...Operations Management PRINCIPLES OF LEAN OPERATIONS Course Syllabus Course Code: POMG4725 Course Title: Special Topics in Operations Management Credits: 3 Hours Contact Hours: 42 hours Course Status: Major elective Language of Instruction: English Course Type: Lecture Course Description and Objectives: This course covers methods and best practices companies should use to identify and eliminate waste (non-value-added activities) throughout the organization. It provides basic definitions, real-world examples, and an introduction to such topics as the transparent workplace, lean product development, Value Stream Mapping, lean process improvement, controlling processes, and continuous improvement. These tools, techniques and philosophies have been used worldwide by best-in-class companies to improve their bottom line, make them more competitive, and drastically improve their responsiveness to the customer. Topics: • Development of the concept of a lean organization and what benefits it will deliver • Identification of waste activities and understanding why they should be eliminated • How to use flow analysis to analyze a process and identify non-value-added activities • Understanding of the standard lean operations tools: 5S, visual workplace and visual order control, manufacturing cells, use of task time, setup time reduction, standard worksheets, etc. • The benefits of incorporating lean concepts during the development phase of new products •...
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...SCHOOL OF BUSINESS University of Aarhus MASTER THESIS Challenges in Lean implementation Successful transformation towards Lean enterprise Ana Valentinova Kovacheva Supervisor: Ana Luiza Lara De Araújo MSc in Strategy, Organization and Leadership January 2010, Aarhus 2 Abstract The paper is based on a systematic literature review that examines how the implementation of Lean could bring value to the organization processes and contribute for achieving an operational excellence. Different organizational factors which have importance in the implementation process, are thoroughly examined. Key success factors that enhance the implementation process are identified - human resource practices, management style, organizational strategic vision, organizational culture, external partnerships. The research outlines the challenges that companies experience when they change their business model towards implementing a new to the company management system – Lean concept. For better understanding of the term the paper suggests definitions from the authors acknowledged in the field. Part of the research considers some critical points that impede the implementation of Lean. The conclusions are drawn upon considering lean as a complete business system, which change the way organization thinks in striving for a competitive advantage. Keywords: lean implementation, lean enterprise, Lean, challenges, process improvement 3 Table of Contents: Introduction...
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...Abstract: Key Words: Corporate Social Responsibility, Lean Accounting, Toyota’s sustainability effort I. Introduction 1. Definition of key terms 1) Corporate Social Responsibility CSR refers to operating a business in a manner that accounts for the social and environmental impact created by the business. CSR means a commitment to developing policies that integrate responsible practices into daily business operations, and to reporting on progress made toward implementing these practices. According to Business for Social Responsibility (BSR), corporate social responsibility is defined as“achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment.” 2) Lean accounting Lean Accounting is the general term used for the changes required to a company's accounting, control, measurement, and management processes to support lean manufacturing and lean thinking. II. Corporate Social Responsibility The field of corporate social responsibility has grown exponentially in the last decade. More than half of the Fortune 1000 companies issue corporate social responsibility (CSR) reports. A larger number of companies than at any time previous are engaged in a serious effort to define and integrate CSR into all aspects of their businesses. An increasing number of shareholders, analysts, regulators, activists, labor unions, employees, community organizations, and news media are asking companies to be accountable...
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...change. The desired results against this change is the reduction in manufacturing time, betterment of quality, increasing efficiency of manufacturing and also reduction in personnel cost. This part will include complete process plan that is going to be followed in order to achieve desired and mentioned results. Lean Six Sigma as Proposed Methodology Lean Six Sigma Methodology is a very effective way to have a significant reduction in the lead time in manufacturing units in a company. Lean basically refers to a methodology that improves a company's process, resulting in faster delivery of services and products, and at the same time keeping the costs lower. Six Sigma refers is a methodology that is again related to process improvement, but is predominantly data driven. Making use of the methodologies offered by Six Sigma such as DMAIC (Define, Measure, Analyze, Improve, Control), process variations are reduced, and incapable processes are taken care of (Pavletic and Sokovic, 2002). Post this achievement, Lean methods need to be used which reduce costs of waste using appropriate tools (Laureani, 2012). Reduction in Manufacturing Time Cycle time is reduced using the Lean Six Sigma process, primarily by reducing waste per cycle, thus leading to a reduction in manufacturing time. A quick turnaround, leads to an improvement in satisfaction of clients of the company. The other benefit that is visible is in the case of distribution of services by a company (Dettmer, 1997). Since cycle...
