Lean Operations and Scheduling (discussion) Lean manufacturingLean manufacturing is a philosophy of production that focuses on the minimization of resourc

Lean Operations and Scheduling (discussion) Lean manufacturingLean manufacturing is a philosophy of production that focuses on the minimization of resourc

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Lean Operations and Scheduling (discussion) Lean manufacturingLean manufacturing is a philosophy of production that focuses on the minimization of resources used throughout the organization in the production of goods and services. Lean manufacturing involves identifying and eliminating non-value adding activities in design, production, supply-chain management, and in dealing with the customers.Select a manufacturing business in Saudi Arabia and discuss the following:

What the company does.
Its value adding and non-value adding activities, including tools for Lean Six Sigma such as just-in-time manufacturing.
Any rapid change-over activities the company uses or could use.
The company’s employee empowerment opportunities.

Embed course material concepts, principles, and theories, which require supporting citations along with at least two scholarly, peer-reviewed references      in supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references.You are required to reply to at least two peer discussion questions and post answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required. 

 

Required: 

Chapter 14 & Supplement to Chapter 14 in Operations Management

Chapter 14 PowerPoint slides Module 14 Chapter 14 PowerPoint slides – Alternative Formats – Operations Management

Antonio, B. T., & Kusumastuti, R. D. (2019). Lean operations implementation at an Indonesian shoe producer. South East Asian Journal of Management, 13(1), 92–105.

Ball, P., & Lunt, P. (2020). Lean eco-efficient innovation in operations through the maintenance organisation. International Journal of Production Economics, 219, 405–415. https://doi.org/10.1016/j.ijpe.2018.07.007

Obwegeser, N., T. Nielsen, D., & M. Spandet, N. (2019). Continual Process Improvement for ITIL Service Operations: A Lean Perspective. Information Systems Management, 36(2), 141–167. https://doi.org/10.1080/10580530.2019.1587576 Lean Operations

Chapter 14

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You should be able to:

LO 14.1 Explain the terms lean operations and JIT

LO 14.2 Describe the main characteristics of lean systems

LO 14.3 List the five principles of the way lean system function

LO 14.4 List some of the benefits and some of the risks of lean operations

LO 14.5 Describe the Toyota Production System (TPS)

LO 14.6 List the three goals of a lean system and explain its importance of each

LO 14.7 List the eight wastes according to lean philosophy

LO 14.8 Identify and briefly discuss the four building blocks of a lean production system

LO 14.9 Describe key lean improvement tools

LO 14.10 Outline considerations for successful conversion from a traditional system to a lean system

LO 14.11 Describe some of the obstacles to lean success

Chapter 14: Learning Objectives

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Lean operation

A flexible system of operation that uses considerably less resources than a traditional system

Tend to achieve

Greater productivity

Lower costs

Shorter cycle times

Higher quality

Just-in-Time

A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed

Lean Operations

LO 14.1

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A number of characteristics are commonly found in lean systems:

Waste reduction

Continuous improvement

Use of teams

Work cells

Visual controls

High quality

Minimal inventory

Output only to match demand

Quick changeovers

Small lot sizes

Lean culture

Lean System Characteristics

LO 14.2

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Five principles embody the way lean systems function:

Identify customer values

Focus on processes that create value

Eliminate waste to create “flow”

Produce only according to customer demand

Strive for perfection

Lean System Principles

LO 14.3

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Key benefits

Reduced waste

Lower costs

Increased quality

Reduced cycle time

Increased flexibility

Increased productivity

Critical risks

Increased stress on workers

Fewer resources available if problems occur

Supply chain disruptions can halt operations

Benefits & Risks of Lean Systems

LO 14.4

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Lean operations began as lean manufacturing, also known as JIT in the mid-1900s

Developed by Taiichi Ohno and Shigeo Ohno of Toyota

Focus was on eliminating all waste from every aspect of the process

Waste is viewed as anything that interferes with, or does not add value to, the process of producing automobiles

Lean Operations: The Beginning

LO 14.5

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Lean: Ultimate Goal

The ultimate goal:

Achieve a balanced system–

One that achieves a smooth, rapid flow of materials and/or work through the system

LO 14.6

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Lean: Supporting Goals

The degree to which lean’s ultimate goal is achieved depends upon how well its supporting goals are achieved:

