1. IENG 451 JIT

2. Production Physics Little’s Law Throughput = WIP/Cycle time For fixed capacity, cycle time and WIP or proportional – thus you can increase throughput either by increasing WIP or by decreasing cycle time

3. Production Physics Law of variability – increasing variability inevitably degrades the performance of the system Law of variability buffering – variability in a production system will be buffered by some combination of inventory, capacity, or time

4. JIT Principles Don’t produce something unless a customer has ordered it Level demand so that work may proceed smoothly throughout the plant Link all processes to customer demands through visual tools (kanbans) Maximize the flexibility of people and machinery

5. Pull Systems Nobody upstream produces a good or a service until somebody downstream asks for it

6. Pull Systems Nobody upstream produces a good or a service until somebody downstream asks for it

7. Pull Systems Nobody upstream produces a good or a service until somebody downstream asks for it

8. Kanban Rules Never ship defective items Customer withdraws only what is needed Produce only quantity withdrawn by the customer Level production Use kanban to fine-tune production Stabilize and strengthen the process

9. Production orders Batch of 10 vs Batch of 100 – Adjust more quickly to demand – Better sense of takt time – Fewer peaks and valleys – Better control of abnormality production

10. Pull Systems Type A – Frequent orders with short lead times, most common, replenishing gaps created in the finished goods storage Type B – Infrequent orders or long lead times, pacemaker is usually midstream Type C – Combination of type A and type B running in parallel

11. Process Flow Tools Process Mapping SIPOC – S upplier, I nputs, P rocess, O utputs, C ustomers Spaghetti diagrams Swim Lane flow charts Value Stream Mapping

15. SIPOC Charts

22. Value Stream Mapping VSM helps grasp current condition and identify improvement opportunities Improvement events create localized improvements; VSM provides a vision and plans that connect all improvement activities VSM allows you to see waste and plan to eliminate it

23. What is VSM Planning tool to optimize results of reducing waste

24. Five Principles for VSM Specify value from end customer standpoint Identify value stream for each product family Make the product flow Customer pulls the system Manage towards perfection

25. Value to Customer ? How does current product / process disappoint customers value expectation: – Price ? – Quality ? – Delivery ?

26. What Flows Manufacturing; materials are the items that flow Design & development; designs flow Service; customer needs are the items Administration; internal customer needs are the items

32. Current State (Manuf.)

33. Future State – (Manuf.)

36. VSM Steps Determine the individual product or service you will map Draw the process flow

37. VSM Steps Add material flow

38. VSM Steps Add Information flow

39. VSM Steps Collect process data and connect it to boxes on chart Add process and lead times