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...Parts Company are counter to the lean philosophy? The philosophy of Lean Production involves the removal of wastes and non-value processes or production in the supply chain. The manager of Quality Parts Company has been contemplating to install an automated ordering system to help control inventories and to keep the skids filled. But this means the use of inventory as the reason to continue moving production forward. This change would not be recommended in a Just-In-Time process, for it will create holding time and non-value storage production. She is also planning to add three inspectors to clean up the quality problem. This would also be a waste and a non-value aspect, for it will add new salaries to pay. In-process inspections can be done by their own factory workers. They should be their own inspectors to create personal responsibility to motivate them to produce quality output production. Another is about setting up a rework line to speed repairs. This does not follow a lean philosophy for this will only add more time and cost for labor and machine utilization. The company should only focus on reducing waste including overproduction. Finally, to look into high-rise shelving to store parts coming off machine 4. Installing high rise shelves would create or add non-value storage of wasteful inventory in their process. Storing excess in production is considered a waste, and in a Lean philosophy company there is no room...
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...Toyota | | Lean Changed the Auto Industry Introduction In order for any business to succeed, the business needs a strong leader. Taiichi Ohno, Toyota’s businessperson and engineer, led the implementation of Lean during the 1950’s and 1960’s. Prior to Ohno leadership, he learned the auto industry from Toyota founder Kicchiro Toyoda. In the post World War II recession, Toyota was near bankruptcy, and workers went on strike. In 1950, Toyota began to restructure their company and settle the strike. In the settlement, Toyoda and other top executives resigned (1). After the strike, Toyota utilized Lean to save their company from bankruptcy. In the process of developing Lean, Toyota became a leader in the auto industry. They sold 10.23 million vehicles in 2014, which ranked them number one in global sales (15). The report show and pinpointed how Toyota developed and used Lean Accounting and Manufacturing to become the number one seller of automobiles. The Development of Toyota Production System Taiichi Ohno, the primary architect, and his consultant Shigeo Shingo designed the Toyota Production System (TPS). The TPS emphasizes on avoiding any waste. Toyota lacked resources to invest in new production equipment or carry inventory. The TPS concept is the anti economies of scale. Cho and Taiichi preached this concept to their employees as they transformed into a lean organization. They could only afford to purchase the exact amount of materials needed to produce...
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...Japanese Lean Production versus World Mass Production “The basic and fundamental differences amongst the nations and territories of the world are rooted in the inherent rule of government and the associations the government has with its people. . . In so far as, if the associations are relatively close, prosperity in all forms of human evolution should be at hand; for, if the association is by principle of counteracting parties, the growth and stability of the individuals of the country is in question.” These words from a very wise philosopher deliver the overwhelming resolution of the theme of this book, Japanese Lean Production versus World Mass Production. The book provides a concrete foundation on the relationship between lean production and mass production and how lean production is shown to be a better technique within the automobile industry. A further review will allow for the facts to be born out. The book begins with an overview of the three techniques discussed in the book, craft production, mass production, and lean production. Craft production is characterized as having a highly skilled and decentralized work force who use “general-purpose machine tools” and yield low volumes of production. Generally, with craft production costs do not drop with production, consistency is not achievable, and new technology can not be created. This lead to an improved system called mass production. This technique perfected by Henry Ford replaced craft production in the...
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...Articles Teaching Lean Manufacturing With Simulations and Games: A Survey and Future Directions Fazleena Badurdeen1, Philip Marksberry1, Arlie Hall1, and Bob Gregory1 Simulation & Gaming 41(4) 465–486 © 2010 SAGE Publications Reprints and permission: http://www. sagepub.com/journalsPermissions.nav DOI: 10.1177/1046878109334331 http://sg.sagepub.com Abstract Problem-based learning focuses on small groups using authentic problems as a means to help participants obtain knowledge and problem-solving skills. This approach makes problem-based learning ideal for teaching lean manufacturing, which is driven by a culture of problem solving that values learning as one key output of manufacturing production. Thus, simulations that organize participants in teams for realistic manufacturing production problem solving are widespread as a way to use problembased learning to teach lean manufacturing. But a critical assessment of existing simulations for lean manufacturing instruction has been lacking. Accordingly, a literature survey is conducted and existing simulations are classified according to their emphasis on lean tools or the overall lean system; the degree of their focus on soft skills, if any; and their area of application, whether academic or industry. Four gaps are found in existing simulation designs: lack of stress on soft skills, a mistaken focus on “linear lean,” misunderstanding of the key role of the facilitator, and lack of realism. Future directions for study and...
