FGCU

TRA 6158

Lean/ JIT Systems Discussion Write–up

MICHELOT Sophie

Assembly design and production:

QUESTION I Contrast, and explain the differences of conventional (push, batch or mass) and lean approaches used by Joe and Ralph.

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Joe’s (conventional) Ralph’s (lean)

System PUSH Waiting times Fixed schedule to be

readapted through the process

Movement of parts of assembly between each workshop

PULL No waiting time (smooth

production) Flexibility and early

detection of problems or errors

Work cells (no useless movements)

Orders management MAKE-TO-ASSEMBLY Sequenced improvement

(sacrificed batches)

MAKE-TO-ORDER Adaptability at every

moment, continual improvement

Lots TWO BATCHES Risk of bottleneck

SMALL LOTS Constant adaptability

Takt time SLOW PACE Pace slowed by

numerous problems and errors

Waiting times and inactive operators

SMOOTH PACE No waiting time Early detection of

problems No inactive operator

Technologies & tools HEAVY USE OF TECHNOLOGY Lack of coherence

between the engineering and the manufacturing departments (different drawings, methods, and materials recommended)

Heavy use of computer for rescheduling, work process at each workshop

SMART USE OF TECHNOLOGY Collaboration between

each operator Smart use of computer

technologies (statistical analysis)

No useless paperwork

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Quality POOR QUALITY Numerous errors

through the production process

High pressure on time schedule harming the quality of final products

Lack of exchanges between workers to make improvements

HIGH QUALITY Every worker is

responsible for quality Customer oriented

culture No fixed inspection

area but rather continual improvement

Inventory LARGE INVENTORY Large inventory

managed by one person Lots of paperwork for

inventory management Costly inventory of raw

materials

NO INVENTORY Efficient delivery by

supplier (pre-cut raw material)

Less tools required due to limited work area

Waste WASTED RESOURCES Waste due to numerous

errors and defects Inactive workers due to

waiting times Ineffective activity

(cutting) Movements between

each workshop

NO WASTE Efficient assembly line

(work cell directly inside the garage)

No inactive worker, no waiting time

Focused on core competencies

No useless transportation of parts

Rework NECESSARY REWORK Lots of rework needed

through the process Need for qualified

workers to fix problems Rework necessary at

almost every area creating bottlenecks

CONTINUAL IMPROVEMENT Cell work permits direct

action on potential errors

Production stopped if any problem (no domino effect)

Poka yoke use Productivity LOW PRODUCTIVITY

Waiting times Inactive workers Unqualified workers Ignorance of the work of

others

HIGH PRODUCTIVITY Polyvalent agents No waste time Continual improvement Collaboration between

workers Leadership AUTHORITARIAN STYLE

One leader (the foreman)

Conflict management Strong hierarchy

COLLABORATIVE STYLE Collaboration between

workers Weak hierarchy

(everyone on the same level)

Responsibility and commitment of everyone

Motivation POOR MOTIVATION No reward No empowerment of

workers

HIGH MOTIVATION Empowerment of

workers Corporate culture

Group dynamics INDIVIDUALISTIC BEHAVIOR Poor support between

workers

TEAM WORK Support and respect

between workers

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QUESTION II Read one of the lean service articles. Summarize how these businesses use lean principles. Describe the 5S concept.

A gleaming example

This article deals with a retail store specialized in clothes and footwerar; Bob’s stores.

The company is operating in “’ stores through six states in the US. The top management

decided to implement a new service system based on lean production principles; 5 Ss,

best methods, and engineered standards in particular. By targeting this new system of

operation, the top management is setting new goals for the company: increasing

customer value, reducing waste, and implementing continuous improvement as a

corporate culture. Concretely, the top management selected a showcase store and

formed a steering team and a core implementation team. The aim was to train people to

the principles of the 5Ss and make the first changes in the selected showcase store. Here

are the steps followed, regarding the 5Ss requirements:

Sort and remove: the aim is to eliminate all unnecessary items from work

stations, to keep only necessary items, thus allowing better efficiency of workers

Shine and inspect: this step consists in getting a clean and safe place to work

Set locations and visual cues: the principle of this step is to define a place for each

item, and to make this chosen place visible by employees thanks to labels for

instance

Systematize: this step consists in establishing lists of tasks to be accomplish by

employees on different time bases (daily, weekly, monthly). The aim is to create

routine among each job at the store.

Stay the course: the principle of this step is to create tools in order to keep a full

commitment from employees. It implies a reward system and other motivation

tools.

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After the completion of these five steps, the top management conducted a more scientific

approach by establishing benchmarks. It means that the time to complete frequent tasks

was measured, so as to define clear standards. The aim for employees is to get faster on

these tasks to spend more time assisting customers. Such an overall approach has the

advantage to imply every employee, which gives a solid basis to the development of a

new corporate culture; continuous improvement.

QUESTION III Discuss the advantages and disadvantages of mass and lean / JIT systems. Give examples from the articles provided in Canvas and from your own work experiences.

