Lean Production for Competitive Advantage A Comprehensive Guide to Lean Methodologies and Management Practices, Second Edition

Lean Production for Competitive Advantage: A Comprehensive Guide to Lean Methodologies and Management Practices, Second Edition introduces Lean philosophy and illustrates the effective application of Lean tools with real-world case studies. From fundamental concepts to integrated planning and control in pull production and the supply chain, the text provides a complete introduction to Lean production. Coverage includes small batch production, setup reduction, pull production, preventive maintenance, standard work, as well as synchronizing and scheduling Lean operations. Detailing the key principles and practices of Lean production, the text also: Illustrates effective implementation techniques with case studies from a range of industries. Includes questions and completed problems in each chapter. Explains how to effectively partner with suppliers and employees to achieve productivity goals Designed for students who have a basic foundation in production and operations management, the text provides a thorough understanding of the principles of Lean. It also offers practical know-how for implementing a culture of continuous improvement on the shop floor and in the office, creating a heightened sense of responsibility in all stakeholders, and enhancing productivity and efficiency to improve the bottom line. In this second edition, the author addresses management’s role in Lean production. Early observers of Japanese methods focused on the shop floor to see amazing things unlike anything practiced elsewhere. And the thinking was, if the "methods" could be adopted by companies elsewhere, those companies would experience the success of the Japanese. What the early observers hadn’t considered were dramatic differences in the way those companies were managed, both daily and strategically. The "management side" of Lean production is addressed in two new chapters, one devoted to daily management, the other to strategy deployment. Additionally, there is a new chapter that addresses breakthrough improvement and an approach to achieving it called Production Preparation Process. Every chapter has been revised and expanded to better tell the story of Lean production—its history, applications, practices, and methods.

Foreword Preface Second Edition Acknowledgements 1 Race without a Finish Line Competitive Advantage: Better, Cheaper, Faster, More Agile Lean Production and Total Quality Management Lean Production and the Production Pipeline The Lean Difference Evolution of ManufacturingToyota Production System—Prototype for Lean ProductionTraining Within Industry America’s Fall from Manufacturing Grace The Imperative Organization of Book Notes Suggested Reading Questions Research Questions Section I. Continuous Improvement, Waste Elimination, Customer Focused Quality 2 Fundamentals of Continuous Improvement Continuous Improvement as Tactics and Strategy Finding and Implementing Improvements Consensus Building Summary Notes Suggested Reading Questions Problems 3 Value Added and Waste Elimination Value-Added Focus Sources of Waste Lean Principles The Meaning of Lean Production Summary Notes Suggested Reading Questions Problems 4 Customer-Focused Quality Quality Defined Total Quality Management Six Sigma Statistical Process Control Employee Involvement and Quality Ownership Implementing TQM TQM and Lean Production Summary Notes Suggested Reading Questions Section II. Elements of Lean Production 5 Small Lot Production Lot Size Basics Lot Size Reduction Facilitating Small Lot Sizes Continuous Improvement Summary Notes Questions Problems 6 Setup-Time Reduction Improve Setups? Why Bother? Setup-Reduction Methodology Minimum Setup Time Techniques for Setup Reduction Setup-Reduction Projects Setups Everywhere Summary Notes Suggested Reading Questions Problems 7 Maintaining and Improving Equipment Equipment Maintenance Equipment Effectiveness Preventive Maintenance Program Total Productive Maintenance Implementing TPM Summary Notes Suggested Reading Questions Problems 8 Pull Production Systems Production Control Systems Pull Systems and Push Systems How to Achieve Pull Production Continuous Improvement Practical Matters Summary Notes Suggested Reading Questions Problems 9 Focused Factories and Group Technology Ways of Doing Work Facilities Layout Group Technology Focused Factory Product-Quantity Analysis Establishing Product-Machine Groups Advantages and Disadvantages of Focused Factories Summary Notes Suggested Reading Questions Problems 10 Workcells and Cellular Manufacturing Workcell Concepts Workcell Applications Workcell Design Workcells Beyond Manufacturing Workers in Cells Equipment Issues Cell Automation Implementing Cellular Manufacturing Getting Started Summary Notes Suggested Reading Questions Problems 11 Standard Work Standard Work Takt Time Completion Time Per Unit Standard Operations Routine Standard Quantity WIP Standard Operations Sheet Standard Work and Continuous Improvement Conditions for Successful Standard Work Standard Work in the Service Sector Leader Standard Work Summary Notes Suggested Reading Questions Problems 12 Quality at the Source and Mistake-Proofing SPC Limitations 100% Inspection (Screening) Jidoka Source Inspection and Pokayoke Summary Notes Suggested Reading Questions Problems 13 Production Preparation Process, 3P Breakthrough Redesign Product Development Approaches 3P: Integrated Rapid-Learning 3P Events Phases of 3P Case in Point: Redesigning the Emergency Department 3P Necessary Conditions 3P Benefits Summary Notes Suggested Reading Questions Section III. Lean Production Planning, Control, and Supply Chains 14 Uniform Flow and Mixed-Model Scheduling Leveling Production Mixed-Model Production: Heijunka Production Planning and Scheduling in Different Circumstances Final Assembly Scheduling versus Master Production Scheduling Summary Notes Suggested Reading Questions Problems 15 Synchronizing and Balancing the Process Synchronization Bottleneck Scheduling Balancing Adapting to Schedule Changes Summary Notes Suggested Reading Questions Problems 16 Planning and Control in Pull Production The Whole Enchilada Centralized Planning and Control System Decentralized Planning and Control System Shop-Floor Control Adapting MRP-Based PPC Systems to Pull Production Summary Notes Suggested Reading Questions Problems 17 Lean Production in the Supply Chain Produce versus Buy Relying on Suppliers Supply Chain Management Customer–Supplier Relationships Partnership Relationships Supplier Selection Purchasing Lean in the Supply Chain Summary Appendix: Supplier Kanban Notes Suggested Reading Questions Problems Section IV. Lean Management System 18 Daily Management Sustaining Gains Lean Culture Lean Transformation = Management/Leadership Transformation Daily Management: Maintain Process Stability and Improvement Tiers of Standardized Reviews and Accountability Performance Measurement and PDCA Leader Standard Work Visual Management Daily Huddles Gemba Walks and Audits Daily Readiness Rapid Response and Escalation Continuous Improvement and New Standard Work Implementing Daily Management Summary Notes Suggested Reading Questions 19 Strategy Deployment Improvements Tied to Strategies; Strategies Tied to Vision Origins Common Practices and Themes Strategic Planning Preparation Develop a Future Vision Develop High-level Objectives and Strategies Develop Annual Plan for High-Level Strategies Deploy Strategies and Plans Implement Plans Review Progress Control Departments Strategy Deployment Calendar Top Management Initiation Benefits and Limitations Summary Notes Suggested Reading Questions Index About the Author

John Nicholas is professor of operations management at Loyola University Chicago where he teaches in the areas of production and operations management, healthcare management, project management, and global operations management. He first introduced a course on lean production at Loyola in 1990. As a management consultant he has conducted productivity improvement projects and training programs in process improvement, quality circles, project management, and teamwork. He is the author of numerous academic and technical trade publications and four books, including The Portal to Lean Production: Principles and Practices for Doing More with Less and Project Management for Business, Engineering and Technology: Principles and Practices. Prior to Loyola John held the positions of test engineer and team lead for Lockheed/Martin Corporation, senior business analyst at Bank of America, and research associate at Argonne National Laboratory. He has a BS in aerospace engineering and an MBA in operations research and management, both from the University of Illinois, and a PhD in industrial engineering and applied science from Northwestern University.