Operations Management 14.1

Waste reduction

A hallmark of lean systems

Continuous Improvement

Never-ending efforts to find better ways of doing work

Use of teams

Cross-functional teams, especially for process improvement

Work cells

Along with cellular layouts, they allow for better communication and use of people

Visual controls

Simple signals that enable efficient flow and quick assessment of operations

High quality

In suppliers’ parts, in processes, and in output

Minimal inventory

Excess inventory is viewed as a waste

Output tied to demand

Throughout the entire system; referred to as “demand pull”

Quick changeovers

Enables equipment flexibility and output variety without disruption

Small lot sizes

Enables variety for batch production

Lean culture

The entire organization embraces lean concepts and strives to achieve them

What are the five principles of how lean systems function?

1. Identify customer values

2. Focus on processes that create value

3. Eliminate waste to create “flow”

4. Produce only according to customer demand

5. Strive for perfection

Key benefits of lean systems

1. Reduced waste

2. Lower cost due to reduced waste and lower inventories

3. Increased quality motivated by customer focus and the need for high-quality processes

4. Reduced cycle time due to elimination of non-value-added operations

5. Increased flexibility due to quick changeovers and small lot sizes

6. Increased productivity due to elimination of non-value-added processes

Risks of lean systems

1. Increased stress on workers due to increased responsibilities for equipment changeovers, problem solving, and process and quality improvement

2. Fewer resources (inventory, people, and time) are available if problems occur

3. Supply chain disruptions can halt operations due to minimal inventory or time buffers

Muda

Refers to minimizing waste and inefficiency

Kanban

A manual system used for controlling the movement of parts and materials that responds to signals of the need (demand) for delivery of parts or materials

Heijunka

Variations in production volume lead to waste. Volume and variety must be averaged to achieve a steady flow of work

Kaizen

Continuous improvement of the system

Jidoka

Quality at the source. Also known as autonomation

What is the goal of a lean operation?

To achieve a system that matches supply to customer demand