week12 jit tps kanban lean

8/12/2019 Week12 JIT TPS Kanban Lean

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2008 Prentice Hall, Inc. 161

Operat ionsManagement

Chapter 16J IT and Lean

Operat ions

PowerPoint p resentat ion to accompany

Heizer/Render

Pr inciples o f Operat ions Management, 7e

Operations Management, 9e


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Toyo ta Moto r Corporat ion

Largest vehic le manu facturer in the

world w ith annual sales o f over 9

m i l lion vehic les

Success due to two techn iques, JIT

and TPS

Cont inual problem solv ing is central

to JIT Elim inating excess inventory makes

problems immediately evident


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Toyo ta Moto r Corporat ion

Central to TPS is a cont inuing effort

to produce products under ideal

condi t ions

Respect for peop le is fundamental

Small bui ld ing bu t high levels o f

product ion

Subassembl ies are trans ferred to theassembly l ine on a JIT basis

High qual ity and low assemb ly t ime

per vehicle


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Jus t-In -Time, TPS, and

Lean Operat ions JIT is a ph i losophy of con t inuous and

forced prob lem solv ing v ia a focus on

throughput and reduced inventory

TPS emphasizes cont inuous

improvement, respect for peop le, and

standard wo rk p ract ices

Lean p roduct ion suppl ies the

cus tomer w i th thei r exact wants when

the customer wants i t wi thou t waste


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Jus t-In -Time, TPS, and

Lean Operat ions JIT emphasizes fo rced problem

solv ing

TPS emphasizes emp loyee

learning and empowerment in an

assembly-l ine env ironment

Lean operat ions emphasize

understand ing the customer


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Elim inate Waste

Waste is any thing that does not

add value from the customer point

of v iew Storage, inspect ion , delay, wait ing

in queues, and defect ive produc ts

do not add value and are 100%

waste


7/36 2008 Prentice Hall, Inc. 167

Ohnos Seven Wastes

Overproduct ion

Queues

Transportat ion

Inventory

Mot ion

Overprocessing

Defect ive products



Elim inate Waste

Other resources such as energy,

water, and air are of ten wasted

Eff icient, ethical, and social lyrespons ib le product ion m inim izes

inputs , reduces waste

Traditional housekeeping hasbeen expanded to the 5 Ss



The 5 Ss

Sort/segregatewhen in doub t ,throw i t ou t

Simpl i fy/straightenmethods

analysis too ls Shine/sweepc lean dai ly

Standardizeremove var iat ions

f rom processes Sustain/self-discipl inereview work

and recogn ize progress



The 5 Ss

Sort/segregatewhen in doub t ,throw i t ou t

Simpl i fy/straightenmethods

analysis too ls Shine/sweepc lean dai ly

Standardizeremove var iat ions

f rom processes Sustain/self-discipl inereview work

and recogn ize progress

Two add i t ional Ss

Safetybu i ld in good p ract ices

Support /maintenanceredu cevar iabi l i ty and unplanned

downt ime



Remove Variab i l ity

JIT systems requ ire managers to

reduce var iabi l i ty caused by both

internal and external facto rs

Variab i l i ty is any deviat ion from the

opt imum process

Invento ry hides var iabi l i ty

Less var iabi l i ty resul ts in less

waste



Sources o f Variab i li ty

1. Incomplete or inaccurate draw ings

or speci f ications

2. Poor product ion processesresu l t ing in inco rrect quant i t ies,

late, or non-conform ing uni ts

3. Unknown cus tomer demands



Jus t-In -Time (J IT)

Powerfu l st rategy for improv ing operat ions

Materials arr ive where theyare needed when they are

needed

Ident ify ing prob lems anddr iv ing out waste reducescosts and variabi l ity and

improves throughput Requ ires a meaning fulbuyer-supp l ier relat ionship



J IT and Competi t iveAdvantage

Figure 16.1



J IT Partnersh ips

JIT partnerships exist when a

supp l ier and purchaser work

together to remove waste and dr ive

down cos ts

Four goals o f JIT partnersh ips are:

