Transcript Slide 1
BUAD306
Lean Operations
Lean Operations
A flexible system of operation that
uses considerably less resources than
a traditional system
Tend to achieve
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Greater productivity
Lower costs
Shorter cycle times
Higher quality
Lean Operations
Three basic elements are present in a
lean operating environment:
Demand driven
Waste reduction
Culture dedicated to continuous
improvement
Lean Operations Goals
Ultimate Goal: A balanced system
that achieves a smooth, rapid flow of
materials through the system to match
supply to customer demand
Supporting Goals:
Eliminate disruptions
Make system flexible
Eliminate waste
Sources of Waste
Inventory
Waste from overproduction
Waiting time
Unnecessary transport
Processing waste
Product defects/rework
Inefficient work methods
Underutilization of employees
Lean Operations Building
Blocks
Product design
Process design
Personnel/organizational elements
Manufacturing planning and control
Lean Ops – Product Design
Standard parts
Modular design
Highly capable production systems
Concurrent engineering
Announcements
Quizzes
Last 2 – Pick up from me
All Others: Outside office
Extra Credits – Due Weds
Exam Breakdown – Tomorrow
Course Evals – this week
Professionalism
Lean Ops – Process Design
Small lot sizes
Set up time reduction
Manufacturing cells Efficiencies
Limited WIP Inventory
Quality Improvement
Production flexibility – reduced
bottlenecks
Little inventory storage
Small-Lot Production
Ideal size = 1
Requires less space (lower inventory
costs) & capital investment
Moves processes closer together
(increased efficiency)
Allows for greater flexibility in scheduling
Makes quality problems easier to detect
Makes processes more dependent on each
other (increases responsibility and quality)
Requires set-up time reduction!
Inventory Considerations
Inventory Hides Problems
Bad design
Poor quality
Machine breakdowns
Unreliable supplier
Inefficient layout
Decrease inventory to expose problems
Process Design:
Fail-Safe Methods
Building safeguards into a process to
reduce or eliminate the potential for
errors during a process
Examples
Electric breakers
Seatbelt fastener warnings
ATMs that signal if a card is let in a
machine
Lean Ops – Personnel/
Organizational Elements
Workers as assets
Cross-trained workers
Continuous improvement
Cost accounting
Leadership/project management
Lean Ops – Manufacturing
Planning & Control
Level loading (smooth production)
Pull systems – work moves in
response to demand from next step
Visual systems (Kanban)
Close vendor
relationships
Reduced transaction
processing
Preventive maintenance, etc.
Converting to Lean Ops
Get top management commitment
Decide which parts need most effort
by studying the current process and
identifying bottlenecks
Obtain support of workers
Start by trying to reduce setup times
Gradually convert operations
Convert suppliers to JIT
Prepare for obstacles*
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Obstacles to Conversion
Workers/management may not be
cooperative – education is essential
Suppliers may resist the demands of a
lean system
Management may not be committed
Entails a change to the corporate
culture– not easy to achieve
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Lean Service Industries
Focus is on the time needed to
perform the service
Speed is often order winner for
services
Examples:
Domino’s Pizza, Fed-X, Jiffy Lube,
911, JIT publishing, etc.
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Course Summary
Key take-aways:
Mathematical-based decision making
Efficiency focus / cost containment
Importance of forecasting
Analysis = key
Never be satisfied with the status quo