JIT and Lean Operations

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Presentation transcript:

JIT and Lean Operations Lecture 36 JIT and Lean Operations Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

JIT/Lean Production Lean Manufacturing: is a management philosophy focusing on reduction of the seven wastes. Over-production ( Capacity exceeding demand) Waiting time Transportation Processing Costs Inventory Motion ( Lack of coordination of body movements)

JIT/Lean Production Features By eliminating waste (muda), quality is improved, production time is reduced and cost is reduced. "pull" production (by means of kanban).

JIT/Lean Production While some believe that Lean Manufacturing is a set of problem solving tools. In addition, experts in this field believe that philosophy-based Lean Manufacturing strategy is the most effective way to launch and sustain lean activities.

Key lean manufacturing principles Key lean manufacturing principles include: Perfect first-time quality - quest for zero defects Waste minimization Continuous improvement

Key lean manufacturing principles Pull processing: products are pulled from the consumer end, not pushed from the production end. Flexibility Building and maintaining a long term relationship with suppliers through collaborative risk sharing, cost sharing and information sharing arrangements.

Applications of Lean Manufacturing Lean Healthcare Systems Lean Software Manufacturing Systems Engineering Lean Systems in Defense Industry

Generic Strategy for Implementation of a Lean program Senior management to agree and discuss their lean vision. Management brainstorm to identify project leader and set objectives. Communicate plan and vision to the workforce. Ask for volunteers to form the Lean Implementation team. Appoint members of the Lean Manufacturing Implementation Team. Train the Implementation Team in the various lean tools.