M5- lean operations

W. P. Carey School of Business

• Institution: Arizona State University (ASU)

• Focus: Process Management, Lean Operations, and the Toyota Production System (TPS)

Lean Production Overview

• Definition: An integrated set of activities aimed at high-volume production with minimal inventories.

• Key Aspects:

  • Elimination of waste in all production efforts.

  • Production resources are timed to arrive exactly when needed (Just in Time or JIT).

• Foundation: Based on the Toyota Production System (TPS).

The Toyota Production System

• Philosophies:

  • Elimination of Waste: Focus on reducing waste in all forms.

  • Respect for People: Value and respect for all individuals involved in the processes.

Lean Operations Techniques

• Various techniques employed under Lean Operations:

  • Focused factory networks.

  • Group technology.

  • Quality at the source.

  • JIT production.

  • Uniform plant loading.

  • Kanban production control system.

  • Minimization of setup times.

Focused Factory Networks

• Concept: Small specialized plants that narrow the range of products offered, sometimes producing only a single product.

• Workforce: Some factories in Japan can range from 30 to 1000 employees.

Group Technology for Waste Minimization

• Departmental Specialization: Such layouts can cause unnecessary material movement, complicating workflow.

• Revising Plant Layout: By using Group Technology Cells, it's possible to reduce movement and improve product flow, thus enhancing operational efficiency.

Uniform Plant Loading (Heijunka)

• Production Scheduling: Comparison of non-uniform vs. uniform production schedules:

  • Non-uniform approach: Fluctuating production rates over months.

  • Uniform approach: Consistent production rates leading to labor cost savings due to efficiency in operation and reducing overstaffing during peak times.

Inventory Management and Problem Identification

• Types of Backlogs: Includes work-in-process queues, engineering design redundancies, vendor delinquencies, and other issues.

• Saving Downstream Work: Identifying defects early in production, whether from vendors or employees, prevents further downstream issues, maintaining efficiency.

Kanban Production Control Systems

• Mechanism: Material flow is controlled through kanban cards, signaling the need for components and restocking.

• Process: When an item is pulled from storage, the Production kanban signals for it to be replaced, ensuring there are always necessary parts available.

Lean Implementation Requirements

• Product Design: Standard configuration and reduction of part varieties are essential.

• Process Design: Should align closely with product design to enhance efficiency.

• Quality Expectations: Maintaining high-quality standards throughout the production process.

Lean Enterprise Management

• Framework: Encompasses modern products, processes, and human resource development.

• Focus Areas:

  • Product Development System.

  • Process and Supply Chain Management.

  • People Development System: Leadership, problem-solving, and establishing standard work procedures.

  • Waste Avoidance, Minimization, and Elimination.

Stages in Lean Front Office Implementation

• Process:

  • Analyze current activities within departments.

  • Assess personnel and their roles in efficiency enhancement.

Lean Example in Healthcare (Hospital Setting)

• Context: Nurses often walk extensive distances for supplies, affecting time management.

• Improvements: Relocating supply cabinets closer to patient rooms can significantly reduce walking distances, allowing more time for patient care.

Toyota Production System’s Four Rules

• Specification: Clearly define content, sequence, timing, and outcomes for all work.

• Direct Connections: Establish unambiguous direct customer-supplier connections for requests and responses.

• Simplicity: Ensure straightforward pathways for every product and service.

• Scientific Method: Improvement processes must adhere to scientific methods under guidance at the lowest levels of the organization.