...oPRODUCTION SYSTEM A first possible distinction in production systems (technological classification) is between process production and part production. * Process production means that the product undergoes physical -chemical transformations and lacks assembly operations, therefore raw materials cant easily be obtained from the final product, examples include: paper, cement and nylon. * Part production (ex: cars and ovens) comprises both manufacturing systems and assembly systems. In the first category we find job shops, manufacturing cells, flexible manufacturing systems and transfer lines, in the assembly category we have fixed position systems, assembly lines and assembly shops (both manual and/or automated operations) Another possible classification[12] is one based on Lead Time (manufacturing lead time vs delivery lead time): Engineer to Order, Purchase to Order, Make to Order, Assemble to Order and Make to Stock. According to this classification different kinds of systems will have different customer order decoupling points (CODP), meaning that Work in Progress cycle stock levels are practically nonexistent regarding operations located after the CODP (except for WIP due to queues). The concept of production systems can be expanded to the service sector world keeping in mind that services have some fundamental differences in respect to material goods: intangibility, client always present during transformation processes, no stocks for "finished goods". Services can...
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...Date: February 11, 2013 Subject: Forest Hill Paper Company From the case, we can figure out the Forest Hill Paper Company is a small, closely hold paperboard manufacturer that produces a board line of paperboard in large reels. FHPC competes in a cyclical economic environment, with upswings every three to four years. The current market is mature and declining with a recent trend towards plastic and a more environmentally friendly grade of recycled paperboard. FHPC produced 20 kinds of paperboard and follow the lean manufacturing principle, and maintains minimal inventories. Market demand and the theoretically optimal production schedule are the factors to make production schedules. The strategy used by Forest Hill Paper Company to compete is to use a differentiation strategy. They have been offering a full range of both products and services, trying to create a niche based on service and rapid response to customer needs. I think the most important challenge for Forest Hill Paper Company is cost allocation, there is a gap between allocated cost and actual cost, and the methods company used was not correct. There are four overhead costs drivers for Forest Hill Paper Company: Large variability of output, the demand is bigger than the production capacity during a boom and decreases during down times; FHPC produces a huge variety of product that increase costs due to the processing required; Several steps with the machine causing costs to increase; Some costs are related...
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...Petroşani, Economics, 10(3), 2010, 333-340 333 LEAN MANAGEMENT - THE WAY TO A PERFORMANT ENTERPRISE AMALIA VENERA TODORUŢ, CECILIA IRINA RĂBONŢU, DORU CÎRNU * ABSTRACT: In this work we approached issues related to new methods of production organization such as Lean Management, a method specific for a flexible production of great success which represents the guarantee for a performant enterprise. In this paper we presented the main concepts, the application and adaptation way in different contexts, both in industry and in services. We showed a modern tendency which is taking shape more and more in the contemporary economic context, such as the integration of this concept with the Six Sigma concept, and thus we can talk about Lean Six Sigma, as an integrator method which guarantees high-class quality and lower costs. KEY WORDS: lean management, quality, performances, Six Sigma, the diminution of the defaults JEL CLASSIFICATION: L15, L16, L25, M10, M11, M16 1. INTRODUCTION Researches on production technologies, operations and performance reflect the increasing context of industrial competition in the global economic environment. A key objective is the creation of a systematic knowledge base by applying the systemic approach and quantitative analysis, which will lead to a better understanding of fundamental factors, determinants of growth and industrial decline. An example is the Lean method and the Lean manufacturing principles, concepts and principles outlined after the...
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...TM Thinking Lean © Tim Pettry, 2008 Click to go to next slide TM Let’s get started © Tim Pettry, 2008 TM Click Economic crisis! Due to the recent economic crisis, it has become apparent that our current system of numbers is no longer working. To address this crisis, a new set of symbols has been created to replace the current numbers 1 – 10. It is imperative that we learn these new symbols as quickly as possible. Our world as we know it, depends on each of us to do our best! © Tim Pettry, 2008 TM Now wait for 45 seconds. 30 15 Let’s do it! 1. 6. - Click once when ready. seconds left 20 35 42 41 43 44 45 2 1 3 4 5 2. 3. 4. 5. - 7. That was 8. easy! 9. 10. © Tim Pettry, 2008 Take 45 seconds to memorize these new symbols for the numbers 1 – 10. X TM Write down as many of the new symbols as you can remember? Click when ready To check answers © Tim Pettry, 2008 TM Check your answers 1. 6. - 2. 3. 4. 5. © Tim Pettry, 2008 7. 8. 9. 10. - X Click to discuss when ready TM Click Discussion How many people got all 10 symbols correct? 9? 8? 7? 6? 5 and below? Were you distracted by the countdown on the left? Are there ever distractions when we are trying to learn? © Tim Pettry, 2008 TM Click Discussion continued Which symbols do most people get right? 1 – due to repetition 10 – Its different and it represents the...
