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Definition, Origin, and Uses
Lean operation is a flexible system of
operation that uses considerably fewer
resources than a traditional system. It
tends to achieve greater productivity,
lower costs, shorter cycle times, and
higher quality than nonlean system
JIT and
LEAN OPERATION *sometimes referred as Just-in-Time
(JIT) system
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Definition, Origin, and Uses Definition, Origin, and Uses
Just-in-Time (JIT) is a highly North American companies attempted to
coordinated processing system in which adopt the lean approach, they began to
goods move through the system, and
services are performed, just as they are realize that in order to be successful,
needed. they needed to make major
organizational and cultural changes.
Lean operations has begun as lean
manufacturing in the mid-1900s. It was
They discovered that lean methods
developed by the Japanese automobile
involve demand-based operations,
manufacturer Toyota whose founders are
Taiichi Ohno, and Shigeo Shingo. flexible operations with rapid changeover
capability, effective worker behaviors,
and continuous improvement efforts.
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CHARACTERISTICS OF LEAN SYSTEM BENEFITS OF LEAN SYSTEMS
• Reduced waste due to emphasis on waste
• Waste Reduction
reduction
• Continuous Improvement
• Lower costs due to reduced waste and lower
• Use of Teams
inventories
• Work Cells
• Increased quality motivated by customer
• Visual Controls focus and the need for high-quality processes
• High Quality • Reduced cycle time due to elimination of non-
• Minimal Inventory value-added operations
• Output only to match demand • Increased flexibility due to quick changeovers
• Quick Changeovers and small lot sizes
• Small lot sizes • Increased productivity due to elimination of
• Lean Culture non-value-added processes.
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RISK OF LEAN SYSTEMS THE TOYOTA APPROACH
• Increased stress on workers due to Many of the methods that are
increased responsibilities for equipment
changeovers, problem solving, and process
common to lean operations were
and quality improvement developed as part of Japanese car
maker Toyota’s approach to
• Fewer resources available if problems occur manufacturing. Toyota’s approach
• Supply chain disruptions can halt came to be known as the Toyota’s
operations due to minimal inventory or time Production System (TPS).
buffers
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Terms used by Toyota in Terms used by Toyota in
Conjunction with Lean Operations Conjunction with Lean Operations
Muda: waste and inefficiency Heijunka: variations in
production volume lead to waste
Kanban: manual system used for
controlling the movement of parts Kaizen: continuous improvement
and materials that responds to of the system
signals of the need for delivery of
parts or materials Jidoka: quality at the source
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SUPPORTING GOALS Eight Wastes:
• Excess inventory- beyond minimal
The ultimate goal of lean is a balanced quantities
system, that is, one that achieves a • Overproduction- involves excessive use of
smooth, rapid flow of materials and/or manufacturing services
work through the system. • Waiting time- adds no value
• Unnecessary transporting- increases work
in process
• Eliminate disruptions • Processing waste- scrap
• Make the system flexible • Inefficient work methods- reduce
• Eliminate waste, especially excess productivity
• Product defects- require rework costs
inventory • Underused people- mental and creative
abilities
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FOUR ELEMENTS OF
BUILDING BLOCKS PRODUCT DESIGN
The design and operation of a lean system
provide the foundation for accomplishing afore- • STANDARD PARTS
Means that workers have fewer parts
mentioned goals. to deal with, and training times and costs
are reduced.
• Product design
• Process design • MODULAR DESIGN
• Personnel/organizational elements It is an extension of standard parts.
• Manufacturing planning control Modules are clusters of parts treated as a
single unit.
Speed and simplicity are two common threads These first two elements relate to speed and
that run through these building blocks. simplicity.
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FOUR ELEMENTS OF
PRODUCT DESIGN PROCESS DESIGN
Eight aspects of PROCESS DESIGN are
• HIGHLY CAPABLE PRODUCTION SYSTEMS particularly important for lean production
with QUALITY BUILT IN
systems:
Lean requires highly capable production • Small lot sizes
systems. It is crucial to lean systems because poor
quality can create major disruptions. • Setup time reduction
• CONCURRENT ENGINEERING • Manufacturing cells
• Quality improvement
Engineering changes can be very disruptive
to smooth operations. Concurrent engineering • Production flexibility
practices can substantially reduce these • A balanced system
disruptions.
• Little inventory storage
• Fail-safe methods
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PROCESS DESIGN PROCESS DESIGN
SMALL LOT SIZE- with small lots moving MANUFACTURING CELLS- One characteristic
through the system, in-process inventory is of lean production systems is multiple
considerably less than it is with large lots. This manufacturing
reduces carrying costs, space requirements, cells. The cells contain the machines and tools
and clutter in the workplace needed to process families of parts having
similar processing requirements.
SETUP TIME REDUCTION- Shigeo Shingo
made a very significant contribution to lean QUALITY IMPROVEMENT- The occurrence of
operation with the development of what is quality defects during the process can disrupt
called the single minute exchange of die the orderly flow of work. Consequently,
(SMED) system for reducing changeover time. problem solving is important when defects
occur.
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PROCESS DESIGN PROCESS DESIGN
INVENTORY STORAGE- The lean
WORK FLEXIBILITY- The overall goal of a
lean system is to achieve the ability to process approach is to pare down inventories
a mix of products or services in a smooth flow. gradually in order
to uncover the problems.
