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Operations Management:
Lean Operations (JIT) Module
MBPF House Manufacturing Game
The transition to Lean Ops
The Paradigm of Lean Operations: The ideal
Methods for synchronization & waste reduction
Increasing visibility for continuous improvement
Approaching the ideal with Product Variety: TPS
Managing variety & flexibiltiy
Toyota Production System (TPS)

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Production Control
Roof Punch
Base Punch
Roof Form
Base Form
Base Weld
Final Assembly
MBPF Inc. Factory Layout

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Paradigm of Lean Operations:
The Ideal Process
Synchronization of all flows
1 x 1
production on demand
defect free
At lowest possible cost

Waste = Gap between ideal and actual

How do we set up a system to continually reduce waste ?

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Toyota’s waste elimination in Operations
1. Overproduction
2. Waiting
3. Inessential handling
4. Non-value adding processing
5. Inventory in excess of immediate needs
6. Inessential motion
7. Correction necessitated by defects

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Synchronize:
Cut Batch Sizes
Batch Mfg (Lotsize = 5)

Flow Mfg (Lotsize = 1)

0
1
2
3
4
5
10
15
20
Space
Time
Example Process:
A
1 min/job
A
B
C
D
0
1
2
3
4
5
10
15
20
Space
A
B
C
D

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Synchronization with demand:
customer demand pulls product

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Implementation:
Kanban Production Control Systems
Job

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Reducing Waste:
Quality at the Source

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Reducing Waste:
Quality at the Source
Fool-proof/Fail-safe design (Poka-Yoke)
Inspection
Self
Automated (Jidoka)
Line-stopping empowerment (Andon)

Human infrastructure

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Reducing Waste:
Flexible Resources
Cross training of workforce
Use of IT in services

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Reducing Waste:
From Functional Layout to Cells

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Synchronize:
Just-In-Time operations
JIT = have exactly what is needed, in the quantity it is needed, when it is needed, where it is needed.

Reduce transfer batches
Pull rather than push work
Quality at source
Flexible resources
Set up cells

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THE DICE GAME
Average Capacity of Each Stage =
OUTPUT
Buffer
INPUT
Buffer
6 Face Fair Dice
Average Process Capacity =
Play The Game
Unfair Dice which rolls into either 3 or 4
Average Capacity of Each Step =
Average Capacity of The Process =

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The impact of inventory and variability:
Output of Match Game
6-face die (s=1.9)
2-face die (s=0.7)

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Reducing waste: Increase Problem Visibility
Lower the Water to Expose the Rocks

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Source: Lieberman and Demeester
Lean Operations: Causal Link Diagram

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Time plays the role of Inventory in Lean Service Operations
TIME

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Continuous Improvement: Kaizen
Increase visibility of waste
Targeted improvements
Active worker involvement
Time for experimentation
Supplier involvement
Exploratory stress

Human infrastructure

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Learning Objectives
Basic Lean Operations
Paradigm of Lean Operations:
Strive for the ideal by eliminating waste
Synchronize
Reduced batch sizes
Pull production control systems (vs. push): Kanban
Quality at source
Layout: Cellular operations
Improve
Increase problem visibility (river analogy)

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How to run Lean Operations:
Managing Variety
Monthly Production Requirement:

How should production be scheduled for the month?

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Synchronize: Heijunka
Mixed Level/Balanced Production
Batch Production Schedule Mixed Production Schedule
(AAAABBBB..) (ABAB...)

Product Apr/12.................15...........................30 Apr/12....................15.......................30

A

B

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Reducing Waste:
Reduced Setup Times
What happens if we have long setup/changeover times?
How to synchronize production with variety (discuss Midwest Molding)?

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Reducing Waste:
Mixed-Load Pickup and Delivery
Part A Plant
Part B Plant
Part C Plant
Assembly
Line
Part A Plant
Part B Plant
Part C Plant
Assembly
Line
Individual
Pickup
Mixed-Load
Pickup

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....
Lean Operations:
Best Implementation is TPS
TPS is a production management system that aims for the “ideal” through continuous improvement
Includes, but goes way beyond JIT. Pillars:
Synchronization
Quality at Source
Continuous Improvement (Kaizen): through visibility & empowerment

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Learning Objectives:
Lean Operations for Variety
Lean Operations: In Search for the Holy Grail and zero Waste
Level Mixed Production: Heijunka
Reduced batch sizes
Pull Execution: Kanbans
Quality at source: Jidoka
Efficient Workflow: Cellular Layout
Continuous Improvement: Kaizen
Flow Synchronization
Low Cost
Get ever closer to ideal