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...The strategic initiatives from our list include the following: 1. Efficient Consumer Response (ECR): Lean Manufacturing Japan (2008) stated that ECR “is a strategy to increase the level of services to consumers through the close cooperation among retailers, wholesalers and manufacturers. Lean Manufacturing Japan (2008), also stated that “ECR reduces the opportunity loss, inventory level, and entire cost, increases monetary profitability by sharing the purpose of customer satisfaction. 2. Just – in – Time (JIT): simply means getting the right quantity of goods at the right place and right time and it originated from Japan after World War II by Toyota Motor Company (Reid & Sanders, 2007). There are three elements of JIT which are: Just in time manufacturing, Total Quality Management and Respect for people. 3. Lean System: Also known as Just – in – Time. Lean simply means the elimination of waste, with perfect quantity to meet demand instantaneously. Lean has four elements which are: Customer focus, synchronized flow, behavior and waste elimination (Slack &Lewis, 2011). Lean operations help to reduce cost, gives higher quality, reduce lead time, increase productivity and reduce amounts of waste (Wikispaces, n.d) 4. Agile Operations: is the ability to react and adapt to the changes in demand and supply situations in a supply chain (Sehgal, V., 2010). 5. World Class Manufacturing (WCM): It is the best practices which can be use to describe best manufacturers (Hosseinie et al. 2012)...
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...Unnecessary Deliveries INTRODUCTION As you a may have noticed, I have been spending some time asking questions about the problems and wastes here in the workplace. I have mentioned to a few of my co about the task assigned to in my project for my Lean Principles class. As a resu t of the throI process, I am aware now more than before that we are using a lot of the Lean Tools already in our day- to -day processes. However we are using them without the knowledge of what it is we are doing or why we are even doing it. After taking this ean Principes course at MATC, I am really more conscious about where we actuay have Lean Principes in place and how it serves as an essential mechanism in keeping our processes at the utmost efficiency. The company sends us emails all the time about “Simplification” all the time and little did any of us know it was all Lean Processes they were imposing on us. All of this being said it was kind of difficult for me to choose a process to apply Lean To because in most ways, our company is aready being as efficient as can be in amost every aspect. However, after consuting with a variety of individuas, I have encovered a business practice with one specific cient, Hospita A (privacy) that is not as productive as coud be and , as a resut, not as profitable. Therefore, I have chosen to work on changing the way we are servicing Hospital A (privacy) on weekends. THE PROBLEM As I mentioned I would like to try to change the way we are handling service to...
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...to the Internet based information, discuss various strategic actions taken by this organization with regards to SCM to improve the finance and non- finance performance. 3 Introduction 3 Basic component Supply Chain Management 3 Plan 4 Source 4 Make 4 Deliver 4 Return 4 Supply chain management for logistic 5 Supply chain management for downstream 6 Tata Steel Strategic 6 Tata Steel supply chain logistic strategy 7 Tata Steel Supply Chain downstream strategy 8 Tata Steel finance improvement 9 Tata Steel non-finance improvement 9 Conclusion 11 Q2. Discuss various Supply chain activities (in relation to Lean Management) in a Toyota company in Danish Industries can learn and use for improved performance. 12 Introduction 12 What is Lean 13 Lean supply chain 14 Lean supply chain for Toyota Production System in Denmark 14 Value stream mapping 16 The VSM process 17 Performance improvement with implementation of VSM 17 Conclusion 19 Q1. Tata steel has taken various strategies in the SCM to improve the performance of the organization. With reference to the Internet based information, discuss various strategic actions taken by this organization with regards to SCM to improve the finance and non- finance performance. Introduction The Tata Group of Companies has always believed strongly in the concept of collaborative growth, and this vision has seen it emerge as one of India's...
