Answer 3 question base on a large supermarket

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Level Two
Supply Chain Management

Lean

Learning Objectives

  • To understand what we mean by the term lean
  • To understand key concepts associated with lean
  • To appreciate the various tools associated with lean

Question.....

How can businesses become 'leaner'?

Definition

  • According to Slack (2010) lean is the elimination of all waste in order to develop an operation that is faster, more dependable, produces higher quality products and services.
  • Antony (2011) sees lean as ‘determining the value of any process by distinguishing value-added activities or steps from non-value added activities or steps and eliminating waste so that every step adds value to the process’.

What is Lean

  • Value from the customers perspective
  • Continuous improvement
  • Elimination of waste
  • Visual

House of Lean

Key Lean Authors

  • Womack, Jones & Roos
  • Taiichi Ohno
  • Peter Hines
  • Bicheno
  • Monden
  • Shingo

Lean and Waste (Muda)

  • Toyota’s Chairman Fujio Cho identified waste in:
  • Waste from overproduction
  • Making more than is required by the customer, or to make it earlier than required.
  • Waste of waiting time
  • Any delay between when one process step/activity ends and the next step/activity begins.
  • Transportation waste
  • Movement of work between departments or offices that do not add value of the product or service.

Lean and Waste Continued

  • Inventory waste
  • More materials or information on hand than is currently required.
  • Processing waste
  • Adding more value to a service or product than customers want or will pay for.
  • Waste of motion
  • While ‘transportation’ refers to the movement of the work, ‘motion’ involves movement of workers.
  • Waste from product defects
  • Any aspect of the service that does not conform to customer needs.

Lean Tools & Techniques

  • 5s
  • Value Stream Mapping
  • Takt time
  • Poke Yoke
  • Yamazumi board
  • A3 reporting

5s

  • Based on good housekeeping
  • It is a method of simplifying operations and processes
  • Creates a proper environment for standardised work
  • 5S’s is a series of logical steps
  • Improves searching and fetching

5s Continued

  • Sort (Seiri) – Eliminate what is not needed and keep what is needed.
  • Straighten (Seiton) – Position things in such a way that they can be easily reached whenever they are needed.
  • Shine (Seiso) – Keep things clean and tidy; no refuse or dirt in the work area.
  • Standardize (Seiketsu) – Maintain cleanliness and order – perpetual neatness.
  • Sustain (Shitsuke) – Develop a commitment and pride in keeping to standards.

Value Stream Mapping

  • A snapshot picture of all processes that occur within a business.
  • Value adding (VA) vs Non value adding (NVA)
  • Focuses on what the ideal could look like whilst trying to solve current problems

Value Stream Mapping – Current State Example

Value Stream Mapping – Future State Example

Takt Time

  • Aims to match the pace of production with customer demand.
  • T = Ta/ Td
  • Example:
  • If a work centre had an available time of 720 minutes per day (12 hours) and customer demand was 600 units per day then 1.2 units must be produced every minute.

Poke Yoke

  • Shingo – Toyota Production System
  • Japanese term for ‘mistake proofing’.
  • Designed to prevent human errors
  • Mistakes can be caught quickly.
  • Defects cost more the further they go along the process

Yamazumi Boards

  • Allows us to examine value and non value adding elements of the process, whilst also taking into account productive but NVA elements.

A3 Reporting

  • Basic communication tool that tells a ‘story’
  • Thinking succinctly about problems and solutions

The Importance of Visual Aids

  • Encourages the involvement of everyone.
  • Critical information at the point of use
  • Standardisation

Summary

  • Lean has developed from JIT into a philosophy that looks to do more with less.
  • Its visual nature means that mistakes cannot be hidden away
  • Tools and techniques used within lean can be applied to non manufacturing setting – they may just need adapting!

To Do

  • Reading
  • Refer to weekly reading list
  • Online task
  • Details on moodle

Today.....

  • We now:
  • Understand what we mean by the term lean
  • Understand key concepts associated with lean
  • Appreciate the various tools associated with lean

References & Further Reading

Antony, J. (2011) ‘Six Sigma vs Lean: Some perspectives from leading academics and practitioners’. International Journal of Productivity and Performance Management 60 (2), 185 – 190

Slack, N., Chambers, S., Johnston, R. (2010) Operations Management. 6th edn. Harlow: Prentice Hall

Womack, J., Jones, D. (1996) Lean Thinking: Banish Waste and Create Wealth in Your Corporation. New York: Simon & Schuster