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Ch 15 - Lean Production

1. Introduction         (p685)
   1. Def - Lean Production - an integrated management system that emphasizes the elimination of waste and the continuous improvement of operations.  Part of TQM (Ch 3).
   2. Waste is anything that does not add value to the product for the customer. Waste can be material, worker activity, space, equipment, time, or energy.
   3. Benefits of Lean Production - to some US manufacturers (p705)
      1. 90% reduction in manufacturing cycle time
      2. 70% reduction in inventory
      3. 50% reduction in labor costs
      4. 80% reduction in space requirements.
   4. Def - Just-in-Time (JIT) - another term for Lean Production.  JIT was originally developed at Toyota.
2. Basic Elements of Lean Production       (p685)
   1. For Employees:
      1. *Multifunctional workers perform more than one job (p686)
      2. *Quality at the Source
         1. Each worker has responsibility for product quality.
         2. Each worker has authority to stop production (jidoka, p700).
      3. *Total Productive Maintenance - workers do much of their own preventive maintenance (p701).
   2. For the Production Process:
      1. *Pull System - a work center does not produce until a downstream work center requests it (p690).
      2. *Kanban Production Control Systems (p691)
         1. Kanban (Japanese word for card) - a card that specifies a standard quantity of production (usually circulated with a container for that amount).
      3. Quick, Inexpensive Setups with general-purpose machines (p695)
      4. Small-Lot Production (p694)
      5. *Cellular Layouts - groups dissimilar machines into work cells that process parts with similar shapes or processing requirements, Fig 7.8a, p276.
         1. Improves the efficiency of a process layout, while maintaining some flexibility. See Figs. 7.9 (p276), 7.10, 7.11, 15.4 (p688), 15.5.
   3. For Suppliers:
      1. Supplier Networks     (p703)
         1. Locate near customer.
         2. Use standardized containers.
         3. *Make precise (JIT) deliveries. Chrysler penalizes its trucking firm $32,000 per hour for late deliveries (p703).
                                 (This page was last edited on August 16, 2006 .)