JIT Lean Production Part 1

Introduction to Operations and Supply Chain Management Chapter 13 JIT/Lean Production Learning Objective 13-1 1) The just-in-time philosophy applies only to the production floor of a manufacturing company. Answer: FALSE 2) The term just-in-time production is used synonymously with the term Lean production. Answer: TRUE 3) Companies employing the Lean philosophy use only Kanban as a production control method. Answer: FALSE 4) Lean thinking has received considerable attention in the last decade, but tools such as kanbans cannot be used in all production environments. Answer: TRUE 5) Unnecessary transportation is waste according to the Lean philosophy. Answer: TRUE 6) The ability of a process to produce quality output is unknown and the time to ship the output to a customer is highly variable. The combination of these two factors will lead to the waste of waiting. Answer: FALSE 7) The newest form of waste is underutilizing employees. Answer: TRUE 8) Since a Lean manufacturer has very little inventory, it is vital that all incoming parts receive a thorough inspection. Answer: FALSE 9) JIT or Lean can be used in: A) repetitive production. B) job shop production. C) many service industries. D) All of these settings are appropriate for JIT. Answer: D 10) Which of the following is NOT an element of Lean production? A) to have only the required inventory when needed B) to increase queue lengths C) to improve quality to zero defects D) to reduce setup times Answer: B 11) Inflexible or unreliable processes cause organizations to produce goods before they are required; this is called: A) excess motion. B) inappropriate processes. C) overproduction. D) defects. Answer: C 12) Scrap or rework are examples of the lean waste recognized as: A) defects. B) inappropriate processing. C) unnecessary motion. D) waiting. Answer: A 13) The delivery lead time was highly variable as was the quality of the product being shipped. These two factors combined to contribute to the waste of: A) unnecessary transportation. B) unnecessary inventory. C) unnecessary motion. D) waiting. Answer: B 14) The receiving department accepts a shipment, confirms it matches the purchase order, and moves it to an area they call "deep storage." As the time approaches for the shipment to be used, they move it from deep storage to the week's holding pen, and on the day of use, it is transferred to the line near where it will fall into the product stream. When the worker needs it, she goes to where it is stored and brings it to her work station. This illustrates the waste of: A) unnecessary inventory. B) overproduction. C) unnecessary transportation. D) underutilization of employees. Answer: C 15) The MBA recruiter had worked in one of several different positions at the university; student advisor, adjunct professor, even MBA director at a previous employer. Her sole responsibility as recruiter was attending MBA and job fairs in the area to talk to prospective students about the possibility of continuing their education. This illustrates the waste of: A) unnecessary inventory. B) overproduction. C) unnecessary transportation. D) underutilization of employees. Answer: D 16) Just-in-time production is also referred to as ________. Answer: lean production (or the Toyota Production System) 17) Any activity that does not add value to the good or service in the eyes of the consumer is ________. Answer: waste (or muda) 18) Provide a definition by description of the Lean philosophy. Where can Lean be deployed? Answer: Our trusty APICS dictionary weighs in thusly. Lean is a philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise. It involves identifying and eliminating non-value-adding activities in design, production, supply chain management, and dealing with the customers. Lean producers employ teams of multiskilled workers at all levels of the organization and use highly flexible, increasingly automated machines to produce volumes of products in potentially enormous variety. It contains a set of principles and practices to reduce cost through the relentless removal of waste and through the simplification of all manufacturing and support processes. The Lean philosophy has extended beyond just manufacturing to include services and essentially all aspects of supply chain management. Firms following a Lean philosophy often experience remarkable improvements in their productivity (outputs/inputs), inventory levels, and quality. Lean can also be applied outside of the work environment; even as I develop this test bank my garage is undergoing a magical transformation from a cluttered pit of grease and despair to a pristine, organized, car-friendly workshop. 