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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
