Transcript Document
Matching Supply with Demand: An Introduction to Operations Management Gérard Cachon ChristianTerwiesch All slides in this file are copyrighted by Gerard Cachon and Christian Terwiesch. Any instructor that adopts Matching Supply with Demand: An Introduction to Operations Management as a required text for their course is free to use and modify these slides as desired. All others must obtain explicit written permission from the authors to use these slides. Zero non-value added activities (muda) 8.2 Zero defects, zero breakdowns, zero inventory, zero set-up Production flow synchronized with demand (JIT) Quality methods to reduce defects One-unit-at-a-time flow Fool-proofing (poka-yoke) and visual feed-back Mixed model production (heijunka) Detect-stop-alert (Jidoka) 8.4 8.5 Piece-by-piece transfer (ikko-nagashi) Defects at machines (original Jidoka) Match production demand based on Takt time Defects in assembly (Andon cord) Pull instead of push Build-in-quality (tsukurikomi) Supermarket / Kanban Make-to-order Reduce inventory to expose defects 8.6 Flexibility Adjustment of capacity to meet takt-time Multi-task assignment (takotei-mochi) 8.7 Standardization of work Reduction of Variability Quartile Analysis Standard operating procedures 8.8 Worker involvement Quality circles (Kaizen) Fishbone diagrams (Ishikawa) Skill development / X-training 8.9 100 Improvement potential > 300% 55 45 30 Total planned up-time Breakdown Changeovers Downtime losses Availability rate 55 % AvailIdling able time and minor stop-pages X Re-duced Speed (quartile plot) Speed losses Performance rate 82 % Net operating time X Defects Start-up Quality losses Quality rate 67 % OEE = OEE 30 % Direction of production flow upstream downstream Authorize production of next unit Figure 8.13.: Simplified mechanics of a Kanban system 7 8 5 4 6 3 1 Defective unit 2 Good unit ITAT=7*1 minute 4 1 3 2 ITAT=2*1 minute Figure 8.12.: Information turnaround time and its relationship with buffer size Buffer argument: “Increase inventory” Inventory in process Toyota argument: “Decrease inventory” Figure 8.14.: More or less inventory? A simple metaphor Flow Rate High Increase inventory (smooth flow) Path advocated by Toyota production system Now Reduce inventory (blocking or starving become more likely) New frontier Frontier reflecting current process Low High Inventory (Long ITAT) Low Inventory (short ITAT) Inventory Figure 8.15.: Tension between flow rate and inventory levels / ITAT