The document discusses the key concepts and elements of lean production. It defines lean production as doing more with less inventory, fewer workers, and less space through techniques like just-in-time production and eliminating waste. The basic elements of lean production discussed include flexible resources, cellular layouts, pull production systems, kanban production control, small lot sizes, quick changeovers, uniform production levels, total productive maintenance, and developed supplier networks. Benefits of lean production include reduced costs, improved quality, and increased productivity and flexibility. The document outlines how to implement lean concepts and that lean principles can also be applied to services.

1. Chapter 15
Lean Production
Operations Management -- 5th Edition
Operations Management 5th Edition
Roberta Russell & Bernard W. Taylor, III
Beni Asllani
Copyright 2006 John Wiley & Sons, Inc. University of Tennessee at Chattanooga

2. Lecture Outline
 Basic Elements of Lean Production
 Benefits of Lean Production
 Implementing Lean Production
 Lean Services
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3. Lean Production
 Doing more with less inventory, fewer
workers, less space
 Just-in-time (JIT)
 smoothing the flow of material to arrive
just as it is needed
 “JIT” and “Lean Production” are used
interchangeably
 Muda
 waste, anything other than that which
adds value to the product or service
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4. Waste in Operations
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5. Waste in Operations (cont.)
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6. Waste in Operations (cont.)
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7. Basic Elements
1. Flexible resources
2. Cellular layouts
3. Pull production system
4. Kanban production control
5. Small lot production
6. Quick setups
7. Uniform production levels
8. Total productive
maintenance
9. Supplier networks
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8. Flexible Resources
 Multifunctional workers
 perform more than one job
 general-purpose machines perform
several basic functions
 Cycle time
 time required for the worker to complete
one pass through the operations
assigned
 Takt time
 paces production to customer demand
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9. Standard Operating
Routine for a Worker
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10. Cellular Layouts
 Manufacturing cells
 comprised of dissimilar machines brought
together to manufacture a family of parts
 Cycle time is adjusted to match takt time
by changing worker paths
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11. Cells with Worker Routes
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12. Worker Routes Lengthen as
Volume Decreases
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13. Pull System
 Material is pulled through the system when
needed
 Reversal of traditional push system where
material is pushed according to a schedule
 Forces cooperation
 Prevent over and underproduction
 While push systems rely on a predetermined
schedule, pull systems rely on customer
requests
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14. Kanbans
 Card which indicates standard quantity
of production
 Derived from two-bin inventory system
 Maintain discipline of pull production
 Authorize production and movement of
goods
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15. Sample Kanban
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16. Origin of Kanban
a) Two-bin inventory system b) Kanban inventory system
Bin 1
Kanban
Bin 2
Reorder
card Q-R
R R
Q = order quantity
R = reorder point - demand during lead time
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17. Types of Kanban
 Production kanban  Signal kanban
 authorizes production of  a triangular kanban
goods used to signal
 Withdrawal kanban production at the
previous workstation
 authorizes movement of
goods  Material kanban
 Kanban square  used to order material in
 a marked area designated advance of a process
to hold items  Supplier kanban
 rotates between the
factory and suppliers
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21. Determining Number of
Kanbans
average demand during lead time + safety stock
No. of Kanbans =
container size
dL + S
N =
C
where
N = number of kanbans or containers
d = average demand over some time period
L = lead time to replenish an order
S = safety stock
C = container size
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22. Determining Number of
Kanbans: Example
d = 150 bottles per hour
L = 30 minutes = 0.5 hours
S = 0.10(150 x 0.5) = 7.5
C = 25 bottles
dL + S (150 x 0.5) + 7.5
N= =
C 25
75 + 7.5
= = 3.3 kanbans or containers
25
Round up to 4 (to allow some slack) or
down to 3 (to force improvement)
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23. Small Lots
 Require less space and capital
investment
 Move processes closer together
 Make quality problems easier to
detect
 Make processes more dependent
on each other
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24. Inventory Hides Problems
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25. Less Inventory Exposes Problems
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26. Components of Lead Time
 Processing time
 Reduce number of items or improve efficiency
 Move time
 Reduce distances, simplify movements, standardize
routings
 Waiting time
 Better scheduling, sufficient capacity
 Setup time
 Generally the biggest bottleneck
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27. Quick Setups
 Internal setup  SMED Principles
 Separate internal setup from
 Can be performed
external setup
only when a
process is stopped
 Convert internal setup to external
setup
 External setup  Streamline all aspects of setup
 Can be performed  Perform setup activities in
in advance
parallel or eliminate them entirely
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28. Common Techniques for Reducing
Setup Time
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29. Common Techniques for Reducing
Setup Time (cont.)
