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T8: Lean Synchronisation (Ch11) (Basics of lean synchronisation (Goal of…
T8: Lean Synchronisation (Ch11)
Basics of lean synchronisation
Goal of lean synchronisation is to provide:
At exactly the right time
Exactly what the customers wants (quality)
In exactly the right location
At the lowest possible cost
In exactly the right quantities
Originated in manufacturing (particularly Toyota), but principles can be applicable to any industry
Rests on the principle of 'pull control' where items are only ordered/completed when they are actually required by the customer
Benefit - reduces the buffer stock levels which obscure problems in the process, then these problems can be addressed (river and rocks analogy)
Other terms
'Lean' - elimination of waste
'Just In Time' (JIT) - produce to order
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Approaches
Involve everyone
Basic working practices (p.373)
Flexibility
Equality
Autonomy
Development of personnel
Quality of working life (QWL)
Creatvity
Total people involvement
Discipline
Continuous improvement -
kaizen
- see T9/Ch13 for more on this
Eliminate waste
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Methods
Increase process flexibility (p.379)
Reduce set-up times
Multi-purpose equipment so it can add-value round the clock
Streamlined flow (p.375)
Ensure visibility
Use small-scale simple process technology
Examine the physical shape of the process
Reduce effects of variability (p.380)
Level schedules as much as possible
Level delivery schedules
Adopt mixed modelling where possible
Adopt Total Production Maintenance (TPM)
Match demand exactly (p.377)
Pull control
Kanbans
Timing supply with demand is crucial as either early or late delivery is worth less than 'just in time' delivery
Some techniques
Layout
Visible flow
Simplify technology
Pull control
Kanbans
Set-up reduction
Levelled scheduling
Mixed modelling
Lean supply
JIT defined
A part/overlap with lean synchronisation
Focuses on eliminating process waste in inventory and time
Waste can come from:
Overproduction
Waiting time / delays
Unnecessary transport movements
Unnecessary process time from poorly maintained equipment
Unnecessary or obsolete inventory
Unnecessary motion of people or equipment
Defects
Push-pull systems
Traditionally products were 'pushed' through a process in batches
Results in a lot more inventory and the cost of this
This can mean when problems occur down the process line, upstream keep loading the inventory unaware of the problem
In JIT products are 'pulled' through the process only as required
Works to reduce the batch size to a minimum
Means upstream is aware of the problem as soon as the orders stop coming.
Once aware of the problem, upstream can either move their productivity to something else for now or put their efforts in helping the downstream problem
Pull control example - think McDs used to stock warmers with burgers ready to sell before they were ordered, then moved to make-to-order process
Fundamental feature is communication between tasks
Often achieved through
'kanban'
Visual approach to ordering
Kanban 'squares' - coloured squares on a bench or floor where stock is kept, when visible this triggers the order process
Means 'marker' or 'signal' in Japanese
Kanban plastic markers or ping-pongs are other examples
Whatever the Kanban is, it signals a single 'unit' order, is activated by the customer, and orders are ONLY activated in this way
Barriers to lean synchronisation
Failure to achieve continuous improvement
Failure to eliminate waste
Waste from inexact supply
Early or late delivery
Inventory
Over- or under-production
Waste from inflexible response
Large batches
Delays between activities
More variation in activity mix than in customer demand
Waste from irregular flow
Transport
Process inefficiencies
Waiting time
Inventory
Wasted motions
Waste from variability of quality
Poor reliability of equipment
Defective products or services
Failure to involve people
Lean synchronisation in services
Not all lean ideas are useful in services
lean principles have the power to change the way a company learns and responds to change
Services are a long way behind manufacturing
Reduction in waste is particular appropriate to services as they are very time/labour intensive and therefore can be very wasteful
The supply chain (p.383)
Can have significant benefits to the overall supply chain
JIT can only be successful if suppliers are on board and incorporate lean into their practices
Lean principles can be applied regardless of the scope of what you are applying it to, i.e. single process v entire supply chain
Lean supply chains are likened to air traffic control systems - constant, detailed oversight, not periodic snapshots
Lean OR Agile
Not fundamentally opposed
Different objectives and approaches but can co-exist
Lean = Synchronised, regular flow, low inventory
Agile = Responsiveness, flexibility and fast delivery
Suit different products/industries more or less
Lean suits low variety, high demand predictability
Agile suits high variety and/or complexity, low demand predictability
See page 386 for more examples