1. Chap 10 Learning Objectives
Explain what is meant by the term lean operations system.
List each of the goals of JIT and explain its importance.
List and briefly describe the building blocks of JIT.
List the benefits of the JIT system.
Outline the considerations important in converting a traditional mode of operations to a JIT system.
List some of the obstacles that might be encountered when converting to a JIT system.

2. JIT/Lean Production
Just-in-time (JIT): A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed,
JIT   lean production
JIT  pull (demand) system
JIT operates with very little “fat”

3. Goal of JIT The ultimate goal of JIT is a balanced system.
Achieves a smooth, rapid flow of materials through the system

4. Summary JIT Goals and Building Blocks
Figure 15.1
Product
Design
Process
Personnel
Elements
Manufactur- ing Planning
Eliminate disruptions
Make the system flexible
Eliminate waste A
balanced
rapid flow
Ultimate
Goal
Supporting
Goals
Building
Blocks

5. Supporting Goals Eliminate disruptions Make system flexible
Eliminate waste, especially excess inventory

6. Sources of Waste Overproduction Waiting time
Unnecessary transportation
Processing waste
Inefficient work methods
Product defects

7. Kaizen Philosophy Waste is the enemy
Improvement should be done gradually and continuously
Everyone should be involved
Built on a cheap strategy
Can be applied anywhere

8. Kaizen Philosophy (cont’d)
Supported by a visual system
Focuses attention where value is created
Process oriented
Stresses main effort of improvement should come from new thinking and work style
The essence of organizational learning is to learn while doing

9. Big vs. Little JIT Big JIT – broad focus Little JIT – narrow focus
Vendor relations
Human relations
Technology management
Materials and inventory management
Little JIT – narrow focus
Scheduling materials
Scheduling services of production

10. JIT Building Blocks Product design Process design
Personnel/organizational elements
Manufacturing planning and control

11. Product Design Standard parts Modular design
Highly capable production systems
Concurrent engineering

12. Process Design Small lot sizes Setup time reduction
Manufacturing cells
Limited work in process
Quality improvement
Production flexibility
Balanced system
Little inventory storage

13. Benefits of Small Lot Sizes
Reduces inventory
Less storage space
Less rework
Problems are more apparent
Increases product flexibility
Easier to balance operations

14. Single-Minute Exchange
Single-minute exchange of die (SMED): A system for reducing changeover time
Categorize changeover activities
Internal – activities that can only be done while machine is stopped
External – activities that do not require stopping the machine

15. Production Flexibility
Reduce downtime by reducing changeover time
Use preventive maintenance to reduce breakdowns
Cross-train workers to help clear bottlenecks

16. Production Flexibility (cont’d)
Use many small units of capacity
Use off-line buffers
Reserve capacity for important customers

17. Quality Improvement Autonomation Jidoka
Automatic detection of defects during production
Jidoka
Japanese term for autonomation

18. Production Flexibility
Balance system: Distributing the workload evenly among work stations
Work assigned to each work station must be less than or equal to the cycle time
Cycle time is set equal to the takt time
Takt time is the cycle time needed to match customer demand for final product

19. Personnel/Organizational Elements
Workers as assets
Cross-trained workers
Continuous improvement
Cost accounting
Leadership/project management

20. Manufacturing Planning and Control
Level loading
Pull systems
Visual systems
Close vendor relationships
Reduced transaction processing
Preventive maintenance

21. Pull/Push Systems
Pull system: System for moving work where a workstation pulls output from the preceding station as needed. (e.g. Kanban)
Push system: System for moving work where output is pushed to the next station as it is completed

22. Kanban Production Control System
Kanban: Card or other device that communicates demand for work or materials from the preceding station
Kanban is the Japanese word meaning “signal” or “visible record”
Paperless production control system
Authority to pull, or produce comes from a downstream process.

23. Kanban Formula N = DT(1+X) C N = Total number of containers
D = Planned usage rate of using work center
T = Average waiting time for replenishment of parts plus average production time for a container of parts
X = Policy variable set by management possible inefficiency in the system
C = Capacity of a standard container

24. Limited Work in Process
Benefits
Lower carrying costs
Increased flexibility
Aids scheduling
Saves cost of rework and scrap
Two general approaches
Kanban – focuses on individual work stations
Constant work in process (CONWIP) – focuses on the system as a whole

25. Traditional Supplier Network
Figure 15.4a
Buyer
Supplier

26. Tiered Supplier Network
Figure 15.4b
Supplier
Buyer
First Tier Supplier
Second Tier Supplier
Third Tier Supplier

27. Preventive Maintenance and Housekeeping
Preventative maintenance: Maintaining equipment in good condition and replacing parts that have a tendency to fail before they actually fail.
Housekeeping: Maintaining a workplace that is clean and free of unnecessary materials.

28. Housekeeping Five S’s Sort Straighten Sweep Standardize
Self-discipline

29. Comparison of JIT and Traditional
Table 15.3
Factor
Traditional
JIT
Inventory
Much to offset forecast errors, late deliveries
Minimal necessary to operate
Deliveries
Few, large
Many, small
Lot sizes
Large
Small
Setup; runs
Few, long runs
Many, short runs
Vendors
Long-term relationships are unusual
Partners
Workers
Necessary to do the work
Assets

30. Transitioning to a JIT System
Get top management commitment
Decide which parts need most effort
Obtain support of workers
Start by trying to reduce setup times
Gradually convert operations
Convert suppliers to JIT
Prepare for obstacles

31. Obstacles to Conversion
Management may not be committed
Workers/management may not be cooperative
Difficult to change company culture
Suppliers may resist
Why?

32. Suppliers May Resist JIT
Unwilling to commit resources
Uneasy about long-term commitments
Frequent, small deliveries may be difficult
Burden of quality control shifts to supplier
Frequent engineering changes may cause JIT changes

33. JIT in Services
The basic goal of the demand flow technology in the service organization is to provide optimum response to the customer with the highest quality service and lowest possible cost.
Eliminate disruptions
Make system flexible
Reduce setup and lead times
Eliminate waste
Minimize WIP
Simplify the process

34. JIT II
JIT II: a supplier representative works right in the company’s plant, making sure there is an appropriate supply on hand.

35. Benefits of JIT Systems
Reduced inventory levels
High quality
Flexibility
Reduced lead times
Increased productivity

36. Benefits of JIT Systems (cont’d)
Increased equipment utilization
Reduced scrap and rework
Reduced space requirements
Pressure for good vendor relationships
Reduced need for indirect labor

37. Elements of JIT Smooth flow of work (the ultimate goal)
Table 15.4
Smooth flow of work (the ultimate goal)
Elimination of waste
Continuous improvement
Eliminating anything that does not add value
Simple systems that are easy to manage
Use of product layouts to minimize moving materials and parts
Quality at the source

38. Elements of JIT (cont’d)
Table 15.4
Poka-yoke – fail safe tools and methods
Preventative maintenance
Good housekeeping
Set-up time reduction
Cross-trained employees
A pull system

39. Video: Made for you

40. Video: New system

41. Video: McDonald’s Process

42. Video: Layout Gortrac