Chapter 13 JIT/Lean Production
What is Lean Supply Chain Management?
An extension of the Lean philosophy that seeks to minimize the level of resources to carry out All supply chain activities, not just production.
What is the SCM definition of Waste?
Any activity that does not add value to the good or service in the eyes of the customer. Called muda in Japanese. All began with a Toyota Engineer.
Explain Source of Waste 8. Under-utilization of employees
Newest form of waste. Recognizes that too often companies do not fully utilize the skills and decision making capabilities of their employees.
Explain Source of Waste 7. Defects
Not only do defects create uncertainty in the process, they rob production capacity by creating products or services that require rework or must be scrapped.
Explain Source of Waste 4. Inappropriate process
Companies sometimes use overly complex processes when simpler, more efficient ones would do.
Explain Source of Waste 5. Unnecessary/Excess motion
Poorly designed processes can lead to unnecessary motion.
What are some other signaling methods besides the Pull System?
Single Card Systems: Empty container alone is a move signal. Color Coding of Containers Designated Storage Spaces Computerized Bar-Coding Systems
Explain Source of Waste 3. Unnecessary transportation
Transporting goods always increases costs and the risk of damage, but it does not necessarily provide value to the final customer.
Explain Source of Waste 6. Unnecessary Inventory
Uncertainty with regard to quality levels, delivery lead times, and the like can lead to unnecessary inventory.
What are some key characteristics of Kanban's System?
Uses simple mechanisms to indicate when a specific items should be produced or moved. NOTE: Most don't require computerization Can be used to synchronize activities either within a plant or between different supply chain partners Are not considered planning tools, but rather CONTROL MECHANISMS that are designed to pull parts or goods through the supply chain based on downstream demand.
What is the general idea of the Lean Perspective for Inventory?
High inventory levels can hide problems. Idea is to continue to lower inventory levels to locate problems to truly achieve Lean principle.
Explain Source of Waste 2. Waiting
Inefficient layouts or an inability to match demand with output levels may cause waiting.
Explain Source of Waste 1. Overproduction
Inflexible or unreliable processes may cause organizations to produce goods before they are required.
What is JIT?
A philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. Focused on INVENTORY
What is Lean?
A philosophy of production that emphasizes the minimization of the amount of all the resources including time used in the various activities of an enterprise. Goal" Identify and Eliminate non value adding activities in design, production , supply chain management and dealing with customers.
What is a Kanbans System?
A production control approach that uses containers, cards or visual cues to control the production and movement of goods through a supply chain.
What is a Pull System?
A production system in which actual demand sets off a chain of events that pulls materials through the various process steps.
What is a Two-card kanaban system?
A special form of the Kanban system that uses one card control production and another card to control movement of materials.
What is a Move Card?
A Kanban card that is used to indicate when a container of parts should be moved to the next process step.
What is a Production Card?
A Kanban card that is used to indicate when another container of parts should be produced.
What is Lean Six Sigma?
Methology that combines the organizational elements and tools of Six Sigma (process mapping, statistics, DMAIC cycle) with Lean's focus on waste reduction.
