Chapter 15

Lean Operations

Lean Operations
Lean operation
A flexible system of operation that uses considerably less resources than a traditional system
Tend to achieve
Greater productivity Lower costs Shorter cycle times Higher quality

Lean Operations: Terminology

Muda
Waste and inefficiency

Kanban
A manual system that signals the need for parts or materials

Pull system
Replacing material or parts based on demand

Heijunka
Workload leveling

Kaizen
Continuous improvement of the system

Lean Operations: Terminology

Jidoka
Quality at the source (worker)

Poka-yoke
Safeguards built into a process to reduce the possibility of errors

Team concept
Use of small teams of workers for process improvement

Goals and building blocks of lean systems

Lean: Supporting Goals

The degree to which leans ultimate goal is achieved depends upon how well its supporting goals are achieved:
1. Eliminate disruptions 2. Make the system flexible 3. Eliminate waste, especially excess inventory

Lean: Building Blocks

Product design Process design Personnel/organizational elements Manufacturing planning and control

Kanbans
Ideal number of kanban cards
DT (1 X ) C where N N Total number of containers (1 card per container) D planned usage rate of using workcenter Average waiting time for replenishment of parts plus T average production time for a container of parts X C Policy variable set by management that relects possible inefficiency in the system(the closer to0, the more efficient the system Capacity of a standard container (should be no more than 10 percentof daily usage of the part

Limited WIP
Benefits of lower WIP
Lower carrying costs Increased flexibility Aids scheduling Saves costs of scrap and rework if there are design changes Lower cycle-time variability

Reduced Transaction Processing

Lean systems seek to reduce costs associated with the hidden factory:
Logistical transactions Balancing transactions Quality transactions Change transactions

Preventive Maintenance
Preventive maintenance
Maintaining equipment in good operating condition and replacing parts that have a tendency to fail before they actually do fail

Lean vs. Traditional Philosophies

Factor
Inventory

Traditional
Much to offset forecast errors, late deliveries

Lean
Minimal necessary to operate

Deliveries
Lot sizes Setup; runs Vendors

Few, large
Large Few, long runs Long-term relationships are unusual Necessary to do the work

Many, small
Small Many, short runs Partners

Workers

Assets

1-12

Example-2: Page 634 Ques: Usage at a work center is 300 parts per day and a slandered container holds 25 parts. It takes an average of .12 day for a container to complete a circuit from time a kanban card is received until the container is returned empty. Compute the number of kanban cards (containers) needed if X= .20. Ans: We know, N= D(T) (1+X)/C (Kanban Formula) Where, D=300 parts per day T= .12 day (average) X= .20 C= 25 parts per container. (how much) So, N =300(.12)(1+.20)/25 =1.728 =2