Operations & Logistics Management Lesson 13- Lean Synchronisation

INTRODUCTION Lean synchronisation is a radical approach to minimising waste during operation processes. It was originally called ‘just-in-time’ (JIT) when it started to be adopted outside its birthplace Japan. (For the purpose of this course, it will be referred to, as Just- in-time). Aim: is to meet demand instantaneously, with perfect quality and no waste.

INTRODUCTION Synchronisation means that the flow of products and services always delivers exactly what customers want (perfect quality), in exact quantities (neither too much or too little), exactly when needed (not too early or too late), and exactly where required (not to the wrong location). Lean synchronisation is to do all this at the lowest possible cost. It results in items flowing rapidly through processes, operations and supply networks.

JUST-IN-TIME (JIT) An inventory system which focuses on structuring operations in a manner that eliminates waste. Works on the premise that a lean operation, that has no waste, is faster, more dependable, produces higher quality goods and services and is able to operate at a lower cost. JIT’s objective is to improve overall productivity and the elimination of waste. Inventory is only obtained and released into the production process when necessary. Thus, inventory is only received from supplier shortly before the actual production process is performed.

JUST-IN-TIME (JIT) Necessitates a close working relationship with suppliers. The cost and associated risk of inventory is thus moved to the supplier. JIT is based on three cornerstones that entail the: a)elimination of waste, b)Inclusion of all staff, c)The continuous improvement of the operation

THE 3 CORNERSTONES OF JIT 1.Elimination of waste: Toyota, a leading practitioner and originator of the lean approach, has identified seven forms of waste: a)Over-production b)Waiting time c)Transport d)Process e)Inventory f)Motion g)Defectiveness

THE 3 CORNERSTONES OF JIT 2. The involvement of staff in the operation -Team work - Workers to interact with their working environment 3. The continuous improvement of the operations - Do not be complacent -Continuous assessment of system to ensure that existing efficiencies are maintained and to identify potential new improvements.

THE 3 CORNERSTONES OF JIT Development of a framework for best practice which is focused in increasing overall efficiencies, decreasing waste and ensuring the active participation of all participants within the operation. – Discipline – Flexibility – Equality – Autonomy – Development of personnel – Quality of working life – Creativity – Total people involvement

IMPORTANT The successful implementation of JIT as an approach is dependent on a number of factors internal and external to the organisation, which include: - Environmental infrastructure - Education -Work culture - Transport infrastructure The overall philosophy of JIT and its approach to operations can be of tremendous value, even if JIT is not implemented.

QUESTIONS What is the lean approach to operations management and how does it differ from traditional approaches? What are the advantages of JIT? Can JIT be implemented in any operational environment?