The pull, one-piece flow, takt, zero defects strategy to improve the efficiency and effectiveness of operations related to lean management. Flashcards
Lean Management - strategy to minimise waste:
Refers to a range of systematic measures to eliminate ALL TYPES of waste and inefficiencies in the production of a good or service. Based on continuous improvement, where ongoing changes are made to the process to improve the end quality for the customer.
Lean Management in Manufacturing and Service
Lean management (traditionally used in manufacturing) Increasingly being used in service businesses (e.g hospitals have implemented LM to minimise the time it takes to perform surgery and reduce the materials used in that surgery).
Where can waste occur? TIMWOOD – 7 areas of waste:
> Transportation
Inventory
Motion
Wait times
Overproduction
Over-processing
Defects
Transportation:
inefficient movement of materials/products – Auspost?
Inventory:
supplies that are unused are discarded- lay idle.
Motion:
excess movement of people, machines, materials or the product- think orange juice youtube clip we watched or the dishwasher..
Wait times:
Excess wait times between production and distribution OR between processes. – Think local councils?
Overproduction:
producing more than consumers demand
Over-processing:
performing operations on the product that do not add value- think extra packaging on bananas
Defects
defective products that need to be fixed or go to waste.
How does lean management achieve efficiency and effectiveness?:
1 - Deliver customer value It increases customer satisfaction as they focus on the things that matter/ add value to the end customer. Always putting the increasing customer value first.
2 - Eliminate waste It involves removing activities, processes and machinery that do not add value to the product as it being produced.
3 - Strive for continuous improvement It aims to eliminate waste and is based on the principle that productivity improvements will come through a continuous process of identifying and eliminating areas of waste in the operations system.
Lean Management Principles:
POTZ (Pull, One Piece Flow, Takt, Zero Defects)
- Pull
The amount of that is produced is determined by the demand from the customers. Rather than a business producing in large quantities and then trying to sell the, the pull concept is where the business only produces the amount that the market is demanding. It allows a business to stop over-producing so that waste is greatly reduced.
- One piece flow
Focussing on one piece at a time. This does not mean that only one item is produced, but each process only handles one type of product at a time so this reduces the errors. If we know our end goal (what the customer wants) the next step is the ‘value stream’, or all of the steps involved in taking a specific product/ service from raw materials and delivering the final product to the customer. The system (eg the automated production line) should ‘flow’ without interruptions and have no bottlenecks.
- Takt
This is called the heartbeat of the operations system. How fast does a business need to produce to meet demand? It allows a business to have a continuous flow and adapt quickly to any rises or falls in demand. It is better to have a continuous flow as this reduces waiting times throughout the production.
