Discuss the many approaches of to lean manufacture 3-4 paragraphs—— Use attach files only!

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MBA 650 ? OPERATIONS
MANAGEMENT AND SYSTEMS
ANALYSIS

Lean Manufacture

THE BASIS

OF

LEAN

? Toyota need to produce many different
cars on one assembly line after WWII
? Toyota study of grocery stores? ?pull?
inventory system
? Toyota?s work with Henry Ford

Eliminate Waste

MUDA= WASTEFUL ACTIVITY
?
?
?
?
?
?
?

I: Inventory
M: Motion
W: Wait
O: Over-processing
O: Over-production
D: Defect
T: Transportation Shigeo Shingo identified ?7? forms of waste

(Plus one ? The eighth waste, under utilization
of people)

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INVENTORY CONTROL IS THE BASE
? Lean requires good inventory control? Bar coding, MRP software or Kanban
Japanese eliminate space ? as a control

JAPANESE KANBAN
? A visual card system
It?s known as a pull system
Americans prefer bar coding

KANBAN ADVANTAGES

It forces employee involvement
Pulls inventory
Utilizes space

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SETTING UP LEAN
? First steps
Implement TQM- quality failure is a major reason
For inventory build
Analysis for process bottlenecks
Use cross-functional employee teams

AREAS
?
?
?
?
?
?
?

OF NEEDED IMPROVEMENT

Tool change
Inventory control
Production planning
Cellular manufacture
Implement ISO and TS 16949
JIT supply
MRP and MRPII

TOOL CHANGE
? A system of ID, storage, and retrieval
? Loss prep time
? Use ISO 9000 and TS 16949

? Mobility
? Toyota?s tools on wheels

? Production planning
? Advance planning

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JIT SUPPLY
?
?
?
?
?
?

Electronic hook up
Stability in ordering
Production planning
MRP software or MRP II
Supplier cities
Develop Cooperative advantage to hold
costs

INVENTORY CONTROL

MRP
Kanban
RFID
Cycle Count

INVENT
ORY

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INVENTORY ?THE BAROMETER

OF

MANAGEMENT

? Inventory tells the whole story!
? High inventory can indicate quality problems
? Inventory turnover ? relates to resource mgt
and efficiency
? Reflects throughput
? Reflects management skills
? Great for industry benchmarking
? Japanese believe it even reflects morale

THE 80-20 PARETO RULE
? An exponential distribution that explains
many business distributions
? Wilfred discovered in 1900 that 80% of the
wealth of Italy was held by 20% of
population
? Called the vital few ?trivial many ? it is a
way to manage
? Says 80% of the value of the inventory is
held by 20% of items

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MATERIALS REQUIREMENT PLANNING

? MRP
MRP Software

Requires:
? A defined product tree or bill of materials
? 2. Accurate inventory measures
? 3. JIT
? 4. Good sales forecasts

Requires
1. A defined product tree or bill of materials
2. Accurate inventory measures
3. JIT
4. Good sales forecasts

MRP SOFTWARE

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The most important thing —is inventory accuracy

MRP II addresses variability

MRP II

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BAR CODING
? Americans prefer over Kanban

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Costs 5cents to $1

JUST ADD A SOLAR BATTERY
? And the bar code can automatically update
? Location of inventory to retrieve it
? Amount of inventory
? Whether its shipped and tracking
? Update MRP software for inventory control

WAL-MART LEADS THE WAY
? Full pallet implementation
? Dept. of Defense also
? Logistics tracking

? Clothes underway
? Ultimate
? Automatic checkout
? Automatic inventory up date

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PROBLEMS
? Privacy issues
? Metal ? Caterpillar
? Cost

FORECASTING

SALES

? An Overview

SALES FORECASTING -WHY
? Drives MRP inventory software
? Drives planning software
? Needed for aggregate investment
planning

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KEY PROBLEMS

IN STATISTICAL METHODS

? Turning points are difficult to predict
? Works best in stable markets where the
regression line goes into the future
? Smoothing techniques that improve
predictions in stable markets- smooth over
turning points more

5 S METHODOLOGY
Toyota?s Lean
Sort
Set in Order
Shine
Standardize
Sustain

SORT
? Identify un needed tools and materials
? These take up space and are depreciating
cash
? Sell off

? Pareto your inventory
? ABC items ? to identify costs

? Sort inventory and tools into useful,
potential future use, unlikely use
? Sell off, move, and trash

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SET-IN-ORDER
? Job/Project Files
? Required sign out; Orderly updates-

? Ordering of tools

ISO

? Most used to least

? Ordering Dies
? Drawings/specification
? Identify obsolete-Reference- and Current

ISO

SHINE
? Cleaning
? Safety

? Ordering

STANDARDIZE (THE HEART OF ISO)
?
?
?
?

Work instructions
Problem solving
Ordering
Training

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SUSTAIN
?
?
?
?

Cybernetic problem solving and records
Job/Project Files
ISO
Checklists
Preventive and Predictive Maintenance

VALUE STREAM MAPPING

? Value stream mapping icons and
symbols
? Value stream mapping is a powerful tool
used to analyze the information and
material flows through an organization ?
the process involves mapping both flows
and producing a diagram to show the
results pictorially

THREE STEPS

OF

VALUE STREAMS

? Flowchart of materials
? Transformation details
? Inventory
? Cycle times
? Changeover times
? Amount
? Waste

? Information flow

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MRP
Suppliers

R
E
C
I
E
V
E

I
n
v
e
n
t
o
r
y

SHIPPING

process
Times
Loss
Changeover
People
Amount
CUSTOMER

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