Lean Concepts
Lean Concepts
Lean Concepts
Lean Manufacturing Terms and Concepts
leanmanufacture.net is a web resource and blog style website where you can find out more about lean manufacturing, operations management and business strategy from concepts and theory to real life applications which will help you achieve your operations goals and objectives. The site is intended to be user friendly and a vast knowledge resource that explains and addresses fundamental issues to the success of any business to anyone from students to entrepreneurs, manufacturing engineers, managers consultants and anyone interested in this broad subject. I hope you enjoy the site.
Waste in any organization or process is referred to the misuse of resources, production not fit for sale or resources that tie up cash and inventory while providing little or no benefit to the organization or its customers. These resources could be better used elsewhere in the organization invested in value creating operations or opportunities. The aim of the lean enterprise should be about identifying and eliminating waste from their systems and operations, and extracting as much outputs as they can from minimal inputs. In lean manufacturing there are seven main classifications of waste, or the so called seven wastes. These are:
-Waiting: time in which people or goods are idle and are not adding value to the finished good or service. This could be due to bottlenecks or production downtime upstream from a sub process.
-Transport: unnecessary movement of materials or goods, this includes work in progress (WIP) from one part of the plant or process to another.
A supply chain is the set of raw materials, finish goods, and information systems that delivers finished goods in customer’s hands. Sometimes the supply chain is referred to the channel that companies used to reach their consumers or their distribution networks.
Supply chain management is usually an integral part of operations management and when run well as a pull system it can deliver a significant competitive advantage to businesses. It can be aided by an inventory management system.
The takt time, which is a German derived word meaning meter, is referred to the available work time per day or production shift to completely satisfy all customer order demands within a defined work period. It is obtained by dividing the available production time in a work day or shift by the required daily quantity of output. It defines the maximum available work time to complete all customer orders in time within a defined time period.
The takt time is useful for a producer to balance the rate of production to better meet customer demand. If the cycle time of each unit of output is less than or equal to its takt time then the time to produce the required units during each time period is sufficient to meet customer demand. If the cycle time is equal to the takt time, the production process is said to be at capacity. This does not include any plant downtime which can reduce total takt time.
An MRP or Materials requirement planning system is a production /purchasing planning system which decomposes finish goods into their different component parts and helps set a schedule as to when these need to be produced or purchased in order to fill a certain customer order of finish goods by a certain date.
Subscribe to our Newsletter
We are dedicated to helping people succeed. We feature founder stories, design articles and startup deep dives, hard life experience, advice, and creative thinking
