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1 Operations Strategy 2 Process Analysis 3 Lean Operations Class 3b: House Game

Operations Management & Performance Modeling. 1 Operations Strategy 2 Process Analysis 3 Lean Operations Class 3b: House Game Class 4a: The Paradigm of Lean Operations: The ideal Class 4b: Getting to the ideal with Product Variety: TPS Managing variety/flexibility

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1 Operations Strategy 2 Process Analysis 3 Lean Operations Class 3b: House Game

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  1. Operations Management & Performance Modeling 1 Operations Strategy 2 Process Analysis 3 Lean Operations • Class 3b: House Game • Class 4a: The Paradigm of Lean Operations: The ideal • Class 4b: Getting to the ideal with Product Variety: TPS • Managing variety/flexibility • Toyota Production System 4 Supply Chain Management 5 Capacity Management in Services 6 Total Quality Management 7 Business Process Reengineering OM&PM/Class 4b

  2. How to run Lean Operations: Managing Variety • Monthly Production Requirement: • How should production be scheduled for the month? OM&PM/Class 4b

  3. FGI FGI time time Synchronize: HeijunkaMixed Level/Balanced Production Batch Production Schedule Mixed Production Schedule (AAAABBBB..) (ABAB...) Product Apr/12.................15...........................30 Apr/12....................15.......................30 A B OM&PM/Class 4b

  4. Synchronize: HeijunkaUniform Plant Loading • This does not mean building a single product. • Rather: • maintain a stable mix of products, • and firm frozen schedules based on actual orders • Benefits: • Costs: Must reduce scale economies OM&PM/Class 4b

  5. Reducing Waste: Reduced Setup Times • What are the consequences of long setup times? • A requirement for small-lot-size, mixed-model production? OM&PM/Class 4b

  6. Reducing Waste:Mixed-Load Pickup and Delivery Part A Plant Individual Pickup Assembly Line Part B Plant Part C Plant Part A Plant Mixed-Load Pickup Assembly Line Part B Plant Part C Plant OM&PM/Class 4b

  7. Reducing Waste:Quality at the Source OM&PM/Class 4b

  8. Reducing Waste:Quality at the Source • Fool-proof/Fail-safe design (Poka-Yoke) • Inspection • Self • Automated (Jidoka) • Line-stopping empowerment (Andon) • Human infrastructure OM&PM/Class 4b

  9. Continuous Improvement: Kaizen • Increase visibility of waste • Targeted improvements • Active worker involvement • Time for experimentation • Supplier involvement • Exploratory stress • Human infrastructure OM&PM/Class 4b

  10. Lean Operations: Best Implementation is TPS • TPS is a production management system that aims for the “ideal” through continuous improvement • Includes, but goes way beyond JIT. Pillars: • Synchronization: through JIT + Heijunka • Quality at Source: through Jidoka • Continuous Improvement (Kaizen): through empowerment, visibility & stress .... OM&PM/Class 4b

  11. Class 4b: Learning Objectives • Lean Operations: In Search for the Holy Grail and zero Waste • Efficient Workflow: Cellular Layout • Level Mixed Production: Heijunka • Reduced batch sizes • Pull Execution: Kanbans • Quality at source: Jidoka • Continuous Improvement: Kaizen Flow Synchronization Low Cost Get ever closer to ideal OM&PM/Class 4b

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