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    Chap 011

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    Satyajeet Chauhan
    Just-in-time (jit) can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) it also involves the elimination of waste in production effort JIT also involves the timing of production resources (i.e., parts arrive at the next workstation 3just in time') Lean Management is a philosophy of operations management that seeks to eliminate waste in all aspects of a firmPs production activities.

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    Chap 011

    Uploaded by

    Satyajeet Chauhan
    64 views33 pages
    Just-in-time (jit) can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) it also involves the elimination of waste in production effort JIT also involves the timing of production resources (i.e., parts arrive at the next workstation 3just in time') Lean Management is a philosophy of operations management that seeks to eliminate waste in all aspects of a firmPs production activities.

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    Just-in-time (jit) can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) it also involves the elimination of waste in production effort JIT also involves the timing of production resources (i.e., parts arrive at the next workstation 3just in time') Lean Management is a philosophy of operations management that seeks to eliminate waste in all aspects of a firmPs production activities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    64 views33 pages

    Chap 011

    Uploaded by

    Satyajeet Chauhan
    Just-in-time (jit) can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) it also involves the elimination of waste in production effort JIT also involves the timing of production resources (i.e., parts arrive at the next workstation 3just in time') Lean Management is a philosophy of operations management that seeks to eliminate waste in all aspects of a firmPs production activities.

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    of 33

    1

    The McGraw-Hill Companies, Inc., 2004

    Chapter 11
    Just-in-Time and Lean Systems

    The McGraw-Hill Companies, Inc., 2004

    OBJECTIVES
    JIT Defined The Toyota Production System JIT Implementation Requirements JIT in Services

    The McGraw-Hill Companies, Inc., 2004

    Just-In-Time (JIT) Defined


    JIT can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) JIT also involves the elimination of waste in production effort JIT also involves the timing of production resources (i.e., parts arrive at the next workstation just in time)
    The McGraw-Hill Companies, Inc., 2004

    JIT and Lean Management


    JIT can be divided into two terms: Big JIT and Little JIT Big JIT (also called Lean Management) is a philosophy of operations management that seeks to eliminate waste in all aspects of a firms production activities: human relations, vendor relations, technology, and the management of materials and inventory Little JIT focuses more narrowly on scheduling goods inventory and providing service resources where and when needed
    The McGraw-Hill Companies, Inc., 2004

    Here the customer starts the process, pulling an inventory item from Final Assembly Then subassembly work is pulled forward by that demand
    Customers

    JIT Demand-Pull Logic

    Fab Sub Fab

    Vendor

    Vendor

    Final Assembly
    Sub Fab Vendor

    The process continues throughout the entire production process and supply chain

    Fab

    Vendor

    The McGraw-Hill Companies, Inc., 2004

    The Toyota Production System


    Based on two philosophies: 1. Elimination of waste 2. Respect for people

    The McGraw-Hill Companies, Inc., 2004

    Waste in Operations
    1. Waste from overproduction 2. Waste of waiting time 3. Transportation waste 4. Inventory waste 5. Processing waste 6. Waste of motion 7. Waste from product defects
    The McGraw-Hill Companies, Inc., 2004

    Minimizing Waste: Focused Factory Networks

    These are small specialized plants that limit the range of products produced (sometimes only one type of product for an entire facility) Some plants in Japan have as few as 30 and as many as 1000 employees

    Coordination System Integration

    The McGraw-Hill Companies, Inc., 2004

    10

    Minimizing Waste: Group Technology (Part 1)


    Note how the flow lines are going back and forth
    Using Departmental Specialization for plant layout can cause a lot of unnecessary material movement
    Saw Saw Saw Grinder Grinder

    Heat Treat

    Lathe

    Lathe

    Lathe

    Press

    Press

    Press

    The McGraw-Hill Companies, Inc., 2004

    11

    Minimizing Waste: Group Technology (Part 2)


    Revising by using Group Technology Cells can reduce movement and improve product flow

    Grinder Saw Lathe

    Lathe

    Press

    Heat Treat

    Grinder Saw Lathe

    Lathe

    Press

    The McGraw-Hill Companies, Inc., 2004

    12

    Minimizing Waste: Uniform Plant Loading (heijunka)


    Suppose we operate a production plant that produces a single product. The schedule of production for this product could be accomplished using either of the two plant loading schedules below.

    Not uniform

    Jan. Units 1,200

    Feb. Units 3,500 or

    Mar. Units 4,300

    Total 9,000

    Uniform

    Jan. Units 3,000

    Feb. Units 3,000

    Mar. Units 3,000

    Total 9,000

    How does the uniform loading help save labor costs?


