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Lecture Supply chain management: A global perspective – Chapter 10: Lean systems & six-sigma quality

The main contents of the chapter consist of the following: What is lean? lean production, respect for people, total quality management (TQM), statistical quality control (SQC), six-sigma quality, lean six-sigma supply chain. | Chapter 10 Lean Systems and Six-Sigma Quality 10-1 Lecture Outline 10-2 What is Lean? Lean Production Respect for People Total Quality Management (TQM) Statistical Quality Control (SQC) Six-Sigma Quality Lean Six-Sigma Supply Chain Copyright 2011 John Wiley & Sons, Inc. What is Lean? 10-3 Copyright 2011 John Wiley & Sons, Inc. Lean is a management approach for creating value for the end customer through the most efficient utilization resources possible Standard in many industries Often results in: large cost reductions improved quality increased customer service Lean Six Sigma Combines the approaches of Lean and Six Sigma Six Sigma methodology to identify and eliminate causes of quality problems 10-4 Copyright 2011 John Wiley & Sons, Inc. Tenets of Lean There are six tenets of the Lean Philosophy: Elimination of Waste eliminate all non-value adding activities A Broad View decisions made for the success of the entire supply chain all supply chain members responsible for adding value . | Chapter 10 Lean Systems and Six-Sigma Quality 10-1 Lecture Outline 10-2 What is Lean? Lean Production Respect for People Total Quality Management (TQM) Statistical Quality Control (SQC) Six-Sigma Quality Lean Six-Sigma Supply Chain Copyright 2011 John Wiley & Sons, Inc. What is Lean? 10-3 Copyright 2011 John Wiley & Sons, Inc. Lean is a management approach for creating value for the end customer through the most efficient utilization resources possible Standard in many industries Often results in: large cost reductions improved quality increased customer service Lean Six Sigma Combines the approaches of Lean and Six Sigma Six Sigma methodology to identify and eliminate causes of quality problems 10-4 Copyright 2011 John Wiley & Sons, Inc. Tenets of Lean There are six tenets of the Lean Philosophy: Elimination of Waste eliminate all non-value adding activities A Broad View decisions made for the success of the entire supply chain all supply chain members responsible for adding value Simplicity the simpler the solution the better 10-5 Copyright 2011 John Wiley & Sons, Inc. Tenets of Lean Continued Continuous Improvement emphasis on quality and continuous improvement called kaizen Visibility visible problems are identified and solved Flexibility easily switch from one product type to another, using flexible workers that perform many different tasks 10-6 Copyright 2011 John Wiley & Sons, Inc. Elements of Lean Lean is composed of three elements that work in unison: Lean Production Total Quality Management (TQM) Respect for People 10-7 Copyright 2011 John Wiley & Sons, Inc. Elements of Lean 10-8 Copyright 2011 John Wiley & Sons, Inc. Lean Production Coordinated system for producing the exact products desired, delivered in right quantities to where needed Just-in-Time The Pull System Visual Signals Small Lot Production Uniform Plant Loading 10-9 Copyright 2011 John Wiley & Sons, Inc. The Pull System Traditional approach supply chains work as “push” systems inventory .