CH.4- Lean Operations

Lean:

Doing things fast, cheaper and with less waste

5s System:

System to organize the workplace, helps keep everything clean and efficient

5s System includes

Sort: remove what you need

Simplify: organize what you need

Shine: clean everything

Standardize: make rules so things stay organized

Sustain: keep it going

Variability:

When things don’t go as planned, Causes waste and problems

Throughput:

How fast products move through a system. The faster you produce, the more competitive you are.

PUSH system

GOOD, reduces waste//inventory, only produces when needed

PULL system

BAD, produces based on forecasts, can create too much inventory

Just-In-Time (JIT):

Materials arrive ONLY when needed, no extra inventory

Supplier Partnerships:

Companies work closely with suppliers.

Lean Layout:

How you arrange a workspace so things move fast and no waste.

Lean Inventory

To Keep minimum inventory, inventory is seen as waste

Reduce Lot Sizes

Make products in small batches. It lowers inventory and there’s more flexibility

Setup time:

Time to prepare machines.

How: improving processes, training workers, prepare before stopping machines and standardize work

Scheduling in Lean:

Planning work so it matches customer demand smoothly, keep everything flowing evenly

Kanban System:

Signal system that tells workers when to produce more

Kaizen:

Continuous improvement.

-employees are very important: trust them, include them

-work must be done the same way every time

How to improve lean quality:

Small batches, use polka yoke and let employees fix problems

Lean Organizations

Everyone works together, deliver exactly what the customer wants

Activity Based Costing, ABC:

Tracks real costs based on actual activities. Assigns costs based on what actually uses resources