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BUSMGT 3230: Operations ManagementLearning to See - NotesPart IValue Stream – all the actions currently required to bring a product through the main flows essential to every product 1. The production flow from raw material into the arms of the customer2. The design flow from concept to launch- Involves looking at the big picture and improving the whole processo Material and information!!- Pencil and paper tool that helps clarify the flow of material and information as a product goes through the value streamo Visual representation of the path a product takes from supplier to customerSelecting a Product Family- It is important to only focus on one product family (a group of products that pass through similar processing steps and over common equipment in the downstream process)o Make sure to write down how many different finished part numbers there are in the family, how much is wanted by the customer, and how oftenThe Value-Stream Manager- A person in a facility who reports to the top person and who is in charge of understanding a product family’s value stream and improving ito Many companies are organized by departments and functions (instead of by the flow of value-creating steps for product families) and so no one is responsible for the value-stream perspective. Therefore, individual processing areas are operated to be optimal independently instead of optimal from the value-stream perspective- Two kinds of kaizen:o Flow kaizen – value-stream improvement Focuses on material and information flowo Process kaizen – elimination of waste Focuses on people and process flowUsing the Mapping ToolSteps:1. Draw the current state – gather information on the shop floora. Draw the future state – ideas and information come while gathering the current state information2. Prepare and begin to use an implementation plan that describes (on one page) how to plan in order to achieve the future state3. As the future state becomes a reality, develop a new future state (continuous improvement) Part II: The Current-State MapDrawing the Current-State Map- Always draw in pencil!- Mapping beings with the customer requirements1- Next, draw the basic production processes:o Material flow Draw from left to right on the bottom half of the map in the order of processing steps, not according to physical layout of the plant Also include a data box with relevant data that will help in drawing the future-state map Seconds are used as the time unit Make sure to indicate (warning triangle) on the map the locations where inventory accumulates since these points show where the flow is stopping  Draw (on either end of the map) the processes that show movement of the finished goods to the customer and the processes that show movement of supplies to the current companyo Information Flow Draw from right to left in the top half of the map space “go see” scheduling (when managers make manual adjustments based on inventory count information) can also be indicated on the map Helps to identify the material movements that are pushed by the producer, not pulled by the customer- Push refers to when a process produces something regardless of the actual needs of the customero Timeline Draw under the process boxes and inventory triangles to compile the production lead time- Helps to estimate total production time (if more than one upstream flow, use the longest time path when estimating total lead time)- Also compute the value-creating time (processing time)Part III: Lean Value StreamOverproduction – producing more, sooner, or faster than is required by the next process- The most significant source of waste- Results in shortages since processes are busy making the wrong things- Lengthens lead time, impairing your flexibility to respond to customer requirements Characteristics of a Lean Value Stream- Goal is to have one process only make what the next process needs when it needs ito Link all processes (from final customer to raw material)Takt Time – synchronizes pace of production to match pace of salesTakt Time=AvailableWorkingTime per DayCustomer Demand Rate per DayGuidelines#1: Produce your takt time- Serves as a reference number that gives you a sense for the rate at which a process should be producing - Producing to takt requires:o Providing fast response (within takt) to problemso Eliminating causes of unplanned downtimeo Eliminating changeover time in downstream, assembly-type processes2#2: Develop continuous flow wherever possible- Continuous flow is the most efficient way to produce- Process box icon used to indicate continuous flow on future-state mapo Individual process boxes on current-state map combine into one for future-state map#3: Use supermarkets to control production where continuous flow does not extend upstream- Reasons why some areas in the value stream do not allow for continuous flow (where batching is necessary) are:o Some processes are designed to operate at very fast or slow cycle times and need to change over to serve multiple product familieso Some processes, such as those at suppliers, are far away and shipping one piece at a time is not realistico Some processes have too much lead time or are to unreliable to couple directly to other processes in a continuous flowControl production of these processes by linking them to their downstream customers, via supermarket-based pullsystems (install a pull system where continuous flow is interrupted and the upstream process must still operate in batch mode) – do not use a schedule/attempt to predict demand!Let the downstream process’ withdrawals out of a supermarket determine what the upstream process produces when and in which quantity- Safety stock – used as a hedge against problems such as downtime or buffer stock, which is used to protect against sudden fluctuations in customer orderso Temporary and placed under strict rules for when it is able to be used- Sometimes it is not practical to keep inventory of all possible part variations in a pull systems supermarket, ex: customer items, items with a short shelf life, and costly/infrequent partso Sometimes can use a FIFO lane (aka CONWIP) between two decoupled processes to maintain a flow between them- can only hold a certain amount of inventory before process must stop and wait for some inventory to be used, helps to reduce overproductiono Sometimes can use a sequenced pull (aka golf ball systems because sometimes colored balls/disks are used to


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