    The McGraw-Hill Companies, Inc., 2004

    13

    Minimizing Waste: Just-In-Time Production


    WHAT IT IS Management philosophy Pull system though the plant WHAT IT DOES Attacks waste
    Exposes problems and bottlenecks Achieves streamlined production

    WHAT IT REQUIRES

    WHAT IT ASSUMES

    Employee participation
    Industrial engineering/basics Continuing improvement Total quality control Small lot sizes

    Stable environment

    The McGraw-Hill Companies, Inc., 2004

    14

    Minimizing Waste: Inventory Hides Problems


    Machine downtime Scrap Work in process queues (banks) Vendor delinquencies Change orders Design backlogs

    Example: By identifying defective items from a vendor early in the production process the downstream work is saved

    Engineering design redundancies

    Paperwork backlog

    Inspection backlogs

    Decision backlogs

    Example: By identifying defective work by employees upstream, the downstream work is saved
    The McGraw-Hill Companies, Inc., 2004

    15

    Minimizing Waste: Kanban Production Control Systems This puts the


    Once the Production kanban is received, the Machine Center produces a unit to replace the one taken by the Assembly Line people in the first place

    Withdrawal kanban

    system back were it was before the item was pulled

    Machine Center

    Storage Part A

    Storage Part A

    Assembly Line

    Production kanban
    The process begins by the Assembly Line people pulling Part A from Storage

    Material Flow Card (signal) Flow


    The McGraw-Hill Companies, Inc., 2004

    16

    Determining the Number of Kanbans Needed


    Setting up a kanban system requires determining the number of kanbans cards (or containers) needed Each container represents the minimum production lot size An accurate estimate of the lead time required to produce a container is key to determining how many kanbans are required
    The McGraw-Hill Companies, Inc., 2004

    17

    The Number of Kanban Card Sets


    xpected demand during lead time  a ety stock k! ize o the container DL (1  S ) ! C
    k = Number of kanban card sets (a set is a card) D = Average number of units demanded over some time period L = lead time to replenish an order (same units of time as demand) S = Safety stock expressed as a percentage of demand during leadtime C = Container size
    The McGraw-Hill Companies, Inc., 2004

    18

    Example of Kanban Card Determination: Problem Data


    A switch assembly is assembled in batches of 4 units from an upstream assembly area and delivered in a special container to a downstream control-panel assembly operation The control-panel assembly area requires 5 switch assemblies per hour The switch assembly area can produce a container of switch assemblies in 2 hours Safety stock has been set at 10% of needed inventory
    The McGraw-Hill Companies, Inc., 2004

    19

    Example of Kanban Card Determination: Calculations


    Expected demand during lead time Safety stock k ! Size of the container

    (1 S ) 5(2)(1.1) ! ! 2.75, or 3 C 4


    Always round up!
    The McGraw-Hill Companies, Inc., 2004

    20

    Respect for People


    Level payrolls Cooperative employee unions Subcontractor networks Bottom-round management style Quality circles (Small Group Involvement Activities or SGIAs)
    The McGraw-Hill Companies, Inc., 2004

    21

    Toyota Production Systems Four Rules


    1. All work shall be highly specified as to content, sequence, timing, and outcome 2. Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses 3. The pathway for every product and service must be simple and direct 4. Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization
    The McGraw-Hill Companies, Inc., 2004

    22

    JIT Implementation Requirements: Design Flow Process


    Link operations Balance workstation capacities Redesign layout for flow Emphasize preventive maintenance Reduce lot sizes Reduce setup/changeover time
    The McGraw-Hill Companies, Inc., 2004

    23

    JIT Implementation Requirements: Total Quality Control


    Worker responsibility Measure SQC Enforce compliance Fail-safe methods Automatic inspection
    The McGraw-Hill Companies, Inc., 2004

    24

    JIT Implementation Requirements: Stabilize Schedule


    Level schedule

    Underutilize capacity

    Establish freeze windows


    The McGraw-Hill Companies, Inc., 2004

    25

    JIT Implementation Requirements: Kanban-Pull


    Demand pull

    Backflush

    Reduce lot sizes


    The McGraw-Hill Companies, Inc., 2004

    26

    JIT Implementation Requirements: Work with Vendors


    Reduce lead times Frequent deliveries Project usage requirements Quality expectations
    The McGraw-Hill Companies, Inc., 2004

    27

    JIT Implementation Requirements: Reduce Inventory More


    Look for other areas Stores Transit Carousels Conveyors
    The McGraw-Hill Companies, Inc., 2004

    28

    JIT Implementation Requirements: Improve Product Design


    Standard product configuration Standardize and reduce number of parts Process design with product design Quality expectations
    The McGraw-Hill Companies, Inc., 2004

    29

    JIT Implementation Requirements: Concurrently Solve Problems


    Root cause Solve permanently Team approach Line and specialist responsibility Continual education
    The McGraw-Hill Companies, Inc., 2004

    30

    JIT Implementation Requirements: Measure Performance

    Emphasize improvement Track trends

    The McGraw-Hill Companies, Inc., 2004

    31

    JIT in Services (Examples)


    Organize Problem-Solving Groups Upgrade Housekeeping Upgrade Quality Clarify Process Flows Revise Equipment and Process Technologies

    The McGraw-Hill Companies, Inc., 2004

    32

    JIT in Services (Examples)


    Level the Facility Load Eliminate Unnecessary Activities Reorganize Physical Configuration Introduce Demand-Pull Scheduling Develop Supplier Networks
    The McGraw-Hill Companies, Inc., 2004

    33

    End of Chapter 11

    The McGraw-Hill Companies, Inc., 2004

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