After watching the video of Versatile Buildings I saw the benefits of a lean environment especially in the pull system. Versatile Buildings is a company that specializes in building custom garages, houses, farm buildings, and storage sheds. The raw materials used for these specialized buildings are mostly timber and steel. Versatile Buildings used to have a lot of inventory, tangled product flow and long manufacturing lead times. However this was before they converted to a lean environment and improved the efficiency of their operations.
In the video they started off by showing a skit of a push system. This system was very inefficient and had design flaws in the overall production assembly. In the push system operators were constantly moving the product through their ...view middle of the document...
It’s referred to as a pull system because you’re waiting for the operator in front of you to pull the part into their operation before you continue with a new part. In this system each operator is responsible for their own output. When the fault was introduced the mistake was quickly seen by the operator who made the mistake. With this system there was no scrapped parts because the operator who saw the fault fixed it before parts moved along.
There are multiple reasons as to why the lean system should be used. The first is the fact that it is more efficient. In the 1st skit the cycle time to complete the product was 2 minutes and 28 seconds. In the 2nd skit, with the pull system, the cycle time was 1 minute and 3 seconds. The lean environment also gives more time for operators to complete other tasks. Since the production is shortened, operators now have time to produce more parts, train in other operations etc. Overall the lean system is more efficient and can save a company a lot in their operating costs. I think Lean would also benefit a service based company. Some of the benefits that a service based company would receive from a lean system are small lot sizes, quality at the source, identifying and dealing with bottlenecks and close supplier ties. The main difference between service based industries and manufacturing plants is stable schedules. In a service based company it’s hard to predict your exact outflow because it relies on customer inflow. A solution to this is having standard components that still give customers a wide range of variety. Although lean systems are better for a manufacturing plant, a service based company can still benefit from them.