Operation Management Cheat Sheet21

Ch. 16 Lean Production is an integrated set of activities designed to achieve production using minimal inventories of raw materials, work-in-process, and finished goods. Based on the JIT logic: nothing is produced until it is needed (Item arrive at the next stage of production “just in time”) JIT means producing what is needed when needed and no more; Major goal: Elimination of all wastes. Waste is defined as anything that does not add value from the customer’s perspective. E.g., Waste from overproduction, Waste of waiting time, unnecessary transportation waste, Storing inventory, Processing waste, Waste of motion, Waste from rework due to defects. Typical Results from Lean Conversions: Lead Time Reduction, Productivity Increase, WIP Reduction, Quality Improvement, Space Utilization. Where has Lean been successfully implemented? Manufacturing: Automotive, Industrial Products, Furniture, Textiles and Apparel, Printing and Packaging, Consumer Products, Service Industries, Military, Healthcare. The Basic elements of lean production: Increase flexibility-> flexible resources: Multifunctional workers; perform more than one job; general-purpose machines perform several basic functions -cellular layouts: Departmental Specialization (old layout) for plant layout can cause a lot of unnecessary material movement. Group Technology (new layout) is a philosophy in which similar parts are grouped into families and the processes required to make parts are arranged in a specialized work cell. Using Group Technology Cells can reduce movement and improve product flow. Smooth the flow-> pull system-Kanban: Kanban means “sign” or “instruction card” in Japanese; the authority to produce or supply additional parts come from downstream operations; -small lots: Require less space and capital investment, Move processes (work stations) closer together, make quality problems easier to detect-quick setups-uniform production, and continuously improve-> quality at the source-total productive