Professional Documents
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Just-in-time (JIT)
Introductory Quotation
Waste is anything other than the minimum amount of equipment, materials, parts, space, and workers time, which are absolutely essential to add value to the product. Shoichiro Toyoda President, Toyota
1995 Corel Corp.
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Orders
Purchasing
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What is Just-in-Time?
Management philosophy of continuous and forced problem solving Supplies and components are pulled through system to arrive where they are needed when they are needed.
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Types of Waste
Overproduction Waiting Transportation Inefficient processing Inventory Unnecessary motion Product defects
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50%
50%
82%
20% 40%
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0%
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60%
80%
100%
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Quality
JIT
Inventory
Preventive Maintenance
Scheduling
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Suppliers
Incoming material and finished goods involve waste Buyer and supplier form JIT partnerships JIT partnerships eliminate
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Streamlined Production
Traditional Flow
Suppliers Production Process (stream of water) Customers Inventory (stagnant ponds)
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Layout
JIT objective: Reduce movement of people and material
Movement is waste!
JIT requires
Work cells for product families Moveable or changeable machines Short distances Little space for inventory Delivery directly to work areas
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Work Cell
2 Saw Lathe Grinder Press Lathe
Saw Saw
2 Heat Treat 3
Press
Grinder Grinder
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6
Press
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Heat Treat
Layout Tactics
Build work cells for families of products
Minimize distance
Design little space for inventory Improve employee communication Use poka-yoke devices Build flexible or movable equipment Cross train workers to add flexibility
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Inventory
Traditional: inventory exists in case problems arise JIT objective: Eliminate inventory JIT requires
Small lot sizes Low setup time Containers for fixed number of parts
Scrap
Capacity Imbalances
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Unreliable Vendors
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WIP Scrap
Capacity Imbalances
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Unreliable Vendors
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Scrap
WIP
Capacity Imbalances
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Scheduling
Involves timing of operations JIT requires
Communicating schedules to suppliers Level schedules Freezing part of schedule nearest due date Small lots Kanban techniques
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Level Schedules
Reduce ripple effect of small variations in schedules (e.g., final assembly) Production quantities evenly distributed over time (e.g., 7/day) Build same mix of products every day
Results in many small lots Item Monthly Quantity A 40 B
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Daily Quantity 2 3
60
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Time
Small lots also increase flexibility to meet customer demands
Large-Lot Approach
A A A A B B B
Time
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Kanban
Japanese word for card
Pronounced kahn-bahn (not can-ban)
May be a card, flag, verbal signal etc. Used often with fixed-size containers
Add or remove containers to change production rate
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Figure S12.5
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Quality
JIT exposes quality problems by reducing inventory JIT limits number defects with small lots JIT requires TQM
Statistical process control Worker involvement
Inspect own work Quality circles
Immediate feedback
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Employee Empowerment
Getting employees involved in product & process improvements
Employees know job best!
JIT requires
Empowerment Cross-training Training support Few job classifications
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Results
Queue and delay reduction, speeds throughput, frees assets, and wins orders Quality improvement, reduces waste and wins orders Cost reductions, increases margin or reduces selling price Variability reductions in the workplace, reduces waste and wins orders Rework reduction, reduces waste and wins orders S12-32
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Yielding
Faster response to the customer and higher quality
A competitive advantage!
S12-33
Module Code and Module Title Title of Slides 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 PowerPoint presentation to accompany Operations