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Learn about the concept of Lean Operations, including its goals, building blocks, and the obstacles that may arise during the conversion process. Discover how Lean Operations can help achieve greater productivity, lower costs, shorter cycle times, and higher quality.

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Announcements

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  1. Announcements • Articles – Due 11:59pm tonight!! • NO ERP from the MRP chapter • Course Evaluations – by 11:59pm on Friday! • Books: Being used next semester- can sell back… • Exam: Looking to be around 40 Qs

  2. BUAD306 Lean Operations

  3. What does the term “LEAN” mean to you?

  4. Lean Operations • A flexible system of operation that uses considerably less resources than a traditional system • Tend to achieve • Greater productivity • Lower costs • Shorter cycle times • Higher quality

  5. Lean Operations Goals • Ultimate Goal: A balanced system that achieves a smooth, rapid flow of materials through the system to match supply to customer demand • Supporting Goals: • Eliminate disruptions • Make system flexible • Eliminate waste

  6. Sources of Waste • Inventory • Waste from overproduction • Waiting time • Unnecessary transport • Processing waste • Product defects/rework • Inefficient work methods • Underutilization of employees

  7. Lean Operations Building Blocks • Product design • Process design • Personnel/organizational elements • Manufacturing planning and control

  8. Lean Ops – Product Design • Standard parts • Modular design • Highly capable production systems • Concurrent engineering

  9. Lean Ops – Process Design • Small lot sizes • Set up time reduction • Increased efficiencies • Limited inventories • Improved quality • Reduction of bottlenecks

  10. Small-Lot Production • “Ideal size” = 1 • Requires less physical space/inventory/eqpt • Moves processes closer together • Greater flexibility in scheduling • Easier to detect quality problems easier to detect • Makes processes more dependent on each other (increases responsibility and quality) Must reduce set-up time to do this!

  11. Inventory Considerations • Inventory Hides Problems • Bad design • Poor quality • Machine breakdowns • Unreliable supplier • Inefficient layout • Decrease inventory to expose problems

  12. Process Design: Fail-Safe Methods • Building safeguards into a process to reduce or eliminate the potential for errors during a process • Examples • Electric breakers • Seatbelt fastener warnings • ATMs that signal if a card is let in a machine

  13. Lean Ops – Personnel/ Organizational Elements • Treat workers as assets • Cross-train workers • Focus on continuous improvement • Training in cost accounting • Strong project management skills

  14. Lean Ops – Manufacturing Planning & Control • Level loading (smooth production) • Pull systems – work moves in response to demand from next step • Visual systems (Kanban) • Close vendor relationships

  15. Lean Service Industries • Focus is on the time needed to perform the service • Entire business is designed around this concept • Examples: • Domino’s Pizza, Fed-X, Jiffy Lube, 911, JIT publishing, etc. Read Text

  16. Converting to Lean Ops • Get top management commitment • Decide which parts need most effort • Obtain support of workers • Start by reducing setup times • Gradually convert operations • Convert suppliers to JIT • Prepare for obstacles Read Text

  17. Obstacles to Conversion • Workers/management may not be cooperative – education is essential • Suppliers may resist the demands of a lean system • Management may have unrealistic expectations (timing, savings) • Entails a change to the corporate culture– not easy to achieve Read Text

  18. Course Summary • Key take-aways: • Mathematical-based decision making • Efficiency focus / cost containment • Importance of forecasting • Analysis = key • Never be satisfied with the status quo

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