Lean Supply Chains - Chapter 14 Flashcards

(28 cards)

1
Q

What is Lean?

A

lacking richness, sufficiency or productiveness

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2
Q

Where did lean thinking come from?

A

basis of lean thinking came from the Toyota Motors (Japan)

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3
Q

What is the TPS?

A

Toyota Production System

  • was developed to improve quality and productivity.
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4
Q

What philosophies is TPS based on?

A
  1. Elimination of waste (main focus in OM)
  2. Respect for people
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5
Q

What does TPS elimination of waste include:

A
  1. Waste from overproduction
  2. Waste of waiting time
  3. Transportation waste
  4. Inventory waste
  5. Processing waste
  6. Waste of motion
  7. Waste from product defects
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6
Q

What is being “lean” about?

A

Being “lean” is about maximizing the value while minimizing wastes

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7
Q

Value

A

something for which the customer is willing to pay

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8
Q

Non-value-adding

A

these are activities that consumer resources and don’t directly satisfy customers

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9
Q

Waste

A

anything that doesn’t add value in the process

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10
Q

What kinds of wastes are there?

A

Defects
Overproduction
Waiting time
Non-used or Unused talent: Wastes from underutilization of the workforce
Transportation waste
Inventory
Motion waste: Wastes from unnecessary movements of people (workforce)
Extra- or Over-processing: Wastes from doing more work or having more things than required

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11
Q

What is lean production?

A

integrated activities designed to achieve high-volume production using minimal inventories

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12
Q

Lean production includes:

A

+ involves the elimination of waste in production effort
+involves the timing of production: Just in time production

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13
Q

Pull system

A

to start a new work or production only when there is an order.

  • Lean production is based on the ‘pull’ logic that nothing will be produced until it is needed.
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14
Q

Push system

A

to start a new work or production in advance based on forecast

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15
Q

Lean Six Sigma

A

to combine quality control tools/ approaches of Six Sigma and the concept of lean manufacturing (reducing wastes and unnecessary costs)

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16
Q

What is lean service?

A

is to apply the lean principles and methods in the service industry

17
Q

Lean service:

A

operates with greater uncertainty and variability that are much harder to control.

+ Uncertainty in service times (task times)
+ Uncertainty in demands (customer arrivals)
+ Uncertainty in customer contact & involvement

18
Q

Kaizen

A

the Japanese philosophy that focuses on continuous improvement

19
Q

Quality at the source

A

to do it right the first time at the source (manufacturing site); and if something goes wrong, the workers will stop the process immediately.

20
Q

Workers role:

A

– Workers are personally responsible for the quality of their output
– Workers are empowered to do their own maintenance
– Workers become their own inspectors

21
Q

Kanban

A

means “sign” or “instruction card”

– Cards or containers are used
– Kanban significantly reduces the setup cost
– Nowadays, companies use digital tools

22
Q

Just-in-time (JIT) production

A

to produce what is needed when needed and nothing more (a pull system)

– Anything over the minimum is waste
– Ideal production and order size is one
– Often has multiple shipments per day

23
Q

JIT and Zero inventory

A

inventory hides problems

– JIT exposes problems otherwise hidden by inventory

24
Q

Value stream mapping (VSM)

A

a special type of flowchart tool to develop lean processes.

– Used to visualize product flows through various processing steps
– VSM focuses more on values and wastes; flowcharts focuses on the processes itself

25
Lean technique
used to identify all the value-adding, as well as non-value-adding, processes that materials are subjected to within a plant.
26
Holding cost:
a charge for storing inventory, assessed per unit per week.
27
Ordering cost:
A flat fee for placing an order, regardless of how many units you order. + if your order quantity is zero, there is no ordering cost. + ordering cost is assessed in the week when delivery occurs.
28
Stockout penalty:
if you run out of inventory and cannot meet customer demand in any given week, you will receive a stockout penalty for that week. + stockout penalties tend to be extremely high, so try to avoid stocking out. + we don't consider stockout costs in multi-national basic model