Krajewski IN Chapter 9 - Chapter 9 Lean Systems TEACHING...

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Chapter 9 Lean Systems TEACHING TIP Open with the Toyota Production System (TPS) as an example of an approach for designing value chains (also known as lean systems). Discuss 4 principles of TPC—all work must be completely specified, every customer-supplier connection must be unambiguously specified, pathway for every product and service must be direct (the hypothesis), any improvement to the system must be made in accordance with the scientific method One of the most popular systems that incorporate the generic elements of lean systems is the just-in-time (JIT) system. This JIT philosophy is simple—eliminate waste by cutting excess capacity or inventory and removing non-value added activities. A. Lean Systems across the Organization Lean systems affect a firm’s internal linkages between its core and supporting processes and its external linkages with its customers and suppliers. 1. Marketing relies on lean systems to deliver high-quality services or products on time and at reasonable prices. 2. Human resources must put in place the right incentive systems that reward teamwork. 3. Engineering must design products that use more common parts so fewer setups are required. 4. Operations are responsible for maintaining close ties with suppliers. 5. Accounting must adjust its billing and cost accounting practices to take advantage of lean systems. B. Characteristics of Lean Systems for Services and Manufacturing 1. Pull method of material flow a. Push method Production of items begins in advance of customer needs. Geared to make sure that an adequate inventory is available. TEACHING TIP Use the cafeteria example to illustrate push systems b. Pull method Customer demand activates the production of the service or the item. TEACHING TIP Use the five-star restaurant example to illustrate the pull system 9-1
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9-2 Chapter 9: Lean Systems c. The choice between the push and pull methods is often situational Firms with highly repetitive processes and well-defined work flows of standardized items often use the pull method because it allows closer control of inventory and output at the workstations Push systems typically used when processes have long lead times, there is reasonable accurate forecasts of demand, a variety of products that require common processes, and customer who will not wait long.
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