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extra-processing

Unnecessary steps in a process. Redundancies between processes. More work or higher quality than required by the customer

set

arrange items to promote efficient workflow

communicating

demand forecasts and production schedules up the supply chain

role of workers

performing different tasks and actively pursuing company goals:

after waste is removed

processes are more streamlined, resulting in more satisfied customers. You'll also save your organization time and money

Efficient consumer response (ECR)

speed and flexibility

quick response (QR)

speed and flexibility

ohn Krafcik in 1988

term lean was coined and the definition was expanded in the 1990 book the machine that changed the world

transportation

Unnecessary movement of materials or products

motion

Unnecessary movement of people. Multiple hand-offs

standardize

set standards for a consistently organized workplace

sustain

stick to the rules. maintain and review standards

communication between workstations- kanban

"Signal" or "Card" in Japanese. Contains information passed between stations. Authorizes production or the movement of materials to the next workstation.

small Batch Scheduling

-drives down costs -accomplished with the use of kanbans

VALUE ADDED

1-10% OF ACTIVITIES

value added process

A process step that transforms or shapes a product or service which is eventually sold to a customer.

defects

Anything that does not meet the acceptance criteria

continuous Improvement (Kaizen)

Continuous approach to reduce process, delivery, and quality problems, such as machine breakdown problems, setup problems, and internal quality problems

uniform plant loading problem

Demand exceeds capacity at points in the planning horizon. Matching the production plan to follow demand exactly can contribute to inefficiency and waste.

the pull system pull approach

Each stage in the supply chain requests quantities needed from the previous stage. No excess inventory generated. Reduced inventory exposes problems.

waiting

Elapsed time between processes when no work is being done

inventory and Setup Time Reduction

Excess inventory is a waste Reducing inventory levels can create production problems Once problems are detected, they can be solved. The end result is a smoother running organization with less inventory investment.

inventory

Excess products or materials not being processed

waste (muds) reduction

Firms reduce costs and add value by eliminating waste from the productive system. Waste encompasses wait times, inventories, material and people movement, processing steps, variability, any other non-value-adding activity.

Respect for all people must exist for an organization to be its best

Flatter hierarchy than traditional organizations. Ordinary workers given great responsibility. Supply chain members work together in cross functional teams.

worker duties

Improve production process Monitor quality Correct quality problems

lean is composed of 3 elements

LEAN Manufacturing (production) Total Quality Management Respect for People

LEAN and Six Sigma complement each other;

LEAN focuses on eliminating wastes and improving efficiency Six Sigma focuses on reducing defects and variations

workforce Commitment

Managers must support LEAN Manufacturing by providing subordinates with the skills, tools, time, and other necessary resources to identify problems and implement solutions

LEAN Layouts

Move people and materials when and where needed, and as soon as possible Are very visual (lines of visibility are unobstructed) with operators at one processing center able to monitor work at another Manufacturing cells

the pull system traditional approach

Supply chains work as "push" systems Inventory carried to cover up problems

uniform plant loading

Planning up to capacity in earlier time periods to meet demand in later time periods. Also called "front-loading" the plan or "leveling" the plan. Production schedule is frozen in the up-front time period (i.e., month) Helps suppliers better plan production.

manufacturing cells

Process similar parts or components saving duplication of equipment and labor Are often U-shaped to facilitate easier operator and material movements

non-value added process

Process steps that take time, resources, or space, but do not add value to the product or service

overproduction

Production before it is needed, or in excess of customer requirements. Providing a service that is not needed.

reducing waste results in

Reduced cycle times Greater throughput Better productivity Improved quality Reduced costs

small lot production results in

Reduces inventory and excess processing. Increases flexibility. Responds to customer demands more quickly. Shortens manufacturing lead time. Setup time must be low.

lean drives down costs by

Reducing purchased, WIP, and finished goods inventories Makes the firm more flexible to meet customer demand

small lot production

Small amount of product produced at any one time:

LEAN Supply Chain Relationships

Suppliers and customers work to remove waste, reduce cost, and improve quality and customer service JIT purchasing includes delivering smaller quantities, at right time, delivered to the right location, in the right quantities Firms develop lean supply chain relationships with key customers. Mutual dependency and benefits occur among these partners.

non-utilized talent

Underutilizing people's talents, skills or knowledge. De-motivating the workforce by not asking for input or recognizing success

elements of lean manufacturing

Waste Reduction LEAN Supply Chain Relationships LEAN Layouts Inventory and Setup Time Reduction Small Batch Scheduling Continuous Improvement Workforce Empowerment

Lean is not

a tool box of methods, ideas, or methodologies

six sigma

an enterprise and supply chain-wide philosophy that emphasizes a commitment toward excellence and encompasses suppliers, employees, and customers

lean

an operating philosophy of waste reduction and value enhancement and was originally created as the Toyota Production System (TPS) by key Toyota executives.

shine

clean the work area so it is neat and tidy

seiketsu

cleanliness

just in time (JIT)

continuous reduction of waste

1940 Taichii ohno and shigeo shingo

created the Toyota Production System (TPS), which incorporated Ford's production system and other techniques to form the basis of what is now known as LEAN.

Supply Chain Management seeks to incorporate LEAN elements using:

cross-training, customer demand, moving products, communicating, optimizing, an channel integration

channel integration

extending alliances to suppliers' suppliers and customers' customers

lean + six sigma

faster speed and better accuracy

kanbans

generate demand for parts at all stages of prodution creating a "pull" system

keiretsu relationships

including suppliers in hit/tqm efforts

optimizing

inventory levels across the supply chain

Lean is... and provides...

is a culture. provides value for customers through the use of the most efficient resources possible is standard in many industries often results in: Large cost reductions Improved quality Increased customer service

value

is the inherent worth of a product as judged by the customer and reflected in its selling price and market demand is defined as anything for which the customer is willing to pay

sort

keep only necessary items in the workplace

Workers, management, and suppliers

look at role of _____ respect for people

1910s henry ford

mass production line was a first breakthrough by using continuous assembly and flow systems that made parts find their way into finished products

seiri

organization

seiton

tidiness

before waste is removed

processes are often scattered, which can negatively affect your customers

seiso

purity

work in teams

quality circles

In the 1990s, supply chain management combined:

quick response, efficient consumer response, just in time, and keiretsu relationships

the five S's

seiri(sort) seiton(set) seiso(shine) seiketsu(standardize) shitsuke(sustain)

the eight wastes ("down time")

defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra-processing

shitsuke

discipline


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