1. JIT/Lean Operations
Good production systems require that managers address three issues that are pervasive and fundamental to operations management:
eliminate waste,
remove variability, and
improve throughput
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2. Just-In-Time, Toyota Production System, and Lean Operations
JIT is a philosophy of continuous and forced problem solving via a focus on throughput and reduced inventory
TPS emphasizes continuous improvement, respect for people, and standard work practices
Lean production supplies the customer with their exact wants when the customer wants it without waste
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3. BPM with Lean Principles

4. Just-In-Time, TPS, and Lean Operations
JIT emphasizes forced problem solving
TPS emphasizes employee learning and empowerment in an assembly-line environment
Lean operations emphasize understanding the customer
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5. Eliminate Waste
Waste is anything that does not add value from the customer point of view
Storage, inspection, delay, waiting in queues, and defective products do not add value and are 100% waste
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6. Types of Waste in TPS Muda: Waste, uselessness, idleness
Mura: Unevenness, irregularity, non uniformity
Muri: unreasonableness, impossible, beyond one's power, too difficult;
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7. Taiichi Ohno’s Seven Wastes (Muda)
Defective products: Costs of reworking and rescheduing
Overprocessing: Providing a quality more than demanded by the customer
Waiting lines: Queues
Non used employee talent (8th. Waste item!)
Transportation: Costs and risks of demage
Inventory: Costs, risks of obsolescence, thivery
Motion: Risks the production process inflicts on workers and machinery
Excessive (Over) production: Producing more than demand
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8. Eliminate Waste
Other resources such as energy, water, and air are often wasted
Efficient, sustainable production minimizes inputs, reduces waste
Traditional “housekeeping” has been expanded to the 5 Ss
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9. The 5 Ss to Organize a Workspace for efficiency and effectiveness
Rules for identifying and storing the items used, maintaining the area and items, and sustaining the new order
Sort/segregate – Identify unnecessary items and dispose of them properly
Simplify/straighten – Arrange all necessary items so they can be easily selected for use
Shine/sweep – Keep workplace clean, safe and easy to work
Standardize – Maintain high standards of housekeeping and workplace organization at all times.
Sustain/self-discipline – Keep things working by performing regular audits, Training and self-discipline
Two additional Ss
Safety – build in good practices
Support/maintenance – reduce variability and unplanned downtime
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10. Remove Variability
JIT systems require managers to reduce variability caused by both internal and external factors
Variability is any deviation from the optimum process
Inventory hides variability
Less variability results in less waste
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11. Sources of Variability
Incomplete or inaccurate drawings or specifications
Poor production processes resulting in incorrect quantities, late, or non-conforming units
Unknown customer demands
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12. Sources of Variability
Incomplete or inaccurate drawings or specifications
Poor production processes resulting in incorrect quantities, late, or non-conforming units
Unknown customer demands
Both JIT and inventory reduction are effective tools in identifying causes of variability
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13. Improve Throughput
Throughput time is the time it takes to move an order from receipt to delivery.
Manufacturing cycle time is the time between the arrival of raw materials and the shipping of the finished order
A pull system –produce to order- increases throughput rate
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14. Pull Systems/Kanban
Kanban system control the flow of resources in a production process by replacing only what has been consumed. They are customer order-driven production schedules based on actual demand and consumption rather than forecasting.
Implementing Pull Systems with Kanban can help you eliminate waste in handling, storing, and getting your product to the customer. Benefits
Reduce overall inventory
Reduce work in process (WIP)
Reduce order turnaround time
Increase customer satisfaction
Improve cash flow
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15. Improve Throughput
By pulling material in small lots, inventory cushions are removed, exposing problems and emphasizing continual improvement
Manufacturing cycle time is reduced
Push systems –make to stock- dump orders on the downstream stations regardless of the need
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16. Lean Operations
Different from JIT in that it is externally focused on the customer
Starts with understanding what the customer wants
Optimize the entire process from the customer’s perspective
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17. Building a Lean Organization
Transitioning to a lean system can be difficult
Lean systems tend to have the following attributes
Use JIT techniques
Build systems that help employees produce perfect parts
Reduce space requirements
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18. Building a Lean Organization
Develop partnerships with suppliers
Educate suppliers
Eliminate all but value-added activities
Develop employees
Make jobs challenging
Build worker flexibility
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19. Lean Operations in Services
The JIT techniques used in manufacturing are used in services
Suppliers
Layouts
Inventory
Scheduling
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20. BPM with Lean Principles
Lean system aims to decrease waste while attaining a high value as perceived by the customer.
Value is a combination of purchase lead time, price and quality as perceived by the customer
Waste includes everything that does not add value from the customer’s persepective
This results in significant improvements in
Process time (30-50%)
Process cost (25%30%)
Stock levels (25-50%)
Operational costs (5-30%)
Efficiency (15-40%)
Customer satisfaction (20-60%)
Quality, Standardization
2. Gün  13:30 – 15:00 (90 dakika)
Yalın sistemde çıktı kalitesinden hiçbir ödün vermeden daha az kaynak kullanılması amaçlanır.

21. Vehicle Identification System
Shorter process duration
Easier processes
Higher customer satisfaction
Kaynak: Yalın Enstitü

22. Quality Cost Time Value as perceived by customer
Value is a function of quality, replenishment lead time and cost
Quality
Value
2. Gün  13:30 – 15:00 (90 dakika)
Müşteri memnuniyetinden ödün vermemek üç bileşeni dikkate almayı gerektirir. Aralarında bir dengenin sağlanması gerekir. Örneğin: Maliyet artabilir, ancak zaman kısaltılarak müşteri memnuniyeti sabit tutualbilir.
Cost
Time
Kaynak: MBTürk- Yalın Ofis

23. Lean Principles Understand the value as perceived by the customer
Analyze the value chain
Identify waste and eliminate
Small but continuous improvements-Keizen
Solve the source of the problem
Define standards for the processes
Measure the process performance with the KPI’s
2. Gün  13:30 – 15:00 (90 dakika)
Eğitimci yukarıdaki yalın prensipleri, daha sonra detaylı olarak anlatılacağını belirterek, listeler.

24. Identify and Analyze the Value Chain
Cycle time: total duration of the process that includes all type of inefficiencies, i.e., waste
Keep
Time spent for value adding tasks
Time spent for non value adding but obligatory processes
Improve
Time spent for non value adding and nonobligatory processes
Eliminate

25. Value chain for a fast food restaurant
Customer queues infront of the cashier
5 min.
Customer gives the order
1 min.
Cashier puts the extra cash delivered by the next cashier
Customer repetats her order
Order is prepared
3 min.
Extra waiting for the french fries
2 min.
Wrong drink is served
Wait for the POS machine approval
Payment and receipt
Get the order
Total cycle time
18 min.
Value adding time
Value ratio
%17

26. Homework 8 Consider the registration process of our university
Describe the value chain for the current and your proposed process
Calculate the value ratio for the current and proposed process
Comment on the results
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