MGT 3700 - C.12

What is Kanban?

- A system used to link production rate to demand. - Kanban is Japanese for "visible record" or "signal".

Increased Preventitive MaintenanceL

- Decoupling between work centers is eliminated in lean manufacturing - Machine breakdown can quickly bring an entire production line to a halt - One approach to reducing the potential for a production line stoppage is to reduce machine breakdowns by increasing the amount of preventive maintenance

Why must Relationships with suppliers improve with lean.

- Good communication is essential for frequent deliveries - Relationship must be long lasting and more exclusive, because the supplier must invest in a change - Supplier itself must become a lean manufacturer. JIT practices must be incorporated upstream in the supply chain in order to provide true benefits

Emplyee Cross-Training:

- In a pull system, things are not produced unless they are needed. - It is difficult to pay employees to do nothing - If a particular work center has no demand, a cross-trained employee can go work elsewhere in the facility.

Employee Involvement:

- Knowledge and talent of employees should not be wasted - The impact of decisions on customer interactions and specific processes is needed and can be obtained from employees.

Level Loading Capacity:

- Lean manufacturers can't have level production as their aggregate planning strategy because it requires large buildups of inventory - Nor can they chase demand, because constant hiring and firing ruins workforce quality - The alternative is to create a somewhat level demand for production. One option is to manufacture complementary products (motorcycles in summer and snowmobiles in winter) - Another option is to level the load for a period of time, then adjust it to another level for a period of time

Protective Capacity:

- Maintain capacity instead of inventory - Equally effective, but extra capacity doesn't have negative impact on flexibility and quality.

Why use small scale equipment?

- Production using many small machines is preferable to production using one big one. - Small machines provide flexibility to turn some of them on or off and adjust your output rate. - With a single machine, you are either running at maximum output or not at all, which necessitates inventory.

How can you eliminate non value adding steps?

- Reduce one of the most common forms of waste in business by reexamining how things are done. - Just because things have been done in a certain way historically doesn't mean it's the right way to do them.

What is Kaizen?

- Translates to "continuous improvement". - Implies that business should strive to make everything better - Nothing should ever be considered "good enough" - A kaizen blitz is a two or three day marathon of tearing down an entire department and completely redesigning its processes.

Why are cellular layout and group technology attractive in lean?

- Virtually eliminate material movement - Utilize small-scale equipment - Workers are responsible for broad rather than narrow tasks - Cross-trained employees improve the reliability of cells - The number of workers in a cell can be reduced in the event of a downturn

What are the 5 principles of lean thinking?

1. Define Value From the Customer Perspective - Everything else is WASTE. 2. Identify and Map the Value Stream 3. Create continuous, uninterrupted Flow through the Value Stream 4. Let the value flow at the Pull of the customer 5. Relentlessly pursue Perfection in all activities

What are the 9 deadly wastes?

1. Overproduction-Producting more than the internal or external customer needs. 2. Waiting-Long periods of inactivity for people, waiting for information, resources or materials 3. Transportation-Multiple handling, Delay in Material Handling, Unnecessary handling 4. Inappropriate Processing-Using the wrong set of tools, procedures or systems when a simpler approach would be more effective 5. Inventory-Holding or purchasing Unnecessary raw supplies, work-in-process, finished goods 6. Unnecessary Motion-Actions of people or equipment that do not add value to the product. 7. Correction-Producing a part that is scrapped or requires rework. 8. Not Utilizing Human Resources-Not following up/implementing ideas/suggestions. 9. Unactionable Information Systems-Management vs Measurement Systems

What are the different types of waste?

1. Waiting Time Waste 2. Transportation Waste 3. Processing Waste 4. Inventory Waste 5. Unnecessary Motion Waste 6. Product Defect Waste 7. Overproduction Waste

Invisible Waste=

10x Visible Waste

How does lean affect changeover/turnover times?

Changeovertimereductionisanintegralaspect of lean production. - U.S. manufacturers who adopted JIT, with modest effort, reduced changeover times from hours to minutes - The result was shorter production runs, smoother flow of materials, and reduced inventory

Work centers have to be next to each other to be linked using kanban systems

False

What is Takt Time?

