Lecture Operations and supply chain management - Chapter 12: Lean supply chains. After reading the material in this chapter, you should be able to: Explain what lean production is, describe how a pull production system works, understand toyota production system concepts, summarize important attributes of a lean supply chain,. | Lean Supply Chains Chapter 12 Learning Objectives Explain what Lean Production is. Describe how a pull production system works. Understand Toyota Production System concepts. Summarize important attributes of a lean supply chain. Analyze a supply chain process using value chain mapping. Learn the principles of lean supply chain design. Learn how a Kanban system works. Show examples of applying lean thinking to service companies. Lean Production Lean Logic Toyota Production System Waste from overproduction Waste of waiting time Transportation waste Inventory waste Processing waste Waste of motion Waste from product defects Lifetime employment for permanent positions Maintain level payrolls even when business conditions deteriorate Company unions Bonuses View workers as assets Elimination of Waste Respect for People Lean Supply Chains Lean Focused Supply Chain Components Principles of Lean Supply Chain Design Lean Concepts Plant layout designed to ensure balanced work flow with a minimum | Lean Supply Chains Chapter 12 Learning Objectives Explain what Lean Production is. Describe how a pull production system works. Understand Toyota Production System concepts. Summarize important attributes of a lean supply chain. Analyze a supply chain process using value chain mapping. Learn the principles of lean supply chain design. Learn how a Kanban system works. Show examples of applying lean thinking to service companies. Lean Production Lean Logic Toyota Production System Waste from overproduction Waste of waiting time Transportation waste Inventory waste Processing waste Waste of motion Waste from product defects Lifetime employment for permanent positions Maintain level payrolls even when business conditions deteriorate Company unions Bonuses View workers as assets Elimination of Waste Respect for People Lean Supply Chains Lean Focused Supply Chain Components Principles of Lean Supply Chain Design Lean Concepts Plant layout designed to ensure balanced work flow with a minimum of WIP inventory Preventive maintenance is emphasized to avoid downtime Operators perform much of the maintenance to keep equipment reliable Group technology - a philosophy in which similar parts are grouped into families The processes required to make the parts are arranged in a manufacturing cell Eliminated movement and queue time between operations, reduces inventory, and reduces employees Quality/Just-in-Time Quality at the source - do it right the first time and if something goes wrong, stop the process immediately Workers are personally responsible for the quality of their output Workers become their own inspectors Workers are empowered to do their own maintenance JIT production - producing what is needed when needed and nothing more Anything over the minimum is waste Typically applied to repetitive manufacturing Idea lot size is one Vendors ship several times a day JIT exposes problems otherwise hidden by inventory Lean Production Schedules Kanban Systems Kanban means “sign” or