Ops chapter 14 Lean Production

Lean production

Integrated activities designed to achieve high-volume, high-quality production using minimal inventories of raw materials, work-in-process, and finished goods.

Focuses on eliminating as much waste as possible

Customer value

In the context of lean production, something for which the customer is willing to pay.

Toyota production system

Lean principles are based on two original ideas behind the TPS central to the Japanese culture: Eliminate waste and respect people

Waste (muda)

Anything that does not add value from the customer’s perspective.

Value stream

These are the value-adding and non-value-adding activities required to design, order, and provide a product from concept to launch, order to delivery, and raw materials to customers.

Waste reduction

The optimization of value adding activities and elimination of non-value adding activities that are part of the value stream.

Value stream mapping

Tool for seeing a process with four steps:

1. Identify a product family

2. Draw a current state map

3. Determine a future state map

4. Create an implementation plan

Value stream mapping has 5 elements

1. Customer information

2. Supplier information

3. Main fulfillment process

4. Information and production control

5. Time calculation

How does value stream mapping differ from process mapping

By focusing on value creation opportunities and constraints instead of activities

Lead time

The time it takes for us to get our raw materials, finish them, and ship them to the customers

Days of inventory

How long will our inventory cover demand

Takt time

Planned assembly pace based on our demand

Kaizen

Japanese philosophy that focuses on continuous improvement.

When does lean production and Six sigma work best

in repeatable, standardized operations

Waste elimination

Lean is a mindset applicable across industries about relentless simplification and elimination of waste. While Lean embodies many TQM ideas, the main difference is Lean’s focus on eliminating waste

7 types of waste

Defects

Overporduction

Waiting

Not using people properly

Transportation

Inventory

Motion

Extra processing

Lean suppliers

Are able to respond to changes and usually have generally lower prices due to the officiency of lean processes

Lean procurement

the key is automation. Automatic transaction, sourcing, biding, and auctions

Lean manufacturing

Produce what the customers want, in the quanitity they want, when they want it, and with minimum resources

Value stream mapping two part process

1. Current state

2. Future state

5 S

1. Sort : Spring cleaning

2. Straighten : a place for everything

3. Shine : Clean, inspect, and care

4. Standardize : Sort, straighten, shine everwhere

5. Sustain: A habit

Cause & Effect Duagram ( Fishbone or Ishikawa Diagram)

• Allows the team to identify, explore and graphically displace all possible causes related to a problem or condition to discover its root cause(s).

• Creates a snapshot of the collective knowledge and consensus of a team around a problem. This builds support for the resulting solutions.

• Focuses the team on causes, not symptoms.

Pareto charts

helps organize and prioritize errors

Focus of Cause & Effect diagram

to find the root cause of an error