Chapter 14 Final (2)

Lean

A philosophy that emphasizes minimizing the amount of all resources used in the activities of the enterprise

What does lean require?

Identifying and eliminating non-valued added activities in every part of the company

• (NVA) Non-value added as in increase in revenue and decrease in cost

  • Rework

Lean (According to Dr. E)

Operating without a reliance upon higher levels of inventory

• solve underline problems

What is the lean system designed to do?

Minimize:

• Inventory

• Assets/ resources

What are some examples of underlying problems?

• Unreliable suppliers

• Poor quality

• Untrained employees

What are the 8 waste?

• Defects

• Overproduction

• Non-utilized talent

• Transportation

• Inventory

• Motion

• Extra-processing

What is lean philosophy based on?

• Empowerment of staff

• Elimination of waste

• Continuous improvement

What is an example of a job changeover?

• Ale 8 switching flows during production

• Mystery flavors in candy

What is lean’s ultimate goal?

Balanced rapid process flow

Anticipatory

A push system anticipate a future customer order

• “Make all that we can just incase“

  • Ex: Paint factories in the early 80s

Responsive

Pull system wait for a customer order to being production

• “Let’s make just enough“

What kind of a decison is implimenting lean?

Conscientious

Postponment (delayed differentiation)

A hybrid approach where some production is done but customization is delayed until near customer purchase

6th Sigma (Max DPMO)

Defects per million opportunities; requires ongoing improvement

Value Stream Mapping

A process excellance tool to identifying redundancies and gaps

• Mostly done using different color Post-It notes

The characteristics of Lean

• Team Based

• High Quality

• Kaizen

• Fast job-changes

Muda

Japanese for “waste“

The Boat Situation (A)

Inventory tends to cover up real problems

The Boat Situation (B)

Reducing inventory levels and we are forced to deal with underlying problems

The Boat Situation (C)

Once problems were solved, we’re able to operate less inventory