Jit ppt on manufacturing jobs

PRODUCTIVE OPERATIONS SYSTEMS, E FFICIENCY & P RODUCTIVITY & JIT Prepared by Prof. Dr. Şevkinaz Gümüşoğlu using different references about POM.

by one or more inputs ( such as labour, capital or management). The production/operations manager’s job is to enhance (improve) this ratio of outputs to inputs. Productivity is a measure of operational /JIT is still evolving JIT isn’t for everyone A W ORLD C LASS C OMPANY … is a company that has achieved high standards and has undergone fundamental changes from traditional forms of organization and management continuously pursues improvement in all aspects of its operations, including its manufacturing/


1st Session: Chapter 1: Manufacturing in America, Class Introduction Chapter 0: Factory Physics? Paula Jensen SD School of Mines and Technology TM 663.

shifted from an agrarian economy to a manufacturing economy. Interpretation: Shift was good because it substituted high productivity/high paying (manufacturing) jobs for low productivity/low paid (agriculture) jobs. Statistic: 1929 — agriculture employed 29/American size spurred large scale railroad development and ultimately mass marketing and mass production. – Japanese concentration facilitated JIT. Paula Jensen SD School of Mines and Technology Lessons of America/Japan Analogies – Underdogs are hungry. /


Just-in-Time (JIT) and Lean Systems Chapter 7. MGMT 326 Foundations of Operations Introduction Strategy Quality Assurance Facilities Planning & Control.

materials, tools, etc. Defects People who are not challenged by their jobs and are not allowed to give input into decisions 3 Key Principles of JIT and Lean Systems Just-in-time processes Total quality management Respect for/cycle time Shorter setup times Parallel processing Clean, well-organized workplace See pages 244-245 for details Elements of JIT Manufacturing Inventory reduction exposes problems Kanbans & pull production systems Small lots & quick setups Uniform plant loading Flexible resources /


Manufacturing Processes (Mass Production) Mr. Pottkotter Ohio Academic Content Standards Technology: Standard 7, Benchmark C.

mass production of standardized goods, using dedicated machines and moving assembly lines, employing unskilled and semi- skilled labor in fragmented jobs, with tight labor discipline, in large factories." 7.C.10.4 Model T Initially it took 14 hours to assemble a/in the production stream. The ideal of a lean system is a one-piece flow. 7.C.9.2 Just-In-Time Manufacturing JIT is a philosophy of continuous improvement in which non-value- adding activities (or wastes) are identified and removed for the purposes/


The philosophy of JIT can be traced back to Henry Ford, but formalized JIT originated in Japan as the Toyota Production System. W. Edwards Deming’s lesson.

of product families to manufacturing cells Layout Traditional – job shop approach of using widely spread-out equipment with space for stockrooms, tool cribs, and work-in-process inventories between the equipment – To handle and move all this inventory, automated or semi automated materials handling equipment (conveyors, forklifts) is required, which takes even more space. JIT – Equipment is moved as close together as possible/


JIT 1 JIT -Just in time Often called lean production or Toyota Production System (TPS) JIT is a philosophy whereby we continuously attempt to drive all.

–expand the depth and breadth of their jobs However; –some employees do not want this responsibility –like suppliers, employees will only make these changes if they trust management ! JIT 28 Top management support JIT is a philosophy that pervades a company, and/ will get done –This support must be long term - JIT does not occur overnight !!! JIT 29 Some key points Is JIT just for manufacturing? IS JIT for everyone ? Are most of the elements of JIT for everyone? Are the Japanese really the only ones who/


Just-in-Time (JIT) and Lean Systems Chapter 7. Management 326 Operations and Operations Strategy Designing an Operations System Managing an Operations.

, tools, etc. Defects People who are not challenged by their jobs and are not allowed to give input into decisions 3 Key Principles of JIT and Lean Systems Just-in-time processes Total quality management Respect for/ cycle time Shorter setup times Parallel processing Clean, well-organized workplace See pages 244-245 for details Elements of JIT Manufacturing Inventory reduction exposes problems Kanbans & pull production systems Small lots & quick setups Uniform plant loading Flexible resources Efficient/


1 Session 19 Just-In-Time Manufacturing JIT Impact on the MPC System JIT Continuous Improvement –JIT Building Blocks –Elements of JIT Kanban Systems –Single.

cells. Limited work-in-process. Production bandwidth. No stockrooms. Service enhancements. 9 JIT Building Blocks Human/organizational elements: Whole person. Cross training/job rotation. Flexible labor. Continual improvement. Limited direct/indirect distinction. Cost accounting/performance measurement. Information system changes. Leadership/project management. 10 JIT Building Blocks Manufacturing planning and control: Pull systems. Rapid flow times. Small container sizes. Paperless systems. Visual/


JIT Planning and Control  Lessons 6. JIT Planning and Control  There are many approaches to the planning and control of products through a process.

