Mbpfc10 - Managing Business Process Flows: Operations D30...

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Process Synchronization (Chapter 10) Plant Synchronization Flow Management Inventory Management Quality Management Human Resource Management Supply Chain Management Information and material flows Process Improvement Continuous Improvement and Reengineering Operations D30 Managing Business Process Flows: Process Integration Module
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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 to reduce waste: 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 B 1 min/job C 1 min/job D 1 min/job A B C D 5 5 5 5 5 0 1 2 3 4 5 10 15 20 Space A B C D 1 1 1 1 1 5 5 5 5 5 5 5 5 5 5
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How to run Lean Operations: Managing Variety Monthly Production Requirement: Model Sedan Station Wagon Quantity 10,000 10,000 How should production be scheduled for the month?
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Synchronize to reduce waste: Heijunka Mixed Level/Balanced Production Batch Production Schedule Mixed Production Schedule ( AAAA BBBB. .) ( A B A B...) Product Apr/12. ................ 15. .......................... 30 Apr/12. ................... 15. ...................... 30 A B time FGI time FGI
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Synchronize to reduce waste: Reduced Setup Times Can we shrink batch sizes with long setup/changeover times?
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Synchronize to reduce waste: customer demand pulls product Supplier inputs outputs Process Customer PUSH: Inputs availability triggers execution Supplier inputs outputs Process Customer PULL: Outputs need triggers execution
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Implementation: Kanban Production Control Systems Kanban Processing center i Processing center i + 1 WIP Job
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Synchronize to reduce waste: Quality at the Source Defects Found at: Own Process Next Process End of Line Final Inspection End User’s Hand $ $ $ $ $ Impact to the Company Very Minor Minor Delay Rework Resched. of work Significant Rework Delay in Delivery Additional Inspection Warranty costs Administra tive costs Reputation Loss of Market Share
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Synchronize to reduce waste: Quality at the Source Quality at source also improves time and throughput performance Fool-proof/Fail-safe design ( Poka-Yoke ) Inspection Self Automated ( Jidoka ) Line-stopping empowerment ( Andon ) Human infrastructure
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From Functional Layout to Cells Production Control Production Control Production Control Roof Cut Roof Cut Roof Cut Base Cut Base Cut Base Cut FA Base Assy FA FA Base Assy Base Assy QC QC QC Production Control FA Base Cut Roof Cut Base Assy Production
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Mbpfc10 - Managing Business Process Flows: Operations D30...

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