Management 364-Chapter 13

Management philosophy of continuous and forced problem solving
Supplies and components are pulled through the system to arrive where and when they are needed
Lean manufacturing

Push: material is pushed downstream regardless of availability of resources
Pull: material is pulled downstream as it is needed

1. Best practices2. Visual control3. Keep things simple4. Improvement is made at lowest level possible

Attacks waste (anything that doesn't add value from customer's perspective)
Exposes problems and bottlenecks caused by variability
Achieves streamlined production
Results in a competitive advantage

1. overproduction2. waiting3. transportation4. inefficient processing5. inventory6. unnecessary motion7. product defects

1. Employees, machines, suppliers produce units that do not conform to standards, are late or are not right quantity2. Engineering drawings or specs are inaccurate3. Production personnel try to produce before drawings or specs are done4. Customer demands are unknown

1. Suppliers2. Layout3. Inventory4. Scheduling5. Preventive maintenance6. Quality7. Employee empowerment

Incoming material and finished goods involve waste
Buyer and supplier form HIT partnerships
JIT partnerships eliminate unnecessary activities in-plant inventory in-transit inventory poor suppliers

1. Fewer direct suppliers2. Enable desirable suppliers to become or stay price competitive3. Buyer resists vertical integration

1. Steady output rate2. Small-lot quantities3. Long-term contract agreements4. uses EDI5. Delivery quantities fixed for contract term6. little/no permissible overage/underage7. suppliers package in exact quantities8. suppliers reduce their production lot sizes

1. Help suppliers meet quality requirements2. Close relationships between buyers and suppliers quality assurance people3. suppliers use poka-yoke and process control charts instead of lot-sampling techniques

1. Scheduling of inbound freight2. gain control by use of company-owned or contract shipping and warehousing3. use of advanced shipping notice

Objective: reduce movement of people and material
Requires: work cells for product families moveable or changeable machines short distances little space for inventory delivery directly to work areas
Tactics: minimize distance design little space for inventory improve employee communication build flexible or movable equipment cross train workers

Nothing is produces until needed
limits WIP

Reduces waste
reveals problems