Operations Management: For Competitive Advantage

Operations Management
For Competitive Advantage
Chapter 10
Just-In-Time (JIT) Defined

JIT
Just-In-Time and Just-InLean Systems

Iba Almajzoub www.almajzoub.net
can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods). JIT also involves the elimination of waste in production effort. JIT also involves the timing of production resources (e.g., parts arrive at the next workstation in time just ).
Characteristics of JIT
JIT
JIT Demand-Pull Logic

Fab Sub Fab Customers Vendor Vendor
is popularly known as stockless production Produce just enough to meet demand Inventory is eliminating waste in
Labor and materials Equipment and time Storage and insurance Capital, etc.
Quality Final Assembly
Sub
Fab
Vendor
must be at the source

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Fab
Vendor
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The Japanese Approach to Productivity

Imported Efforts Quality
Waste in 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
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technologies
concentrated on shop floor improvement focus of waste for people

Iba Almajzoub
Elimination Respect
Iba Almajzoub
Minimizing Waste Use of Technologies

Robotics Supply
Minimizing Waste: Quality at the Source

Self-inspection
chain management integrated manufacturing systems systems
Computer Expert
Limited use of QC departments

Automated
inspection empowerment
Line-stopping
Quality before quantity

Iba Almajzoub www.almajzoub.net Iba Almajzoub www.almajzoub.net
10
Minimizing Waste: Uniform Plant Loading

This But and
Minimizing Waste: Uniform Plant Loading

Suppose we operate a production plant that produces a single product. The schedule of production for this product could be accomplished using either of the two plant loading schedules below.
does not mean building a single product. maintaining a stable mix of products, firm monthly schedules. Hides Problems
Not uniform
Jan. Units 1,200
Feb. Units 3,500 or Feb. Units 3,000
Mar. Units 4,300 Mar. Units 3,000
Total 9,000 Total 9,000
Inventory
Uniform
Jan. Units 3,000
How does the uniform loading help save labor costs?

Iba Almajzoub www.almajzoub.net Iba Almajzoub www.almajzoub.net
11
12
Minimizing Waste: Just-In-Time Production

WHAT IT IS Management philosophy Pull system though the plant WHAT IT DOES Attacks waste
Exposes problems and bottlenecks Achieves streamlined production
Minimizing Waste: Minimized Setup Times

What
are the consequences of long setup times?

Long manufacturing lead times Increased cost Reduced capacity
WHAT IT REQUIRES
WHAT IT ASSUMES Stable environment
Employee participation
Industrial engineering/basics Continuing improvement Total quality control Small lot sizes
requirement for small-lot-size, mixedmodel production?

Practice more setups to reduce time/setup Fixed production quantity--improves setup
Iba Almajzoub
www.almajzoub.net
13
14
Respect for People

Strive
JIT Requirements: Design Flow Process

Link
to maintain level payrolls as assets employee unions networks
Workers
operations together workstation capacities
Cooperative
Balance Relay
Subcontractor Quality
out for flow preventive maintenance
circles (Small group involvement activities)
Emphasize Reduce Reduce
lot sizes setup/changeover time

Iba Almajzoub
www.almajzoub.net
15
16
JIT Requirements: Total Quality Control

Design Worker Enforce
JIT Requirements: Stabilize Schedule Stabilized Schedule can be accomplished by:

Level
for quality and quality at the source responsibility/quality culture compliance methods inspection
schedule capacity
Pull materials into final assembly in uniform pattern Underutilize
Realized by removing excess inventory (safety stock and early delivery) even by providing access labor/machines. Inventory less likely with quality and equipment maintenance Establish
Fail-safe
Automatic
freeze windows
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Fixed schedule with no further changes possible

Iba Almajzoub www.almajzoub.net Iba Almajzoub
17
18
JIT Requirements: Work with Vendors

Limited Reduce
JIT Requirements: Planning and Control

Plan
number of suppliers for better control lead times deliveries
for quality production rate
Uniform
Frequent Project Quality
usage requirements expectations

Smooth flow of materials Emphasize rate not capacity Refocused productivity Machines and labor are less expensive than inventory
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Iba Almajzoub
19
20
JIT Requirements: Reduce Inventory More

Stores Transit Conveyors Look
JIT Requirements: Improve Product Design

Standard
product configuration and reduce number of parts
Standardize Process
design with product design
for other areas

Quality
expectations
Iba Almajzoub
www.almajzoub.net

Operations Management: For Competitive Advantage

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Operations Management

Just-In-Time (JIT) Defined

Just-In-Time and Just-InLean Systems

JIT Demand-Pull Logic

must be at the source

The Japanese Approach to Productivity

concentrated on shop floor improvement focus of waste for people

Minimizing Waste Use of Technologies

Minimizing Waste: Quality at the Source

chain management integrated manufacturing systems systems

Limited use of QC departments

Quality before quantity

Minimizing Waste: Uniform Plant Loading

Minimizing Waste: Uniform Plant Loading

Jan. Units 1,200

Feb. Units 3,500 or Feb. Units 3,000

Mar. Units 4,300 Mar. Units 3,000

Total 9,000 Total 9,000

Jan. Units 3,000

How does the uniform loading help save labor costs?

Minimizing Waste: Just-In-Time Production

Minimizing Waste: Minimized Setup Times

are the consequences of long setup times?

WHAT IT ASSUMES Stable environment

requirement for small-lot-size, mixedmodel production?

Respect for People

JIT Requirements: Design Flow Process

to maintain level payrolls as assets employee unions networks

operations together workstation capacities

out for flow preventive maintenance

circles (Small group involvement activities)

Emphasize Reduce Reduce

lot sizes setup/changeover time

JIT Requirements: Total Quality Control

JIT Requirements: Stabilize Schedule Stabilized Schedule can be accomplished by:

Pull materials into final assembly in uniform pattern Underutilize

Fixed schedule with no further changes possible

JIT Requirements: Work with Vendors

JIT Requirements: Planning and Control

number of suppliers for better control lead times deliveries

for quality production rate

Frequent Project Quality

usage requirements expectations

JIT Requirements: Reduce Inventory More

JIT Requirements: Improve Product Design

product configuration and reduce number of parts

design with product design

for other areas

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