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    Chapter 14

    Just-In-TimeSystems

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    JIT/Lean Production

    Just-in-time: Repetitive production system inwhich processing and movement of materials and

    goods occur just as they are needed, usually in small

    batches

    JIT is characteristic of lean production

    systems

    JIT operates with very little fat

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    JIT Goals

    Eliminate disruptions

    Make system flexible by reduce setup

    and lead times

    Eliminate waste, especially excess

    inventory

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    Sources of Waste

    Overproduction

    Waiting time

    Unnecessary transportation

    Processing waste

    Inefficient work methods

    Product defects

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    Big JITbroad focusVendor relations

    Human relations

    Technology management

    Materials and inventory management

    Little JITnarrow focus

    Scheduling materials

    Scheduling services of production

    Big vs. Little JIT

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    JIT Building Blocks

    Product design Process design

    Personnel/organizational

    elements Manufacturing

    planning and control

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    Product Design

    Standard parts

    Modular design

    Highly capable production systems

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    Process Design

    Small lot sizes

    Setup time reduction

    Manufacturing cells

    Limited work in process

    Quality improvement

    Production flexibility Little inventory storage

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    Benefits of Small Lot Sizes

    Reduces inventory

    Less storage space

    Less rework

    Problems are more apparent

    Increases product flexibility

    Easier to balance operations

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    Production Flexibility

    Reduce downtime by reducingchangeover time

    Use preventive maintenance to reduce

    breakdowns Cross-train workers to help clear

    bottlenecks

    Reserve capacity for importantcustomers

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    Personnel/Organizational Elements

    Workers as assets Cross-trained workers

    Continuous

    improvement

    Cost accounting

    Leadership/projectmanagement

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    Manufacturing Planning and Control

    Level loading

    Pull systems

    Visual systems

    Close vendor relationships

    Reduced transaction processing

    Preventive maintenance

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    Pull/Push Systems

    Pull system: System for moving work wherea workstation pulls output from the

    preceding station as needed. (e.g. Kanban)

    Push system: System for moving work whereoutput is pushed to the next station as it is

    completed

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    Kanban Production Control System

    Kanban: Card or other device that communicatesdemand for work or materials from the precedingstation

    Kanban is the Japanese word meaning signal or

    visible record

    Paperless production control system

    Authority to pull, or produce comes

    from a downstream process.

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    Traditional Supplier Network

    Buyer

    SupplierSupplier Supplier Suppiler

    Supplier

    Supplier

    Supplier

    Figure 16-3a

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    Tiered Supplier Network

    Figure 16-3b

    Supplier

    Supplier

    Supplier

    SupplierSupplier Supplier

    Buyer

    SupplierFirst Tier Supplier

    Second Tier Supplier

    Third Tier Supplier

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    Summary JIT Goals and Building Blocks

    Figure 16-4

    ProductDesign

    ProcessDesign

    PersonnelElements

    Manufactur-ing Planning

    Eliminate disruptionsMake the system flexible

    Reduce setupand lead times

    Eliminate wasteMinimize inventories

    Abalancedrapid flow

    UltimateGoal

    SupportingGoals

    BuildingBlocks

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    Converting to a JIT System

    Get top management commitment Decide which parts need most effort

    Obtain support of workers

    Start by trying to reduce setup times

    Gradually convert operations

    Convert suppliers to JIT

    Prepare for obstacles

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    Obstacles to Conversion

    Management may not be committed Workers/management may not be

    cooperative

    Suppliers may

    resist

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    JIT in Service

    The basic goal of the demand flow technology in

    the service organization is to provide optimum

    response to the customer with the highest

    quality service and lowest possible cost.

    Eliminate disruptions Make system flexible

    Reduce setup and lead times

    Eliminate waste

    Minimize WIP

    Simplify the process

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    New challengesMeeting manufacturing requirements

    Changing from traditional thinking and

    practicesfrequent on-time delivery of small

    quantities

    Long term relationships with suppliers as

    partners

    JIT Purchasing

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    JIT II: the practice of allowing vendors tomanage some aspects of buying their

    products or services for the buyer

    JIT II

    B

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    Benefits of JIT Systems

    Reduced inventory levels

    High quality

    Flexibility

    Reduced lead times

    Increased productivity

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    Benefits of JIT Systems (contd)

    Increased equipment utilization Reduced scrap and rework

    Reduced space requirements

    Pressure for good vendor relationships

    Reduced need for indirect labor

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    Waste from overproduction

    Waste of waiting time

    Transportation waste

    Inventory waste

    Processing waste

    Waste of motion

    Waste from product defects

    Sources of Waste

    Table 16-5

    E JIT

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    Smooth flow of work (the ultimate goal) Elimination of waste

    Continuous improvement

    Eliminating anything that does not add value

    Simple systems that are easy to manage

    Use of product layouts to minimize moving

    materials and parts Quality at the source

    Table 16-5

    Elements of JIT

    El f JIT ( d)

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    Poka-yokefail safe tools and methods

    Preventative maintenance

    Good houskeeping

    Set-up time reduction

    Cross-trained employees

    A pull system

    Elements of JIT (contd)

    Table 16-5

    K

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    Kanban(the visual system)

    What is Kanban? C

    XDTN

    1

    N= Total number of containers

    D = Planned usage rate of using WC T= Average wait time + production time

    X= Efficiency number (by policy)

    C= Capacity per container

    2728.1

    25

    2.112.300

    N

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    Number of containers N

    Planned usage rate WC D 300

    Cycle time T 0.12efficicnet factor X 0.2

    Parts per container C 15

    DT(1+X)

    C

    43.2

    15

    = 3

    N =

    =

    = 2.88