Lecture 8 - Lean Operations

Question 1

Mass vs Lean Production

Answer 1

Question 2

Lean Definition

Answer 2

Lean is an improvement approach that consists in eliminating waste (steps that do not add value to the customer/patient, e.g. interruptions, delays, mistakes. . .) to improve the flow of patients, information or goods (Brandao de Souza, 2009: 122)

The core idea of lean involves determining the value of any given process by distinguishing value-added steps from non-value-added steps, and eliminating waste (or muda in Japanese) so that ultimately every step adds value to the process (IHI, 2005: 2)

Question 3

A Lean Framework components

Answer 3

Strategic level - 5 Principles

Operational Level - Lean Production (Level scheduling, mixed modelling, kanban, 5S, takt time, andon, set-up time, redunction (SMED)

Question 4

Womack and Jones Five Lean Principles

Answer 4

1 - Specify Value

2 - Identify Value Stream

3 - Make Value Flow

4 - Let Customer Pull

5 - Perfection

Question 5

Step 1 of the Five Lean Principles

Answer 5

Specify Value

‘The critical starting point for lean thinking is value. Value can only be defined by the ultimate customer. And it’s only meaningful when expressed in terms of a specific product (a good or a service, and often both at once) which meets the customer’s needs at a specific price at a specific time’ Womack and Jones (2003: 16, italics in original)

Muda [Waste] – any activity that consumes resources but creates no value

Question 6

Seven Types of Waste (Muda)

Answer 6

Transport

Inventory

Motion

Waiting

Overproduction

Over-processing

Defects

Seven Service Wastes

Delay

Duplication

Unnecessary Movement

Unclear Communication

Incorrect Inventory

Oppertunity Lost

Errors

Question 7

Muda, Mura, Muri

Answer 7

• Muda is waste: any activity that consumes resources without creating value for the customer
• Mura means unevenness or lack of consistency in operations (= variability)
• Muri means overburdening of equipment or operators

Question 8

Step 2 of the 5 lean principles

Answer 8

‘Value stream mapping is a pencil and paper tool that helps you to see and understand the flow of material and information as a product makes it way through the value stream’ Rother and Shook (1999: 4)

Links material flow and information flow

• Usually at a higher level (5–10 activities) than most process maps.
• Often has a wider scope, frequently spanning the whole supply chain
• Used to identify where to focus future improvement activities

Question 9

Step 3 of the 5 Lean Principles

Answer 9

Reduce Variability (Mura)

Level production/delivery schedules (heijunka)

– Keep mix and volume at an even rate over time

• Mixed modelling

– From: AAAABBBBCCCCAAAABBBBCCCC

– To: ABCABCABCABCABCABC

• Reduce set-up time
• Keep things simple and standardised (5S)
• Reduce defects (improve quality)
• Total Productive Maintenance (TPM)

Question 10

Step 4 of the 5 Lean Principles

Answer 10

Let the customer pull (Just-in-time)

Demand downstream authorises production by upstream activity (deliveries are made on request)

Question 11

Step 5 of the 5 Lean Principles

Answer 11

Seek Perfection - Continuous Perfection

Kaizen means improvement. Moreover, it means improvement in personal life, home life, social life and work life. When applied to the work place, kaizen means continuing improvement involving everyone – managers and workers alike’

Masaaki Imai (quoted in Slack et al, 2015: 455)

Question 12

5S ‘Housekeeping’

Answer 12

Sort (Seiri) – Throw out what is not needed and keep what is needed

Straighten (Seiton) – Put things in the best place where they can be easily reached whenever they are needed

Shine (Seiso) – Keep things clean and tidy; no rubbish or dirt in the work area

Standardise (Seiketsu) – Standardise layouts and procedures

Sustain (Shitsuke) – Develop a commitment and pride in keeping to standards

Question 13

Does Lean work quote

Answer 13

In their study of 309 manufacturing firms Yang et al (2011: 256-7) concluded that ‘lean manufacturing improves productivity and reduces the asset base of a firm resulting in improved financial performance and thus the overall impact of lean manufacturing on financial performance is positive.’

‘The extant literature clearly indicates that there are potential benefits from introducing Lean approaches into public services delivery and that these benefits can add real value to the end-users of these public services…. However, implementation has invariably failed to meet these expectations….’ (Radnor and Osborne, 2013: 275)