Lean Production Elements (see
slide
presentation):
Value Chain
Enterprise Resource
Planning (ERP)
Just-in-Time (JIT)
Manufacturing
Electronic Data
Interchange (EDI) |
Lean is about doing more with less: less time,
inventory, space people and money.
Imitation of customer relationships, fast
product development and manufacturing and collaboration with suppliers are
the key strategies of leading lean companies.
Strategy of Lean Production:
Lean Production Overview:
-
Waste is
eliminated through continuous improvement efforts
-
Focus is on production value
stream, eliminating non-value added operations: storage, transportation,
inspection
-
The lean manufacturing mindset:
concept, way of thinking - not techniques; culture - not the latest
management tool
-
Continuous product flow is
achieved through physical rearrangement and system structure & control
mechanisms
-
Single-piece flow / small lot
production: achieved through equipment set up time reduction; attention to
machine maintenance; and orderly, clean work place
-
Pull reduction / Just-in-time
inventory control
Benefits:
-
Manufacturing
cycle times decreased (from week to days; 70% or more)
-
Inventories reduced (50% or
more) while customer service levels increased
-
Capacity in current facilities
increased (50% or more)
-
Throughput maintained or
increased while indirect and direct labor reduced (50% and 10% or more
respectively)
-
Flexibility in reacting to
changes in requirements improved
-
More strategic focus allowed
-
Shipping and billing
frequencies increased, thus improving cash flow
Characteristics:
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Processing: a
part moves to a production operation, is processed immediately, and moves
immediately to the next operation
-
With short order-to-ship cycles
times, production is based on orders rather than forecasts
-
Inventories are minimized
-
Quick changeovers of machines
and equipment allow different products to be produced with one-piece flow
in small batches
-
Layout is based on product flow
-
Quality of each item is assured
during processing
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