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The Illustrated London News Picture Library

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Presentation on theme: "The Illustrated London News Picture Library"— Presentation transcript:

1 The Illustrated London News Picture Library
Chapter 15 Lean synchronization The Illustrated London News Picture Library

2 specified time, quantity and quality of products and services
Lean operations Operations strategy Design Improvement The operation supplies… the delivery of products and services only when needed The market requires… specified time, quantity and quality of products and services Lean operations Planning and control

3 Key operations questions
In Chapter 15 – Lean synchronization – Slack et al. identify the following key questions: What is lean synchronization? How does lean synchronization eliminate waste? How does lean synchronization apply throughout the supply network? How does lean synchronization compare with other approaches?

4 Lean operations ‘The key principle of lean operations is relatively straightforward to understand, it means moving towards the elimination of all waste in order to develop an operation that is faster, more dependable, produces higher quality products and services and, above all, operates at low cost’.

5 Lean operations (Continued)
Synonyms Continuous flow manufacture High value-added manufacture Stockless production Low-inventory production Fast-throughput manufacturing Lean manufacturing Toyota production system Short-cycle time manufacturing.

6 Lean operations (Continued)
JIT material flow Traditional approach Buffer inventory Buffer inventory Stage A Stage B Stage C JIT approach Orders Orders Stage A Stage C Stage B Deliveries Deliveries

7 Lean operations (Continued)
Lean approach Focus on producing only when needed Lower-capacity utilization, but Traditional approach Focus on high- capacity utilization More production at each stage Fewer stoppages More stoppages because of problems Low inventory so problems are exposed and solved No surplus production goes into inventory High inventory means less chance of problems being exposed and solved Extra production goes into inventory because of continuing stoppages at earlier stages

8 Lean operations (Continued)
The lean philosophy of operations Eliminate waste Involve everyone Continuous improvement Lean as a set of techniques for managing operations Basic working practices Design for manufacture Operations focus Small, simple machines Flow layout TPM Set-up reduction Total people involvement Visibility JIT supply Lean as a method of planning and control Pull scheduling Kanban control Levelled scheduling Mixed modelling Synchronization

9 (queue of information)
Inventories of materials. Information or customers have similar characteristics Inventory Of material (queue of material) Of information (queue of information) Of customers (queue of people) Cost Ties up working capital Less current information and so worth less Wastes customers’ time Space Needs storage space Needs memory capacity Need waiting area Quality Defects hidden, possible damage Defects hidden, possible data corruption Gives negative perception Decoupling Makes stages independent Promotes job specialization/ fragmentation Utilization Stages kept busy by work-in-progress Stages kept busy by work in data queues Servers kept busy by waiting customers Coordination Avoids need for synchronization Avoids need for straight- through processing Avoids having to match supply and demand Source: Adapted from Fitzsimmons, J.A.

10 Waste Activities that consume time, resources and space, but do not contribute to satisfying customer needs. Over-production Waiting time Transport Process Inventory Motion Defectives.

11 Waste (Continued) Over-production Waiting time
Make more than is required by the customer, or to make it earlier than required. Taking multiple copies of the document which are not required. Waiting time Any delay between when one process step/activity ends and the next step/activity begins. Waiting for a manager to approve an application.

12 Waste (Continued) Transport (Over) Processing
Movement of work between departments or offices that do not add to the value of the product or service. Multiple approvals across different departments. Underwriting Operations 1 IT 2 LPC (Over) Processing Adding more value to a service or product than customers want or will pay for. Capturing extra information from the customer which is not used.

13 Waste (Continued) Inventory Motion
More materials or information on hand than is currently required. 100 applications waiting together for data entry. Motion Needless movement of people. While ‘transportation’ refers to the movement of the work, ‘motion’ involves movement of workers. Running to a printer on a different floor for a printout.

14 Waste (Continued) Defects/Inspection
Any aspect of the service that does not conform to customer needs. Incorrect customer details captured in the system. Defects Out of 20 , 2 are defective. The later that a defect gets caught, the higher the cost associated with it. Company – Firewall produced defective tyres which were given to the customer. There were many accidents and the company had to recall tyres – which costed them millions – eventually the company went bankrupt

15 Some daily examples Activity Waste Category Over-production Transport
Waiting Inventory Defect Over-processing Motion Transport. Making extra copies, just in case Document movement between departments Supervisory approval delays Files waiting to be worked on Multiple calls to the customer for same issue Incorrect customer address Cupboard full of office supplies Capturing additional fields in the system Running for photocopier to other floor on building Incorrect processing of salary Customer on hold Forms moving different locations EXERCISE IN THE BOOK (Pg 11) Same exercise is given in the workbook. Give the group 5 minutes to do this exercise. Once it is over, run through each example – let the group mark themselves. Distribute chocolates to the top 3 winners.

16 Lean operations – The 5Ss
Sort (Seiri) – Eliminate what is not needed and keep what is needed. Straighten (Seiton) – Position things in such a way that they can be easily reached whenever they are needed. Shine (Seiso) – Keep things clean and tidy; no refuse or dirt in the work area. Standardize (Seiketsu) – Maintain cleanliness and order – perpetual neatness. Sustain (Shitsuke) – Develop a commitment and pride in keeping to standards.