.  Thus, although this is an unusual context for the application of JIT and cellular manufacturing, it does have many of the suggested pre-requisites. Boys & Boden  “JIT aims to meet demand instantaneously, with perfect quality and no waste” The / It is quite apparent that the introduction of the staircase cell will radically alter employees’ working life and individual job designs. It is natural (and hence should be anticipated) that people will exaggerate the negative aspects, and underestimate the/


1 Why Kanban Systems Fail and What You Can Do About it Saifallah Benjaafar Center for Manufacturing Logistics Department of Mechanical Engineering University.

Time (JIT) A collection of principles aimed at reducing inventory, increasing throughput, and minimizing manufacturing lead times. 6 Origins of JIT Japan’s attempt to become competitive with US and European manufacturers after WW II The Toyota Production System 7 JIT principles / naturally WIP levels must be sensitive to “length” of fabrication lines 43 Card Deficits B Bottleneck Process Jobs with CardsJobs without Cards Failed Machine 44 CONWIP Assembly Processing Times for Line B Processing Times for Line /


Control Systems ERPJITKanban. What’s Right and How Do They Fit Together in a Lean World? ERPJITKanban.

and timing requirements for materials used in a production operation. MRPII Manufacturing Resource Planning An expanded system for determining manufacturing resource requirements and for scheduling production. JIT Just-in-Time A system for producing and delivering the right items/ Value creating jobs Non-value creating jobs – but currently necessary to run the business Non-value creating and unnecessary jobs Work with HR Fear of job loss can derail the conversion to lean – taking away fear of job loss is at/


Just In Time Manufacturing Push Manufacturing vs. Pull Manufacturing Push System: Traditional production system as parts are processed based on the master.

homework-help/industrial-management/just-in-time-production-system/analogy-to-jit-aspx /http://www.transtutors.com/homework-help/industrial-management/just-in-time-production-system/analogy-to-jit-aspx / Principles Behind JIT Manufacturing System 5 S 3 Ms –7 wastes Visual Control Kanban Continuous/ our work. Muda for waiting: When we have to wait before we can continue to work on a job. Visual Control: Make it easy for everyone to identify the state of normal or abnormal conditions. Housekeeping Organization/


Managerial Accounting by James Jiambalvo

, U.S. companies have made fundamental changes in their operations and philosophies. Here are some examples: Just-in-Time (JIT) Production Computer-Controlled Manufacturing Total Quality Management (TWM) Related Learning Objectives: Explain why the difference between actual overhead and overhead allocated to jobs using a predetermined rate is closed to Cost of Goods Sold or apportioned among Work in Process Inventory, Finished Goods/


Just-In-Time Philosophy

Systems By pulling material in small lots, inventory cushions are removed, exposing problems and emphasizing continual improvement Manufacturing cycle time is reduced Push systems dump orders on the downstream stations regardless of the need Waste /time Adjust the output rate by increasing or decreasing the number of workers in a cell Facilitate job training Promote job satisfaction Typical Benefits of JIT Cost savings: inventory reductions, reduced scrap, fewer defects, fewer changes due to both customers /


Prepared by Debby Bloom-Hill CMA, CFM. CHAPTER 2 Job-Order Costing for Manufacturing & Service Companies.

associated with overhead cost Slide 2-38 Learning objective 6: Describe how direct material, direct labor, and manufacturing overhead are assigned to jobs Activity Based Costing (ABC)  Most firms use a single overhead rate  Activity Based Costing (ABC/-51 Learning objective 9: Explain how service companies can use job order costing to calculate the cost of services provided to customers Modern Manufacturing Practices  Just-in-Time Production (JIT)  Minimize raw materials and work in process inventories /


Lecture 28 Just-in-Time Manufacturing (Continued) Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, P.E., CFPIM, CIRM, Fleming.

difficult  Lean systems tend to have the following attributes  Use JIT techniques  Build systems that help employees produce perfect parts  Reduce space requirements Building a Lean Organization  Develop partnerships with suppliers  Educate suppliers  Eliminate all but value-added activities  Develop employees  Make jobs challenging  Build worker flexibility JIT in Services  The JIT techniques used in manufacturing are used in services  Suppliers  Layouts  Inventory  Scheduling End/


