15.

Chapter 15

Lean synchronization

The Illustrated London News Picture Library

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.1
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Lean operations
15.2

Operations
strategy

Design Improvement

Planning
Lean operations and control
The market requires…
specified time, quantity and
quality of products and
services
The operation supplies…
the delivery of products
and services only when
needed

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.2
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Key operations questions
15.3

In Chapter 15 – Lean synchronization – Slack et al.

identify the following key questions:

•What is lean synchronization?

•How does lean synchronization eliminate waste?
•How does lean synchronization apply throughout the
supply network?
•How does lean synchronization compare with other
approaches?

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.3
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Lean operations
15.4

‘The key principle of lean operations is

relatively straightforward to understand, it means
moving towards the elimination of all waste in
order to develop an operation that is faster, more
dependable, produces higher quality products
and services and, above all, operates at low
cost’.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.4
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Lean operations (Continued)
15.5

Synonyms

Continuous flow manufacture

High value-added manufacture
Stockless production
Low-inventory production
Fast-throughput manufacturing
Lean manufacturing
Toyota production system
Short-cycle time manufacturing.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.5
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Lean operations (Continued)
15.6

JIT material flow

Traditional approach

Buffer Buffer
inventory inventory
Stage A Stage B Stage C

JIT approach
Orders Orders

Stage A Stage B Stage C

Deliveries Deliveries

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.6
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Lean operations (Continued)
15.7

Lean Focus on producing

approach only when needed
Traditional
approach
Focus on high-
capacity utilization Fewer stoppages
Lower-capacity
utilization, but Low inventory so
More stoppages
because of problems are
problems exposed and
More production solved
at each stage High inventory
means less chance No surplus
of problems being production goes
exposed and solved into inventory
Extra production
goes into inventory
because of continuing
stoppages at earlier
stages

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.7
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Lean operations (Continued)
15.8

The lean philosophy of operations

Eliminate waste Involve everyone Continuous
improvement

Lean as a set of techniques for managing

operations Lean as a method of
planning and control
Basic working practices TPM
Pull scheduling
Design for manufacture Set-up reduction
Kanban control
Operations focus Total people involvement
Levelled scheduling
Small, simple machines Visibility
Mixed modelling
Flow layout JIT supply
Synchronization

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.8
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
15.9 Inventories of materials. Information or customers have similar
characteristics

Inventory
Of material Of information Of customers
(queue of material) (queue of information) (queue of people)
Cost Ties up working capital Less current information and Wastes customers’ time
so worth less
Space Needs storage space Needs memory capacity Need waiting area
Quality Defects hidden, possible Defects hidden, possible Gives negative perception
damage data corruption
Decoupling Makes stages Makes stages independent Promotes job
independent specialization/
fragmentation

Utilization Stages kept busy by Stages kept busy by work in Servers kept busy by
work-in-progress data queues waiting customers
Coordination Avoids need for Avoids need for straight- Avoids having to match
synchronization through processing supply and demand

Source: Adapted from Fitzsimmons, J.A.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.9
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Waste
15.10

Activities that consume time, resources and space, but

do not contribute to satisfying customer needs.
•Over-production
•Waiting time
•Transport
•Process
•Inventory
•Motion
•Defectives.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
15.10
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Waste (Continued)
15.11

Over-production
• Make more than is required by the customer, or to
make it earlier than required.
–Taking multiple copies of the document which are not
required.

Waiting time
• Any delay between when one process step/activity ends
and the next step/activity begins.
– Waiting for a manager to approve an application.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.11
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Waste (Continued)
15.12

Underwriting
Transport
•Movement of work between
LPC
departments or offices that do not add to
IT Operations
the value of the product or service. 2
– Multiple approvals across different
departments. Operations
1
(Over) Processing
•Adding more value to a service or product than
customers want or will pay for.
–Capturing extra information from the customer which is
not used.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.12
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Waste (Continued)
15.13

Inventory
• More materials or information on hand than is currently
required.
– 100 applications waiting together for data entry.

