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 McGraw Hill Irwin Copyright 2013 by The McGraw Hill Companies Inc. All rights reserved. Learning Objectives 1. Explain what Lean Production is. 2. Describe how a pull production system works. 3. Understand Toyota Production System concepts. 4. Summarize important attributes of a lean supply chain. 5. Analyze a supply chain process using value chain mapping. 6. Learn the principles of lean supply chain design. 7. Learn how a Kanban system works. 8. Show examples of applying lean thinking to service companies. 12 2 Lean Production 12 3 Lean Logic 12 4 Toyota Production System Eliminatio n o f Was te Re s pe c t fo r Pe o ple 1. Waste from 1. Lifetime employment overproduction for permanent 2. Waste of waiting time positions 3. Transportation waste 2. Maintain level 4. Inventory waste payrolls even when 5. Processing waste business conditions deteriorate 6. Waste of motion 7. Waste from product 3. Company unions defects 4. Bonuses 5. View workers as assets 12 5 Lean Supply Chains 12 6 Lean Focused Supply Chain Components 12 7 Principles of Lean Supply Chain Design 12 8 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 12 9 Quality J ust-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 J IT production - producing what is needed when needed and nothing more Anything over the minimum is waste Typically .
