1. Operations 12 473.31 Fall 2015 Bruce Duggan Providence University College

2. Summary The idea behind lean is achieving high volume with minimal inventory. There are six elements to the lean concept: just-in-time production, focus on quality, lean product and process design, workforce involvement, close supplier involvement and, problem solving and continuous improvement.

3. Learning Objectives Review 1. How a pull operations system work? 2. What are the concepts of the Toyota Production System? 3. How is value stream mapping used to identify wasteful activities? 4. How do kanban cards control a pull system? 5. What are the principles of lean facility design? 6. What are the issues in lean implementation? 7. How do you apply lean concepts to service systems?

4. Lean Logic Lean Production an integrated set of activities designed to achieve high-volume, high-quality production using minimal inventories of raw materials, work-in-process, and finished goods based on the logic: o Nothing will be produced until it is needed.

5. Lean Logic

6. The Toyota Production System developed to improve quality and productivity based on two philosophies: eliminate waste respect people

7. Elimination of Waste waste from overproduction waste of waiting time transportation waste inventory waste processing waste waste of motion waste from product defects

8. Value Stream Mapping (also called Value Chain Mapping) a graphical way to analyze where value is or isn’t being added as material flows through a process.

9. Value Stream Mapping design principles: Just-In-Time production focus on quality lean product and process design workforce involvement close supplier relationships problem solving and continuous improvement

10. Value Stream Mapping

12. Just In Time (JIT) Production “Produce what is needed, when needed, and no more.” key requirements: production in small lots uniform plant loading kanban production control systems minimized setup times

13. Inventory Hides Problems

16. Uniform Plant Loading (heijunka) “smoothing the production flow to dampen schedule variation” A level schedule is a schedule that requires material to be pulled into final assembly at a constant rate.

17. Kanban Production Control Systems A kanban control system uses a signaling device to regulate JIT flows. kanban means “sign” or “instruction card” The cards make up the kanban pull system. The authority to produce or supply additional parts comes from downstream operations.

18. Kanban Production Control Systems

21. Focus on Quality Lean places high emphasis on quality. Lean focuses on defect prevention or “quality at source” o quality at source:  a philosophy of making factory workers personally responsible for the quality of their output

22. Lean Process and Product Design emphasize preventative maintenance Lean applications for line flows workcentre shops Group technology Focused factory networks Concurrent engineering

23. Workforce Involvement lifetime employment cooperative employee unions management views workers as assets quality circles

24. Close Supplier Relationships single sourcing vendors are located close to the customer project usage requirements quality expectations

25. Problem Solving and Continuous Process Improvement

26. Lean Services organize problem-solving groups upgrade housekeeping upgrade quality clarify process flows revise equipment and process technologies

27. Lean Services level the facility load eliminate unnecessary activities reorganize physical configuration introduce demand-pull scheduling develop supplier networks

28. End of Chapter 12