MODULE 8: Lean System

• It was originated from the Toyota Production System(TPS) and built on the concept of continuous improvement.

  Lean System
• Principles of Lean System

  • Value Identification
  • Value Stream Mapping
  • Flow
  • Pull Production (JIT)
  • Continuous Improvement (Kaizen)
  • Respect for People
• Focus on what the customer values

  Value Identification
• Eliminate anything that doesn’t add value.

  Value Stream Mapping
• Create smooth, continuous processes

  Flow
• Produce only when needed

  Pull Production (JIT)
• Continuously improve processes

  Continuous Improvement (Kaizen)
• Empower and respect people at all levels

  Respect for People
• Types of Wastes in Lean

  • Overproduction
  • Waiting
  • Transportation
  • Over-Processing
  • Motion
  • Defects
  • Inventory
• Producing more than what is needed, leading to excess inventory

  Overproduction
• Idle time when resources are not being utilized

  Waiting
• Unnecessary movement of materials or products

  Transportation
• Doing more work than necessary for customer requirements

  Over-Processing
• Unnecessary movement by people within the workspace

  Motion
• Production errors that require rework or discard

  Defects
• Excess raw materials, work-in-process, or finished goods

  Inventory
• Lean Tools and Techniques

  • 5S (Sort, Set in Order, Shine, Standardize, Sustain)
  • Kanban
  • Value Stream Mapping
  • Poka-Yoke (Error Proofing)
• Benefits of Lean Systems

  • Cost Reduction
  • Quality Improvement
  • Increased Flexibility
  • Higher Employee Engagement
• Lower inventory costs, reduced waste, and optimized processes

  Cost Reduction
• Fewer defects and errors

  Quality Improvement
• Adapt to changes quickly due to real-time demand

  Increased Flexibility
• Respect for people and focus on improvement empower employees, boost job satisfaction and productivity

  Higher Employee Engagement
• It was pioneered by Toyota

  The Philosophy of JIT
• It was centered around minimizing waste to improve efficiency

  The Philosophy of JIT
• It was producing only what is needed, in the right quantity, and exactly when needed

  The Philosophy of JIT
• JIT Core Mechanisms

  • Demand-Driven Production
  • Minimizing Inventory Levels
  • Close Supplier Relationships
  • Quality Control and Consistency
  • Flexible Workforce and Cross-Training
  • Reducing Waste and Improving Flow
• How JIT Works

  1. Order Placed
  2. Just-in-Time Manufacturing
  3. Order Delivery
• Just-in-Time Manufacturing includes:

  1. Material Delivery Just in Time
  2. Production Aligned to Demand
  3. Consistent Quality Checks
• Key Elements of JIT In Manufacturing

  • Reduced Inventory Levels
  • Improved Quality Control
  • Efficient Supplier Relationships
  • Use of the Pull System
• Benefits of JIT In Manufacturing

  • Lower storage and holding costs
  • Reduced waste from overproduction and unused inventory
  • Faster response to customer demands and market changes
  • Greater focus on quality control at every step of production
• This customizes many of its motorcycles based on specific customer orders.

  JIT at Harley Davidson
• They keep very low levels of parts and raw materials in stock

  JIT at Harley Davidson
• They work closely with suppliers to create a synchronized supply chain, parts arrive exactly when needed.

  JIT at Harley Davidson
• Key Elements of JIT In Services

  • Demand Driven Scheduling
  • Resource Optimization
  • Minimizing Service Inventory
  • Employee Cross Training
• Benefits of JIT in Services

  • Reduced wait times and improved customer satisfaction
  • Lower operational costs by reducing excess staff and resources
  • Increased flexibility and responsiveness to customer needs
  • Improved resource utilization and employee productivity
• It uses demand forecasting and analytics to keep track of inventory needs, ensuring that medical supplies, medications, and surgical kits are stocked based on daily or weekly demand.

  JIT at The Medical City (TMC)
• They coordinate with suppliers for frequent deliveries of medications and pharmaceutical products, based on real-time demand data

  JIT at The Medical City (TMC)
• It uses real-time data to allocate staff and resources based on current patient volume

  JIT at The Medical City (TMC)
• TQM supports JIT by fostering a commitment to quality in every production stage, aiming to prevent defects and focus on continuous improvement.

  JIT and TQM
• It emphasizes "quality at the source," meaning issues are addressed immediately rather than after the fact.

  JIT and TQM