How often you must produce a product in order to meet demand. - Producing faster than takt time results in a buildup of inventory

What does Process Focus mean?

JIT focuses on processes,not products. - Build expertise in productive, low-cost processes instead of trying to do all kinds of processing

What is the goal of lean management? How does it achieve that goal?

Lean is a way of thinking whose overriding objective is to reduce waste. It does this by: • Improving process productivity • Reducing inventory • Improving quality • Increasing worker involvement

What does lean production strive to match?

Lean production strives to match the rate of production to the rate of demand at very small time increments. - Daily or even hourly basis - Can be hard to do when economies of scale from full truckloads are the norm

Where did lean management practices come from? Why?

Leanpracticeswereimportedinanattemptto copy the success of the Japanese just-in-time (JIT) approach to automobile production.

What is a big part of leanness?

Matching production to demand

There are fixed costs to changeovers and deliveries from suppliers. How are these costs reduced?

Much of the administrative cost can be eliminated by using electronic data interchange (EDI) instead of paper transactions

What is automation?

Not exclusive to lean, many lean firms use it for repetitive or dangerous jobs.

What is one of the biggest benefits of reducing inventory?

Oneofthebiggestbenefitsofreducinginventory is not having inventory to cover up problems. When it is reduced, problems with unreliable systems surface and can be solved.

How do you recognize and see waste?

Outside eyes.

What is the prerequisite to leanness?

Quality Management

What is Transportation Waste? What effects does it have?

Results from excessive materials handling and movement. - May be caused by ineffective facility layouts - May also be caused by ineffective choice of locations for suppliers or warehouses - Moving materials around is not only expensive in itself, but also wastes time

What is processing waste? What effects does it have?

Results from steps in production processes that do not contribute value or create too much cost. - One of the most popular ways of improving a business is to reduce this by identifying and removing the non-value-adding steps

What is the primary means of matching production rate to demand rate?

Small-batchproductionistheprimarymeansof matching production rate to demand rate. - Producing in more frequent, smaller batches drives the average inventory level down. - But it also increases the number of times equipment must be changed over, which can cut into available capacity - Small-batch production becomes economical only when changeover times can be reduces sufficiently

How can you lower total inventory cost?

Standardizing components of a product line lowers total inventory cost. - In some industries, such as the automotive industry, component standardization can reduce inventory investment by at least 50%

What is overproduction waste? What effects does it have?

The waste caused by producing in excess of demand. - Creates excess inventory - Wastes capacity on products that have no demand - Producing too early has similar effects to producing too much

What is product defect waste?

The waste of capacity, inventory, and labor resulting from products that do not meet customer specifications.

What is unnecessary motion waste? Effects?

Thewasteof human resources caused by unnecessary labor due to ineffective job design. - Wasting labor resources increases product cost

The kanban (visible signal) doesn't have to be an empty container. It can be anything, as long as it clearly sends the signal to make more

True

Why are U-shaped production lines beneficial?

U-shapedproductionlineseliminate transportation waste and reduce the potential for damage.

Improvement Teams:

Utilize employee knowledge and talent to achieve the continuous improvement attitude that forms a foundation for JIT.

What is inventory waste? What effects does it have?

Waste that consists of excess inventory over and above that which is necessary. - It increases costs and lead times - Reduces quality and flexibility

What is waiting time waste? What effects does it have?

Waste that results from customer orders, inventory, or completed products waiting in queue for a process to begin. - Reduces value for customers - Increases delay to obtain financial return on the product - The cost associated with cars waiting to be shipped to dealerships, for example, has been estimated to be as much as $10 per vehicle per day

What happens when a kanban buffer is full?

When the buffer is full, no more inventory can be added, and production at that work center stops - The signal to start producing again is when the buffer drops below full

All the wastes?

• Over/Under production • Time, Waiting • Transportation • Inappropriate Processing • Unnecessary idle materials or information • Unnecessary motion • Defective Product or Information • Complexity • Materials • Energy and Space • Untapped Human Potential

What is the difference between kanban and the traditional approach?

• Traditionalapproachistoforecastdemandand produce in a batch to meet the forecast. - Products are "pushed" through the system and then sold. • Inkanbansystems,thedemand"pulls"products through the system.