1 Slides used in class may be different from slides in student pack Chapter 12 Just-in-Time and Lean Systems  JIT Defined  The Japanese Approach to Productivity  JIT Implementation Requirements  JIT in Services

2 Slides used in class may be different from slides in student pack Just-In-Time (JIT) Defined  JIT:  JIT involves: – –

3 Slides used in class may be different from slides in student pack JIT Demand-Pull Logic Customers Vendor Sub Fab Final Assembly

4 Slides used in class may be different from slides in student pack The Japanese Approach to Productivity      Waste is ‘anything other than the minimum amount of equipment, materials, parts, space, and worker’s time, which are absolutely essential to add value to the product.’ Shoichiro Toyoda, President, Toyota

5 Slides used in class may be different from slides in student pack 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

6 Slides used in class may be different from slides in student pack Minimizing Waste: Uniform Plant Loading Not uniformJan. UnitsFeb. UnitsMar. UnitsTotal 1,2003,5004,3009,000 UniformJan. UnitsFeb. UnitsMar. UnitsTotal 3,0003,0003,0009,000 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

7 Slides used in class may be different from slides in student pack Minimizing Waste: Just-In-Time Production WHAT IT IS WHAT IT REQUIRES WHAT IT DOES WHAT IT ASSUMES

8 Slides used in class may be different from slides in student pack 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.

9 Slides used in class may be different from slides in student pack Kanban  Japanese word for card –  Authorizes production from downstream operations –  May be a card, flag, verbal signal etc.  Used often with fixed-size containers –

1010 Slides used in class may be different from slides in student pack Minimizing Waste: Kanban Production Control Systems Exhibit 10.6 Storage Part A Machine Center Assembly Line Material Flow Card (signal) Flow Withdrawal kanban Production kanban

1 Slides used in class may be different from slides in student pack JIT Requirements:  Design Flow Process: Link operations, balance workstation capacities, relayout for flow, emphasize preventive maintenance, reduce lot sizes, reduce setup/changeover time  Total Quality Control: Worker responsibility, measure SQC, enforce compliance, fail-safe methods, automatic inspection

1212 Slides used in class may be different from slides in student pack JIT Requirements:  Stabilize Schedule: Level schedule, underutilize capacity, establish freeze windows  Kanban-Pull: Demand pull, backflush, reduce lot sizes  Work with Vendors: Reduce lead times, frequent deliveries, project usage requirements, quality expectations

1313 Slides used in class may be different from slides in student pack Characteristics of JIT Vendor Partnerships  Few, nearby suppliers  Long-term contract agreements  Steady supply rate  Frequent deliveries in small lots  Buyer helps suppliers meet quality  Suppliers use process control charts  Buyer schedules inbound freight

1414 Slides used in class may be different from slides in student pack JIT Requirements:  Reduce Inventory More: Look for other areas, stores, transit, carousels, conveyors  Improve Product Design: Standard product configuration, standardize and reduce number of parts, process design with product design, quality expectations

1515 Slides used in class may be different from slides in student pack Respect for People     

1616 Slides used in class may be different from slides in student pack JIT Implementation Issues     

1717 Slides used in class may be different from slides in student pack JIT Implementation Issues     