Lesson 2: Manufacturing. *What is JIT? Just-in-time (JIT) is an inventory strategy that strives to improve a businesss return on investment by reducing.

costs. The system or process used to eliminate waste of inventory at both the entry point and the exit point of manufacturing is referred to as: A. JIT B. CE C. CIM D. RP *What should you do when a problem arises on an assembly line? When /a production system in which the productive units are organized and sequenced according to the steps to produce the product. The routing of the jobs is fixed, and setups are seldom changed. A certain model car has the same body shape, therefore, many of the same model/


Prepared by Debby Bloom-Hill CMA, CFM. CHAPTER 2 Job-Order Costing for Manufacturing & Service Companies.

associated with overhead cost Slide 2-41 Learning objective 4: Describe how direct material, direct labor, and manufacturing overhead are assigned to jobs. Activity Based Costing (ABC)  Most firms use a single overhead rate  Activity Based Costing (/-54 Learning objective 6: Explain how service companies can use job-order costing to calculate the cost of services provided to customers. Modern Manufacturing Practices  Just-in-Time Production (JIT)  Minimize raw materials and work in process inventories /


16 - 1© 2011 Pearson Education 16 JIT, Lean Operations, and the Toyota Production System PowerPoint presentation to accompany Heizer and Render Operations.

lowest possible level of the organization 16 - 33© 2011 Pearson Education Building a Lean Organization  Develop partnerships with suppliers  Educate suppliers  Eliminate all but value-added activities  Develop employees  Make jobs challenging  Build worker flexibility 16 - 34© 2011 Pearson Education Lean Operations in Services  The JIT techniques used in manufacturing are used in services  Suppliers  Layouts  Inventory  Scheduling


Appendix C Manufacturing Information Systems MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall, Inc.

2001 Prentice-Hall, Inc. C-1 Manufacturing Information System n Used to support efforts to produce products n Evolution of computer use in manufacturing –Systems keyed on reorder points –MRP –JIT n Consists of three input and four / sources Inputsubsystems Outputsubsystems Users Data Information A Model of a Manufacturing System C-16 Accounting Information System [AIS] n Data collection terminals –Track material flow –Gather job data (job reporting) –Gather attendance data (attendance reporting) C-17 /


PRODUCTIVE OPERATIONS SYSTEMS, E FFICIENCY & P RODUCTIVITY & JIT Prepared by Prof. Dr. Şevkinaz Gümüşoğlu using different references about POM.

bargaining Quality of work life Henry Ford’s focus was largely on manufacturing efficiency; By adopting fixed work-stations, Increasing task specialisation, Moving work/ inputs ( such as labour, capital or management). The production/operations manager’s job is to enhance (improve) this ratio of outputs to inputs. Productivity is a//hr Ch 15 - 36 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e JIT I N S ERVICES Competition on speed & quality Multifunctional department store workers Work cells at fast/


Kenneth J. Andrews EMP-5179-1-1 Manufacturing Systems: EMP-5179 Dr. Ken Andrews High Impact Facilitation Fall 2010.

fitted  Excellent quality  Very expensive  Few produced Kenneth J. Andrews EMP-5179-1-8 Mass Manufacturing  Assembly line - Henry Ford 1920s  Low skilled labor, simplistic jobs, no pride in work  Interchangeable parts  Lower quality  Affordably priced for the average family  /60 70 80 90 100 30 10 20 % Capacity Utilization 60 Production Lead Times (days) 40 50 Traditional Manufacturing JIT Manufacturing Kenneth J. Andrews EMP-5179-1-24 Time-Based Competition  It is no longer good enough for firms /


Chapter 12 Just-in-Time and Lean Manufacturing. What is JIT? (Just-in-Time) An operations philosophy involving many techniques for improving the effectiveness.

wide involvement in work improvement projects Robots Computer-integrated manufacturing Produce to exact demand Eliminate waste Produce one-at-a-time Continuous improvement Respect people No contingencies Long-Term emphasis JIT STRATEGY QUALITY @ SOURCE Perfect Parts Every Time / of Inventory Control = 1 job = 1 day of processing Output = Production rate = on each machine 1 job is being processed WIP = on each machine, and 5 jobs are in each queue Production lead time = Each job is worth $4,000 Suppose/