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...Quality Management for the Competitive Market By Karen Robinson Findings • Lean Manufacturing – – – – – – – – Originates from Toyota (Lean Enterprise Institute, n.d.) About getting more from less Improves delivery times Does not focus on quality Japanese style of management (American Society for Quality, n.d.) Proven quality management methodology Involves management and empowers employees Does not focus of process streamlining • Total Quality Management (TQM) • Six Sigma – Trademarked by Motorola Corporation in the 1980s (iSix Sigma, n.d.) – Structured and scientific method applied to entire organization (Gygi, Williams & Gustafson, 2012) – High returns expected on training investment – Focuses on both quality and process streamlining Recommendation • Six Sigma Initialization – Define business objectives and goals – Select leadership teams – Assign Executive Leaders, Deployment Leaders and Champions – Setup Communication Plans • Deployment Communication • Project Communication Justification • Lean Manufacturing focuses on streamlining processes but does not address quality • TQM addressing quality but does not emphasize the importance of process streamlining • Six Sigma will streamline processes, reduce costs and provide tools to measure the quality of products References • • American Society for Quality (n.d.). History of Total Quality Management. Retrieved from http://asq.org/learn-about-quality/total-quality-management/overview/tqmhistory.html...
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...For The Shipping Department at Helical Products Co. By Eric William Walker A Senior Project submitted In partial fulfillment of the requirements for the degree of Bachelor of Science in Industrial Engineering California Polytechnic State University San Luis Obispo Graded by: Checked by: Date of Submission: Approved by: EXECUTIVE SUMMARY Helical Products Company is a business that manufactures flexure products, such as couplings and u-joints. As part of a movement towards lean manufacturing, Helical Products Company of Santa Maria, California is need of a principle that will help them continuously improve their shipping department. A study of 5S, a lean principle focused on waste reduction, will be done to investigate opportunity for implementation. A literature review takes a peek on research of lean manufacturing history, lean workbook/ tutorials and lastly case studies and journal articles. The output of research provides a design plan for Helical using 5S and other lean principles compatible with 5S, such as error proofing and Value Stream Mapping. A list of suggestions based on analysis and feedback from the Helical shipping department is provided. Lastly, a 5S manual catered for Helical Products Company is attached in the appendix. 1 TABLE OF CONTENTS Executive Summary....................................................................................................................................... 1 Introduction ................................
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...period, Japanese companies developed the concept of lean production. Lean production was regarded as the third step in the historical progression, which took industry from the age of the craftsman through the methods of mass production and into an era that combined the best of both (The Economist 2009). Lean production was designed to combine the flexibility and quality of craftsmanship with the low costs of mass production. And due to its unique characteristics bringing an underdog company in its industry to the market leader, this idea of lean thinking has been adopted by many other industries. Today ‘lean’ may no longer be fashionable but its core principles (flow, value, pull, minimizing waste etc.) have become the paradigm for many manufacturing (and service) operations (Lewis 2000). In this essay, my main argument is that although success of lean production and its positive impacts on corporate competitiveness is undeniable, nevertheless, from the workers’ point of view, lean production has also increased the pressures of work and the degree of exploitation wherever it exists. In the first part of my essay I will present a brief history of lean production. This will be followed by the demonstration of main characteristics and the analysis of how lean production has impacted corporate competitiveness by utilizing Toyota as an example, which is the birthplace of lean production. Part three will spell out the limits of lean production as it dramatically increases the pressures...
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...Executive Summary: Total quality management and lean provide a means to improve the delivery of services using a disciplined, qualitative and minimalistic approach. They also bring numerous advantages to an organization and the surrounding environment if implemented properly, but it also risks being regarded as another management or profit oriented move. This paper aims to evaluate these business processes, and provide guidelines for the application of total quality management and Lean in the port activities in Singapore, through its maritime port authority. As this is the scope of the paper, an analysis is also carried out to identify the areas that the maritime port authority of Singapore has applied these measures, the impact of these methods as well as recommendation of aspects that can be leaned in order to improve both port activities and sustainability. Secondary data sources is the main methodological method used in this paper, and various pieces of information have been retrieved from these sources to indicate and support claims made in this paper In addition, this paper is targeted towards administrators and scholars responsible for a wide range of public-sector services, including those provided to citizens and those provided to internal customers both in the logistics and supply chain industry such as ports authorities, and as a business process improvement measure. Introduction: The economic development in Asia, and in particularly in the south...
