1 Slides used in class may be different from slides in student pack Chapter 12 Lean/Just-in-Time (JIT) Production  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 Lean Production Defined  Lean Production:  Lean Production 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 Minimizing Waste: Just-In-Time Production WHAT IT IS WHAT IT REQUIRES WHAT IT DOES WHAT IT ASSUMES

5 Slides used in class may be different from slides in student pack The Toyota Production System Based on two philosophies: 1.Elimination of waste – 2.Respect for people

6 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

7 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.

8 Slides used in class may be different from slides in student pack Elimination of Waste

9 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

10 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 –

11 Slides used in class may be different from slides in student pack Minimizing Waste: Kanban Production Control Systems Exhibit 12.6 Storage Part A Machine Center Assembly Line Material Flow Card (signal) Flow Withdrawal kanban Production kanban

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

13 Slides used in class may be different from slides in student pack Lean Implementation Requirements  Design Flow Process: Link operations, balance workstation capacities, change layout 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

14 Slides used in class may be different from slides in student pack Lean Implementation – Cont’d  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

15 Slides used in class may be different from slides in student pack Characteristics of Lean Production Vendor Partnerships       

16 Slides used in class may be different from slides in student pack Lean Implementation – Cont’d  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