1. Production and Operations Management: Manufacturing and Services
Eighth Edition
Production and Operations Management: Manufacturing and Services
Ó Irwin/McGraw-Hill, A Division of the McGraw-Hill Companies
PowerPoint Supplement developed by:
William E. Youngdahl
World Business Department
Thunderbird, The American Graduate School of International Management
PowerPoint Presentation for Chapter 8
Just-in-Time Production Systems
Chase
Aquilano
Jacobs
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1998 1

2. Chapter 8 Just-in-Time Production Systems
JIT Logic
The Japanese Approach to Productivity
North American Modifications to JIT
JIT Implementation Requirements
JIT in Services 2 2

3. JIT is an integrated set of activities designed to...
achieve high-volume production using minimal inventories
raw materials
work in process, and
finished goods.
Parts arrive at the next workstation "just in time". 3 3

4. JIT Logic
Exhibit 8.1
Fab
Vendor
Sub
Final Assy
Customers 4 4

5. The Japanese Approach to Productivity
Goal of full employment in the post WWII period.
Government (MITI) supported improvement of targeted industries.
Imported technologies.
Efforts concentrated on factory floor.
Quality improvement focus
Elimination of waste & respect for people. 5 5

6. Waste--Operations (1) Waste from overproduction
(2) Waste of waiting time
(3) Transportation waste
(4) Inventory waste
(5) Processing waste
(6) Waste of motion
(7) Waste from product defects 6 6

7. Minimizing Waste: Focused Factory Networks
Coordination
System Integration
Final Assembly 7 7

8. Minimizing Waste: Group Technology
Exhibit 8.2
Departmental Specialization
Saw
Saw
Saw
Grinder
Grinder
Heat Treat
Lathe
Lathe
Lathe
Press
Press
Press 8 8

9. Minimizing Waste: Group Technology
Exhibit 8.2
Group technology cells
Grinder 1 2
Lathe
Press
Saw
Lathe
Heat Treat
Grinder A B
Lathe
Press
Saw
Lathe 9 9

10. Minimizing Waste: Quality at the Source
Self-inspection
Automated inspection
Line-stopping empowerment 10 10

11. Minimizing Waste: JIT Production
Produce...
...what is needed...
...when it’s needed...
...NOTHING MORE! 11 11

12. Minimizing Waste: Uniform Plant Loading
This does not mean building a single product.
We need to maintain a stable mix of products,
and firm monthly schedules. 12 12

13. Just-In-Time Production
Exhibit 8.3
Management philosophy
Pull system though the plant
WHAT IT IS
Attacks waste
Exposes problems and bottlenecks
Achieves streamlined production
WHAT IT DOES
Employee participation
Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes
WHAT IT REQUIRES
Stable environment
WHAT IT ASSUMES 13 13

14. Inventory Hides Problems
Exhibit 8.4
Work in
process
queues
(banks)
Change
orders
Engineering design
redundancies
Vendor
delinquencies
Scrap
Design
backlogs
Machine
downtime
Decision
Inspection
Paperwork
backlog 14 14

15. Minimizing Waste: Kanban Production Control Systems
Exhibit 8.6 A B
Machine Center
Assembly Line
Storage
Production
Kanban
Withdrawal 15 15

16. Calculating the Number of Kanbans Needed
Setting up a kanban system requires determining the number of kanbans (or containers) needed.
Each container represents the minimum production lot size.
An accurate estimate of the lead time required to produce a container is key to determining how many kanbans are required. 16 16

17. The Number of Kanban Card Sets, k
k = Number of kanban card sets
d = Average number of units demanded over some time period
L = lead time to replenish an order (same units of time as demand)
S = Safety stock expressed as a percentage of demand during lead time
C = Container size 17 17

18. The Number of Kanban Card Sets, k Example
A switch assembly is assembled in batches of 4 units from an “upstream” assembly area and delivered in a special container to a “downstream” control-panel assembly operation.
The control-panel assembly area requires 5 switch assemblies per hour.
The switch assembly area can produce a container of switch assemblies in 2 hours.
Safety stock has been set at 10% of needed inventory. 18 18

19. The Number of Kanban Card Sets, k Example
Always round up! 19 19

20. Minimizing Waste: Minimized Setup Times
What are the consequences of long setup times?
A requirement for small-lot-size, mixed-model production? 20 20

21. Respect for People Level payrolls Cooperative employee unions
Subcontractor networks
Bottom-round management style
Quality circles (Small group involvement activities) 21 21

22. North American Modifications of JIT
Can JIT work in North America?
What are the cultural barriers to successful implementation? 22 22

23. JIT Requirements: Design Flow Process
See Exhibit 8.8
Link operations
Balance workstation capacities
Relayout for flow
Emphasize preventive maintenance
Reduce lot sizes
Reduce setup/changeover time 23 23

24. JIT Requirements: Total Quality Control
Worker responsibility
Measure SQC
Enforce compliance
Fail-safe methods
Automatic inspection 24 24

25. JIT Requirements: Stabilize Schedule
Level schedule
Underutilize capacity
Establish freeze windows, period of time during which the schedule is fixed and no further changes are possible. 25 25

26. JIT Requirements: Kanban-Pull
Demand pull
Backflush, periodically explode an end item’s BOM to calculate how many of each part went into the final product(s)--- periodical explosion!!
Reduce lot sizes 26 26

27. JIT Requirements: Work with Vendors
Reduce lead times
Frequent deliveries
Project usage requirements
Quality expectations 27 27

28. JIT Requirements: Reduce Inventory More
Stores
Transit
Carousels
Conveyors 28 28

29. JIT Requirements: Improve Product Design
Standard product configuration
Standardize and reduce number of parts
Process design with product design
Quality expectations 29 29

30. JIT in Services (Examples)
Organize Problem-Solving Groups
Upgrade Housekeeping
Upgrade Quality
Clarify Process Flows
Revise Equipment and Process Technologies 30 30

31. JIT in Services (Examples)
Level the Facility Load
Eliminate Unnecessary Activities
Reorganize Physical Configuration
Introduce Demand-Pull Scheduling
Develop Supplier Networks 31 31