16 - 1© 2011 Pearson Education, Inc. publishing as Prentice Hall 16 JIT and Lean Operations PowerPoint presentation to accompany Heizer and Render Operations.

delivery  The time between the arrival of raw materials and the shipping of the finished order is called manufacturing cycle time  A pull system increases throughput 16 - 12© 2011 Pearson Education, Inc. publishing as/all but value-added activities  Develop employees  Make jobs challenging  Build worker flexibility 16 - 45© 2011 Pearson Education, Inc. publishing as Prentice Hall Lean Operations in Services  The JIT techniques used in manufacturing are used in services  Suppliers  Layouts  Inventory/


The Design Core MANUFACTURE Plant location Plant layout

customer waiting time: (3+7+8)/3 = 6 h (2+4+8)/3 = 4 2/3 h  Shortest jobs before longer jobs + 1 h delivery time to customer Scheduling Operations in Series Sample: A B C D E Time to prepare (h/buffer inventories require small, but frequent deliveries often on demand. Suppliers viewed as partners rather than adversaries. Just in Time Manufacture (JIT) Short lead times Results in increased responsiveness to customer requirements and therefore increased competitiveness. Simple material flows and reduced floor/


©2005 Prentice Hall Business Publishing, Introduction to Management Accounting 13/e, Horngren/Sundem/Stratton 14 - 1 Job-Costing and Process-Costing Systems.

765,000 + =Endinginventory$155,000Endinginventory$155,000 Cost of goods manufactured$2,500,000 manufactured$2,500,000 – ©2005 Prentice Hall Business Publishing, Introduction /Stratton 14 - 19 Learning Objective 4 Show how service organizations use job costing. ©2005 Prentice Hall Business Publishing, Introduction to Management Accounting 13/ Inc., recently introduced backflush costing and JIT. Speaker Technology, Inc., recently introduced backflush costing and JIT. Model AX27 Standard material cost:$14 /


Just In Time ….. Just in Time Philosophy Salient features  The notion of waste in any operating system  JIT as a philosophy of elimination of waste.

Behavioural/Managerial constraints JIT Philosophy Core Logic Source: Schonberger, R..J. (1982), “Japanese Manufacturing Techniques: Nine hidden lessons in simplicity”, Free Press, pp 26. JIT Philosophy Overall Impact JIT Manufacturing Basic Elements  /batches. Ideal batch size is 1item. Multi-process handling - a multi-skilled workforce has greater productivity, flexibility and job satisfaction. Kanbans - simple tools to `pull products and components through the process. Jidoka (Autonomation) - providing /


Materials and Components Candidates should have a knowledge and understanding of the processes and techniques which aid manufacture and of the commercial.

really need this product?” (Do you really need to replace your mobile phone every year?) Designers and manufacturers can make products that do the same job more efficiently. They can design the packaging so that it is easier to recycle (for example, /consumer Consumer Issues Methods of production Candidates should: understand that products are manufactured to different scales of production i.e. one-offs, batch, mass, continuous, just in time (JIT); design and make for one-off, batch and mass production; work/


Lean Systems and JIT.

Waste from product defects Underutilization of people 6 Exercise Take an activity from a job or personal life (e.g. a sport, study, Muhlenberg processes, a/JIT Contrast pragmatic JIT vs. romantic JIT Pragmatic JIT focuses on concrete details of production process use practical tools to address problems continuous improvement Romantic JIT appeals to “revolutionary rhetoric” cutting inventories is a prompt to reform against tradeoffs HBR: Does Manufacturing Need a JIT Revolution? By Paul Zipkin Critique of JIT/


© 2009, Levinson Productivity Systems, P.C. www.ct-yankee.com 1 Introduction to Lean Manufacturing.

of Material and Energy Wastes Material and energy waste can easily be built into a job. Elimination of these wastes is central to "green" manufacturing and the ISO 14001 standard and, more importantly, very profitable. We cannot, however,/yankee.com 45 Examples of Visual Controls 5S-CANDO (arranging) Jidoka or autonomation Andon lights and buzzers announce tool status. JIT: kanban squares, cards, containers. Lines on the floor to mark reorder points Safety: colored labels for materials Statistical process/


Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Manufacturing Planning and Control MPC 6 th Edition Chapter.

to efficient use of capacity, labor, tools, time, or materials Under JIT the objective is material velocity PAC objectives reflect the firm’s strategy /graphic representation of the system Priority Sequencing Rules Selecting the order of job processing Theory of Constraints Scheduling Scheduling to minimize impact of bottleneck / priority rules can play a role in scheduling non-bottleneck resources. Stability in manufacturing loads and capacity plans facilitates shop-floor execution. 8-27 Quiz – Chapter 8/


