Chap 3.10: Lean Management

Front

Define LEAN MANAGEMENT

Back

Lean management is the process of systematically reducing waste in all areas of a business’s operations system while improving customer value.

Lean management has 4 principles: pull, one-piece flow, takt, and zero defects.

Front

The acronym TIMWOOD helps remember the types of waste in lean management.

Back

TIMWOOD stands for Transportation, Inventory, Motion, Waiting time, Overprocessing, Overproduction, and Defects.

Front

Benefits of LEAN MANAGEMENT

Back

-Reducing waste in lean management can lead to cost savings and improved customer satisfaction.

- By reducing waste, businesses can lower production costs, offer lower-priced products, and improve customer satisfaction.

Front

Describe PULL principle in Lean Management

Back

Demand drives production. Business only produces outputs when there is customer’s order. Instead of producing a lot in advance and hoping customers buy it, business only produce outputs when there is actual demand. This avoids overproduction and storage costs.

Front

Example of PULL Strategy

Back

A bakery only produces a birthday cake when it receives a customer order, preventing waste and optimizing efficiency.

Front

Opposite of PULL Strategy

Back

Mass production without regard to customer demand, leading to potential waste and inefficiency.

Front

Illustration of a bakery using the pull strategy

Back

A bakery that implements the pull strategy only bakes birthday cakes when there is a customer order.

Front

Describe ONE PIECE FLOW principle in Lean Management

Back

This is where the business will focus on working on one unit at a time, and move it through next step without delays or pile-ups. Focusing on 1 piece at a time reduces the lead and waiting times during production. It also increases quality because doing one unit at a time allow mistakes to be spotted early, and be rectified quickly.

Front

Example of ONE-PIECE FLOW in a bakery.

Back

Mixing, icing, and decorating one cake at a time, allowing for quicker delivery to customers.

Front

Opposite of ONE-PIECE FLOW

Back

Involves completing a large number of products at one stage before moving to the next, such as baking several batches of cakes at once.