the lean philosophy of operations management

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The Lean theory is a philosophy that combines the advantages of manual artisan's work and mass production. Lean Manufacturing/Production: is an assembly-line methodology developed originally for Toyota and the manufacturing of automobiles. It is also known as the Toyota Production System (TPS) or Just-in-time production (JIT). Lean Theory

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Page 1: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

The Lean theory is a philosophy that combines the advantages of manual artisan's work and mass production.

Lean Manufacturing/Production: is an assembly-line methodology developed originally for Toyota and the manufacturing of automobiles. It is also known as the Toyota Production System (TPS) or Just-in-time production (JIT).

Lean Theory

Page 2: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

Lean Philosophy Analogy

• ship – representing a business or let’s say a production plant,• water – representing inventory (expensive)• rocks – representing all sorts of waste (like overproduction, the time workers have to wait for the materials they need, transportation, defects, machines breaking down and etc., etc.)

Page 3: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

Factory with Lean Philosophy

Page 4: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

Conventional Factory

“The ship must sail” at any cost, more water is added.

Page 5: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

Eliminate waste Minimize inventory Maximize flow Pull production from customer demand Meet customer requirements Do it right the first time Empower workers Design for rapid changeover Partner with suppliers Create a culture of continuous improvement (

Kaizen)

Rules of Lean Production

Page 6: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

An important part of Lean Theory is “vigorous” focus on minimizing all kinds of waste

Unnecessary movements, waiting times of all kinds, over production, process time, production flaws, unnecessary stock and unnecessary transportation.

Eliminating Waste

Page 7: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

Just In Time is one of the Key Tools used in reducing the cost burden related to Inventory.

Inventory can be categorised in three areas, Raw Materials, Work In Progress and Finished Goods.

JIT ensures that materials are delivered at their point of use as and when required, not in any other quantity than that which is required, or at a time that suits the supplier rather than the recipient.

“the quantity required, when it is required and as inexpensively as possible”

Tools of Lean Production -JIT

Page 8: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

“Kanban” is the integral part of JIT, associated with logistics management process.

Kanban is a signalling system to trigger action.

It is a system of continuous supply of components, parts and supplies, such that workers have what they need, where they need it, when they need it.

Tools of Lean Production -Kanban

Page 9: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

Pull Systems are another very important Lean Manufacturing concept. Traditional manufacturing used the “push” concept, making large batches of product and “pushing” them to each downstream operation whether they are ready for them or not.

Push systems also often have products produced that are not sold.

Ideal “Pull Systems” start at the opposite end, the customer, and once the customer signals an order, that last process signals to the upstream process to produce product. Each upstream process receives the signal (order) from the downstream process that it needs product, all the way back to the supplier of raw material.

Tools Of Lean Philosophy-Pull Systems

Page 10: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

“Kaizen” is a culture of sustained continuous improvement and focusing on eliminating waste in all systems and processes of an organization.

Two Elements of Kaizen

Improvement/change for the better and Ongoing/continuity.

Lacking one of those elements would not be considered KAIZEN.

Kaizen

Page 11: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

shorter cycle times shorter lead times lower WIP (work in process) faster response time lower cost greater production flexibility higher quality better customer service higher throughput increased profit

Advantages Of Lean Philosophy

Page 12: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

Long operations set up Late deliveries from suppliers Shortage in production.

Disadvantages of Lean Philosophy

Page 13: THE LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

Thank you