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Chapter 15

Lean Operations

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Chapter 15: Learning Objectives


You should be able to:
Explain what is meant by the term lean operations system
List each of the goals of a lean system and explain its
importance
List and briefly describe the building blocks of lean
List the benefits of a lean system
Outline the considerations important to converting a traditional
mode of operations to a lean system
List some of the obstacles that might be encountered when
converting to a lean system
Describe value stream mapping

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Lean Operations
Lean operation
A flexible system of operation that uses considerably
less resources than a traditional system
Tend to achieve

Greater productivity
Lower costs
Shorter cycle times
Higher quality

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Lean Operations: Terminology


Muda
Waste and inefficiency

Kanban
A manual system that signals the need for parts or materials

Pull system
Replacing material or parts based on demand

Heijunka
Workload leveling

Kaizen
Continuous improvement of the system

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Lean Operations: Terminology


Jidoka
Quality at the source (worker)

Poka-yoke
Safeguards built into a process to reduce the possibility of errors

Team concept
Use of small teams of workers for process improvement

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Goals and building blocks of lean systems

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Lean: Supporting Goals


The degree to which leans ultimate goal is
achieved depends upon how well its supporting
goals are achieved:
1. Eliminate disruptions
2. Make the system flexible
3. Eliminate waste, especially excess inventory

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Lean: Building Blocks


Product design
Process design
Personnel/organizational elements
Manufacturing planning and control

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Kanbans
Ideal number of kanban cards
DT (1 X )
C
where
N Total number of containers (1 card per container)
D planned usage rate of using work center
Average waiting time for replenishm ent of parts plus
T
average production time for a container of parts
Policy variable set by management that relects possible inefficien cy
X
in the system (the closer to 0, the more efficient the system
Capacity of a standard container (should be no more
C
than 10 percentof daily usage of the part
N

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Limited WIP
Benefits of lower WIP
Lower carrying costs
Increased flexibility
Aids scheduling
Saves costs of scrap and rework if there are design
changes
Lower cycle-time variability

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Reduced Transaction Processing


Lean systems seek to reduce costs associated
with the hidden factory:
Logistical transactions
Balancing transactions
Quality transactions
Change transactions

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Preventive Maintenance
Preventive maintenance
Maintaining equipment in good operating condition
and replacing parts that have a tendency to fail before
they actually do fail

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Lean vs. Traditional Philosophies


Factor

Traditional

Lean

Inventory

Much to offset
forecast errors, late
deliveries

Minimal necessary to
operate

Deliveries

Few, large

Many, small

Lot sizes

Large

Small

Setup; runs

Few, long runs

Many, short runs

Vendors

Long-term
relationships are
unusual

Partners

Workers

Necessary to do the
work

Assets

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Value Stream Mapping


Value stream mapping
A visual tool to systematically examine the flows of
materials and information
Its purpose is to help identify waste and opportunities
for improvement
Data collected:

Times
Distances traveled
Mistakes
Inefficient work methods
Waiting times
Information flows
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Operations Strategy
Be careful to study the requirements and benefits of lean
systems before making a decision to convert operations
Evaluate strengths and weaknesses of current operations

The decision to convert can be sequential


Weigh the pros and cons of a lean approach to
inventories
Supplier management is critical to a lean operation

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