Applying Lean Principles To Production S
Applying Lean Principles To Production S
Applying Lean Principles To Production S
Mustafa Ramzi Salman1*, Roman van der Krogt2, James Little2 and John Geraghty1
1 2
Enterprise Process Research Centre, Cork Constraint Computation Centre,
Mechanical and Manufacturing Engineering Department of Computer Science,
Dublin City University, Dublin, Ireland University College Cork, Cork, Ireland
ABSTRACT
When exploring the Lean issue, literature appears to have countless definitions to describe that individual topic,
causing misinterpretations between academics and professionals alike. The mainstream Lean implementation
ventures are merely a compilation of tools and methods that are forced down the organisational hierarchy from
higher tiers, due to other organisations publicising lean in improving their enterprise‟s effectiveness and
efficiency. However, lean implementations have often undesirable outcomes. Firstly, organisations either do not
achieve the levels of success they initially yearned. This leads to management either deserting their lean efforts
or seeking aimlessly for a new buzz word to adopt. Secondly, an enterprise may find it difficult to sustain the lean
improvements, and thus rushing to conclude lean as incompatible with their industry, or unsuited for their
organisational structure. These shortcomings can be easily avoided by recognising lean not only as a collection
of tools but also a philosophy. The Lean philosophy needs to be applied companywide, with both management
and employees onboard, to tackle business issues as they arise with a united way of thinking. In turn, this means
that when opportunities or problems occur, and traditional lean tools fail short, the shared way of thinking by
the organisation can be used to derive and develop new tailored solutions to address the issue directly. This
paper aims to illustrate the possibilities of lean tools being applied in complex production environment, and
introduce two case studies supporting the findings. In particular, we argue that the full potential of planning and
scheduling in a manufacturing setting can only benefit from the utilisation of lean principles and the support of
quantitative modelling.
1. INTRODUCTION
While there are many methodologies to increase the efficiency of production operations, it is often the case that
there is a need to apply a combination of tools to achieve the desired objectives. It is with that in mind that this paper
intends to enlighten the merits of applying lean principles to production scheduling.
The argument presented here consists of two parts; firstly, it is concerned with the adoption of Lean in an
appropriate manner and not attempting to imitate other organisations or tracing their footsteps, as this has shown to
be a common explanation for companies failing to realise or achieve Lean success. Secondly, Lean can venture
beyond its automobile origin, known to be Toyota in Japan, to benefit other industries and market sectors. Here the
concept of applying Lean to production scheduling is investigated in more detail. Lean tools that can be adapted to
scheduling are explained and analysed to help highlight the agenda. This is further emphasised by presenting two
case studies, where Lean tools and techniques are implemented to enhance the scheduling effectiveness. The first
case study shows the impact „leaning‟ (particularly, buffer reduction) has on the scheduling process and how
quantitative modelling can be used to examine this. The second case study investigates the support of day-to-day
operations in a Lean-centric cellular manufacturing environment.
The remainder of the text is structured as follows. The next section briefly summarises the Lean philosophy,
followed in Section 3 by a review of scheduling, accompanied by Lean-tools of interest to scheduling. Then, in
Section 4, the two case studies are presented. The paper closes with a discussion and conclusion.
The term Lean was first used by Krafick [1] in 1988, a principle researcher in the International Motor Vehicle
Program (IMVP) at Massachusetts Institute of Technology (MIT), to describe what today is known as the Lean
Manufacturing or Lean Production paradigm [2]. A major output of the IMVP research efforts was the publication of
the book „The Machine that Changed the World: The story of lean production‟ [3]. This book documented the
evolution of the automotive industry from Craft Production, through Mass Production to ultimately Lean Production.
The book argues that the Lean paradigm follows in the footsteps of its peers, but only by combining their advantages,
while trying to evade the high costs of craft producers, and the rigidity of mass producers. Lean is a philosophy that
seeks to improve activities by exposing and eliminating all types of waste from the system, may it be a value stream,
a manufacturing process, or even a routine job. It makes use of its tools to strive for zero inventories, zero
downtimes, zero defects, and zero delays in the production process. Waste can be described as the opposite side of
value on a Lean coin. Value is all the aspects of a product that a customer is willing to spend his/her money on [4].
Lean emphasises the need for an organisation to develop a culture of continuous improvement in quality, cost,
delivery and design [5]. Lean has been described as a quest for “brilliant process management” [6]. Lean asks an
organisation to consider all activities as a series of processes that can be optimised and aligned to continuous
improvement programmes.
3. SCHEDULING
Production scheduling is a critical activity in manufacturing. It concerns the distribution of scarce resources,
usually machines, to tasks over time [18]. Scheduling is defined as a decision making query that entails optimisation
of one or more scheduling conditions. Due to it combinatorial nature, scheduling problems are computationally very
intricate and complicated to solve. Therefore, it is not always possible to find the best possible solution in a
reasonable time frame. Assortments of heuristic methods have been developed in order to find near-optimal solutions
in comparatively short periods of time. However, often heuristics applied in practice are dispatching rules that have
minimal computational complexity and are simple to implement [19]. Production scheduling is important to
manufacturing organisations for a number of reasons. J Younger a pioneering author in the field of scheduling had
the following view on the matter:
“Well-organized and carefully executed work routing, scheduling and dispatching are necessary to bring
production through in the required quantity, of the required quality, at the required time, and at the most
reasonable cost.” [20]
Cost objectives, quality targets, delivery concerns, and quantity goals are the key elements and evident reasons why
scheduling is performed by organisations. It also provides the basic background for the formulation of mathematical
structures and computer systems architectures that simulate and generate schedules.
