LO8-1 Explain how lean systems improve internal and supply chain operations
LO8-2 Describe the culture changes, tools and techniques needed for implementation
LO8-3 Apply lean to product design
LO8-4 Recognize strengths and limitations of lean systems
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Copyright © 2014 McGraw-Hill Higher Education. All rights reserved.CHAPTER 8Lean SystemsMcGraw-Hill/Irwin8–2Learning ObjectivesLO8-1 Explain how lean systems improve internal and supply chain operationsLO8-2 Describe the culture changes, tools and techniques needed for implementationLO8-3 Apply lean to product designLO8-4 Recognize strengths and limitations of lean systemsLO8-1Lean Systems Defined8–3Just-in-time (JIT): an older name for lean systemsToyota Production System (TPS): another name for lean systems, specifically as implemented at ToyotaLean Systems Approach: a philosophy of minimizing the resources needed for processes LO8-1Lean Origins8–4LO8-1Lean Principles8–5LEANLO8-1Lean Tools and Techniques:Facilities and ResourcesTotal Productive Maintenance (TPM): prevention of breakdownsGroup Technology: bring together resources to process a family of itemsFocused Factories: processes designed to satisfy specific customer segment8–6LO8-2Lean Tools and Techniques:Scheduling and ControlTakt Time: synchronizing output rate with demand rateKanban (Pull): output generated in response to actual demandMixed Model (heijunka): build smaller quantities more frequentlySet-up reduction: shorter, easier change- over leads to smaller batchesStatistical process control (SPC): use of statistical tools to monitor processesVisual control: performance and problems easily, immediately visible8–7LO8-2Setup Reduction: Single Minute Exchange of Dies8–8Setup ReductionLO8-2Lean Tools and Techniques:Continuous ImprovementQuality at the source: eliminating defects at their origination pointsKaizen Events: short-term, cross-functional focused, intense process improvementProcess analysis/Value stream mapping: graphical analysis flow through a processPoka-Yoke: redesign so mistakes are impossible or immediately detectable5-S: effective housekeeping (sort, straighten, scrub, systematize, standardize)Simplification/Standardization: removing non-value add steps, making processes exactly repeatable8–9LO8-2Quality at the Source (Q@S)8–10LO8-2Process Analysis / Value Stream MappingFigure 8-58–11LO8-2Application of Lean8–12LO8-3Application of Lean Across the Supply Chain: What could go wrong?8–13SUPPLY CHAIN DISRUPTIONSLO8-4Application of LeanReducing product design waste:Complexity: few, simple processesPrecision: capability to attain specificationsVariability: attainable specificationsSensitivity: not easily damagedImmaturity: tested technologyDanger: customers & environment are safeHigh skill: ease for workers and customer8–14LO8-3Lean Systems Summary8–15Lean is a corporate wide approach to identify, control and eliminate waste, within firm and across supply chainLean principles are guided by seven major objectivesThere are multiple lean tools that work synergisticallyLean should be expanded across firm functions and across the supply chainLean is not universally applicable
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