Lean Systems

CHARACTERSTICS OF LEAN
SYSTEMS
Also called Just in Time (JIT) Systems
JIT systems focus on reducing in-efficiency
and un-productive time in the production
process for continually improving the
process and product both
Employee involvement and inventory
reduction are essential for JIT systems
Lean Systems
Doing more with less inventory, fewer
workers, less space
smoothing the flow of material to arrive just
as it is needed
JIT and Lean Systems are used
interchangeably
waste, is anything other than that which
adds value to the product or service
Lean Systems
Lean systems are operations systems that
maximize the value added by each of a companys
activities by paring unnecessary resources and
delays from them.
Just-in-time (JIT) philosophy The belief that
waste can be eliminated by cutting unnecessary
capacity or inventory and removing non-value-
added activities in operations.
JIT system: A system that organizes the
resources, information flows, and decision rules
that enable a firm to realize the benefits of JIT
principles.
Pull method of work flow
Quality at the source
Small lot sizes
Uniform workstation loads
Standardized components & work methods
Close supplier ties
Flexible workforce
Line flows
Automation
Five S
Preventive maintenance
Characteristics
of Lean Systems
Push and Pull
Systems of Work Flow
Push method: A method in which
production of the item begins in advance of
customer needs.
Example: A buffet where food is prepared in
advance.
Pull Method: A method in which customer
demand activates production of the service
or item.
Example: A restaurant where food is only
prepared when orders are placed (to order)
Lean systems use the pull method of work
flow.
Five S (5S)
Five S (5S) A methodology consisting of five workplace
practices conducive to visual controls and lean production.
1. Sort: Separate needed from unneeded items (including tools, parts,
materials, and paperwork), and discard the unneeded.
2. Straighten: Neatly arrange what is left, with a place for everything and
everything in its place. Organize the work area so that it is easy to find
what is needed.
3. Shine: Clean and wash the work area and make it shine.
4. Standardize: Establish schedules and methods of performing the
cleaning and sorting. Formalize the cleanliness that results from
regularly doing the first three S practices so that perpetual cleanliness
and a state of readiness is maintained.
5. Sustain: Create discipline to perform the first four S practices, whereby
everyone understands, obeys, and practices the rules when in the plant.
Implement mechanisms to sustain the gains by involving people and
recognizing them via a performance measurement system.
Continuous Improvement
with Lean Systems
Water represents inventory levels, rocks are problems
encountered in production and delivery
2007 Pearson Education
The Single-Card Kanban System
Kanban means card or visible record in Japanese &
refers to cards used to control the flow of production
through a factory.
General Operating Rules:
1. Each container must have a card.
2. The assembly line always withdraws materials from fabrication
(pull system).
3. Containers of parts must never be removed from a storage area
without a kanban being posted on the receiving post.
4. The containers should always contain the same number of good
parts. The use of nonstandard containers or irregularly filled
containers disrupts the production flow of the assembly line.
5. Only nondefective parts should be passed along.
6. Total production should not exceed the total amount authorized on
the kanbans in the system.
DETERMINING THE NUMBER
OF KANBANS
_ _
k = d (w + p) (1 + )
c
d =expected daily demand for the part , in units
_
w = average waiting time during production process plus materials
handling per container, in fractions of a day
_
p = average processing time per container, fractions of a day
c = quantity in a standard container of a part
= policy variable which reflects the efficiency of the workstations
producing and using the part ( typical values are less than 10%)
Westerville Auto Parts Company produces rocker-
arm assemblies for use in the steering and
suspension systems of four-wheel-drive trucks.
A typical container of parts spends 0.02 day in
processing and 0.08 day in materials handling and
waiting during its manufacturing cycle.
Daily demand for the part is 2,000 units.
Management believes that demand for the rocker-
arm assembly is uncertain enough to warrant a
safety stock equivalent of 10 percent of inventory.
Determining the
Number of Kanbans
Calculations
k =
d( w+ p )( 1 + )
c
d = 2000 units/day p = 0.02 day = 0.10
w= 0.08 day c = 22 units
Westerville Auto Parts
k =
2000( 0.08 + 0.02 )( 1 + 0.10 )
22
k = 10 containers
a. If each container contains 22 parts, how many containers
should be authorized?
Calculations .Contd
k =
d( w+ p )( 1 + )
c
d = 2000 units/day p = 0.02 day = 0.10
w= 0.06 day c = 22 units
Westerville Auto Parts
k =
2000( 0.06 + 0.02 )( 1 + 0.10 )
22
k = 8 card sets
Proposed
change
from 0.08
b. A proposal to revise the plant layout would cut materials
handling and waiting time per container to 0.06 day. How many
card sets would be needed?
Benefits of Lean Production
Reduced inventory
Improved quality
Lower costs
Reduced space requirements
Shorter lead time
Increased productivity
Greater flexibility
Better relations with suppliers
Simplified scheduling and control activities
Increased capacity
Better use of human resources
More product variety
Toyota Production
System (TPS)
Toyota Production System (TPS) is one of the most admired
lean manufacturing systems in existence.
They have a process of continuous improvement.
Work is completely specified as to content, sequence, timing,
and outcome.
Services and goods do not flow to the next available person or
machine, but to a specific person or machine.
Employees are stimulated to experiment to find better ways to
do their jobs.
Improvements to the system must be made in accordance with
the scientific method, under the guidance of a teacher, at the
lowest possible organizational level.
Process Considerations
Inventory & Scheduling
Schedule Stability: Daily production schedules in
high-volume, make-to-stock environments must be
stable for extended periods.
Setups: If the inventory advantages of a lean
system are to be realized, small lot sizes must be
used.
Purchasing and Logistics: If frequent, small
shipments of purchased items cannot be arranged
with suppliers, large inventory savings for these
items cannot be realized.