In most situations a production schedule will never be executed precisely. Disruptions are a certainty and
modifications are inevitable to allow execution, and perhaps facilitate improvements in dealing with the situation
encountered. This process of altering the original schedule to handle disruption from uncertain varying factors is
generally referred to as rescheduling or reactive scheduling. Manufacturing operations can encounter a wide range of
uncertainties. Therefore, the objectives of scheduling are to accommodate and anticipate these uncertainties before
they occur or have a recipe to counteract them [21]. Different sources of uncertainty are inherent in real life
production scenarios. The interruption that has been most often dealt with in the literature is machine breakdown.
Scheduling research has so far been unable to properly address the general issue of uncertainty, making the impact of
scheduling research less influential on industrial practice [21]. However, uncertainty is not the only dimension in
scheduling, and research efforts need to be redirected to look at different aspects that effect scheduling.
4. CASE STUDIES
To illustrate the benefit, if not the need, in introducing customised Lean tools to assist scheduling in complex
production environments, two case studies are reviewed in this section. The case studies provide insights on the
benefits of using analytical models to support scheduling in an integrated push-pull environment and in a cellular
manufacturing environment, respectively.
The Lean manufacturing toolbox has been standardised to its pure elements, and will at all times require
adjustment and customisation to the individual organisation. The tools themselves are not that complicated to use,
the difficulty resides at choosing the right tools for the situation being dealt with. Implementing Lean should not be
managed as a project, but rather a new way of conducting business. The first improvements will usually be soon
visible, but companies should not have high expectations for the first months. Lean takes time and demands
resources to become a success. This is not referring to high capital investment, but when attempting to change the
whole organisation‟s way of working, this will take time.
Scheduling and planning are important for an enterprise to foresee and be able to control or adapt for its future.
Anticipating what may take place, allows management to modify or adjust their actions in order to control the
outcomes. There are many commercially available tools for use in the scheduling effort. Some are quite generic, but
others concentrate on a specific business model. However, most of them share some fundamental similarities that
include cost and resource utilisation as primary targets. This involves the delivery of orders to customers in the
shortest feasible time span and at a price margin that is accepted by both manufacturer and consumer. Scheduling
operations in a Lean environment, therefore, plays two important roles. Firstly, it has a role in developing improved
strategies for dealing with chaotic uncertain demand. The aim is to reduce variability by using Kanban supermarkets,
finish-to-order or make-to-order strategies in order to dampen the impact of fluctuating orders received at the plant.
The second role of scheduling in a Lean environment is the levelling of the schedule, in order to allow the plant to
balance production to a constant beat (Takt time) and not overstress or underutilise the facility and resources
available.
Scheduling can greatly benefit from the addition of lean principles; this was demonstrated in both case studies
presented in Section 4. The use of quantitative modelling added the advantage of allowing the user to forecast the
outcomes of such implementations and helped in supporting the decision making process. Thus, it is a significant
addition to the lean toolset as it allows predicting the outcomes of strategic decisions and aids the rescheduling
process in the event of any interruptions. The application of quantitative modelling techniques to support decision
making in lean environments, in particular with respect to scheduling, provides the possibility to employ statistical
analysis to a much greater advantage than demonstrated in the above case studies. It allows the decision makers to
account for uncertainties, more significantly, multiple uncertainties simultaneously. This is done by allowing
decision makers and users to tease out relationships and variables that might have been masked by other factors. The
systematic nature of statistics can ease efforts at replication and extension; however, there are also disadvantages. It
could encourage engineers to act as if they can ignore whatever they have yet to learn how to measure, which can
lead to rouge conclusions and impair the research target.
The important point to note is that Lean should be seen as a direction, rather than as a status to be achieved after
a certain time period. Therefore, the focus should lie on what the organisation seeks to achieve, and not what each
Lean tool can achieve for them. It should also be noted that not all the tools, in the Lean toolbox, are adaptable to
any situation. There could be instances where conflicting signals are sent. Thus, with this in mind, the application of
such tools as quantitative modelling should be in a supportive role for practitioners to ensure that they are not
diverging from their initial goals.
ACKNOWLEDGEMENTS
This research is part funded by the Embark Initiative from the Irish Research Council for Science, Engineering
and Technology (IRCSET), the National Development Plan (Grant Reference Number: RS/INTEL2/07), and the
Science Foundation Ireland (SFI; Grant Reference Number 08/RFP/CMS1711).
The case studies have received support from SFI (Grant Reference Numbers 00/PI.1/CO75, 03/CE3/I405 (Centre
for Telecommunications Value-Chain-Driven Research) and 05/IN/I886), and Enterprise Ireland (Grant Reference
Number IP/2003/160).
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