Motion
•Needless movement of people.
•While ‘transportation’ refers to the movement of the
work, ‘motion’ involves movement of workers.
– Running to a printer on a different floor for a printout.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.13
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Waste (Continued)
15.14

Defects/Inspection
•Any aspect of the service that
does not conform to customer
needs.
–Incorrect customer details
captured in the system.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.14
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Some daily examples
15.15

Activity Waste Category

• Making extra copies, just in case • Over-production
• Document movement between departments • Transport
• Supervisory approval delays • Waiting
• Files waiting to be worked on • Inventory
• Multiple calls to the customer for same issue • Over-production
• Incorrect customer address • Defect
• Cupboard full of office supplies • Inventory
• Capturing additional fields in the system • Over-processing
• Running for photocopier to other floor on building • Motion
• Incorrect processing of salary • Defect
• Customer on hold • Waiting
• Forms moving different locations • Transport.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.15
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Lean operations – The 5Ss
15.16

• Sort (Seiri) – Eliminate what is not needed and keep what

is needed.
• Straighten (Seiton) – Position things in such a way that
they can be easily reached whenever they are needed.
• Shine (Seiso) – Keep things clean and tidy; no refuse or
dirt in the work area.
• Standardize (Seiketsu) – Maintain cleanliness and order –
perpetual neatness.
• Sustain (Shitsuke) – Develop a commitment and pride in
keeping to standards.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.16
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Sort (Seri)
15.17

• Eliminate all unnecessary items!!

• Unnecessary refers to those things that are not needed
for current work.

Keep only things that are required in doing the

job

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.17
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Straiten (Seiton)
15.18

• Arrange items so that they can be found quickly by

Anybody, Anywhere, Anytime. Items should be easy to
find, easy to use and easy to put away.
• Tools
– Colour Coding, Signboards, Labeling.

Keep things in Order

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.18
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Shine (Sieso)
15.19

• Everything is clean, neat, tidy and ready to use.

• Tools
– Five-Minute Shine
– Cleaning and Inspection checklists
– Checklist of activities needing maintenance

e.g. the ‘5-second stapler’ test!

A clean work place enhances health and productivity

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.19
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Standardize (Seiketsu)
15.20

• To prevent setbacks in the first 3 pillars (Sort, Set In Order

and Shine)
• Tools
– Best Practice documentation and sharing
– SOPs documented and posted
– Checklists & job cycle charts.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.20
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Sustain (Shitsuke)
15.21

• To make 5Ss a habit in the way we do our day-to-day

activities

• Tools
– 5-S contests
– Visual management boards showing 5-S audit
– Slogans
– Handbooks
– Poka Yoke!

Make 5 S a habit

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.21
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 ‘Value stream’ mapping
15.22

•‘Value stream’ mapping focuses on value-adding activities

and distinguishes between value-adding and non-value-
adding activities. It is similar to process mapping but
different in four ways:

– It uses a broader range of information than most process maps.

– It is usually at a higher level (5–10 activities) than most process
maps.
– It often has a wider scope, frequently spanning the whole
supply chain.
– It can be used to identify where to focus future improvement
activities.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
15.22
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Waste is a large part of most processes
15.23

Mapping the Value Stream – Example

High-level process steps for a loan application process
High-level process steps

Acquire Prepare Process Advise Disburse

the customer application application customer funds

Step-by-step activity analysis for value-add to our customer

Activities which add value to the customer: e.g. the credit decision

Activities which don’t add value to the customer but are required by regulation: e.g. KYC

Activities which neither add value nor are required by regulation: e.g. carrying files from one
desk to another

Actual value-add activity may only be 1 –10% of the total process time.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
15.23
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
15.24 Value Stream Map for an industrial air-conditioning installation
service
T/T = Task time
TTT = Total throughput time
VAT = Value-added time
C/T = Cycle time

Sales Operations
office planning Cash
Forecasts Invoice management
status

Job-tracking confirmations
Completion
confirmation

Survey Order Assemble Frame Install

Wait in Wait for Ship to Wait for

branch assembly branch and installers
wait
T/T = 0.5 T/T = 0.5 T/T = 5.0 T/T = 0.75 T/T = 0.75
Avail = 100% Avail = 100% Avail = 100% Avail = 100% Avail = 100%
C/T= 30 C/T= 10 C/T= 12.5 C/T= 17 C/T= 35

58 hrs. 96 hrs. 48 hrs. 48 hrs. TTT = 258 hrs

30 mins. 30 mins. 5 hrs. 60 mins. 60 mins. VAT = 8 hrs

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.24
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
15.25 Delivering smaller quantities more often can reduce
inventory levels

Inventory
levels

Inventory
levels

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.25
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Waste (muda)
15.26

Which of these symbols signify non-value-adding activities?

