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Chapter 11 Just-in-Time and Lean Systems MANAGEMENT 520 CHAPTER 11  JUST IN TIME  AND LEAN SYSTEMS
[object Object],[object Object],[object Object],[object Object],LESSON OBJECTIVES
Just-In-Time (JIT) Defined ,[object Object],[object Object],[object Object]
JIT and Lean Management ,[object Object],[object Object],[object Object]
JIT Demand-Pull Logic Here the customer starts the process, pulling an inventory item from Final Assembly… Then sub-assembly work is pulled forward by that demand… The process continues throughout the entire production process and supply chain Customers Sub Sub Fab Fab Fab Fab Vendor Vendor Vendor Vendor Final  Assembly
The Toyota Production System ,[object Object],[object Object],[object Object],Toyota’s run smoother than this!
Waste in Operations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Minimizing Waste:  Focused Factory  Networks Coordination System Integration 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
Minimizing Waste: Group Technology (Part 1) ,[object Object],Saw Saw Lathe Press Press Grinder Lathe Lathe Saw Press Heat Treat Grinder Note how the flow lines are going back and forth
Minimizing Waste:  Group Technology (Part 2) ,[object Object],Press Lathe Grinder Grinder A 2 B Saw Heat Treat Lathe Saw Lathe Press Lathe 1
Minimizing Waste:  Uniform Plant Loading (heijunka) Not uniform Jan. Units Feb. Units Mar. Units Total 1,200 3,500 4,300 9,000 Uniform Jan. Units Feb. Units Mar. Units Total 3,000 3,000 3,000 9,000 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.   How does the uniform loading help save labor costs? or
Minimizing Waste: Just-In-Time Production ,[object Object],[object Object],[object Object],WHAT IT IS ,[object Object],[object Object],[object Object],[object Object],[object Object],WHAT IT REQUIRES ,[object Object],[object Object],[object Object],WHAT IT DOES ,[object Object],WHAT IT ASSUMES
Minimizing Waste: Inventory  Hides Problems Work in process  queues (banks) Change orders Engineering design redundancies Vendor delinquencies Scrap Design backlogs Machine  downtime Decision backlogs Inspection backlogs Paperwork backlog Example: By identifying defective items from a vendor early in the production process the downstream work is saved Example: By identifying defective work by employees upstream, the downstream work is saved
Minimizing Waste: Kanban Production Control Systems Storage Part A Storage Part A Machine Center Assembly Line Material Flow Card (signal) Flow Withdrawal  kanban 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 This puts the system back were it was before the item was pulled The process begins by the Assembly Line people pulling Part A from Storage Production kanban
Determining the Number of Kanbans Needed ,[object Object],[object Object],[object Object],[object Object]
Example of Kanban Card Determination: Problem Data ,[object Object],[object Object],[object Object],[object Object]
Example of Kanban Card Determination: Calculations Always  round up!
Respect for People ,[object Object],[object Object],[object Object],[object Object],[object Object]
Toyota Production System’s Four Rules ,[object Object],[object Object],[object Object],[object Object]
JIT Implementation Requirements: Design Flow Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
JIT Implementation Requirements: Total Quality Control ,[object Object],[object Object],[object Object],[object Object]
JIT Implementation Requirements: Stabilize Schedule ,[object Object],[object Object],[object Object]
JIT Implementation Requirements: Kanban-Pull ,[object Object],[object Object],[object Object]
JIT Implementation Requirements: Work with Vendors ,[object Object],[object Object],[object Object],[object Object]
JIT Implementation Requirements: Reduce Inventory More ,[object Object],[object Object],[object Object],[object Object],[object Object]
JIT Implementation Requirements: Improve Product Design ,[object Object],[object Object],[object Object],[object Object]
JIT Implementation Requirements: Concurrently Solve Problems ,[object Object],[object Object],[object Object],[object Object],[object Object]
JIT Implementation Requirements: Measure Performance ,[object Object],[object Object]
JIT in Services (Examples) ,[object Object],[object Object],[object Object],[object Object],[object Object]
JIT in Services (Examples) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Question Bowl ,[object Object],[object Object],[object Object],[object Object],Answer: raw materials, work in process, finished goods.
Question Bowl ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Answer: a. Big JIT
Question Bowl ,[object Object],[object Object],[object Object],[object Object],Answer: overproduction, wasting time, transportation
Question Bowl ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Answer: a. Customer
Question Bowl ,[object Object],[object Object],[object Object],[object Object],[object Object],Answer: Employee participation, Total Quality Control, Small lot sizes, continuous improvement
Question Bowl ,[object Object],[object Object],[object Object],[object Object],Answer: Scrap, Vendor delinquencies, decision backlogs
Question Bowl ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Answer: a. 1050 ([1000x10](1+0.05)/10=1050)
Question Bowl ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Answer: e. None of the above (These include: level schedule, underutilization capacity, and establish freeze windows.)

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Slide Show Week #9 Chapter 11 Jit

  • 1. Chapter 11 Just-in-Time and Lean Systems MANAGEMENT 520 CHAPTER 11 JUST IN TIME AND LEAN SYSTEMS
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  • 5. JIT Demand-Pull Logic Here the customer starts the process, pulling an inventory item from Final Assembly… Then sub-assembly work is pulled forward by that demand… The process continues throughout the entire production process and supply chain Customers Sub Sub Fab Fab Fab Fab Vendor Vendor Vendor Vendor Final Assembly
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  • 8. Minimizing Waste: Focused Factory Networks Coordination System Integration 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
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  • 11. Minimizing Waste: Uniform Plant Loading (heijunka) Not uniform Jan. Units Feb. Units Mar. Units Total 1,200 3,500 4,300 9,000 Uniform Jan. Units Feb. Units Mar. Units Total 3,000 3,000 3,000 9,000 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. How does the uniform loading help save labor costs? or
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  • 13. Minimizing Waste: Inventory Hides Problems Work in process queues (banks) Change orders Engineering design redundancies Vendor delinquencies Scrap Design backlogs Machine downtime Decision backlogs Inspection backlogs Paperwork backlog Example: By identifying defective items from a vendor early in the production process the downstream work is saved Example: By identifying defective work by employees upstream, the downstream work is saved
  • 14. Minimizing Waste: Kanban Production Control Systems Storage Part A Storage Part A Machine Center Assembly Line Material Flow Card (signal) Flow Withdrawal kanban 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 This puts the system back were it was before the item was pulled The process begins by the Assembly Line people pulling Part A from Storage Production kanban
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  • 17. Example of Kanban Card Determination: Calculations Always round up!
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