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...triggered by some event in the environment or an event that happens in every member of a species. Depending on the theorist and their discipline, such as Maslow, an instinct is something that no longer exists in the human species. Some psychoanalysts insist that instinct is a major motivational force sometimes referred to as an instinctual drive. Regardless of how it is labeled or classified, there are basic needs that exist in all human beings, needs that motivate humans to satisfy those needs at different levels of developmental growth. According Abraham Maslow, these needs exist in a hierarchy of importance and prevalence during said human beings development through life. At the time that Maslow wrote his paper in 1943, A Theory of Human Motivation, there were five levels of needs that a human should experience though their development. Maslow’s Hierarchy of Needs If, in fact these needs strongly influence the behavior of an individual, it would be most beneficial for management to understand these needs. An understanding can provide the ability to satisfy these needs, intern creating a mutually beneficial and productive situation. Physiological Needs The physiological needs are at the bottom of the hierarchy, representing the first and foremost needs. These are the basic human needs to sustain life such as food, shelter, clothing, rest, etc. These basic needs, until satisfied will provide the most motivation, leaving the other levels at a much lower importance...
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...USA Armor School Research Library TDCD Fort Knox KY Bibliography March 2006 Lean Six Sigma Lean: Identifying 'waste' or ‘non-value-added activities’ from the customer perspective and then determining how to eliminate it the 'right' way. [Lean Six Sigma Institute] Lean Six Sigma: A business improvement methodology that maximizes shareholder value by achieving the fastest rate of improvement in customer satisfaction, cost, quality, process speed, and invested capital. [Lean Six Sigma Institute] http://www.army.mil/aeioo/rc/terms.htm Army rallies troops behind Lean Six Sigma program (Author: RP news wires – February 11, 2006) The Army’s growing Lean Six Sigma program has its roots in a corporate method of eliminating wasted time, money and material. Lean Six Sigma integrates two independently developed improvement tools: Lean and Six Sigma. Lean is an outgrowth of the Toyota production system, and focuses on increasing efficiency and reducing cycle time by the elimination of waste. Six Sigma was developed by Motorola beginning in the 1970s as an approach to improving quality and effectiveness through statistical control. Its roots go back more than 150 years to a Prussian mathematician who introduced the concept of the normal curve. Together, Lean and Six Sigma are powerful tools in transforming organizations, Army Materiel Command officials said. They said Lean Six Sigma enables a culture of innovation that continuously listens to customers, questions...
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...for continuous improvement. Many managers seem to think they know what this “Respect for People” principle implies, and they believe that they follow it. The reality is that most do not understand this concept outside of the Toyota management system. Toyota states, “Respect for people is the attitude that regards people’s ability to think most.” Most managers have a poor idea of what it actually means to demonstrate “Respect for People.” Many would claim that showing respect for people would include things such as treating employees fairly, giving them clear goals, trusting them to achieve goals set, and listening to employees. Managers believe respect is easy to understand and apply these misguided ideas. This is a huge part of lean that has been missing. “Respect for People” is an aspect of excellence at Toyota that needs to be understood and implemented. It is a mindset that can be difficult to understand without experiencing day to day. This is why it was looked over for so long, with instead the focus being on the surface of the Toyota way. Emphasis is put on the high importance of workers capabilities to begin to describe what it means to truly demonstrate “Respect for People. The workers are allowed to display their capabilities through active participation in running and improving their own workshops. They believe that a system where the capable Japanese workers can actively participate in running and improving their workshops and be able to fully demonstrate...
