© wiley 2007 chapter 7 – just-in-time and lean systems jit philosophy meaning of waste in jit...
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© Wiley 2007
Chapter 7 – Just-in-Time and Lean Systems
JIT philosophy Meaning of waste in JIT Differences bet. “push” and “pull” systems Key elements of JIT manufacturing Explain the elements of TQM and their role in
JIT Describe the role of people in JIT and why
respect for people is so important Understand impact of JIT on service and
manufacturing
© Wiley 2007
Just-in-Time (JIT) Philosophy
Toyota developed JIT system in Japan, after WWII Driven by a need survive after the devastation
caused by the war JIT gained worldwide prominence in the 1970s JIT philosophy means getting the right quantity of
goods at the right place and the right time JIT is an all-encompassing philosophy found on
eliminating waste or anything that does not add value (i.e., more than just inventory reduction)
A broad JIT view is one that encompasses the entire organization
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The Philosophy of JIT - continued
Often termed “Lean Systems” Broad view that entire organization must focus
on the same goal - serving customers JIT is built on simplicity- the simpler the better Focuses on improving every operation-
Continuous improvement - Kaizen Visibility – all problems must be visible to be
identified and solved Flexibility to produce different models/features
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Waste in Operations
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Waste in Operations (cont.)
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Waste in Operations (cont.)
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Three Elements of JIT
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Three Elements of JIT - continued JIT manufacturing focuses on production
system to achieve value-added manufacturing
TQM is an integrated effort designed to improve quality performance at every level
Respect for people rests on the philosophy that human resources are an essential part of JIT philosophy
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Elements of JIT Manufacturing JIT Manufacturing is a philosophy of value-added manufacturing
Achieved by Inventory reduction - exposes problems Kanbans & pull production systems Small lots & quick setups Uniform plant loading Flexible resources Efficient facility layouts
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Role of Inventory Reduction Inventory = Lead Time (less is better) Inventory hides problems
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The Pull System
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Number of Kanbans Required
N = number of containersD = demand rate at the withdraw stationT = lead time from supply station C = container sizeS = safety stock
C
SDT N
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down?or up round:Question
containers kanban 4.425
10(200)(.5)
C
SDTN
bottles 10.5)0.10(200)(d)(T)0.10(deman S
containerper bottles 25C
hour .5minutes 30T
hourper bottles 200D
:Solution
Computing the Number of Kanbans: an aspirin manufacturer has converted to JIT manufacturing using kanban containers. They wish to determine the number of containers at the bottle filling operation which fills at a rate of 200 per hour. Each container holds 25 bottles, it takes 30 minutes to receive more bottles, safety stock is 10% of demand during LT.
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Small Lot Sizes & Quick Setups Small lots mean less average inventory and
shorten manufacturing lead time Small lots with shorter setup times increase
flexibility to respond to demand changes Strive for single digit setups- < 10 minutes Setup reduction process is well-documented
External tasks- do as much preparation while present job is still running
Internal tasks- simplify, eliminate, shorten steps involved with location, clamping, & adjustments
Ultimate goal is single unit lot sizes
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Quick Setups
Internal setup Can be
performed only when a process is stopped
External setup Can be
performed in advance
SMED Principles Separate internal setup
from external setup Convert internal setup to
external setup Streamline all aspects of
setup Perform setup activities in
parallel or eliminate them entirely
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Common Techniques for Reducing Setup Time
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Common Techniques for Reducing Setup Time (cont.)
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Common Techniques for Reducing Setup Time (cont.)
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Examples of Visual Control
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Examples of Visual Control (cont.)
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Uniform Plant Loading A “level” schedule is developed so that the same mix
of products is made every day in small quantities Leveling the schedule can have big impact along whole
supply chain
Monday Tuesday Wednesday Thursday FridayAAAAA BBBBB BBBBB DDDDD EEEEEAAAAA BBBBB BBBBB CCCCC EEEEE
Monday Tuesday Wednesday Thursday FridayAABBBB AABBBB AABBBB AABBBB AABBBBCDEE CDEE CDEE CDEE CDEE
5 units5 units10 units
Weekly Production Required
Traditional Production Plan
JIT Plan with Level Scheduling
ABCDE
10 units20 units
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Flexible Resources Moveable, general purpose equipment:
Portable equipment with plug in power/air E.g.: drills, lathes, printer-fax-copiers, etc. Capable of being setup to do many different
things with minimal setup time
Multifunctional workers: Workers assume considerable responsibility Cross-trained to perform several different duties Trained to also be problem solvers
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Effective Facility Layouts Workstations in close physical proximity
to reduce transport & movement Streamlined flow of material Often use:
Cellular Manufacturing (instead of process focus)
U-shaped lines: (allows material handler to quickly drop off materials & pick up finished work)
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Traditional Process Focused Layout
Jumbled flows, long cycles, difficult to schedule
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JIT Cellular Manufacturing Product focused cells, flexible equipment,
high visibility, easy to schedule, short cycles
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Cells with Worker Routes
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Worker Routes Lengthen as Volume Decreases
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JIT and TQM- Partners Build quality into all processes Focus on continuous improvement - Kaizen Quality at the source- sequential inspection Jidoka (authority to stop line) Poka-yoke (fail-safe all processes) Preventive maintenance- scheduled Work environment- everything in its place, a
place for everything
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Respect for People: The Role of Employees
Genuine and meaningful respect for associates Willingness to develop cross-functional skills JIT uses bottom-round management – consensus
management by committees or teams Actively engage in problem-solving (quality
circles) Everyone is empowered Everyone is responsible for quality: understand
both internal and external customer needs
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Respect for People: The Role of Employees
Associates gather performance data Team approaches used for problem-
solving Decisions made from bottom-up Everyone is responsible for preventive
maintenance
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The Role of Management
Responsible for culture of mutual trust Serve as coaches & facilitators Support culture with appropriate
incentive system including non-monetary
Responsible for developing workers Provide multi-functional training Facilitate teamwork
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Supplier Relationships and JIT
Use single-source suppliers when possible Build long-term relationships Work together to certify processes Co-locate facilities to reduce transport if
possible Stabilize delivery schedules Share cost & other information Early involvement during new product
designs
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Benefits of JIT
Reduction in inventories Improved quality Shorter lead times Lower production costs Increased productivity Increased machine utilization Greater flexibility
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Implementing JIT Starts with a company shared vision of
where it is and where it wants to go Management needs to create the right
atmosphere Implementation needs a designated
“Champion” Implement the sequence of following steps
Make quality improvements Reorganize workplace Reduce setup times
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Implementing JIT - continued Reduce lot sizes & lead times Implement layout changes
Cellular manufacturing & close proximity Switch to pull production Develop relationship with suppliers
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JIT in Services Most of the JIT concepts apply equally to
Service companies Improved quality such as timeliness, service
consistency, and courtesy Uniform facility loading to provide better
service responsiveness Use of multifunction workers Reduction in cycle time Minimizing setup times and parallel
processing Workplace organization