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OM CHAPTER 17: LEAN OPERATING SYSTEM

(FINALS)

Lean thinking
Refers to the approaches that focus on the elimination if waste in all forms and smooth,
efficient flow of materials and information throughtout the value chain to obtaim faster
customer response, higher quality and lower costs; playing a large role in sustainability efforts
Lean operating system
Manufacturing and service operations that apply the principles of lean enterprise
Eliminate waste
Any activity, material or operation that does not add value in an organization is considered
waste
Overproduction
Ties up production facilities and the resulting excess inventory simply sits idle
Waiting time
Allowing queues to build up between operations
Transportation
Time and effort spent in moving products around the factory as a result of poor layout
Processing
Traditional notion of waste, as exemplified by scrap that often results from poor product or
process design
Inventory
Waste associated with the expense of idle stock and extra storage and handling requirements
needed to maintain it
Motion
Result of inefficient workplace design and location of tools and materials
Production defects
Result of not performing work correctly the first time
Seiri
Sort
Seiton
Set in order
Seiso
Shine
Seiketsu
Standardize
Shitsuke
Sustain
Sort
Ensuring that each item in a workplace is in its proper place
Set in order
Arrange in materials and equipment so that they are easy to fund and use
Shine
Clean work area
Standardize
Formalize procedures and practice
Sustain
Keep the process going through training, communication and organizational structures
Visual controls
Indicators for operating activities that are placed in plain sight of all employees so that
everyone can quickly and easily understand the status and performance of the work system
Andon
Visual signaling systems; drawing from the Japanese term from which the concept first
originated
Single Minute Exchange of Dies (SMED)
Refers to the quick setup or changeover of tooling and fixtures in processes so that multiple
products in smaller batches can be run on the same equipment.
Batching
Process of producing large quantities of items as a group before they are transferred to the
next operation; often necessary when producing a broad goods or service mix with diverse
requirements on common equipment
Single-piece flow
The concept of ideally using batch sizes of one
Total Productive Maintenance (TPM)
Focused on ensuring that operating systems will perform their intended function reliably
Six Sigma
Useful and complementary approach to lean production; less visible in processes; focused in
effectiveness; advance training and expertise of specialist
Lean Production
Addresses visible problems in processes; focused on efficiency; more intuitive and easier to
apply
Push system
Produces finished goods inventory in advance of customer demand using a forecast of sales
Pull system
Employees at a given operation go to the source of required parts such as machinery or
subassembly and withdraw the units as they need them
Kanban
Japanese word meaning visual record or card; a flag or piece of paper that contains all relevant
information for an order: part number, description, process area used, time of delivery,
quantity available, quantity delivered, production quantity and so on