BU385 Lecture Notes - Lecture 14: Toyota Production System, Performance Metric, Takt Time
BU-375 Lecture 14
Lean Production
• Emphasize the elimination of waste and continuous improvement of operations
• Just-in-Time
o Derived from the Toyota Production System and evolved into Lean Production
o Minimize inventory, smooth the flow of material so it arrives just as it is needed
• JIT and Lean Production are used interchangeably
JIT
• JIT is a pull system
• Production at a given level happens only when initiated by a request at its downstream level.
That is, units are pulled through the system by request
• Demand-driven and small lot sizes
5 Principles of Lean Production
• Customer defines Value
• Eliminate Waste
• Customer established pull
• Involve and Empower people who add value
• Total cost is the ultimate performance metric
Waste in Operations
• A.K.A. Muda
• Muda
o Anything which adds no value to the product or service
How to Eliminate Waste
• Increase Flexibility
o Flexible Resources
