Lean Systems

Chapter 11

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Characteristics of Lean Systems

Pull method of materials flow Consistent quality Small lot sizes Uniform workstation loads Standardized components and
work methods Close supplier ties Flexible workforce Line flows Automation Preventive maintenance
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Continuous Improvement with Lean Systems

Scrap

Unreliable suppliers

Capacity imbalance

Figure 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Single-Card Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2

Storage area

Empty containers Assembly line 1 O2

Fabrication cell O1 O3 Full containers O2 Assembly line 2

Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Single-Card Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2

Storage area

Empty containers Assembly line 1 O2

Fabrication cell O1 O3 Full containers O2 Assembly line 2

Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Single-Card Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2

Storage area

Empty containers Assembly line 1 O2

Fabrication cell O1 O3 Full containers O2 Assembly line 2

Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Single-Card Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2

Storage area

Empty containers Assembly line 1 O2

Fabrication cell O1 O3 Full containers O2 Assembly line 2

Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Single-Card Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2

Storage area

Empty containers Assembly line 1 O2

Fabrication cell O1 O3 Full containers O2 Assembly line 2

Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Single-Card Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2

Storage area

Empty containers Assembly line 1 O2

Fabrication cell O1 O3 Full containers O2 Assembly line 2

Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Single-Card Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2

Storage area

Empty containers Assembly line 1 O2

Fabrication cell O1 O3 Full containers O2 Assembly line 2

Figure 11.2
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Single-Card Kanban System

Each container must have a card Assembly always withdraws from
fabrication (pull system) Containers cannot be moved without a kanban Containers should contain the same number of parts Only good parts are passed along Production should not exceed authorization
WS 116
WS 83

Customer:

Supplier:

Lot Quantity:

Location:

Part Number:

KANBAN

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Aisle 5 Bin 47

1234567Z

Number of Containers
Westerville Auto Parts
d = 2000 units/day p = 0.02 day a = 0.10 w = 0.08 day c = 22 units d( w + p )( 1 + a ) c

k=

Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Number of Containers
Westerville Auto Parts
d = 2000 units/day p = 0.02 day a = 0.10 w = 0.08 day c = 22 units 2000( 0.08 + 0.02 )( 1 + 0.10 ) 22

k=

Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Number of Containers
Westerville Auto Parts
d = 2000 units/day p = 0.02 day a = 0.10 w = 0.08 day c = 22 units 2000( 0.08 + 0.02 )( 1 + 0.10 ) 22

k=

Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Number of Containers
Westerville Auto Parts
d = 2000 units/day p = 0.02 day a = 0.10 w = 0.08 day c = 22 units

k = 10 containers

Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Number of Containers
Westerville Auto Parts
d = 2000 units/day p = 0.02 day a = 0.10 w = 0.06 day c = 22 units

k = 10 containers

k=

d( w + p )( 1 + a )
c
Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Number of Containers
Westerville Auto Parts
d = 2000 units/day p = 0.02 day a = 0.10 w = 0.06 day c = 22 units

k = 10 containers 2000(0.06 + 0.02)(1.10) 22

Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

k=

Number of Containers
Westerville Auto Parts
d = 2000 units/day p = 0.02 day a = 0.10 w = 0.06 day c = 22 units

k = 10 containers 2000(0.06 + 0.02)(1.10) 22

Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

k=

Number of Containers
Westerville Auto Parts
d = 2000 units/day p = 0.02 day a = 0.10 w = 0.06 day c = 22 units

k = 10 containers

k = 8 containers
Example 11.1
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Number of Containers
Westerville Auto Parts
d = 2000 units/day p = 0.02 day a = 0.10 w = 0.06 day c = 22 units

k = 10 containers

k = 8 containers
Figure 11.3
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.

Operational Benefits Reduce space requirements Reduce inventory investment Reduce lead times Increase labor productivity Increase equipment utilization Reduce paperwork and simplify

planning systems Valid priorities for scheduling Workforce participation Increase service/product quality
To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition 2004 Prentice Hall, Inc. All rights reserved.