who is credited with coining the phrase, “inventory is evil”? This is a topic that many people are looking for. caraimica.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, caraimica.org would like to introduce to you Lean Operations (Ch 16). Following along are instructions in the video below:
16. Just in time and lean operations this session will help you understand lean operations. Operations.
The 7 wastes and the 5 ss along with the importance of supplier. You cant have top quality products without top quality components from top quality suppliers you will also understand setup times just in time operations con bonds and the attributes of lean organizations. Toyota has been the breeding ground for quality and process innovation for years they are one of the largest auto manufacturers in the world one key to their success has been the implementation of just in time and total production system for just in time to work the team must work constantly to improve the process and eliminate the issues that prevent the smooth flow of material.
The result is the creation of vehicles with high quality and lower cost due to minimal assembly. Time here are the elements of the tps system. You find optimization and all aspects of production hiring.
The best people and treating them. Well is foundational. The factory is level loaded with materials delivered just in time using a pole system standard work practices are used for consistent quality.
While using custom machinery to produce the best results. The processes. Include the use of display boards monitoring performance and continuous improvement.
This is not a single approach. But a coordinated effort applying best in class techniques lean operations are all about reducing waste. The customer gets just what they ordered with no excess cost material or labor.
This strategy is supported by just in time and pole methodologies. The difference between just in time and lean is that jit is time focused while lean is focused on eliminating waste. The combined goal is to eliminate waste remove variability and improve throughput how do we define waste waste is anything that does not add value from a customer point of view in other words with the customer choose to pay for it if offered as a separate option in our previous discussion of value added processes.
We identified that storage inspection delay queues defective products and unnecessary travel are all considered waste ichi ohno father of the toyota production system identified seven types of waste. They are shown here this list is a great starting point when identifying waste in an operation processing is adding more value to a product than the customer requires. This waste is controversial as it suggests that it is wasteful to give a customer more than they paid for waste.
Includes unnecessary use of energy water and air an optimized process. Minimizes required resources and reduces waste. The process of facility.
Housekeeping. Has been expanded to the five ss. The 5s has represent a japanese methodology for workplace organization each s.
Represents a step toward optimized workflow. Sort suggests eliminating items not needed for the work straitened means to organize the materials and tools to improve efficiency shine means to keep the area clean.
While standardizing steps might include color coding to ensure consistency finally any improvements must be maintained over time. This is the meaning of sustain two additional assets have been added to the original model they represent safety and support maintenance stable processes are important for customer quality productivity and minimal cost eliminating variability helps you achieve this goal inventory is often used to hide variability excess inventory builds a buffer between processes that are not in alignment or have excess variability poor processes and inadequate maintenance of those processes can create preventable variability. The same may be said for inconsistent customer requirements and incomplete product specifications just in time methods and inventory reduction efforts can help identify and reduce sources of variability.
To measure the success of a process we look at several key metrics. Throughput is the rate at which units move through production while cycle time is the time from arrival of raw material to the shipment of the final product order cycle time starts with order receipt to customer delivery. This would be the customer view of the process improvements in throughput may result from reducing lot sizes.
And by using a pole system. Where inventory. Buffers are removed and exposed problems are addressed as a result manufacturing cycle.
Time will be reduced push systems are the traditional method of pushing material downstream. Regardless of need this is not an effective approach combining lean and just in time is a powerful strategy. But requires a strong relationship with suppliers.
The result can be reducing waste and increasing throughput implementing a just in time methodology can create a competitive advantage. This list displays. Many of the potential outcomes.
Key results. Include improved quality reduce cycle time stronger supply chain relationships more accurate schedules and a flexible empowered workforce typically we think that improve quality and reduce cycle time increased cost. However the ultimate result of just in time methods is a faster response to the customer at lower cost and higher quality to make just in time methods.
Possible strong supplier relationships are required the goal is to create a partnership where both companies work together to streamline processes reduce inventory. Improve quality and reduce response time as in any partnership. Both parties.
The buyers and the suppliers share the tasks necessary for success risk is involved on both sides such that mutual understanding and trust are required both parties are sharing information that would traditionally be considered a trade secret or for internal use. Only the risks to suppliers are numerous one of the greatest long term concerns is diversification partnerships often evolve to a point where items are single sourced business issues with the buyer can have a major impact on suppliers. It is not uncommon for a bankrupt buyer to take suppliers with them into economic ruin.
In addition. The two companies must be in alignment regarding quality lead times and expenses facility design can also be affected by a lean. Methodology.
Here are a few of the tactics that may be implemented. Poka. Yoke devices are tools or fixtures.
Designed to work one way. Only assembly errors can then be reduced or eliminated.
A simple example in everyday life. Would be a three pronged electrical plug it can only be inserted into the outlet. One way another step is to reduce distance traveled during the process flexible work cells and realigned equipment aid in this goal.
Flexible work cells contribute to the agility of a company these concepts apply to both production and office environments. This flexibility can be used to adapt to changing demand and changing product requirements. A flexible work force can make a big difference in an operation employees trained for multiple jobs.
Facilitate flexibility as business needs change tools and methods like poka yoke also help with an optimized process material velocity increases. The result is less inventory storage. This is a definition of lean inventory to establish and maintain a lean inventory model.
