1. Slide 16.1 Just-In-Time & Waste Reduction

2. Slide 14.2 What is Just-in-Time?   Management philosophy of continuous and forced problem solving  are needed when they are needed.  Supplies and components are ‘pulled’ through system to arrive where they are needed when they are needed.

3. Slide 14.3 What Does Just-in-Time Do?  Attacks waste  Anything not adding value to the product  Customer’s perspective  Exposes problems and bottlenecks  Caused by variability  Deviation from optimum  Achieves streamlined production  By reducing inventory

4. Slide 14.4 Types of Waste  Waiting  Overproduction  Transportation  Inefficient processing  Inventory  Unnecessary motion  Product defects

5. Slide 14.5 Seven Wastes Seven Wastes 1. Over production 2. Waiting 3. Transportation 4. Non-value added Processing 5. Inventory 6. Motion 7. Defects The amazing fact is that at least 95% of cycle time in a non-lean factory or office is consisted of non-value added activities! - Over production ahead of demand - Waiting for the next process step of information - Transporting materials unnecessarily - Over and non-value added processing - Inventory that is more than bare minimum - Motion by employees that is unnecessarily - Producing non-conforming parts

6. Slide 14.6 Improvements Attained By eliminating waste you can do more with less: -Less capital equipment -Less floor space -Less operator effort -Less direct labour -Less indirect labour -Less inventory -Less lead time

7. Slide 14.7 JIT Reduced Waste at Conestoga College 82% Work-in-Process Inventory Raw Material Inventory 50% Lead Time 50% Space 40% Finished Goods Inventory 30% Scrap 30% Setup Time 20% 0%20%40%60%80%100% Waste Reduction (%)

8. Slide 14.8 Variability Occurs Because  Employees, machines, and suppliers produce units that do not conform to standards, are late, or are not the proper quantity  Engineering drawings or specifications are inaccurate  Production personnel try to produce before drawings or specifications are complete  Customer demands are unknown

9. Slide 14.9 Push versus Pull  Push system: material is pushed into downstream workstations regardless of whether resources are available  Pull system: material is pulled to a workstation just as it is needed

10. Slide 14.10 Reduce Inventorie s and/or workers Problem solving activities by workers & management Ideas for reducing set-up times Ideas for improving Quality Deliberate withdrawal of Kanbane Ideas for changing the process (equipment training etc. Small lot production Stable master schedule Multi- function worker Equipment & layour Kanban pull system Vendor participation Copany wide Q.C Just-in-time production Increase of revenue Cost reduction by eliminating waste Less investment Return on investment increase JIT SYSTEM

11. Slide 14.11 Ideas for cutting lot sizes Ideas for improving JIT delivery performance Ideas for controlling detects (F) Heightened awareness of problems and problem causes (E) Fast Feedback on detects (H) Reduced buffer Inventories and / or workers Deliberate withdrawal of buffer inventories/workers Lot size reductions JIT production (B) Scrap / quality control (G) Smoother output rates (A) Less Inventory in the system (I) Less indirect cost for interest on idle inventory, space and equipment to handle inventory, inventory accounting, physical inventory control (C) Fewer rework labour hours (D) Less material waste Less material, labour, and indirect inputs for the same or higher output = higher productivity Less inventory in the system = faster market response, better forecasting and less administration

12. Slide 14.12 JIT Contribution to Competitive Advantage  Suppliers  reduced number of vendors  supportive supplier relationships  quality deliveries on time

13. Slide 14.13 JIT Contribution to Competitive Advantage - continued  Layout  work-cell layouts with testing at each step of the process  group technology  movable, changeable, flexible machinery  high level of workplace organization and neatness  reduced space for inventory  delivery direct to work areas

14. Slide 14.14 JIT Contribution to Competitive Advantage - continued   Inventory   small lot sizes   low setup times   specialized bins for holding set number of parts   Scheduling   zero deviation from schedules   level schedules   suppliers informed of schedules   Kanban techniques

15. Slide 14.15 JIT Contribution to Competitive Advantage - continued   Preventive Maintenance   scheduled   daily routine   operator involvement   Quality Production   statistical process control   quality by suppliers   quality within firm

16. Slide 14.16 JIT Contribution to Competitive Advantage - continued   Employee Empowerment   empowered and cross-trained employees   few job classifications to ensure flexibility of employees   training support   Commitment   support of management, employees, and suppliers

17. Slide 14.17 Results  Queue and delay reduction, speeds throughput, frees assets, and wins orders  Quality improvement, reduces waste and wins orders  Cost reductions, increases margin or reduces selling price  Variability reductions in the workplace, reduces waste and wins orders  Rework reduction, reduces waste and wins orders

18. Slide 14.18 Just-in-time systems attempt to increase flexibility and responsiveness between suppliers and customers in order to eliminate waste, improve customer satisfaction, and improve overall competitiveness

19. Slide 14.19 Motivation for implementing JIT:  reduction in raw material, purchased parts, work-in-process, and finished goods inventory  increased direct labour productivity  improved equipment utilization  defect-free production of well-designed products  improved responsiveness to changing markets and customer requirements

20. Slide 14.20 Misunderstandings about JIT:  thinking of JIT as a physical system to be implemented rather than a management philosophy to be adopted  thinking of JIT as simply an inventory control system  thinking of JIT as strictly a manufacturing oriented management approach

21. Slide 14.21 Suppliers  Incoming material and finished goods involve waste  Buyer and supplier form JIT partnerships  JIT partnerships eliminate  Unnecessary activities  In-plant inventory  In-transit inventory  Poor suppliers

22. Slide 14.22 Supplier Worries  Diversification  Poor customer scheduling  Frequent engineering changes  Quality assurance  Small lot sizes  Physical proximity

23. Slide 14.23 Streamlined Production Customers Suppliers Flow with JIT Traditional Flow Inventory (stagnant ponds) Material (water in stream) Production Process (stream of water)

24. Slide 14.24 Layout  JIT objective: Reduce movement of people and material  Movement is waste!  JIT requires  Work cells for product families  Moveable or changeable machines  Short distances  Little space for inventory  Delivery directly to work areas

25. Slide 14.25 Work Cell versus Process Layout SawPress LatheLathe Grinder Heat 1 2 Work Cell Process Layout LatheSaw LatheSaw HeatTreat Press Press Grinder Grinder 1 2 3 5 6 4

26. Slide 14.26 Kanban  Japanese word for card  Pronounced ‘kahn-bahn’ (not ‘can-ban’)  Authorizes production from downstream operations  ‘Pulls’ material through plant  May be a card, flag, verbal signal etc.  Used often with fixed-size containers  Add or remove containers to change production rate

27. Slide 14.27 The End

28. Slide 14.28 Seven habits of highly effective people independence Private victory 3. Put first things first 1. Be Practive 2. Begin with the end in mind Dependence Public victory Independence 5. Seek first to understand then to be understood 6. Synergize 7. Sharpen the saw 4.Think win-win