Lean Operations – moving towards the elimination of all waste in order to develop an operation that is faster more dependable, produces higher quality products and services and operates at a low cost. In general, Lean can be viewed as a philosophy of operations management, i.e. it gives a clear view which can be used to uide the way operations are managed in many different contexts. Several techniques are used to support this philosophy. (JIT techniques)
The Lean approach to managing operations is founded on doing the simple things well, on gradually doing them better and on squeezing out waste every step of the way. (Toyota is a leading practitioner)
JIT – producing goods and services exactly when they are needed, not before they are needed so that they wait as inventory, nor after they are needed so that it is the customers who have to wait.
“JIT is a disciplined approach to improving overall productivity and eliminating waste. It provides for the cost-effective production and delivery of only the necessary quantity of parts at the right quality, at the right time and place, while using a minimum amount of facilities, equipment, materials and human resources. JIT is dependent on the balance between the supplier’s flexibility and the user’s flexibility. It is accomplished through the application of elements which require total employee involvement and teamwork. A key philosophy of JIT is Simplification”.
High Dependency Theory: With high inventories insulating each stage in the production process, the dependency of the stages on one another was low. Take away the inventory and their mutual dependency increases.
Using Lean approach on flow between operational stages : the responsibility for solving the problem is no longer confined to the staff at stage A but is now shared by everyone. This considerably improves the chances of the problem being solved, if only because it is now too important to be ignored. By preventing