Just-in-Time and Lean Production Systems

Goals of JIT Partnerships Concerns of Suppliers
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Outline – Continued
JIT Layout
Distance Reduction Increased Flexibility Impact on Employees Reduced Space and Inventory
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Just-InJust-In-Time and Lean Production
JIT is a philosophy of continuous and forced problem solving that supports lean production Lean production supplies the customer with their exact wants when the customer wants it without waste Key issues are continual improvement and a pull system
Elimination of unnecessary activities Elimination of in-plant inventory inElimination of in-transit inventory inElimination of poor suppliers
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Which Results In:
Which Yields:
Table 16.1
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Suppliers
JIT partnerships exist when a supplier and purchaser work together to remove waste and drive down costs Four goals of JIT partnerships are:
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Waste Reduction
Faster delivery, reduced work-inwork-inprocess, and faster throughput all reduce waste Reduced waste reduces room for errors emphasizing quality Reduced inventory releases assets for other, productive purposes
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Green Gear Cycling
Designs and manufactures high performance travel bicycles (bike-in-a(bike-insuitcase) Strategy is mass customization with low inventory, work cells, and elimination of machine setups Major focus on JIT and supply-chain supplymanagement One day throughput time Focus on quality
Table 16.2
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JIT Partnerships
Quantities Share forecasts of demand Frequent deliveries of small-lot quantities smallLongLong-term contract Minimal paperwork to release order (EDI or the Internet) Little or no permissible overage or underage Suppliers package in exact quantities Suppliers reduce production lot sizes
Operations Management
Chapter 16 – Just-in-Time and Lean Production Systems
PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 6e Operations Management, 8e
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Outline – Continued
Quality Employee Empowerment Lean Production Building a Lean Organization 5 S’s Seven Wastes JIT In Services
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Outline
Global Company Profile: Green Gear Cycling Just-inJust-in-Time and Lean Production Suppliers
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Waste Reduction
Waste is anything that does not add value from the customer point of view Storage, inspection, delay, waiting in queues, and defective products do not add value and are 100% waste
JIT Partnerships
Suppliers Few suppliers Nearby suppliers Repeat business with same suppliers Support suppliers so they become or remain price competitive Competitive bidding mostly limited to new purchases Buyer resists vertical integration and subsequent wipeout of supplier business Suppliers encouraged to extend JIT buying to their suppliers
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Learning Objectives
When you complete this chapter, you should be able to: Identify or Define:
Variability Kanban 5 S System Seven Wastes
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Pull Versus Push Systems
A pull system uses signals to request production and delivery from upstream stations Upstream stations only produce when signaled System is used within the immediate production process and with suppliers
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Learning Objectives
When you complete this chapter, you should be able to: Describe or Explain:
Just-inJust-in-time (JIT) Philosophy Pull Systems Push Systems The Goals of JIT Partnerships Lean Production Principles of Toyota Production System
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JIT and Competitive Advantage
JIT Requires:
Table 16.1
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JIT and Competitive Advantage
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Outline – Continued
Inventory
Reduce Variability Reduce Inventory Reduce Lot SizesБайду номын сангаасReduce Setup Costs
Scheduling
Level Schedules Kanban
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Causes of Variability
1. Employees, machines, and suppliers produce units that do not conform to standards, are late, or are not the proper quantity 2. Engineering drawings or specifications are inaccurate 3. Production personnel try to produce before drawings or specifications are complete 4. Customer demands are unknown