Ch. 12 - Lean Supply Chains
whats constitutes a non-value-added actictivity?
any activity that does not have customer value = consumer is not willing to pay for it
waste:
anything that does not add value from the customer's perspective
computer (other kanban approaches)
computer systems integrated with ERPs
Kaizen
concept of continuous improvement
value chain
each step in the supply chain should create value
lean production does two major things
eliminates waste in production effort coordinates the timing of production (parts arrive "just in time")
quality at the source
factory workers are personally responsible for the quality of their output and become their own quality inspectors factory workers are empowered to do their own maintenance poka-yoke devices
Toyota Production System
focus on continuous improvement elimination of waste respect for people
lean layouts (design principles)
group technology quality at the source JIT production
Lean production
integrated activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) identifies and eliminates waste (non-value-added activities) through continuous improvement by flowing through downstream demand pull
Respect for people (Toyota production)
level payrolls lifetime employment cooperative employee unions quality circles (teams)
kanban squares (other kanban approaches)
marked spaces on the floor to identify where material should be stored
level schedule
one that requires material pulled in a pattern uniform enough to allow production to respond to pull signals
things that could constitute waste
overproduction waiting transportation inventory processing waste (over-processing) motion defects
Just-in-Time (JIT) Production
producing what is needed when needed and nothing more anything over the minimum is waste ideal lot size is "one" vendors ship several times a day exposes problems otherwise hidden by inventory
work/collaborate with suppliers (lean supply chains)
reduce lead times frequent deliveries project usage requirements - create level production scheduling quality expectations
Minimized Setup Times through Kanban
reductions in setup and changeover times are necessary to achieve a smooth flow kanban reduces setup cost organization will strived for a lot size of one
setting up a kanban system
requires determining the number of Kanban cards/containers needed need to know lead time
external setups
setup operations that can be completed while the machine is running, such as transporting dies, gathering parts
internal setups
setup operations that can be performed only when the machine is stopped - such as mounting or removing dies
specialized plants (lean supply chains)
small specialized plants rather than large vertically integrated manufacturing facilities can be constructed and operated cheaper
uniform plant loading
smoothing the production flow to dampen the reaction waves that normally occur from schedule variations "slow and steady" approach that takes more time but reduces chance of error
lean supply chains (design principles)
specialized plants work with suppliers building a lean supply chain
freeze windows
that period of time during which the schedule is fixed and no changes are possible
container system (other kanban approaches)
the container is used as a signal device
waste created by uncertainty with service operation(s)
uncertainty in task times uncertainty in demand customers' production roles
mass production characteristics
*at odds/in conflict with Lean Concepts* large, specialized equipment production in large lot sizes push system
single minute exchange of die (SMED)
A goal to reduce the setup time to a single-digit number of minutes
lean suppliers (lean focused supply chain)
Able to respond to changes Lower prices Higher quality
lean warehousing (lean focused supply chain)
Eliminate non-value-added steps and waste in storage process
lean production is also called:
JIT Production Toyota Production
pull system
a workstation pulls material from the preceding station as it is needed
kanban production control systems
Kanban means "sign" or "instruction card" in Japanese Cards or containers are used Make up the Kanban pull system
lean procurement (lean focused supply chain)
Key is automation (e-procurement) Suppliers must see into the customers' operations and customers must see into their suppliers' operation
components of a lean focused supply chain
Lean suppliers Lean procurement Lean warehousing Lean logistics Lean customers
Focused factory networks (specialized plants)
*minimize waste* small specialized plants that limit the range of products produced
Lean Logistics (lean focused supply chain)
-Optimized mode selection and pooling orders -Combined multi-stop truckloads -Optimized routing -Cross docking -Import/export transportation processes -Backhaul minimization
lean concepts
Plant layout is designed to ensure balanced work flow with a minimum of WIP inventory Preventive maintenance is emphasized to avoid downtime.
Value Stream (lean supply chains)
The value-adding and non-value-adding activities required to design, order, and provide a product or service used to analyze where value is or is not being added as material flows through a process
group technology
a philosophy in which similar parts are grouped into families the processes required to make the parts are arranged in a manufacturing cell preventative maintenance, eliminated movement and queue time between operations, reduces inventory, and reduces employees
colored golf balls (other kanban approaches)
each golf ball signals production of a different item
each container represents what (Kanban)?
the minimum production lot size
waste reduction (lean supply chains)
the optimization of the value-adding activities and the elimination of non-value-adding activities
lean customers (lean focused supply chain)
understand their business needs value speed and flexibility establish effective partnerships with suppliers
lean production schedules (design principles)
uniform plant loading kanban production control system
