JIT and Lean Operations
JIT/Lean Production
Just-in-time (JIT): A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed,
JIT lean production JIT pull (demand) system JIT operates with very little fat
Goal of JIT
The ultimate goal of JIT is a balanced system. Achieves a smooth, rapid flow of materials through the system
15-4
Summary JIT Goals and Building Blocks
Ultimate A Goal balanced rapid flow Supporting Goals Eliminate disruptions Make the system flexible Eliminate waste
Product Design
Process Design
Personnel Elements
Manufacturing Planning
Building Blocks
15-5
Supporting Goals
Eliminate disruptions Make system flexible Eliminate waste, especially excess inventory
15-6
Sources of Waste
Overproduction Waiting time Unnecessary transportation Processing waste Inefficient work methods Product defects
15-7
Kaizen Philosophy
Waste is the enemy
Improvement should be done gradually and continuously
Everyone should be involved Built on a cheap strategy Can be applied anywhere
15-8
Kaizen Philosophy (contd)
Supported by a visual system
Focuses attention where value is created
Process orienteted Stresses main effort of improvement should come from
new thinking and work style The essence of organizational learning is to learn while doing
15-9
Big vs. Little JIT
Big JIT broad focus Vendor relations Human relations Technology management Materials and inventory management Little JIT narrow focus Scheduling materials Scheduling services of production
15-10
JIT Building Blocks
Product design
Process design
Personnel/organizational
elements
Manufacturing
planning and control
15-11
Product Design
Standard parts Modular design Highly capable production systems Concurrent
engineering
15-12
Process Design
Small lot sizes Setup time reduction Manufacturing cells Limited work in process Quality improvement Production flexibility Balanced system Little inventory storage
15-13
Benefits of Small Lot Sizes
Reduces inventory Less rework Less storage space
Problems are more apparent Increases product flexibility
Easier to balance operations
15-14
Single-Minute Exchange
Single-minute exchange of die (SMED): A system for
reducing changeover time Categorize changeover activities
Internal activities that can only be done while machine is stopped External activities that do not require stopping the machine
15-15
Production Flexibility
Reduce downtime by reducing changeover time Use preventive maintenance to reduce
breakdowns
Cross-train workers to help clear bottlenecks
Production Flexibility (contd)
Use many small units of capacity Use off-line buffers
15-16
Reserve capacity for important customers
15-17
Quality Improvement
Autonomation
Automatic detection of defects during production
Jidoka
Japanese term for autonomation
15-18
Production Flexibility
Balance system: Distributing the workload evenly among
work stations Work assigned to each work station must be less than or equal to the cycle time Cycle time is set equal to the takt time Takt time is the cycle time needed to match customer demand for final product
15-19
Personnel/Organizational Elements
Workers as assets Cross-trained workers Continuous improvement Cost accounting Leadership/project
management
15-20
Pull/Push Systems
Pull system: System for moving work where a
workstation pulls output from the preceding station as needed. (e.g. Kanban)
Push system: System for moving work where output is
pushed to the next station as it is completed
15-21
Kanban Production Control System
Kanban: Card or other device that communicates
demand for work or materials from the preceding station
Kanban is the Japanese word meaning signal or
visible record
Paperless production control system Authority to pull, or produce comes
from a downstream process.
15-22
Kanban Formula
N = DT(1+X) C
N = Total number of containers D = Planned usage rate of using work center T = Average waiting time for replenishment of parts plus average production time for a container of parts
X = Policy variable set by management - possible inefficiency in the system C = Capacity of a standard container
Usage at each work center is 300 parts per day, and a standard container holds 25 parts. It takes an average of .12 day for a container to complete a circuit from the time a Kanban card is received until the container is returned empty. Compute the number of Kanban cards required if X = .20
N=? D = 300 parts per day T = .12 day C = 25 parts per container X = .20 N= 300 (.12)(1+.20) / 25 = 1.728 = 2
15-25