Eliminate disruptions

Make the system flexible

Eliminate waste, especially excess inventory

LO 14.6

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Waste

Represents unproductive resources

Eight sources of waste in lean systems:

Excess inventory

Overproduction

Waiting time

Unnecessary transporting

Processing waste

Inefficient work methods

Product defects

Underused people

Waste

LO 14.7

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The kaizen philosophy for attacking waste is based upon these ideas:

Waste is the enemy, and to eliminate waste it is necessary to get the hands dirty

Improvement should be done gradually and continuously; the goal is not big improvements done intermittently

Everyone should be involved

Kaizen is built on a cheap strategy, and it does not require spending great sums on technology or consultants

It can be applied everywhere

It is supported by a visual system

It focuses attention where value is created

It is process oriented

It stresses that the main effort for improvement should come from new thinking and a new work style

The essence of organizational learning is to learn while doing

Kaizen

LO 14.7

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Lean: Building Blocks

Product design

Process design

Personnel/organizational elements

Manufacturing planning and control

LO 14.8

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Four elements of product design important for lean systems:

Standard parts

Modular design

Highly capable systems with quality built in

Concurrent engineering

Building Blocks: Product Design

LO 14.8

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Eight aspects of process design that are important for lean systems:

Small lot sizes

Setup time reduction

Manufacturing cells

Quality improvement

Production flexibility

A balanced system

Little inventory storage

Fail-safe methods

Building Blocks: Process Design

LO 14.8

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In the lean philosophy, the ideal lot size is one

Benefits of small lot size

Reduced in-process inventory

Lower carrying costs

Less storage space is necessary

Inspection and rework costs are less when problems with quality do occur

Permits greater flexibility in scheduling

Less inventory to ‘work off’ before implementing product improvements

Increased visibility of problems

Increased ease of balancing operations

Process Design: Small Lot Sizes

LO 14.8

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Process Design: Setup Time Reduction

Small lot sizes and changing product mixes require frequent setups

Unless these are quick and relatively inexpensive, they can be prohibitive

Setup time reduction requires deliberate improvement efforts

Single-minute exchange of die (SMED)

A system for reducing changeover time

Group technology may be used to reduce setup time by capitalizing on similarities in recurring operations

LO 14.8

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Process Design: Manufacturing Cells

One characteristic of lean production systems is multiple manufacturing cells

Benefits include

Reduced changeover times

High equipment utilization

Ease of cross-training workers

LO 14.8

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Quality defects during the process can disrupt the orderly flow of work

Autonomation (jidoka)

Automatic detection of defects during production

Two mechanisms are employed

One for detecting defects when they occur

Another for stopping production to correct the cause of the defects

Process Design: Quality Improvement

LO 14.8

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Guidelines for increasing flexibility

Reduce downtime due to changeovers by reducing changeover time

Use preventive maintenance on key equipment to reduce breakdowns and downtime

Cross-train workers so they can help when bottlenecks occur or other workers are absent

Use many small units of capacity; many small cells make it easier to shift capacity temporarily and to add or subtract capacity

Use off-line buffers. Store infrequently used safety stock away from the production area

Reserve capacity for important customers

Process Design: Work Flexibility

LO 14.8

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Takt time

The cycle time needed to match customer demand for final product

Sometimes referred to as the heartbeat of a lean system

Takt time is often set for a work shift

Procedure:

Determine the net time available per shift

If there is more than one shift per day, multiply the net time by the number of shifts

Compute the takt time by dividing the net available time by demand

Process Design: Balanced System

LO 14.8

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Process Design: Inventory Storage

Lean systems are designed to minimize inventory storage

Inventories are buffers that tend to cover up recurring problems that are never resolved

Partly because they are not obvious

Partly because the presence of inventory makes them seem less serious

LO 14.8

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Poka-yoke (Fail-safing)

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 left in a machine

Designing parts that can only be assembled in the correct position

Process Design: Fail-Safe Methods

LO 14.8

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Building Blocks: Personnel/Organizational

Five personnel/organizational elements that are important for lean systems:

Workers as assets

Cross-trained workers

Continuous improvement

Cost accounting

Leadership/project management

LO 14.8

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Workers as assets

Well-trained and motivated workers are the heart of the lean system

They are given greater authority to make decisions, but more is expected of them

Personnel/Organizational: Workers as Assets

LO 14.8

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Cross-trained workers

Workers are trained to perform several parts of a process and operate a variety of machines