Activities Types of waste

Operation • Over-production

Movement •Waiting time

•Transport
Inspection •Process
•Inventory
Delay
•Motion
Storage •Defective goods
 Influencing the throughput efficiency

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.26
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 The problem with inventory
15.27

Reduce the level of

inventory (water) to
WIP reveal the
Productivity
Defective
materials
operations’ problems
problems
Scrap Rework
Downtime

WIP
Defective
materials
Productivity
problems Scrap Rework
Downtime

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.27
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Small machines
15.28

Conventional Western approach is to purchase large

machines to get ‘economies of scale’.

These often have long, complex set-ups, and make big

batches quickly creating ‘waste’.

Changeovers

Inventory
levels

Time

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.28
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Small machines (Continued)
15.29

Using several small machines rather than one large one

allows simultaneous processing, and is more robust and
more flexible.

Inventory
levels

Time

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.29
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Flow principle
15.30

• A process consists of 3 steps – A, B and C.

• It takes one minute to finish each step of the process (A, B and C).

Batch Flow (units processed in batches of 10)

• How much time will it take for 10 units to move through the process?

A B C
10 Minutes + 10 Minutes + 10 Minutes
= 30 Minutes
Slack, Chambers and Johnston, Operations Management, 6th Edition,
15.30
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Flow Principle (Continued)
15.31

• A process consists of 3 steps – A, B and C.

• It takes one minute to finish each step of the process (A, B and C).
Continuous Flow (unit processed individually, that is, process
one, move one)
• How much time will it take for 10 units to move through the process?

Note –
The tot
of w or k al a
required mount
comple t
te each o
has not ba
ch ange t ch
A B C
the thro d, but
ughp ut
e ach b a tim
tch is re e of
from 30 du
to 12 m ced
inutes 1 Minute + 1 Minute + 10 Minutes = 12 Minutes

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.31
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Single-piece flow
15.32

•Traffic lights – typical batch processing

– Flow of traffic in batches may cause uneven loads
of traffic – traffic may jam on one side while no vehicle
come from other directions.

• Roundabout – single-piece flow

– Traffic flows as soon as there is capacity in the
roundabout piece by piece.

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.32
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
15.33 Levelled scheduling equalizes the mix of products
made each day

Over an eight-day period, need to make 1200 of A

400 of B
400 of C

Scheduling in large batches, where batch size A = 600, B = 200, C = 200

250 A 250 A 100 A 50 B 250 A 250 A 100 A 50 B

150 B 200 C 150 B 200 C

600 A 200 B 600 200 B

200 C A 200 C

Every day, the schedule needs to be calculated. Each day can be

different
Slack, Chambers and Johnston, Operations Management, 6th Edition,
15.33
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
15.34 Levelled scheduling equalizes the mix of products
made each day (Continued)

Over an eight-day period, need to make 1200 of A

400 of B
400 of C
With levelled scheduling, where batch size A = 150, B = 50, C = 50

150 A 150 A 150 A 150 A 150 A 150 A 150 A 150 A

50 B 50 B 50 B 50 B 50 B 50 B 50 B 50 B

50 C 50 C 50 C 50 C 50 C 50 C 50 C 50 C

150 A 150 A 150 A 150 A 150 A 150 A 150 A 150 A

50 B 50 B 50 B 50 B 50 B 50 B 50 B 50 B
50 C 50 C 50 C 50 C 50 C 50 C 50 C 50 C

Every day is the same. Easy to notice if falling behind schedule

Slack, Chambers and Johnston, Operations Management, 6th Edition,
15.34
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
 Lean planning and control, or MRP, or both?
15.35

Complex
structures Project
management
MRP
Lean and/or
MRP

Lean
Simple
structures
Simple Complex
routings routings

Slack, Chambers and Johnston, Operations Management, 6th Edition,

15.35
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010