Lean Systems Implementation: Eliminating Waste (Muda) and Optimizing Operations
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Understanding Lean Systems and Operations
Lean systems are operations systems that maximize the value added by each of a company’s activities by removing waste and delays from them.
Core Philosophies: TPS and JIT
- Toyota Production System (TPS)
- Just-in-Time (JIT) System
The JIT Philosophy: Eliminating Waste (Muda)
The JIT philosophy focuses on eliminating waste, or muda, by cutting unnecessary capacity or inventory and removing non-value-added activities.
Goals of Lean Implementation
The primary goal is to eliminate the eight types of waste, produce services and products only as needed, and continuously improve the value-added benefits of operations.
Eight Types of Waste (Muda)
Identifying and eliminating these eight types of waste (muda) is central to Lean methodology:
- Overproduction: Manufacturing an item before it is actually needed.
- Inappropriate Processing: Using expensive, high-precision equipment when simpler machines would suffice.
- Waiting: Wasteful time incurred when a product is not being moved or processed.
- Transportation: Excessive movement and material handling of products between processes.
- Motion: Unnecessary effort related to the ergonomics of bending, stretching, reaching, lifting, and walking.
- Inventory: Excess inventory hides problems on the shop floor and consumes valuable space.
- Defects: Quality defects result in rework and scrap, adding wasteful costs to the system in the form of lost capacity, rescheduling effort, increased inspection, and loss of customer goodwill.
- Underutilization of Employees: Failure of the firm to learn from and capitalize on its employees' knowledge and creativity impedes long-term efforts to eliminate waste.
Supply Chain Considerations in Lean Systems
Close Supplier Ties
Lean systems require looking for ways to improve efficiency and reduce inventories throughout the entire supply chain.
Small Lot Sizes
Small lot sizes are crucial because they:
- Reduce the average level of inventory.
- Allow products to pass through the system faster.
- Help achieve a uniform workload and prevent overproduction.
- Increase setup frequency (requiring quick changeovers).
JIT II: In-Plant Representative
JIT II involves placing a supplier representative directly in the plant to manage inventory and ordering processes.
Process Considerations in Lean Systems
Work Flow Methods
- Pull Method of Work Flow: Production is triggered by actual demand.
- (Contrast with the Push Method, where production is based on forecasts.)
Quality at the Source
Ensuring quality where the work is performed involves several key concepts:
- Jidoka: Automatically stopping the process when a defect occurs.
- Poka-yoke: Mistake-proofing methods designed to prevent errors.
- Andon: A visual feedback system (e.g., lights or boards) that alerts operators and managers to problems.
Workstation Management and Standardization
- Uniform workstation loads
- Standardized components and work methods
- Flexible workforce (employees trained to perform multiple tasks)
- Automation (used strategically to enhance efficiency)
- Total Preventive Maintenance (TPM): A system designed to maximize equipment effectiveness.
- Five S (5S) Practices: A methodology for organizing, cleaning, developing, and sustaining a productive work environment.
Designing Lean System Layouts
Effective layout design supports smooth flow and minimizes motion waste:
- Line flows (optimized sequential movement)
- One Worker, Multiple Machines (OWMM): An arrangement where one operator manages several different machines simultaneously.
- Group Technology: Grouping parts or products with similar characteristics into families to facilitate efficient processing.