Removal of unnecessary act iv i t ies

Removal of in-plant inventory

Removal of in-transi t inventory

Improved qual ity and reliabi l i ty


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J IT Partnersh ips

Figure 16.2


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Concerns o f Supp l iers

Diversi f icat iont ies to on ly one custom erincreases r isk

Schedul ingdont believe customers can

create a smoo th schedu le Changessho rt lead t imes mean

eng ineer ing o r speci f icat ion changes can

create problems

Qualityl im i ted by capi tal budgets,processes, or techno logy

Lo t sizessmall lot s izes may trans fer

costs to supp l iers


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Inventory

Invento ry is at the m inimum level

necessary to keep operat ions running

JIT Inventory TacticsUse a pu l l sys tem to move inventory

Reduce lot s izes

Develop jus t-in-t ime delivery sys tems with suppl iers

Del iver direct ly to point o f usePerform to schedule

Reduce setup t ime

Use group techno logyTable 16.2


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Reduce Variab i l i ty

Inventory level

Processdownt ime

Scrap

Setupt ime

Late deliveries

Qual i typroblems

Figure 16.3


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J IT Schedu l ing

Schedules must be commun icated

inside and ou tside the organizat ion

Level schedu les Process frequent smal l batches

Freezing th e schedu le helps

stabi l i ty

Kanban

Signals used in a pul l system


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Table 16.3

Better schedul ing improves performance

JIT Schedu l ing Tactics

Commun icate schedules to supp l iers

Make level schedules

Freeze part o f the schedule

Perform to schedule

Seek one-piece-make and one-piece move

El iminate waste

Produce in smal l lots

Use kanbans

Make each operat ion p roduce a perfect part

J IT Schedu l ing


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Kanban

Kanban is the Japanese word for card

The card is an autho r izat ion for the next

container of mater ial to be produced

A sequence of kanbans

pul ls m ater ial through

the process

Many di f ferent sorts ofs ignals are used, bu t

the sys tem is st i l l called

a kanban


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Kanban

1. User removes a

standard sized

container

2. Signal is seen by

the produc ing

department as

author izat ion to

replenish

Part numbers

mark locat ion

Signal markeron boxes

Figure 16.8


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Kanban

Figure 16.9

Work

cel l

RawMaterialSuppl ier

Kanban

PurchasedParts

Suppl ier

Sub-assembly

Ship

Kanban

Kanban

Kanban

Kanban

Finishedgoods

Customerorder

Finalassembly

Kanban


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More Kanban

When the producer and user are no t in

visual contact , a card can be used

When the producer and user are in visual

con tact , a light o r f lag o r emp ty spot onthe f loor may be adequate

Since several

components may

be required,several d if feren t

kanban techn iques

may be employed


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More Kanban

Usual ly each card contro ls a speci f ic

quant i ty or parts

Mult ip le card sys tems may be used i f

there are several components or

di f ferent lot s izes

In an MRP system , the schedu le can

be though t of as a bu i ld author izationand the kanban a type of pu l l system

that ini t iates actual produc t ion


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More Kanban

Kanban cards p rov ide a di rect contro l

and l im i t on the amount of work- in-

pro cess between cel ls

If there is an immediate sto rage area, a

two-card system can be used wi th one

card circu lat ing between the user and

sto rage area and the other between the

storage area and the producer


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Advantages of Kanban

Al low on ly l im i ted amount o f faul ty or

delayed material

Problems are immediately evident Puts downward pressure on bad

aspects of inventory

Standardized containers reduce

weigh t , disposal costs, wasted space,

and labo r


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Toyota Produc t ion Sys tem

Cont inuous improvement

Bu i ld an o rganizat ional cu lture and value

sys tem that stresses improvement of all

processes

Part of everyones job

Respect for people

People are treated as

know ledge wo rkers Engage mental and

phys ical capabi l i t ies

Empower employees


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Toyota Produc t ion Sys tem

Standard work p ract ice

Work shal l be completely speci f ied as to

con tent, sequence, t iming , and outc ome

Internal and external cus tom er-supp l iercon nect ion are direct

Product and serv ice flows must be simple

and direct

Any improv ement must be made inacco rdance with the scient i f ic method at the

lowest poss ib le level of the organizat ion


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Lean Operat ions

Differen t from JIT in that i t is

externally focu sed on the customer

Star ts w i th understand ing what thecus tomer wants

Optim ize the ent i re pro cess from

the customers perspective


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Bu i ld ing a Lean Organizat ion

Trans i t ioning to a lean system can

be d i ff icul t

Lean sys tems tend to have thefo l low ing at t r ibu tes

Use JIT techn iques

Bu i ld s ystems that help emp loyeesproduce perfect parts

Reduce space requ irements


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Bu i ld ing a Lean Organizat ion

Develop partnerships w ith

suppl iers

Educate supp l iers

Elim inate al l bu t value-added

act iv i t ies

Develop employees

Make jobs chal lenging

Bu i ld wo rker f lex ibi l i ty

week12 jit tps kanban lean

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