Q1 (a) Lean principles in strategic planning
Maximization of information, material, and cash flow
The uses of lean principles seek to maximize organization’s flow of information, materials and money. The design of lean production process aims at maximizing product flow through value stream principle, which is induced by the customer demand pull. A streamlined flow necessitates the need to partner with suppliers and customers, setup time limitations, single-piece flow of production, pull system of production and an objective of perfection. Similarly, lean processes of administration are designed to maximize cash and information flow using the similar lean flow tool like pull processes, perfection goals and setup reductions (Hines, Matthias, & Nick p. 994-1011).
Waste reduction and efficient operations
Wastes normally cost both the company and consumers money. Therefore, customers will not continue tolerating more payments due to wastes. In fact, they shall run to competitor firms. Lean manufacturing theory helps in simplifying and organizing working environments to aid waste reduction and maintain employees, equipment and workstation responsive to the needs of the organization. The lean concept helps in relating inventory, customers and production to whatever is being processed such as documents, data, service, knowledge among others (Hines et al p. 994-1011). Therefore, lean principles will find efficient approaches and remove wasteful steps which add no value to the final product.
Reduced lead-times for production
Lean approach offers priority to small, continuous and simplified improvements (Hines et al p. 994-1011). A classical example could be changing the arrangement or placement of an equipment, or laying two or more workstations close to each other. Addition of these small improvements together leads to higher efficiency levels throughout the entire system.
Lowered work-in-process stock or inventory
Q1 (b) Application of Lean Principles in a Processing Industry (an example using a textile processing company)
The above discussed points can be applied in a process industry to attack wastes within the plant or production process. Lean principles can be employed in eliminating process manufacturing wastes occurring from the following process orientations; poor equipment conditions, sub-optional operations, the design and technology, and availability arising from setup and changeover time ("Applying Lean Principles in Process Industries").
Poor equipment condition- It refers to tools and machines which have not been accorded standard or proper maintenance. Pieces of machinery in poor mechanical states have poor availability, generate poor-quality items in insufficient quantities and work inefficiently. To summarize this element, they operate in wasteful manners. Maintenance of kaizen event offers proper process-improvement approach to restore machines to their optimum conditions.
Sub-optional operation- it is often the second major source of waste. Process manufacturing typically involves the combination of parameter with physical measurements. They can include combinations of pressure, temperature, flow rate, density, chemical concentration and moisture level which are set for material processing at the machine. In case these settings become sub-optional, meaning the processing is sub-optional in terms of quality, efficiency and throughput ("Applying Lean Principles in Process Industries").
Design and technology- Obsolete equipments, both in design and technology can operate in wasteful manner in relation to quality, availability, efficiency and throughput just like equipment which have been poorly maintained.
Availability- it is normally affected by long setup durations and product changeovers after referring processes for maintenance. In such instances, quick changeover approaches exhibited by lean principles like Single-Minute Exchange of Die-SMED ("Applying Lean Principles in Process Industries") can be used in reducing setup durations thus improving availability.
Work Cited
Hines, Peter, Matthias Holweg, and Nick Rich. "Learning to evolve: a review of contemporary lean thinking." International journal of operations & production management 24.10 (2004): 994-1011.
"Applying Lean Principles in Process Industries." Applying Lean Principles in Process Industries. Web. 19 Mar. 2016. <http://www.reliableplant.com/Read/13156/lean-principles-process-industries>.
Q2 (a) The main operating expenses in major universities like CSUN might include;
Direct instruction
Self-supporting/auxiliary operations
Research and public service
Physical plant operation and maintenance
Scholarships and fellowships
General administration
Academic support
Q2 (b) Process Map for Physical plant operation and maintenance (example using water pumps and valves) - the steps are discussed below;
Step 1-Supply of physical plant components such as water pumps, valves by the manufacturer or supplier to the institution. This is a basic process, which can be considered value-adding to the institution.
Step 2-Storage of these physical plant elements-This process is non-value adding since it unnecessarily occupies space. The installation should be done as soon as the product is received from the supplier/manufacturer to avoid delays and time wastages.
Step 3-Installation process of the physical plant elements. This step is necessary and is considered value-added.
Step 4-Operating process for the plant elements to aid water distribution within the institution. The costs associated with this process are basic and considered value-adding since this process enables university residents to have access to water.
Step 5-Maintenance of the plant elements to ensure that they are in proper mechanical conditions. The costs associated with this process are basic and considered value-adding since this process keeps these products to be productive in their useful states.
Step 6-Attempts to maintaining obsolete parts of the physical plant elements. This step is non-value adding. This is a waste of time and resources. Instead of trying to re-fixing machine elements whose design and technology are already non-operational, new machines should be sourced to ensure availability and efficient performance.
Q2 (c) Eliminating non-value adding and unnecessary steps would require careful look for the following operational aspects;
Automation opportunities- the availability and possibility for opportunities to introduce automation would offer the chance to eliminate non-value added processes (Parida & Uday p. 239-251).
Material handling- transportation complexities invite the need for eliminating unnecessary steps and non-value added means of transportation or process flow (Parida & Uday p. 239-251).
Duplication and redundancy- Steps that render previous steps redundant or those that duplicate the previously achieved operation would then be eliminated from the flow process to efficiency.
Delays- all the steps that majorly contribute to the overall process delay warrant restructuring or elimination, otherwise they would not only lead to waste but also increased lead-times.
Rework loops- In the entire process, steps that have similar operational cycles should be either joined together or combined to produce a single outcome (Parida & Uday p. 239-251).
Restructured Process Map
Therefore, a keen look at elements such as automation opportunities, material handling techniques, duplication and redundant approaches, delays, and rework loops gives a complete process overview to enable incorporation of better approaches that reduce wastes and improve efficiency as shown above.
Work Cited
Parida, Aditya, and Uday Kumar. "Maintenance performance measurement (MPM): issues and challenges." Journal of Quality in Maintenance Engineering 12.3 (2006): 239-251.