19) Describe any five of the wastes and their causes identified by the lean philosophy. Answer: According to the lean perspective, waste, or muda, is any activity that does not add value to the good or service in the eyes of the consumer. There are eight commonly recognized ones, so answers will vary depending on which five are selected. overproduction – caused by inflexible or unreliable processes that cause organizations to produce goods before they are required. waiting – caused by inefficient layouts or an inability to match demand with output levels. unnecessary transportation – always increasing costs and the risk of damage without adding value. inappropriate process – using overly complex processes when simpler, more efficient ones would do. unnecessary inventory – caused by uncertainty with regard to quality levels, delivery lead times, etc. unnecessary/excess motion – caused by poorly designed processes. defects – creating uncertainty in the process and robbing production capacity by creating products or services that require rework or must be scrapped. underutilization of employees – caused by not utilizing the skills and decision-making capabilities of their employees. Learning Objective 13-2 1) A reduction in inventory levels forces a company to address poor manufacturing practices. Answer: TRUE 2) In the water and rocks analogy for lean: A) water represents problems. B) water represents inventory. C) rocks represent inventory. D) water wears away rocks gradually just like continuous improvement programs improve quality. Answer: B 3) In the lean perspective on inventory, often when a process is running smoothly: A) it is likely that workers are underutilized. B) it is likely that there is too little inventory in the system. C) it is likely that there is too much inventory in the system. D) it is likely that workers are overutilized. Answer: C 4) A company has successfully implemented lean practices in their three station process. The stations are, in order, Station A, Station B, and Station C and product moves from A to B to C smoothly. One day, the equipment at Station B experiences catastrophic failure. What happens and what is the appropriate response for a lean-thinking company? A) Continue producing at Station C and restore capacity at Station B. B) Continue producing at Station A and restore capacity at Station B. C) Continue producing at Station A and C and restore capacity at Station B. D) Everything stops and attention is focused on restoring capacity at Station B. Answer: D 5) The analogy of rocks in a river is often used when discussing Lean principles. In the analogy, the rocks represent ________ while the water represents ________. Answer: problems; inventory 6) What is the Lean perspective on inventory? Answer: The lean philosophy places a strong emphasis on reducing raw materials, work in process, and finished goods inventory throughout the system. This is not only because inventory is seen as a form of waste in and of itself, but also because inventory can cover up wasteful business practices. Lowering inventory levels forces firms to address these poor practices. Learning Objective 13-3 1) One recent development in Lean thinking is the combination of Lean and Six Sigma into Lean Six Sigma, which combines the rigor of statistical analysis and DMAIC approach with Lean's focus on waste reduction. Answer: TRUE 2) Lean supply chain management focuses on eliminating waste: A) in a firm's sourcing and logistics activities. B) within a firm's internal operations. C) in flows of information and money among supply chain partners. D) in all of the above areas. Answer: D 3) ________ combines the focus on waste reduction with the discipline of define, measure, analyze, improve, and control. Answer: Lean Six Sigma 4) ________ could result in workers from one company working to solve production issues for a company from which they purchase components. Answer: Lean supply chain management 5) Recent developments in Lean thinking have combined these principles with Six Sigma and with supply chain management. Pick either one of these programs and describe its elements. Then provide an example from current business news of an operation or supply chain that has embraced these principles. Answer: Examples will vary. Lean Six Sigma combines the organizational elements and tools of Six Sigma, with Lean's focus on waste reduction. As Paul Mullenhour and Jamie Flinchbaugh put it, "Lean encourages action along a broad front by empowering people at all levels to contribute. This allows organizations to welcome challenges and implement improvement initiatives... Six Sigma brings the discipline of define, measure, analyze, improve and control, as well as the rigor of statistical analysis, to identify a root cause, sustain improvement and provide the solid measurements that create a balanced scorecard." Some practitioners and researchers have moved beyond Lean production to what can be called Lean supply chain management. In a nutshell, Lean supply chain management seeks to minimize the level of resources required to carry out all supply chain activities. Lean principles are applied to eliminate waste in a firm's sourcing and logistics activities, as well as within the firm's internal operations. But it doesn't end there. The Lean philosophy is applied to all relevant flows – physical, informational, and monetary – and, where possible, to supply chain partners. This means that firms might need to work closely with key partners to eliminate waste within their operations.