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Lean Operations. “ Eliminate Waste Through Continuous Improvement ”. TPS : Toyota Production System. A system that continually searches for and eliminates waste throughout the value chain .
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Lean Operations “Eliminate Waste Through Continuous Improvement”
TPS: Toyota Production System • A system that continually searches for and eliminateswaste throughout the value chain. • Views every enterprise activity as an operation and applies its waste reduction concepts to each activity - from Customers to the Board of Directors to Support Staff to Production Plants to Suppliers.
Reducing Waste: Push versus Pull System Raw Material Supplier Final Assembly Customer FGI PUSH Raw Material Supplier Final Assembly Customer FGI PULL Information Flow Material Flow TPS System uses Kanbans
Penville Game • Compare the performance of • Push system • Pull system • Team system
Push System • Every worker maximizes own output, making as many products as possible • Pros and cons: • Focuses on keeping individual operators and workstations busy rather than efficient use of materials • Volumes of defective work may be produced • Throughput time will increase as work-in-process increases (Little’s Law) • Line bottlenecks and inventories of unfinished products will occur • Hard to respond to special orders and order changes due to long throughput time
Pull System • Production line is controlled by the last operation, Kanban cards control WIP • Pros and cons • Controls maximum WIP and eliminates WIP accumulating at bottlenecks • Keeps materials busy, not operators. Operators work only when there is a signal to produce. • If a problem arises, there is no slack in the system • Throughput time and WIP are decreased, faster reaction to defects and less opportunity to create defects
Team System • Group of cross-trained workers have overlapping responsibility • Pros and cons: • Cross-training and team efforts reduces WIP or the bottleneck concept • Most efficient use of both materials and labor • Cross training means one worker can step out if a problem arises • Higher process responsibility and ownership • Cross training can be costly