Facilitates flexibility

Helps in line balancing

Personnel/Organizational: Cross-Trained Workers

LO 14.8

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Continuous improvement

Workers in lean systems have greater responsibility for quality, and they are expected to be involved in problem solving and continuous improvement

Lean workers receive training in

Statistical process control

Quality improvement

Problem solving

Personnel/Organizational: Continuous Improvement

LO 14.8

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Personnel/Organizational: Cost Accounting

Cost accounting

Activity-based costing

Allocation of overhead to specific jobs based on their percentage of activities

LO 14.8

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Personnel/Organizational: Leadership

Leadership/project management

Managers are expected to be leaders and facilitators, not order givers

Lean systems encourage two-way communication between workers and managers

LO 14.8

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Seven elements of manufacturing planning and control (MPC) are particularly important for lean system:

Level loading

Pull systems

Visual systems

Limited work-in-process (WIP)

Close vendor relationships

Reduced transaction processing

Preventive maintenance and housekeeping

Building Blocks: MPC

LO 14.8

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MPC: Level Loading

Lean systems place a strong emphasis on achieving stable, level daily mix schedules

MPS – developed to provide level capacity loading

Mixed model scheduling

Three issues need to be resolved

What is the appropriate product sequence to use?

How many times should the sequence be repeated daily?

How many units of each model should be produced in each cycle?

LO 14.8

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Push system

Work is pushed to the next station as it is completed

Pull system

A workstation pulls output from the preceding workstation as it is needed

Output of the final operation is pulled by customer demand or the master schedule

Pull systems are not appropriate for all operations

Large variations in volume, product mix, or product design will undermine the system

MPC: Pull Systems

LO 14.8

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Kanban

Card or other device that communicates demand for work or materials from the preceding station

Kanban is the Japanese word meaning “signal” or “visible record”

Paperless production control system

Authority to pull, or produce, comes from a downstream process

Two main types of kanbans:

Production kanban (p-kanban): signals the need to produce parts

Conveyance kanban (c-kanban): signals the need to deliver parts to the next work center

MPC: Visual Systems

LO 14.8

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MPC: Limited WIP

Benefits of lower WIP

Lower carrying costs

Increased flexibility

Aids scheduling

Saves costs of scrap and rework if there are design changes

Lower cycle-time variability

LO 14.8

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MPC: Close Vendor Relationships

Lean systems typically have close relationships with vendors

They are expected to provide frequent, small deliveries of high-quality goods

A key feature of many lean systems is the relatively small number of suppliers used

LO 14.8

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Lean systems seek to reduce costs associated with the ‘hidden factory’:

Logistical transactions

Balancing transactions

Quality transactions

Change transactions

MPC: Reduced Transaction Processing

LO 14.8

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Preventive maintenance

Maintaining equipment in good operating condition and replacing parts that have a tendency to fail before they actually do fail

Housekeeping

Maintaining a workplace that is clean and free of unnecessary materials

Preventive Maintenance and Housekeeping

LO 14.8

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Value stream mapping

A visual tool to systematically examine the flows of materials and information

Its purpose is to help identify waste and opportunities for improvement

Data collected:

Times

Distances traveled

Mistakes

Inefficient work methods

Waiting times

Information flows

Lean Tools: Value Stream Mapping

LO 14.9

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5W2H

A method of asking questions about a process that includes what, why, where, when, who, how, and how much

Lean and Six Sigma

Lean and Six Sigma can be viewed as two complementary approaches to process improvement

Lean focuses on eliminating non-value-added activity to maximize process velocity

Six Sigma seeks to eliminate process variation

Together the two approaches can achieve process flow and quality

Lean Tools: 5W2H & Six Sigma

LO 14.9

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Make sure top management is committed and that they know what will be required

Decide which parts will need the most effort to convert

Obtain support and cooperation of workers

Begin by trying to reduce setup times while maintaining the current system

Gradually convert operations, begin at the end and work backwards

Convert suppliers to JIT

Prepare for obstacles

Transitioning to Lean Systems

LO 14.10

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Management may not be fully committed or willing to devote the necessary resources to conversion

Workers/management may not be cooperative

It can be difficult to change the organizational culture to one consistent with the lean philosophy

Suppliers may resist

Obstacles to Conversion

LO 14.11

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