1. ISEN 315 Spring 2011 Dr. Gary Gaukler

2. Push and Pull Production Control “Push” system: Determines when and how much to produce based on forecasts of future demands “Pull” system: Initiates production of an item only when the item is requested

3.  A pull system uses signals to request production and delivery from upstream stations  Upstream stations only produce when signaled  System is used within the immediate production process and with suppliers Enabling JIT: Pull System

4. Experiment

5. JIT Approach – Toyota Production System Philosophy: –0 defects –0 setup time –0 inventory –0 breakdowns –0 leadtime –Lot size of 1 Toyota production video

6. Techniques for JIT Implementations Five areas of concern: –Quality –Resources –Design –Production Mix –Manufacturing

7. Quality-related Techniques Total Quality Management Autonomation Poka Yoke

8.  JIT cuts the cost of obtaining good quality because JIT exposes poor quality  Better quality means fewer buffers and allows simpler JIT systems to be used Quality

9. Resource-related Techniques Flexible labor Flexible equipment

10. Design-related Techniques Design for automation Design for simplification Modularity

11. Production Mix -related Techniques Mixed model production Small lot sizes

12. Manufacturing-related Techniques Kanbans Setup time reduction U-shaped layouts

13.  High setup costs encourage large lot sizes  Reducing setup costs reduces lot size and reduces average inventory  Setup time can be reduced through preparation prior to shutdown and changeover Reduce Setup Costs

14. 200 200 – 100 100 –Inventory Time Q 2 When average order size = 100 average inventory is 50 Q 1 When average order size = 200 average inventory is 100 Reduce Lot Sizes

15. Reduced space and inventory  With reduced space, inventory must be in very small lots  Units are always moving because there is no storage Implications for Manufacturing

16.  By pulling material in small lots, inventory cushions are removed, exposing problems and emphasizing continual improvement  Manufacturing cycle time is reduced  Push systems dump orders on the downstream stations regardless of the need Pull vs Push Systems