Chapter 15

Lean Production
Operations Management -- 5th Edition Operations Management 5th Edition
Roberta Russell & Bernard W. Taylor, III

Copyright 2006 John Wiley & Sons, Inc.

Beni Asllani University of Tennessee at Chattanooga

Lecture Outline
Basic Elements of Lean Production Benefits of Lean Production Implementing Lean Production Lean Services

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Lean Production
Doing more with less inventory, fewer workers, less space Just-in-time (JIT)

smoothing the flow of material to arrive just as it is needed JIT and Lean Production are used interchangeably waste, anything other than that which adds value to the product or service

Muda

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Waste in Operations

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Waste in Operations (cont.)

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Waste in Operations (cont.)

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Basic Elements
1. 2. 3. 4. 5. 6. 7. 8. 9. Flexible resources Cellular layouts Pull production system Kanban production control Small lot production Quick setups Uniform production levels Total productive maintenance Supplier networks

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Flexible Resources
Multifunctional workers

perform more than one job general-purpose machines perform several basic functions time required for the worker to complete one pass through the operations assigned paces production to customer demand

Cycle time

Takt time

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Standard Operating Routine for a Worker

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Cellular Layouts
Manufacturing cells

comprised of dissimilar machines brought together to manufacture a family of parts

Cycle time is adjusted to match takt time by changing worker paths

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Cells with Worker Routes

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Worker Routes Lengthen as Volume Decreases

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Pull System
Material is pulled through the system when needed Reversal of traditional push system where material is pushed according to a schedule Forces cooperation Prevent over and underproduction While push systems rely on a predetermined schedule, pull systems rely on customer requests
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Kanbans
Card which indicates standard quantity of production Derived from two-bin inventory system Maintain discipline of pull production Authorize production and movement of goods

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Sample Kanban

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Origin of Kanban
a) Two-bin inventory system Bin 1 Bin 2 Reorder card Q-R R R b) Kanban inventory system Kanban

Q = order quantity R = reorder point - demand during lead time

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Types of Kanban
Production kanban

Signal kanban

authorizes production of goods authorizes movement of goods a marked area designated to hold items

Withdrawal kanban

a triangular kanban used to signal production at the previous workstation used to order material in advance of a process rotates between the factory and suppliers
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Material kanban

Kanban square

Supplier kanban

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Determining Number of Kanbans

No. of Kanbans = average demand during lead time + safety stock container size N = where N d L S C = number of kanbans or containers = average demand over some time period = lead time to replenish an order = safety stock = container size
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dL + S C

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Determining Number of Kanbans: Example

d L S C = 150 bottles per hour = 30 minutes = 0.5 hours = 0.10(150 x 0.5) = 7.5 = 25 bottles

(150 x 0.5) + 7.5 dL + S N= = C 25 75 + 7.5 = = 3.3 kanbans or containers 25 Round up to 4 (to allow some slack) or down to 3 (to force improvement)
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Small Lots
Require less space and capital investment Move processes closer together Make quality problems easier to detect Make processes more dependent on each other
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Inventory Hides Problems

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Less Inventory Exposes Problems

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Components of Lead Time

Processing time

Reduce number of items or improve efficiency Reduce distances, simplify movements, standardize routings Better scheduling, sufficient capacity Generally the biggest bottleneck
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Move time

Waiting time

Setup time

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Quick Setups
Internal setup

SMED Principles

Can be performed only when a process is stopped Can be performed in advance

External setup

Separate internal setup from external setup Convert internal setup to external setup Streamline all aspects of setup Perform setup activities in parallel or eliminate them entirely

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Common Techniques for Reducing Setup Time

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Common Techniques for Reducing Setup Time (cont.)

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Common Techniques for Reducing Setup Time (cont.)

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Uniform Production Levels

Result from smoothing production requirements Kanban systems can handle +/- 10% demand changes Smooth demand across planning horizon Mixed-model assembly steadies component production
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Mixed-Model Sequencing

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Quality at the Source

Visual control

Jidoka

makes problems visible

authority to stop the production line call lights that signal quality problems

Poka-yokes

Andons

prevent defects from occurring a system of continuous improvement; change for the good of all

Kaizen

Under-capacity scheduling

leaves time for planning, problem solving, and maintenance

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Examples of Visual Control

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Examples of Visual Control (cont.)

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Examples of Visual Control (cont.)

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Total Productive Maintenance (TPM)

Breakdown maintenance

Repairs to make failed machine operational System of periodic inspection and maintenance to keep machines operating

Preventive maintenance

TPM combines preventive maintenance and total quality concepts

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TPM Requirements
Design products that can be easily produced on existing machines Design machines for easier operation, changeover, maintenance Train and retrain workers to operate machines Purchase machines that maximize productive potential Design preventive maintenance plan spanning life of machine
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5S Scan
Seiri (sort)

Goal
Keep only what you need

Eliminate or Correct
Unneeded equipment, tools, furniture; unneeded items on walls, bulletins; items blocking aisles or stacked in corners; unneeded inventory, supplies, parts; safety hazards Items not in their correct places; correct places not obvious; aisles, workstations, & equipment locations not indicated; items not put away immediately after use Floors, walls, stairs, equipment, & surfaces not lines, clean; cleaning materials not easily accessible; labels, signs broken or unclean; other cleaning problems Necessary information not visible; standards not known; checklists missing; quantities and limits not easily recognizable; items cant be located within 30 seconds Number of workers without 5S training; number of daily 5S inspections not performed; number of personal items not stored; number of times job aids not available or up-to-date 15-39

Seiton (set in order) Seisou (shine) Seiketsu (standardize) Shisuke (sustain)

A place for everything and everything in its place Cleaning, and looking for ways to keep clean and organized Maintaining and monitoring the first three categories Sticking to the rules

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Supplier Networks
Long-term supplier contracts Synchronized production Supplier certification Mixed loads and frequent deliveries Precise delivery schedules Standardized, sequenced delivery Locating in close proximity to the customer
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Benefits of Lean Production

Reduced inventory Improved quality Lower costs Reduced space requirements Shorter lead time Increased productivity

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Benefits of Lean Production (cont.)

Greater flexibility Better relations with suppliers Simplified scheduling and control activities Increased capacity Better use of human resources More product variety

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Implementing Lean Production

Use lean production to finely tune an operating system Somewhat different in USA than Japan Lean production is still evolving Lean production isnt for everyone

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Lean Services
Basic elements of lean production apply equally to services Most prevalent applications

lean retailing lean banking lean health care

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