2nd Edition

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

By John Nicholas Copyright 2018
    612 Pages
    by Productivity Press

    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

    Biography

    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.

    "In the outpouring of writings on Lean production, the single work that tells it all and tells it well is this book by John Nicholas."

    -- Richard J. Schonberger, author of Japanese Manufacturing Techniques; World Class Manufacturing; World Class Manufacturing Casebook; Building a Chain of Customers; and Best Practices in Lean Six Sigma Process Improvement.