17 Keep only things that are required in doing the job
Sort (Seri) Eliminate all unnecessary items!! Unnecessary refers to those things that are not needed for current work. Keep only things that are required in doing the job

18 Straiten (Seiton) Arrange items so that they can be found quickly by Anybody, Anywhere, Anytime. Items should be easy to find, easy to use and easy to put away. Tools Colour Coding, Signboards, Labeling. Keep things in Order

19 A clean work place enhances health and productivity
Shine (Sieso) Everything is clean, neat, tidy and ready to use. Tools Five-Minute Shine Cleaning and Inspection checklists Checklist of activities needing maintenance e.g. the ‘5-second stapler’ test! A clean work place enhances health and productivity

20 Standardize (Seiketsu)
To prevent setbacks in the first 3 pillars (Sort, Set In Order and Shine) Tools Best Practice documentation and sharing SOPs documented and posted Checklists & job cycle charts.

21 Sustain (Shitsuke) To make 5Ss a habit in the way we do our day-to-day activities Tools 5-S contests Visual management boards showing 5-S audit Slogans Handbooks Poka Yoke! Make 5 S a habit

22 ‘Value stream’ mapping
‘Value stream’ mapping focuses on value-adding activities and distinguishes between value-adding and non-value- adding activities. It is similar to process mapping but different in four ways: It uses a broader range of information than most process maps. It is usually at a higher level (5–10 activities) than most process maps. It often has a wider scope, frequently spanning the whole supply chain. It can be used to identify where to focus future improvement activities.

23 Waste is a large part of most processes
Mapping the Value Stream – Example High-level process steps for a loan application process High-level process steps Prepare application Acquire the customer Process Advise customer Disburse funds Activities which add value to the customer: e.g. the credit decision Activities which don’t add value to the customer but are required by regulation: e.g. KYC Activities which neither add value nor are required by regulation: e.g. carrying files from one desk to another Step-by-step activity analysis for value-add to our customer Actual value-add activity may only be 1 –10% of the total process time.

24 Value Stream Map for an industrial air-conditioning installation service
T/T = Task time TTT = Total throughput time VAT = Value-added time C/T = Cycle time Cash management Completion confirmation Operations planning Job-tracking confirmations Sales office Forecasts Invoice status Survey Order Assemble Frame Wait in branch Wait for assembly Ship to branch and wait Wait for installers Install T/T = 0.5 Avail = 100% C/T= 30 C/T= 10 T/T = 5.0 C/T= 12.5 T/T = 0.75 C/T= 17 C/T= 35 30 mins. 58 hrs. 96 hrs. 5 hrs. 48 hrs. 60 mins. TTT = 258 hrs VAT = 8 hrs

25 Delivering smaller quantities more often can reduce inventory levels

26 Influencing the throughput efficiency
Waste (muda) Which of these symbols signify non-value-adding activities? Activities Types of waste Operation Over-production Waiting time Movement Transport Inspection Process Inventory Delay Motion Storage Defective goods Influencing the throughput efficiency

27 The problem with inventory
Reduce the level of inventory (water) to reveal the operations’ problems WIP Defective materials Productivity problems Scrap Rework Downtime WIP Defective materials Rework Scrap Downtime Productivity problems

28 Small machines Conventional Western approach is to purchase large machines to get ‘economies of scale’. These often have long, complex set-ups, and make big batches quickly creating ‘waste’. Changeovers Inventory levels Time

29 Small machines (Continued)
Using several small machines rather than one large one allows simultaneous processing, and is more robust and more flexible. Inventory levels Time

30 How much time will it take for 10 units to move through the process?
Flow principle A process consists of 3 steps – A, B and C. It takes one minute to finish each step of the process (A, B and C). Batch Flow (units processed in batches of 10) How much time will it take for 10 units to move through the process? A B C 10 Minutes + 10 Minutes + 10 Minutes = 30 Minutes

31 How much time will it take for 10 units to move through the process?
Flow Principle (Continued) A process consists of 3 steps – A, B and C. It takes one minute to finish each step of the process (A, B and C). Continuous Flow (unit processed individually, that is, process one, move one) How much time will it take for 10 units to move through the process? A B C Note – The total amount of work required to complete each batch has not changed, but the throughput time of each batch is reduced from 30 to 12 minutes 1 Minute + 1 Minute + 10 Minutes = 12 Minutes

32 Single-piece flow Traffic lights – typical batch processing
– Flow of traffic in batches may cause uneven loads of traffic – traffic may jam on one side while no vehicle come from other directions. Roundabout – single-piece flow Traffic flows as soon as there is capacity in the roundabout piece by piece.

33 Levelled scheduling equalizes the mix of products made each day
Over an eight-day period, need to make 1200 of A 400 of B 400 of C Scheduling in large batches, where batch size A = 600, B = 200, C = 200 250 A 250 A 150 B 100 A 200 C 50 B 600 A 200 B 200 C 250 A 150 B 100 A 50 B 600 A 200 B 200 C Every day, the schedule needs to be calculated. Each day can be different

34 Every day is the same. Easy to notice if falling behind schedule
Levelled scheduling equalizes the mix of products made each day (Continued) Over an eight-day period, need to make 1200 of A 400 of B 400 of C With levelled scheduling, where batch size A = 150, B = 50, C = 50 150 A 50 B 50 C 150 A 50 B 50 C 150 A 50 B 50 C 150 A 50 B 50 C 150 A 50 B 50 C 150 A 50 B 50 C 150 A 50 B 50 C 150 A 50 B 50 C Every day is the same. Easy to notice if falling behind schedule

35 Lean planning and control, or MRP, or both?
Complex structures Simple structures Project management MRP MRP Lean and/or Lean Simple routings Complex routings


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