A BALANCED SYSTEM- Line balancing of
production lines (i.e., distributing the FAIL-SAFE METHODS- Failsafing refers
workload evenly among workstations) helps to to building safeguards into a process to
achieve a rapid flow of work through the reduce or eliminate the potential for
system.
errors during a process
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PERSONNEL/ORGANIZATIONAL MANUFACTURING
ELEMENTS PLANNING AND CONTROL
Seven elements of manufacturing planning
There are five elements of personnel and and control are particularly important for
organization that are particularly important lean systems:
for lean systems:
1. Level loading
1. Workers as assets 2. Pull systems
2. Cross-trained workers 3. Visual systems
3. Continuous improvement 4. Limited work-in-process (WIP)
4. Cost accounting 5. Close vendor relationships
5. Leadership/project management 6. Reduced transaction processing
7. Preventive maintenance and housekeeping
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LEAN SERVICES VALUE STREAM MAPPING
Process improvement and problem solving can
contribute to streamlining a system, resulting in
increased customer satisfaction and higher
A visual tool to systematically examine
productivity. The following are the ways lean benefits the flow of materials and information
can be achieved in services: involved in bringing a product or
• Eliminate disruptions
service to a consumer. The technique
• Make the system flexible originated at Toyota, where it is
• Reduce setup times and processing times referred to as “Material and
• Eliminate waste
• Minimize work-in-process
Information Flow Mapping.”
• Simplify the process
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OFFICE WASTES PROCESS IMPROVEMENT
USING 5W2H
All business organizations, whether they are primarily engaged in
service or manufacturing, can benefit by applying lean principles to
their office operations. This includes purchasing, accounting, order
entry, and other office functions. Office wastes might include:
1. Excess inventory—excess supplies and equipment
2. Over-processing—excess paperwork and redundant approvals
5W2H approach A method of asking
3. Waiting times—orders waiting to be processed, requests for
information awaiting answers
questions about a process that
4. Unnecessary transportation—inefficient routing includes what, why, where, when,
5. Processing waste—using more resources than necessary to
accomplish a task who, how, and how much.
6. Inefficient work methods—poor layout design, unnecessary steps,
inadequate training
7. Mistakes—order entry errors, lost files, miscommunications
8. Underused people—not tapping all of the mental and creative
capabilities of workers
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LEAN AND SIX SIGMA JIT DELIVERIES and the
SUPPLY CHAIN
Understanding and reducing Direct suppliers must be able to
variation are important for quality support frequent just-in-time
improvement. Lean principles alone deliveries of small batches of parts.
cannot achieve statistical process That may lead to an increase in
control, and Six Sigma alone cannot transportation costs if trucks carry
achieve improved process speed and partial loads, and perhaps to
flow. congestion at loading docks.
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LEAN AND ERP JIT II
Lean systems focus on pacing In some instances, companies allow
production and synchronizing suppliers to manage restocking of inventory
delivery of incoming supply. SAP’s obtained from the suppliers. A supplier
Lean Planning and Operations representative works right in the company’s
module extends ERP to lean plant, making sure there is an appropriate
operation by providing supply on hand. The term JIT II is used to
refer to this practice. JIT II was popularized
lean planning and scheduling
by the Bose Corporation. It is often referred
capability linked to customer to as vendor-managed inventory (VMI).
demand.
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PLANNING A SECCESSFUL CONVERSION OBSTACLE TO CONVERSION
1. Management may not be totally committed or may be unwilling
1. Make sure top management is committed to the
to devote the necessary resources to conversion.
conversion and that they know what will be required.
2. Workers and/or management may not display a cooperative
2. Study the operations carefully; decide which parts will
spirit.
need the most effort to convert.
3. It can be very difficult to change the culture of the organization
3. Obtain the support and cooperation of workers.
to one consistent with the lean philosophy.
4. Begin by trying to reduce setup times while
4. Suppliers may resist for several reasons:
maintaining the current system. a. Buyers may not be willing to commit the resources necessary
5. Gradually convert operations, beginning at the end of to help them adapt to the lean systems.
the process and working backward. b. They may be uneasy about long-term commitments to a buyer.
6. As one of the last steps, convert suppliers to JIT and c. Frequent, small deliveries may be difficult, especially if the
be prepared to work closely with supplier has other buyers who use traditional systems.
them. d. The burden of quality control will shift to the supplier.
7. Be prepared to encounter obstacles to conversion. e. Frequent engineering changes may result from continuing lean
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A COOPERATIVE SPIRIT OPERATIONS STRATEGY
Lean systems require a cooperative spirit among The lean operation offers new perspectives on
workers, management, and vendors. Unless that is operations that must be given serious consideration
by managers in repetitive and batch systems who
present, it is doubtful that a truly effective lean system
wish to be competitive.
can be achieved. The Japanese have been very
successful in this regard, partly because respect and Potential adopters should carefully study the
cooperation are ingrained in the Japanese culture. In requirements and benefits of lean production
Western cultures, workers, managers, and vendors systems, as well as the difficulties and strengths of
have historically been strongly at odds with each other. their current systems, before making a decision on
This requires an appreciation of the importance of whether to convert. Careful estimates of time and
cooperation and a tenacious effort by management to cost to convert, and an assessment of how likely
instill and maintain that spirit. workers, managers, and suppliers are to cooperate
in such an approach, are essential.
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THANK YOU!!!
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