MASS PRODUCTION LEAN PRODUCTION

ADVANTAGES

Reliance on technologies

Automation Scientific approach of work (division of

labor) Computerization

Cost efficiency

Economies of scales Cost of labor Volume oriented

Assembly design

Work cells Suppliers network No inventory

Customer focus

Customization Adaptability of processes Quality

DISADVANTAGES

Assembly design

Space required Inventories Detection of errors

Production focus

Lack of customization Wasted resources Bureaucracy

Reliance on network

Supply chain risk Commitment from suppliers Short-term forecasting

Cost of implementation

Commitment from the top Culture of change Continual improvement

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MASS PRODUCTION

Advantages:

Reliance on technologies:

Automation: mass production often means the systematic use of

developed machines and tools. The aim here in the implementation of

automation, which a full capacity of production 24/7, with limited defects

and errors.

Scientific approach of work (division of labor): mass production has been

historically based on the scientific approach of labor with division of labor

for instance. Tasks are measured in terms of time for completion; which

allows the establishment of standards and goals, as well as performance

evaluation and time schedules.

Computerization: mass production has great opportunities in

computerization as it relies on heavy processes which need automation

and planning. Computers answer to these needs and allow an instant

evaluation of the state of advancement of production.

Cost efficiency:

Economies of scales: mass production, as its name indicates, is based on

high volume production. This approach obviously leads to opportunities

of economies of scale through a heavy use of machinery, numerous shifts,

and standardization of tasks.

Cost of labor: with a division of labor, mass production allows the

recruitment workers with low wages. The level of qualifications of these

workers stay limited.

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EXAMPLE, GM (Learning through alliances: GM & NUMMI): for a certain period, GM has

followed the principles of mass production system. Such a system offered clear

advantages in the automobile industry, where investments are quite high. Thus, to

produce in high volume allowed the industry and GM to make profits. From division of

labor to automation, GM was able reduce costs while increasing production capacity and

quality of output. Nonetheless, GM finally chose to adopt the lean production system, at a

time when it faced a change of the market structure, demanding more innovation and

customization.

Disadvantages:

Assembly design

Space required: mass production often requires huge space for both

production and inventories. Mass production is characterized by a certain

vertical integration. A lot of tasks are completed inside the plant. The

number of activities realized can explain, by the amount of machines,

tools, workers implied, the size of space required.

Inventories: mass production functions with a system of large inventories,

which gathers raw material inventory, temporary assembled items, and

finished goods. As the objective of mass production is to maximize volume

produced, the inventories are huge and require a heavy system of record.

Detection of errors: mass production is based on a production by a defined

number of batches. Inspection is made at different fixed point in the

production process. If errors are detected, there is a risk of increased

waiting time and domino effect.

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Production focus

Lack of customization: mass production is more focus on the supply side

rather than the demand side. Customization is a demand from customers

and a challenge for mass production systems. The production with batches

asks standardization of items produced. One solution, however, is to

realize some tasks dedicated to customization at the very end of the

production process.

Wasted resources: if management wants to make any improvement on the

system, it will imply wasted resources, as the mass production system is

fixed. Thus, to make improvement, rescheduling is necessary, as well as

record, training of staff, use of more resources,…

Bureaucracy: mass production uses bureaucracy in an inefficient way.

Bureaucracy has become a divided task and thus, this department needs

plethora of information translated into red tape to keep an eye on the

production process.

EXAMPLE; mass servicing (Service with a smile): implementing efficiency and

standardization is not always easy in the service sector. Mass services are referred as a

system where the objective is put on the volume of services realized, rather than

customer satisfaction, and thus where faster is better. A good example could be the call

centers where a high volume of calls are taken by operators following non adapted

procedures and evaluated on the time they spent on each call. Moreover, they have to fill

a plethora of forms and documents to explain what they did during the shift, particularly

if a customer complained. Here again, this kind of industry tends toward lean system,

and the work cell system in particular.

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LEAN PRODUCTION

Advantages:

Assembly design:

Work cells: lean production introduces the concept of work cells, where

employees are working together in workshops, completing different tasks.

Work cells allow teamwork and support between employees, as well as

continual improvement by exchanging of ideas and knowledge.

Suppliers network: lean production is focused on core competencies and

the limitation of waste. Inventories can thus be considered as wastes. To

achieve production, the lean system needs a strong network of suppliers,

respecting tight schedules, and applying themselves lean production

system.

No inventory: once again, inventories are considered as waste, thus they

are limited to essential pieces in case of break machine for instance.

Customer focus:

Customization: orders precede supply in the lean production system.

Customers can express their envies and expectations and then get what

they have asked for. Lean production system searches for maximizing

customer value and customer satisfaction.

Adaptability of processes: by implementing continuous improvement, the

lean production system is characterized by adaptability. It allows

customization of orders, improvement during the process, and best

quality.

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Disadvantages:

Reliance on network:

Supply chain risk: the lean production system is heavily based on a large

network of suppliers. Supply chain risks such as late delivery or defective

delivered products can always happen. Trust relationships are of

paramount importance as well as strong commitment.

Commitment from suppliers: most of the suppliers needed in a lean

production system have to apply themselves the same system. It gives a

certain power of negotiations for some companies, but it still raises ethical

questions.

Short-term forecasting: lean production system is based on everyday

operations or short-term forecasting. It can be difficult to have a long-term

vision with such a system. However, it is compensated by the principles of

continuous improvement.

Cost of implementation:

Commitment from the top: lean production is often inefficient without a

strong commitment from the top. It implies indeed a specific leadership

style where employees are responsible and autonomous. Thus, it is of

paramount importance that the top management strongly believe in this

system.

Culture of change: lean production system asks for a culture of change. It

praises continuous improvement, and is based on a system permanently

in movement. Change has o be quickly accepted and even desired.