)5Copyright2006JohnWiley&Sons,Inc. WasteinOperations(cont.)6Copyright2006JohnWiley&Sons,Inc. BasicElementsFlexibleresourcesCellularlayoutsPullproductionsystemKanbanproductioncontrolSmalllotproductionQuicksetupsUniformproductionlevelsTotalproductivemaintenanceSuppliernetworks7Copyright2006JohnWiley&Sons,Inc. FlexibleResourcesMultifunctionalworkersperformmorethanonejobgeneral-purposemachinesperformseveralbasicfunctionsCycletimetimerequiredfortheworkertocompleteonepassthroughtheoperationsassignedTakttimepacesproductiontocustomerdemand8Copyright2006JohnWiley&Sons,Inc. StandardOperatingRoutineforaWorker9Copyright2006JohnWiley&Sons,Inc. CellularLayoutsManufacturingcellscomprisedofdissimilarmachinesbroughttogethertomanufactureafamilyofpartsCycletimeisadjustedtomatchtakttimebychangingworkerpaths10Copyright2006JohnWiley&Sons,Inc. CellswithWorkerRoutes11Copyright2006JohnWiley&Sons,Inc. WorkerRoutesLengthenasVolumeDecreases12Copyright2006JohnWiley&Sons,Inc. PullSystemMaterialispulledthroughthesystemwhenneededReversaloftraditionalpushsystemwherematerialispushedaccordingtoascheduleForcescooperationPreventoverandunderproductionWhilepushsystemsrelyonapredeterminedschedule,pullsystemsrelyoncustomerrequests13Copyright2006JohnWiley&Sons,Inc. KanbansCardwhichindicatesstandardquantityofproductionDerivedfromtwo-bininventorysystemMaintaindisciplineofpullproductionAuthorizeproductionandmovementofgoods14Copyright2006JohnWiley&Sons,Inc. SampleKanban15Copyright2006JohnWiley&Sons,Inc. OriginofKanbana)Two-bininventorysystemb)KanbaninventorysystemReordercardBin1Bin2Q-RKanbanRRQ=orderquantityR=reorderpoint-demandduringleadtime16Copyright2006JohnWiley&Sons,Inc. TypesofKanbanProductionkanbanauthorizesproductionofgoodsWithdrawalkanbanauthorizesmovementofgoodsKanbansquareamarkedareadesignatedtoholditemsSignalkanbanatriangularkanbanusedtosignalproductionatthepreviousworkstationMaterialkanbanusedtoordermaterialinadvanceofaprocessSupplierkanbanrotatesbetweenthefactoryandsuppliers17Copyright2006JohnWiley&Sons,Inc. 18Copyright2006JohnWiley&Sons,Inc. 19Copyright2006JohnWiley&Sons,Inc. 20Copyright2006JohnWiley&Sons,Inc. DeterminingNumberofKanbanswhereN=numberofkanbansorcontainersd=averagedemandoversometimeperiodL=leadtimetoreplenishanorderS=safetystockC=containersizeNo.ofKanbans=averagedemandduringleadtime+safetystockcontainersizeN=dL+SC21Copyright2006JohnWiley&Sons,Inc. DeterminingNumberofKanbans:Exampled=150bottlesperhourL=30minutes=0.5hoursS=0.10(150x0.5)=7.5C=25bottlesRoundupto4(toallowsomeslack)ordownto3(toforceimprovement)N====3.3kanbansorcontainersdL+SC(150x0.5)+7.52575+7.52522Copyright2006JohnWiley&Sons,Inc. SmallLotsRequirelessspaceandcapitalinvestmentMoveprocessesclosertogetherMakequalityproblemseasiertodetectMakeprocessesmoredependentoneachother23Copyright2006JohnWiley&Sons,Inc. InventoryHidesProblems24Copyright2006JohnWiley&Sons,Inc. LessInventoryExposesProblems25Copyright2006JohnWiley&Sons,Inc. ComponentsofLeadTimeProcessingtimeReducenumberofitemsorimproveefficiencyMovetimeReducedistances,simplifymovements,standardizeroutingsWaitingtimeBetterscheduling,sufficientcapacitySetuptimeGenerallythebiggestbottleneck26Copyright2006JohnWiley&Sons,Inc. QuickSetupsInternalsetupCanbeperformedonlywhenaprocessisstoppedExternalsetupCanbeperformedinadvanceSMEDPrinciplesSeparateinternalsetupfromexternalsetupConvertinternalsetuptoexternalsetupStreamlineallaspectsofsetupPerformsetupactivitiesinparalleloreliminatethementirely27Copyright2006JohnWiley&Sons,Inc. CommonTechniquesforReducingSetupTime28Copyright2006JohnWiley&Sons,Inc. CommonTechniquesforReducingSetupTime(cont.)29Copyright2006JohnWiley&Sons,Inc. CommonTechniquesforReducingSetupTime(cont.)30Copyright2006JohnWiley&Sons,Inc. UniformProductionLevelsResultfromsmoothingproductionrequirementsKanbansystemscanhandle+/-10%demandchangesSmoothdemandacrossplanninghorizonMixed-modelassemblysteadiescomponentproduction31Copyright2006JohnWiley&Sons,Inc. Mixed-ModelSequencing32Copyright2006JohnWiley&Sons,Inc. QualityattheSourceVisualcontrolmakesproblemsvisiblePoka-yokespreventdefectsfromoccurringKaizenasystemofcontinuousimprovement;“changeforthegoodofall”JidokaauthoritytostoptheproductionlineAndonscalllightsthatsignalqualityproblemsUnder-capacityschedulingleavestimeforplanning,problemsolving,andmaintenance33Copyright2006JohnWiley&Sons,Inc. ExamplesofVisualControl34Copyright2006JohnWiley&Sons,Inc. ExamplesofVisualControl(cont.)35Copyright2006JohnWiley&Sons,Inc. ExamplesofVisualControl(cont.)36Copyright2006JohnWiley&Sons,Inc. TotalProductiveMaintenance(TPM)BreakdownmaintenanceRepairstomakefailedmachineoperationalPreventivemaintenanceSystemofperiodicinspectionandmaintenancetokeepmachinesoperatingTPMcombinespreventivemaintenanceandtotalqualityconcepts37Copyright2006JohnWiley&Sons,Inc. TPMRequirementsDesignproductsthatcanbeeasilyproducedonexistingmachinesDesignmachinesforeasieroperation,changeover,maintenanceTrainandretrainworkerstooperatemachinesPurchasemachinesthatmaximizeproductivepotentialDesignpreventivemaintenanceplanspanninglifeofmachine38Copyright2006JohnWiley&Sons,Inc. Unneededequipment,tools,furniture;unneededitemsonwalls,bulletins;itemsblockingaislesorstackedincorners;unneededinventory,supplies,parts;safetyhazardsItemsnotintheircorrectplaces;correctplacesnotobvious;aisles,workstations,&equipmentlocationsnotindicated;itemsnotputawayimmediatelyafteruseFloors,walls,stairs,equipment,&surfacesnotlines,clean;cleaningmaterialsnoteasilyaccessible;labels,signsbrokenorunclean;othercleaningproblemsNecessaryinformationnotvisible;standardsnotknown;checklistsmissing;quantitiesandlimitsnoteasilyrecognizable;itemscan’tbelocatedwithin30secondsNumberofworkerswithout5Straining;numberofdaily5Sinspectionsnotperformed;numberofpersonalitemsnotstored;numberoftimesjobaidsnotavailableorup-to-dateKeeponlywhatyouneedAplaceforeverythingandeverythinginitsplaceCleaning,andlookingforwaystokeepcleanandorganizedMaintainingandmonitoringthefirstthreecategoriesStickingtotherulesSeiri(sort)Seiton(setinorder)Seisou(shine)Seiketsu(standardize)Shisuke(sustain)5SScanGoalEliminateorCorrect39Copyright2006JohnWiley&Sons,Inc. SupplierNetworksLong-termsuppliercontractsSynchronizedproductionSuppliercertificationMixedloadsandfrequentdeliveriesPrecisedeliveryschedulesStandardized,sequenceddeliveryLocatingincloseproximitytothecustomer40Copyright2006JohnWiley&Sons,Inc. BenefitsofLeanProductionReducedinventoryImprovedqualityLowercostsReducedspacerequirementsShorterleadtimeIncreasedproductivity41Copyright2006JohnWiley&Sons,Inc. BenefitsofLeanProduction(cont.)GreaterflexibilityBetterrelationswithsuppliersSimplifiedschedulingandcontrolactivitiesIncreasedcapacityBetteruseofhumanresourcesMoreproductvariety42Copyright2006JohnWiley&Sons,Inc. ImplementingLeanProductionUseleanproductiontofinelytuneanoperatingsystemSomewhatdifferentinUSAthanJapanLeanproductionisstillevolvingLeanproductionisn’tforeveryone43Copyright2006JohnWiley&Sons,Inc. LeanServicesBasicelementsofleanproductionapplyequallytoservicesMostprevalentapplicationsleanretailingleanbankingleanhealthcare44Copyright2006JohnWiley&Sons,Inc. Copyright2006JohnWiley&Sons,Inc.Allrightsreserved.Reproductionortranslationofthisworkbeyondthatpermittedinsection117ofthe1976UnitedStatesCopyrightActwithoutexpresspermissionofthecopyrightownerisunlawful.RequestforfurtherinformationshouldbeaddressedtothePermissionDepartment,JohnWiley&Sons,Inc.Thepurchasermaymakeback-upcopiesforhis/herownuseonlyandnotfordistributionorresale.ThePublisherassumesnoresponsibilityforerrors,omissions,ordamagescausedbytheuseoftheseprogramsorfromtheuseoftheinformationherein.45Copyright2006JohnWiley&Sons,Inc.