1. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 16-1 Operations Management Just-in-Time and Lean Production Systems Chapter 16

2. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 16-2 Outline  JUST-IN-TIME AND LEAN PRODUCTION  GLOBAL COMPANY PROFILE: GREEN GEAR CYCLING  SUPPLIERS  Goals of JIT Partnerships  Concerns of Suppliers  JIT LAYOUT  Distance Reduction  Increased Flexibility  Impact on Employees  Reduced Space and Inventory

3. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 16-3 Outline - Continued  INVENTORY  Reduce Variability  Reduce Inventory  Reduce Lot Sizes  Reduce Setup Costs  SCHEDULING  Level Schedules  Kanban  QUALITY  EMPLOYEE EMPOWERMENT  LEAN PRODUCTION  JIT IN SERVICES

4. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 16-4 Learning Objectives When you complete this supplement, you should be able to : Identify or Define:  Types of waste  Variability  Kanban Describe or Explain :  Just-in-Time (JIT) philosophy  Pull systems  Push systems  The goals of JIT partnerships  Lean Production