A number of methods are used some examples are listed. Here. The following content describes many of these methods inventory is often used to hide problems in the process.
Variability and process performance is often the problem. If process activities can be predicted consistently the process design can adapt. However with variability.
The process is in constant turmoil this diagram depicts variabilities rocks in the water that the sailboat must avoid as long as we have sufficient inventory. The boat sails smoothly ignorant of the rocks beneath the surface. But as inventory is reduced shown as a lower water level.
The rocks are exposed now that the issues have been identified employee teams can address the identified issues and reduce variability once these issues have been resolved the inventory or water level may be reduced again. Identifying additional issues to be addressed this technique is often used by companies attempting to reduce their inventory levels inventory. May be lowered temporarily to identify the issues.
The inventory. May then be increased to ensure business. Success.
While the issues are addressed the levels are then reduced again to determine if the action plans have been successful ultimately when all process. Variability has been reduced or eliminated. The inventory or water level may be reduced to a level that minimizes carrying costs while ensuring business success here is a summary of the process of inventory management.
The goal is to minimize inventory by eliminating the exposed problems the graph depicts inventory quantities over time the sawtooth is an idealized view. Where 200 units are ordered and placed into inventory. This is the vertical spike in the line as material is consumed by the process.
We see a gradual drop in inventory. Until the next shipment arrives.
Ideally the next shipment arrives just as the inventory is depleted since we have a triangle the average inventory is simply half the height of the triangle thus. If the order quantity is 200. Units.
The average inventory is 100 units. A direct method to reduce inventory is to reduce lot sizes by reducing the order quantity to 100 the average inventory is reduced to 50 units. The average inventory is proportional to the average cost of inventory just in time methods would have an ideal odd size of one unit due to a number of realities.
This is not always possible we can calculate the economic order. Quantity or yo q to balance the various production inputs as with most equations. We determine the given values and determine the unknown for example with an annual demand d of 400000 units.
A desired order quantity. Q. Of 200 units.
And an annual holding cost h. Of 20 per unit. We can determine the set up cost the equation determines that the set up cost will be 1 per setup event.
Since labor costs are 20 per hour. The set up time is determined to be 3 minutes to reduce lot sizes. Reduce set up time and setup costs setup can be simplified by pre planning.
Cutover activities. Implementing advanced automated processes and eliminating setup. Altogether by using more universal processes.
This is a graphical representation of the eoq u equation showing the impact of reduced set up cost on lot size and cost reduce set up time results in reduced. Lot size and reduced cost. This diagram shows.
The typical steps taken to reduce set up cost the target in many industries is to achieve sub minute setup. Times. This is the six sigma of setup goals lean scheduling brings all members of the supply chain in alignment and includes frozen schedules of small batches of material with demand based on a pole system based on need improve scheduling methods.
Result in improved performance. Lean. Scheduling.
Tactics are listed. Here.
Some methods are unique to scheduling while others like performing to schedule and eliminating waste can have a broader impact and are just good business practice in general level schedules. Means that there is a fairly constant volume of material flowing through the process based upon a constant demand. Smaller lots and just in time procedures are possible with resulting economies and reduced variability here.
We compare a just in time approach with large lots notice that it takes longer to get the third product c. Built. This advantage has a cumulative effect.
If multiple processes are required in series. The kanban method is a just in time method originating at toyota in japan. A signal is needed at a later process places demand upon a previous process materials pulled through the process.
Until the final product is delivered to the customer heres an example of a kanban as the boxes on the right are used in the process eventually the flag for that product is exposed this flag is placed on the flagpole to indicate demand to the previous processes responsible for producing the boxes identified as x201 y 302 and z. 405. When material is placed back in stock.
The flags are replaced in their respective stacks kanban indicators may be visual. If the perusing group is nearby or electronic. If not note that the number of boxes in reserve is dependent upon the speed of fulfillment of the providing group plus.
The rate of depletion of stock in inventory here. We see another example showing the flow of material from component supplier through to fulfilment of the customer order each stage loads demand. Upon the previous group as local inventory of work and process goods is depleted.
Some of the advantages of kanban are listed here in general kanban does not create success successful. Kanban forces changes to the operation to be successful. These changes.
Improve business performance. There is a strong relationship between lean operations and quality lean operations expose issues. Including quality similarly good quality is required for lean processes to be successful tactics to achieve lean quality are listed here these are not new ceps.
But the focus on lien quality brings them to the forefront to be successful lean operations act. Differently. There must be a strong relationship across the supply chain starting with material suppliers through the distribution channel to the ultimate customer communication and the consistent use of lean methods across the supply chain are essential becoming a lean organization is not easy cultural change is required along with open communication at all levels of the team gemba is from te chi.
Oh. No and translates to the real place in management terms. A gamble walk means going out and viewing.
The actual operation and understanding the reality of the situation. This further supports. The open communication listed above in addition to open communication employees must be empowered for success workers with multiple skills are desired and the focus must be on value added tasks once achieved maintaining lean operations requires looking beyond the team to those external operations that interact with the team working external to the firm is the next opportunity to enhance the process across the supply chain.
The techniques of lean apply equally to manufacturing and services can you think of examples. Where this is the case for a typical service. .
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