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35 terms

MBA 531 Ch. 12

JIT (production scheduling aspects that underlie lean ideologies)
systematically eliminating as much waste as possible through supply chains
moves not needed, unnecessary processing steps, excess inventory = targets for improvement in leaning process
value chain
each step in supply chain process that delivers products/services to customers should create value
lean production
- integrated set of activities designed to achieve high-volume, high-quality production using minimal inventories of raw materials, work in progress, & finished goods
- parts arrive at workstation JIT & move through process quickly
- nothing produced until needed
- demands: high levels of quality at each stage, strong vendor relations, predictable demand
production need
- created by actual demand for the product
- when item is sold, market pulls replacement from last position in system
- upstream station pulls next station further upstream
toyota production system
- developed to improve quality & productivity
- (1) elimination of waste (2) respect for people
anything other than the minimum amount of equipment, materials, parts, & workers (working time) which are absolutely necessary to production
types of waste
1. overproduction waste
2. waiting time waste
3. transportation waste
4. inventory waste
5. processing waste
6. motion waste
7. product defect waste
value chain mapping
graphical/diagrammatic way to analyze which activities add value, which activities do not add value, and steps that involve waiting
design principles of lean supply chains
1. focused factory networks
2. group technology
3. quality at the source
4. JIT production
5. uniform plant loading
6. kanban production control system
7. minimized setup times
value chain principles
1. keep value chain moving at maximum velocity
2. eliminate waste that stops, slows down, or diverts value chain
3. concentrate on removing waste rather than speeding up value-adding operations
4. look for waste in factory, office, physical, procedural & technical operations
focused factory networks
design principle of lean supply chains
small specialized plants rather than large vertically integrated manufacturing facilities
group technology
design principle of lean supply chains
- similar parts grouped into families
- processes required to make parts arranged in a specialized work cell
- instead of transferring jobs from one department to another to specialized workers, GT considers all operations to make a part and groups them together
- eliminates movement & waiting time, reduces inventory, reduces employees --> workers must be flexible to run several processes; advanced skill --> increased job security
quality at the source
design principle of lean supply chains
- do it right the first time
- when something goes wrong, stop process immediately
- workers are their own inspectors; personal responsibility for quality of work
JIT production
design principle of lean supply chains
- producing what is needed and when needed and no more
- anything over the minimum amount is waste
- ideal lot size is one
- goal: drive all inventory queues to zero to minimize inventory investment & lead times
- when inventory levels low, quality problems very visible
uniform plant loading
design principle of lean supply chains
- heijunka
- smoothing production flow to dampen reaction waves that occur in response to schedule variations
- make adjustments as small as possible by setting a firm production plan for which output rate is frozen
- cycle time --> used to adjust resources to produce precise quantity needed
kanban production control system
design principle of lean supply chains
signaling device to regulate JIT flows
pull system --> authority to produce additional parts comes from downstream operations (ex. kanban squares, container system, colored golf balls)
determining number of kanbans needed
design principle of lean supply chains
- need to determine number of containers needed
- kanban cards represent number of containers of material that flow back and forth between supplier & user areas
- each container represents minimum lot size to be supplied --> number of containers controls amount of work in process inventory
- how to determine number of containers? lead time to produce container of parts (lead time = processing time, wait time, transport time)
minimized setup times
design principle of lean supply chains
small lot sizes are the norm --> machines must be quickly set up to produce mixed models
respect for people
- key to toyota production system
- assure lifetime employment
permanent positions
maintain level payrolls
- workers thus are more flexible & remain with company
- workers are assets
- subcontractor networks
preventative maintenance
- ensure that flows are not interrupted by downtime or malfunctioning equipment
- periodic inspection & repair designed to keep a machine reliable
- kanban approach: setup cost reduced --> optimal order quantity reduced
how to accomplish lean production
1. design flow process
2. total quality control
3. stabilize schedule
4. kanban pull
5. work with vendors
6. reduce inventory more
7. improve product design
lean employee in line flow pull system
no employee does work until product is pulled from end of line by market
lean workcenter shops
- low volume / high variety
- process parts & components before they reach final production stages
- lean application: demand stabilized to permit repetitive manufacturing
- periodic pickups & drop-offs allow system to function JIT
six sigma quality
- building quality into process rather than relying on inspection
- employees assume responsibility for quality
- no JIT extra inventory necessary
- improved product design
- standard product configuration
- fewer parts
- standardized parts
- reduce variability, improve producibility, facilitate engineering changes
level schedule
schedule that pulls material into final assembly at a constant rate -- so that elements of production can respond to pull signals (does not mean that every part of assembly line is constantly monitored for usage; does mean that production system with flexible setups & fixed amount of material can respond)
freeze window
period of time during which schedule is fixed and no further changes are possible
calculating how many of each part were used in production & using these calculations to adjust actual on-hand inventory balances (by removing periodically)
eliminates the need to track each part used in production
controversial features of lean production
under/over-utilization of capacity
important to process
vendors linked online with customer to share production scheduling & input needs data --> level production systems, reduction of buffer inventories
stock at lean level require frequent delieries
lean supply chain
- value defined jointly for each product family along with target cost based on customer perception of value
- all firms along value stream make adequate return on investments related to value streams
- firms work together to identify/eliminate muda (waste) so that target cost & return on investment targets of each firm are met
- when target costs met, firms along stream conduct new analyses to identify remaining waste & set new targets
- every participating firm examines every activity in every firm relevant to value stream as joint search for waste
lean supply management
planning, executing & designing across multiple supply chain partners to deliver products at right time, right place, right quantity.
lean scheduling approaches
rate based vs. conventional planning/execution
lean services
1. organize problem solving groups
2. upgrade housekeeping (only necessary items kept in work area, place for everything, everything is clean & in state of readiness)
3. upgrade quality (cost effective method: deliver reliable process capabilities --> process quality = quality at the source --> guarantees first-time production of consistent/uniform products & services
4. clarify process flows
5. revise equipment & process technologies (evaluation of equipment & processes for ability to meet process requirements, process consistently, & fit scale/capacity of work group)
6. level facility load (synchronize production w/ demand to avoid making customers wait for service)
7. eliminate unnecessary activities (step that does not add value is candidate for elimination or for reengineering --> to improve consistency or reduce time to perform tasks)
8. reorganize physical configuration (manufacturing cells to produce items in small lots synchronous to demand)
9. demand pull scheduling (customer driven --> divided into "back room" & "customer contact" facilities)
10. develop supplier networks (cooperative association of suppliers/customers working over long term for mutual benefit)
thanks you for the cake