Learning Objectives
14-1: Define lean operations.
Lean operations, including just-in-time (JIT) practices, are philosophies of continuous improvement. The goal of lean operations is to eliminate waste of any kind, a problem that affects both manufacturing and service organizations.
14-2: Describe the philosophy of lean systems.
The first feature of the philosophy of lean systems is to promote respect for people. Consequently, one prerequisite for implementing a lean system is to create an environment that empowers workers and fosters cooperation, trust, and respect between a firm’s workforce and managers. Second, to achieve a smooth and rapid flow of materials and work, waste and inefficiency should be eliminated. Finally, the philosophy of lean systems requires commitment to the 5S model that shows how to implement lean practices in any business operation.
14-3: Outline the elements of lean operations systems.
Lean systems are based on a pull system of throughput and can include such features as focused factories, value stream mapping, TQM, quality at the source, level scheduling, faster setup times, group technology, plant layouts that balance the workflow, stable scheduling, Kanban systems, reduced inventory, and improved product designs.
14-4: Apply lean ideas to service operations.
Lean systems aren’t limited to manufacturing operations. A service operation can create a lean system as well by pinpointing the value the service offers, improving the flow of the service, being prepared to respond to the pull from customers, and pursuing perfection.
14-5: Identify the characteristics of a lean supply chain.
The lean philosophy is equally critical to enhancing an organization’s supply chain and requires four key elements: (1) the full collaboration of all supply chain partners; (2) the use of transparent information; (3) lean logistics, including third-party logistics, vendor-managed inventory, cross-docking, and supplier parks; and (4) performance monitoring.
14-6: Explain why it is so difficult to make global supply chains lean.
Difficulties in creating lean global supply chains include the need for high levels of coordination, just-in-time (JIT) delivery, and low inventories as well as the need for frequent and rapid deliveries from suppliers, coordination and information flow, and effective communication. JIT practices are nearly impossible in a global setting because of long shipping times, infrequent freight connections, unpredictable weather delays, the bureaucracy associated with customs, and labor strikes that are common in some foreign countries. The lack of face-to-face contact, time zone differences, and cultural and language barriers can make coordinating global supply chains even more difficult. Once these obstacles are overcome, however, the lean supply chain’s advantages can be significant.
14-7: Discuss how sustainability initiatives can be considered to be an extension of the lean philosophy.
Both sustainability and lean systems share many similarities, and they a have synergistic relationship. Many of the lean initiatives that companies adopt, such as reducing product defects and inventory reduction, will also improve sustainability. In addition, both lean and sustainability initiatives also have the same goal of increasing profits.