Critique of Goldmine

Seven waste in Lean: 1) Overproduction, by producing ahead of what is needed. For example, production of meals that are not eaten or partially eaten. 2) Operators waiting, imposed by an in-efficient work sequence. For example, patients are in waiting rooms to be treated. 3) Excess transportation, which means the work flow is neither direct nor smooth. For examples, sending overstocked inventory back to a warehouse or an outlet store location. 4)Over processing parts more than they require. For examples, inputting the same data information in more than one place on a form or in a software application. 5)Unnecessary inventory, in excess of immediate needs. For examples, excess production of promotional materials. 6)Unnecessary operator motions, which don’t contribute to value. For examples, workers searching for raw materials, tools or equipment to assemble. 7)Defects, which create rework and more waste. For examples, the production of parts that don’t meet safety regulations.

The approach in operations management improvement that needs to be followed to reduce inventory/costs and at the same time improve the service level to the customer: The first thing is to think about delivery, make sure to deliver the order to customers at the due date. Reducing the inventory/ cost should be considered upon this rule. Secondly, a pacemaker called Take Time is needed in the entire factory based on .  Thirdly, eliminate defects in the process, which can be implemented by using Red Bins and Pareto charts, and then solve the quality and designing problems of products in the red bins. The production system should also be transferred from push to pull. And this just-in-time system requires to move parts around in small boxes all the time. What’s more, the implement of 5S and standard work is also important for the operations in the operations management improvement.[pic 1]

Standard work: Standard work establishes the most reliable methods and sequences for each process and each worker.

In the factory, it includes: 1) Takt time, which is the rate at which products must be made in a process to meet customer demand. 2)The precise work sequence in which an operator performs tasks within takt time. 3)The standard inventory, including units in machines, required to keep the process operating smoothly. Examples: 1) The STOP sign in traffic has the same shape and form even they have different languages in every different country, I can understand the sign in Mexico even I don’t know Spanish. 2) Sandwich made in Subway follows a standard process (bread, toppings, sauce and heating) based on customers’ needs. 3) When I got sick and went to hospital, I went through a standard procedure.