1. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban Chapter 11

2. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban ‘The next process is the customer.’ Kaoru Ishikawa

3. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban A JIT system means that incoming goods arrive, proceed directly to equipment for processing, become work-in-process, and through value-added activities become finished goods just-in-time for the customer to pick up.

4. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban Just-in-time requires three basic components: A Pull system Continuous flow processing Adherence to Takt times

5. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban Pull systems –Pull systems are manufacturing systems that require that products to be produced only when needed by a customer.

6. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban Continuous flow processing –Continuous flow processing focuses on one- piece-at-a-time production. –Stagnation of work-in-process inventory in and between processes must be eliminated.

7. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban Takt time –the rate a process must produce an item in order to meet customer demand. –Takt time is defined as: Available working time per day Takt time = -------------------------------------------- Customer demand rate per day

8. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban Seven sources of waste were identified by Taiichi Ohno, also of Toyota Motor Company: –Waste from overproduction –waste from inventory –waste in unnecessary transportation –waste from producing defects –waste in processes –waste in waiting time –waste in motions. Some people have modified this list to include intellect waste.

9. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban Kanban –display card in Japanese –a sign, card, or label, that communicates what is needed and when.

10. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban Kanban (Pull Inventory Management) –Kanban improves process management by focusing on visual control of the process. –Kanban cards tell the worker what must be produced as well as what has been produced. –Workers can not do more than the Kanban cards tell them to.

11. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban Jidoka –the Japanese word for autonomation. –Jidoka is one of the two main pillars of the Toyota Production system. –When a Jidoka system is present, machines and equipment are designed to stop automatically when a problem is detected. Any operator on the line also has the power to stop production.

12. Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Just-in-Time and Kanban Jidoka –Jidoka systems alert the worker to when a defective item is produced or a machine malfunction has occurred. This allows the problem to be dealt with immediately, preventing the production and passing of defects. Problems and the defects they cause can be more quickly localized, isolated, and corrected