Benefits of lean - ANSWER -Reduce the waste (non-value added)
-Consequently results in:
-Reduced cycle times
-Greater throughput
-Better productivity
-Improved quality
-Reduced costs
(All of these improve customer satisfaction and the company's competitive
advantage)
Lean thinking fundamentals - ANSWER -Specify value (value is defined by
customers in terms of specific products and services)
-Create value stream
(map all steps that bring a product or service to the customers to identify and
eliminate wastes)
-Establish flow (the continuous movement of products, services and information
down the value stream)
-Implement pull (nothing is done by the upstream process until the downstream
customer signals the need)
-Work for perfection (pursue continuous improvement again and again)
Understand "value" - ANSWER -The inherent worth of a product as judged by
the customer and reflected in its selling price and market demand
-What the customers are willing to pay for
Value added process - ANSWER -A process or step that transforms or shapes
a product or service which is eventually sold to a customer
Non-value added process - ANSWER -Process steps that take time, resources,
or space, but do not add value to the product or service
Muda - ANSWER -Japanese word for waste
,-Any activity that absorbs resources, and hence adds costs and time, but adds no
value to customers (customers only pay for value added activities)
-Waste is a symptom (minimize necessary wastes, eliminate pure wastes)
-Typically 1-10% of the activities are value added
The 8 wastes (TIMWOOD-T) - ANSWER -Transportation
-Inventory
-Motion
-Waiting
-Over production
-Over processing
-Defects
-Talent (skill)
Transportation - ANSWER -Unnecessary movement of material or product
-Ex: Transport a WIP to the next process location which is not adjacent to the
current one, A big container travels with small items, or too many items to be
transported using a small container
-Waste because:
--Consumes resources and hence adds to the costs
--Adds to the product cycle time
--Adds to the risks of being damaged, lost and delayed
Inventory - ANSWER -Material or product that is used to cover for
inefficiencies
-Causes:
--Inaccurate demand and forecasting
--Poor inventory tracking and planning
--Unbalanced production processes
--Push instead of pull
-Waste because:
--Adds to the storage and moving costs
--Ties up capital but has not yet produced an income
--May be difficult to retrieve and adds risks of being damaged
--Reduces customer responsiveness
Motion - ANSWER -Unnecessary movement of people; multiple hand-offs
, -Ex: Looking for tools, parts, etc. (poor workplace organization), Running to
another portion of the building to get a printed doc, Searching for a long time in
the computer, Moving around pretends to be working
-Waste because:
--Simply costs labor while adding no value
--Small time wasted on each motion can add up
--Interrupts production flow
Waiting - ANSWER -Elapsed time between processes when no work is being
done
-Ex: Downstream worker is idle while an upstream worker cannot finish their
part, Ineffective production planning, Waiting for management
approval/feedback
-Waste because:
--Costs valuable resource, labor
--Adds to the cycle time and customer response time
--May lead to overtime
--Causes low morale and loss of motivation
Over-production - ANSWER -Making/manufacturing in excess of customer
requirements; providing a service that is not really needed
-Ex: Producing more "just in case", Producing more than demand (e.g. large
batch sizes), Producing faster than desired, Producing products that are not a
priority
-Waste because:
--Adds to the inventory costs
--Consumes resources that are not (immediately) needed
--Takes the focus away from what the customers really want
-Taiichi Ohno described this as the root of all manufacturing evils
Over-processing - ANSWER -Adding unnecessary steps to a process;
redundancies between processes
-Causes:
--Lack of customer requirements
--Redundant inspections or approvals
--Poor design or configuration
--Altitude
-Waste because:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Boostertips. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £9.41. You're not tied to anything after your purchase.