1. 13 Just-In-Time Production Management philosophy Pull system though the plant WHAT IT IS Employee participation Industrial engineering/basics Continuing improvement Total quality control Small lot sizes WHAT IT REQUIRES Attacks waste Exposes problems and bottlenecks Achieves streamlined production WHAT IT DOES Stable environment WHAT IT ASSUMES

2. 11 Minimizing Waste: JIT Production Produce......what is needed......when it’s needed......NOTHING MORE!

3. 6 Waste--Operations (1) Waste from overproduction (2) Waste of waiting time (3) Transportation waste (4) Inventory waste (5) Processing waste (6) Waste of motion (7) Waste from product defects

4. 15 Minimizing Waste: Kanban Production Control Systems A B Machine CenterAssembly Line Storage Production Kanban Withdrawal Kanban

5. 27 JIT Requirements: Work with Vendors u Reduce lead times u Frequent deliveries u Project usage requirements u Quality expectations

6. 28 JIT Requirements: Reduce Inventory More u Stores u Transit u Carousels u Conveyors

7. 29 JIT Requirements: Improve Product Design u Standard product configuration u Standardize and reduce number of parts u Process design with product design u Quality expectations

8. 9 Partnership Relationship u Continuing relationship involving – a commitment over an extended time period, – an exchange of information, and – an acknowledgement of the risks & rewards of the relationship.

9. 11 JIT Purchasing--Requirements u Reduced lot sizes u Frequent and reliable delivery schedules u Reduced and highly reliable lead times u Consistently high quality levels for purchased materials

10. 12 JIT Purchasing--Suppliers u Fewer, nearby suppliers u Repeat business u Support suppliers’ competitiveness u Clusters of remote suppliers u Limit competitive bidding to new parts u Resist vertical integration u Encourage suppliers to implement JIT purchasing

11. 13 JIT Purchasing--Quantities u Steady output rate (a desirable prerequisite) u Frequent deliveries in small lot quantities u Long-term contract agreements with minimal release paperwork u Deliver quantities variable from release to release but fixed for whole contract term

12. 14 JIT Purchasing--Quantities (Ctd) u Little or no permissible overage or underage of receipts u Suppliers encouraged to package in exact quantities u Suppliers encouraged to reduce their production lot sizes (or store unreleased material)

13. 15 JIT Purchasing--Quality u Minimal product specifications imposed on supplier u Help suppliers to meet quality requirements u Close relationships between buyers' and suppliers' quality assurance people u Suppliers encouraged to use process control charts instead of lot sampling inspection

14. 16 JIT Purchasing--Shipping u Scheduling of inbound freight u Gain control by use of – company-owned or contract shipping – contract warehousing – trailers for freight consolidation/storage

15. 17 JIT Purchasing--Benefits u Consistent quality u Savings on resources u Lower costs u Special attention u Saving on tooling u Loyalty associated with long-term relationships with suppliers