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...Quality Management and Lean Systems MT435-01 Operations Management Professor: Cuneyt Altinoz September 7, 2014 Quality Management and Lean Systems Managerial accounting can provide and prepare economic and financial information for manager and internal users (Weygandt, Kimmel, & Kieso, 2012). This paper will reflect some of the key concepts and topics and how this course has affected my personal, professional, and academic development perceptions, in which have provided a better understanding and confidence in today’s account for a small or large business organization. The course has provided many key concepts and topics to review and some of the concepts to have impact my learning and open my eyes to small and big business accounting practices such as the differences in account of the planning, directing, and controlling. The breakdown of those functions has helped with the understanding of how accounting is directed by the management teams of a small or large organization. The other key concepts and topics discussed throughout the term and I was able to recognize was the use of the cost-volume-profit analysis formulas to show the health of an organization from a small to large budgetary planning to see your spending habit. The statements of cash flow for the showing of where you or your organization is using funds for development of products such as material and manufacturing. The financial statements to review with the stakeholders and other...
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...demand and supply management; push and pull models; enterprise resource planning (ERP); vendor managed inventory (VMI); efficient consumer response (ECR); value chains; lean supply; global SCM; contribution to business objectives Development: physical distribution management; materials management; logistics management and SCM (upstream and downstream) Organisational objectives and business functions: financial, marketing, sales, operational, manufacturing, human resource Key drivers: facilities; inventory; transportation; information; sourcing; pricing; globalisation; technology; customer expectation Integrated supply chain: strategic goals; culture change; roles and responsibilities of staff; organisational rationalisation; higher volume and speed of transactions; enhanced market position; reduced supply chain complexity; potential for smooth process operations following complex initial set-up; enhanced, lean and agile systems 2. Be able to use information technology to optimise supplier relationships in an organisation Different types of relationship: alliances eg adversarial, developmental, collaborative, strategic; supplier development; e-tailing; business to business, business to consumer; intermediation and disintermediation; networks; supplier associations; supplier tiering; organisational networks; personal networks; auctions Use of information systems: intranets; extranets and virtual private networks (VPNs) for supply chain integration; operational issues eg eliminating...
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...Personal work Automotive-Toyota 30-11-2012 Contents Introduction Lean Manufacturing 1) Creating continuous process flow, 2) The pull system, 3) Leveling out the workload. Toyota Production System 1) Just In Time 2) Jidoka Long term relationship with suppliers Risk and Challenge 1) Toyota Vehicle Recalls 2) Environmental sensitivity Conclusion Introduction Toyota is one of the world's largest automobile manufacturers, selling over 9 million models in 2006¹on all five continents. A Top 10 Fortune Global 500²enterprise, Toyota ranks among the world's leading global corporations and is proud to be the most admired automaker³ an achievement the company believes stems from its , dedication to customer satisfaction. In early twentieth century, the three big motor companies (the Big 3) – General Motors (GM), Ford & Chrysler almost dominated the global market. In 1994, Toyota replaced Chrysler, and it became the global No. 2 motor manufacturer by squeezing out Ford in 2003. Since 2008, Toyota has replaced GM to be the largest automaker globally. Toyota is a successful corporation and has a very good performance in automotive industry, but it also has some troubles and challenges to face, like the problem of Toyota vehicle recall in the last three years. So we have to ask how did Toyota achieve its success? How Toyota face to the challenge? Toyota is known for its reliable cars among the general public, but it has also been known in manufacturing, management...
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...ORGANIZATIONAL COMMUNICATIONS ANALYSIS Summary Description of Organization Watts International, Inc. designs, manufacturers, and markets valves and engineered products for the energy, aerospace, and industrial markets with more than 7,000 customers in over 100 countries. The business value states “to value our employees and continuously improve our quality of work to our customers” (Watts, 2011). The company is committed to attracting, developing, and retaining top talent and practicing continuous improvement processes in all aspects of its business and operations. Strategic business acquisitions enhance product distribution in both domestic and international markets to solve customer-specific problems. This organization was selected due to the future transformation of the workforce and the critical nature of possessing excellent communication skills. There are many tenured employees with over 35 years of service. Within the next couple of years, 20% of the workforce will be retiring. This will result in a significant loss of knowledge and experience so it is necessary to begin now cross training employees with less tenure to carry on the quality production now in existence. The most critical positions are senior management and engineers. The product lines are very specialized and require highly experienced personnel. The volume of individuals retiring presents special challenges due to the industry specific expertise required. The new...
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