© DKD To be The Best Manufacturer of ‘WOW’ Automobiles in Asean DKD THE TOYOTA WAY An Abridged Version Philosophy (Long-Term Thinking) Process (Eliminate.

level to get job duties and responsibilities right. Phase Two – Best suppliers to ship low volume parts to the operation. Phase Three – Smaller suppliers were added that were not as sophisticated in their manufacturing and logistics systems./ within tight time windows including making quality checks. Partner – Transfreight – Cross-docking needs for Toyota: Achieved JIT deliveries despite great distances in North America. Costs of Transportation went down considerably. Saves money on returnable containers./


O PERATIONS Higher Business Management 2015/16. C ONTENTS Methods of Production Job/Batch/Flow Capital/Labour Intensive Stock Management Systems JIT Warehousing.

production process. They must consider and recommend suitable alternative practices that are then put to management. Benefits: Collaboration of different workers Job enrichment Increased motivation Shop-floor workers will give solutions managers couldnt. M YSTERY S HOPPER Mystery shopping is the practice of /in time for it to be used and goods are only manufactured when an order is received. The system of storing stock in this way is known as Kanban J UST IN T IME (JIT) – K ANBAN S YSTEM Less cash tied up in/


Process Strategy. Process, Volume, and Variety Process focus projects, job shops,(machine, print, carpentry) Standard Register Repetitive (autos, motorcycles)

Product Focused Strategy Facilities are organized by product High volume, low variety products Where found Discrete unit manufacturing Continuous process manufacturing Operation Products A & B 1 1 2 2 3 3 Other names Line flow production Continuous production/Many instructions because of change in jobs Reduced training and number of job instructions Few work orders and job instructions Custom orders require many instructions 5 Raw material high relative to product value JIT techniques used Raw material low /


Product Cost Calculation

calculate the cost of each production job order costing system estimates the costs of manufacturing products for different jobs required for specific customer orders Applicable in organizations that treat each individual job as a single unit of output /Conversion There is no work in process account. Backflush Costing Example Speaker Technology, Inc., recently introduced backflush costing and JIT. Model AX27 Standard material cost: $14 Standard conversion cost: $21 Actual production for the month: 400 units /


Methods of Production GCSE Business Studies. Methods of Production Job Batch Flow Just in Time (JIT)

Methods of Production GCSE Business Studies Methods of Production Job Batch Flow Just in Time (JIT) Job Production A single product is produced from start to finish as a result of an individual customer /. The finished product is usually not expensive for the customer. Flow Production Advantages The final product is inexpensive Large quantities can be manufactured The quality of the product is standardised Machinery can be used so labour costs are reduced Unskilled wages further reduce costs Assembly lines /


LEAN system.

to prepare a device, machine, process, or system for it to be ready to function or accept a job.) Short lead time (is the period of time between the initiation of any process of production and the /s, continuous quality check Kaizen The wastes are potential tartgets for continuous improvement, called kaizen. JIT Building Blocks Product design Process design Personnel/organizational elements Manufacturing planning and control Product Design Standard parts – fewer parts to deal with lower training costs/


An investigation into the application of group technology in advanced manufacturing systems presented by Ağcagül YILMAZ.

treated as a manufacturing strategy to improve the performance of the whole manufacturing system. Application of Group Technology in advanced production systems - Application of GT in the design of Cellular Manufacturing Systems (CMS) -CMS in job-shop or flow-shop/ using a set of tools) Application of Group Technology in advanced production systems - Application of GT in JIT manufacturing systems - GT used to form a family of parts and machines leading to simplified production line and standardized products. /


JIT and Lean Operations. MRP (push) and JIT (pull) system PULL SYSTEM PUSH SYSTEM A PUSH system where material is moved on to the next stage as soon as.

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” JIT Building Blocks  Product design [Standard parts, Modular design, Highly capable production, systems, Concurrent engineering]  Process design  Personnel/organizational elements  Manufacturing planning and control Process Design  Small lot sizes  Setup time reduction  Limited work in process/


18-1 Chapter 16 … “Job Order Costing”: allocated overhead using Pred. Overhead Rate with Direct Labor as an allocation (activity) base. Chapter 17 … “Process.