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...ACC 333/BUS 333 Semester Test 2 Name ___________________________ Directions: The maximum points available on the test is 30 points. The assigned points are designated by each section. This is a take home examination and is due at the beginning of class on Wednesday, March 2, 2011. You are to work on this test alone. Any situations where the professor determines that students have worked on the test together will be considered in violation of the honesty code. Choose the BEST answer on the multiple choice questions. The discussion questions can be written by hand or typed. ACC/BUS 333.01 Semester Test 1 Name:___________________________________ Multiple Choice Questions: Please circle the best response. (1.5 points each) Which of the following is not an example of a source document?Receiving reportPurchase orderSales orderAging reportJob costing systems are most appropriate for:a)Home builders b)Textbook publishers c)Beverage companies d)both a and b are appropriate industries for job costing systems An important input to the sales process is: A customer sales order The cash forecast Aged accounts receivable information A receiving report It is generally true of not-for-profit organizations that they: Are profit-oriented despite their name Are always evaluated using profit measuresAre not governed by accounting standardsEmphasize funds rather than income in their internal accounting systems ...
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...A company should be concerned to satisfy its customers’ requirements for fast and dependable services at reasonable price, as well as helping its own suppliers to improve services they offer. There are five basic performance objectives and they apply to all types of operation: • Quality • Speed • Dependability • Flexibility • Cost (Slack, N. et al, 2001). These operations performance objectives are analysed here in accordance to TMC. 1) Doing things right by providing error free goods and services, which will satisfy the customers, is known as ‘quality’. According to the case study, Toyota’s vehicles consistently rank near the top in third-party customer-satisfaction surveys. Being voted by many market research and surveys as the car of the year for several years it shows that, Toyota has a successful record worldwide. Because of the good quality Toyota’s success kept going, where in 1995, Toyota was the best car in the Middle East. Also, TMC has produce a good quality cars that are quit and do not emit unpleasant fumes, such as more than 40 emission-control systems and dozens of technologies that have improved passenger-car safety (Ahmed, A., 2003, Coursework). 2) An other performance objective is speed, which means by doing things fast, to minimise the time between the order and the availability of the product or service that gives the customer e speed advantage. The TMC’s techniques are focussed operations that reduce complexity by using simple and...
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...GLOBAL SUPPLY CHAIN MANAGEMENT MO255 NIKKI WONG XIAO XUAN NORTHUMBRIA UNIVERSITY (2897 Words) Executive Summary The objective of this report is to develop Singapore as a premier global hub port and international maritime centre, and to safeguard Singapore strategic maritime objectives. Research for this report includes evaluating the application on Lean and Total Quality Management (TQM) in logistics and supply chain networks to achieve Maritime Port Authority (MPA) objectives such as quality of service, competitiveness, reliability and efficiency. The major findings shows that lean implementation improves processing times achieving more work in less staff time and bringing services up to standard. (Radnor, Walley, Stephens, & Bucci, 2006). It also changes the focus of management from optimizing separate technologies, assets, and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers. Lean helps to eliminate waste along entire value streams, instead of at isolated points, creates processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects and produces a greater...
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...Value Stream Mapping 1 Value Stream Mapping Definition • Value Stream Mapping (VSM): – Special type of flow chart that uses symbols known as "the language of Lean" to depict and improve the flow of inventory and information. 2 Value Stream Mapping Purpose • Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle to service) 3 Why ? • Many organizations pursuing “lean” conversions have realized that improvement events alone are not enough • Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities • Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it 4 What Is Value? • A capability provided to a customer – of the highest quality, – at the right time, – at an appropriate price, as defined by the customer. • "Value" is what the customer is buying 5 What Is Value Stream Analysis? Planning tool to optimize results of eliminating waste current state VSM future state VSM + + Lean Basics = 6 Value Steam Mapping Steps Next Future State Future State Current State Original State 7 Apply Five Simple Principles • Specify value from the standpoint of end customer • Identify the value stream for each product...
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