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CHAPTER 14 Just-In-Time Systems.

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1 CHAPTER 14 Just-In-Time Systems

2 Toyota Production System
The objective Continuous improvement of the production system (Kaizen)

3 Toyota Production System
Elements of the Toyota System Just-in-time needed units arrived at the right time in the right amount Kanban system a pull system with tight limit on work-in-process inventory

4 JIT/Lean Production Just-in-time: Repetitive production system in which 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”

5 JIT Goals Eliminate disruptions Make system flexible
Reduce setup and lead times Minimize inventory Eliminate waste

6 Sources of Waste Waste form overproduction Waste of waiting time
Transportation waste Inventory waste Processing waste Waste of motion Waste from product defects

7 JIT Building Blocks Product design Process design
Personnel/organizational elements Manufacturing planning and control

8 Building block - Product Design
Standard parts Modular design Quality

9 Building block - Process Design
Small lot sizes Setup time reduction Manufacturing cells Limited work in process Quality improvement Production flexibility Little inventory storage

10 Benefits of Small Lot Sizes
Reduces inventory Less rework Less storage space Problems are more apparent Increases product flexibility Easier to balance operations

11 JIT - variability reduction
Reduction in S (setup cost) Q

12 JIT - Variability reduction
Reduction in safety stock Safety Stock = ROP -  = z

13 Building block - Production Flexibility
Reduce downtime by reducing changeover time Use preventive maintenance to reduce breakdowns Cross-train workers to help clear bottlenecks Reserve capacity for important customers

14 JIT - flexibility Low setup cost Flow direction CCBBBA ABBACCC

15 Building block - Personnel/Organizational Elements
Workers as assets Cross-trained workers Continuous improvement Cost accounting Leadership/project management

16 Building Block - Manufacturing Planning and Control
Level loading Pull systems Visual systems Close vendor relationships Reduced transaction processing

17 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

18 Kanban Production Control System
Kanban is the Japanese word for card. Paperless production control system Authority to pull, or produce comes from a downstream process.

19 Summary JIT Goals and Building Blocks
Product Design Process Personnel Elements Manufactur- ing Planning Eliminate disruptions Make the system flexible Reduce setup and lead times Eliminate waste Minimize inventories A balanced rapid flow Ultimate Goal Supporting Goals Building Blocks

20 Benefits of JIT Systems
Reduced levels of inventories Reduced space requirements Increased product quality Reduced lead times Greater flexibility in product mix

21 Benefits of JIT Systems (cont’d)
Smoother production flow Increased productivity levels Worker participation in problem solving Pressure for good vendor relationships Reduced need for indirect labor

22 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

23 Obstacles to Conversion
Management may not be committed Workers/management may not be cooperative Suppliers may resist

24 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.

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