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30. Common Techniques for Reducing
Setup Time (cont.)
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31. Uniform Production Levels
 Result from smoothing production
requirements
 Kanban systems can handle +/- 10%
demand changes
 Smooth demand across planning
horizon
 Mixed-model assembly steadies
component production
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32. Mixed-Model Sequencing
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33. Quality at the Source
 Visual control  Jidoka
 makes problems visible  authority to stop the
production line
 Poka-yokes  Andons
 call lights that signal
 prevent defects from
quality problems
occurring
 Kaizen  Under-capacity
 a system of continuous
scheduling
improvement; “change for
 leaves time for planning,
the good of all” problem solving, and
maintenance
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34. Examples of Visual
Control
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35. Examples of Visual
Control (cont.)
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36. Examples of Visual
Control (cont.)
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37. Total Productive
Maintenance (TPM)
 Breakdown maintenance
 Repairs to make failed machine operational
 Preventive maintenance
 System of periodic inspection and
maintenance to keep machines operating
 TPM combines preventive maintenance
and total quality concepts
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38. TPM Requirements
 Design products that can be easily produced
on existing machines
 Design machines for easier operation,
changeover, maintenance
 Train and retrain workers to operate machines
 Purchase machines that maximize productive
potential
 Design preventive maintenance plan spanning
life of machine
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39. 5S Scan Goal Eliminate or Correct
 Seiri  Keep only what you  Unneeded equipment, tools, furniture;
(sort) need unneeded items on walls, bulletins; items
blocking aisles or stacked in corners;
unneeded inventory, supplies, parts; safety
hazards
 A place for  Items not in their correct places; correct
everything and places not obvious; aisles, workstations, &
 Seiton everything in its equipment locations not indicated; items not
(set in order) place put away immediately after use
 Cleaning, and  Floors, walls, stairs, equipment, & surfaces
 Seisou looking for ways to not lines, clean; cleaning materials not easily
(shine) keep clean and accessible; labels, signs broken or unclean;
organized other cleaning problems
 Necessary information not visible; standards
 Maintaining and not known; checklists missing; quantities and
 Seiketsu monitoring the first limits not easily recognizable; items can’t be
(standardize) three categories located within 30 seconds
 Sticking to the rules  Number of workers without 5S training;
 Shisuke number of daily 5S inspections not performed;
(sustain) number of personal items not stored; number
of times job aids not available or up-to-date
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40. Supplier Networks
 Long-term supplier contracts
 Synchronized production
 Supplier certification
 Mixed loads and frequent deliveries
 Precise delivery schedules
 Standardized, sequenced delivery
 Locating in close proximity to the customer
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41. Benefits of Lean
Production
 Reduced inventory
 Improved quality
 Lower costs
 Reduced space requirements
 Shorter lead time
 Increased productivity
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42. Benefits of Lean
Production (cont.)
 Greater flexibility
 Better relations with suppliers
 Simplified scheduling and control activities
 Increased capacity
 Better use of human resources
 More product variety
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43. Implementing Lean Production
 Use lean production to finely tune an
operating system
 Somewhat different in USA than Japan
 Lean production is still evolving
 Lean production isn’t for everyone
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44. Lean Services
 Basic elements of lean
production apply equally to
services
 Most prevalent applications
 lean retailing
 lean banking
 lean health care
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45. Copyright 2006 John Wiley & Sons, Inc.
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