18-1 Chapter 16 … “Job Order Costing”: allocated overhead using Pred. Overhead Rate with Direct Labor as an allocation (activity) base. Chapter 17 … “Process Costing”: allocated /-35 Activity-Based Costing Example Illustration 18-18 Comparison of traditional costing with ABC in a service company. Activity-Based Costing in Service Industries 18-36 JIT manufacturing is dedicated to having the right amount of materials, parts, or products just as they are needed.. Illustration 18A-1 APPENDIX 18A JUST-IN-TIME /


Competing through Manufacturing 35E00100 Service Operations and Strategy #1 Fall 2015.

Europe Study  Organization and culture Vision and strategy Management style Employee involvement Training Benchmarks Job flexibility Problem solving Customer orientation Design process  Plant and equipment Layout and automation Batch /-to-order BPR= business process re-engineering JIT= just-in-time Mfg = manufacturing MPC = manufacturing planning and control MRP= materials requirements planning MS= manufacturing strategy MTO = manufacture-to-order MTS = manufacture-to-stock TBC= time-based competition TBM/


Module 3: Manufacturing Design & Selection Operations Management as a Competitive Weapon.

Volume High Volume, High Standard- ization Few Major Products, Higher Volume Product Process 14 Module 03: Manufacturing Design Planning & Control Strategies Flexibility (High) Unit Cost (High) Flexibility (Low) Unit Cost (Low) IV. Continuous Flow III. Assembly Line II. Batch I. Job Shop Factory Physics TOC MRP JIT Low Volume, One of a Kind Multiple Products, Low Volume High Volume, High Standard- ization Few/


18-1 Chapter 16 … “Job Order Costing”: allocated overhead using Pred. Overhead Rate with Direct Labor as an allocation (activity) base. Chapter 17 … “Process.

18-1 Chapter 16 … “Job Order Costing”: allocated overhead using Pred. Overhead Rate with Direct Labor as an allocation (activity) base. Chapter 17 … “Process Costing”: allocated /-55 Activity-Based Costing Example Illustration 18-18 Comparison of traditional costing with ABC in a service company. Activity-Based Costing in Service Industries 18-56 JIT manufacturing is dedicated to having the right amount of materials, parts, or products just as they are needed.. Illustration 18A-1 APPENDIX 18A JUST-IN-TIME /


Managerial Accounting by James Jiambalvo

should be allocated between Work in Process, Finished Goods and Cost of Goods Sold. Job-Order Costing for Service Companies Job-Order Costing is also used by service companies. Examples include hospitals (patients) and automobile repair firms. Modern Manufacturing Practices and Product Costing Systems Just-in-Time (JIT) Production. Computer-Controlled Manufacturing. Total Quality Management (TQM). Quick Review Question #1 Which of the following is/


Chapter 2 Job-Order Costing and Modern Manufacturing Practices

to implement total quality management (TQM), the following are usually stressed: Listening to customer needs Making products right the first time Reducing defective products Encouraging continuous improvement by workers Summary Job-Order vs. Process Costing Manufacturing (DM, DL, MOH) and Nonmanufacturing (S&A) Costs Cost flows in a Manufacturing Company Manufacturing Overhead JIT, Computer-Controlled Manufacturing, Total Quality Management


Manufacturing Planning and Control

Manufacturing Planning and Control MPC 6th/simulation Randomness leads to actual times that don’t match scheduled times Should the work center wait for a job that isn’t available on time (idleness = lost capacity) Over time, the accuracy of the plan /planning techniques must match the level of detail and actual company circumstances. Capacity planning can be simplified in JIT environments. Better resource and production planning processes lead to less difficult capacity planning processes. Better shop-floor /


JIT, TPS, and Lean Operations

inventory cushions are removed, exposing problems and emphasizing continual improvement Manufacturing cycle time is reduced Just-in-time JIT Inventory Level schedule Kanban Just-In-Time (JIT) Powerful strategy for improving operations Materials arrive where they are /an organizational culture and value system that stresses improvement of all processes, kaizen Part of everyone’s job Respect for people People are treated as knowledge workers Engage mental and physical capabilities Empower employees Toyota /


Job-Order Costing for Manufacturing

overhead is greater than applied overhead Overapplied Overhead Actual overhead is less than applied overhead Job-Order Costing for Service Companies Same process may be utilized by service companies Examples Hospitals Repair Shops Consulting Firms Modern Manufacturing Practices Just-in-Time Production (JIT) Computer-Controlled Manufacturing Total Quality Management (TQM) JIT or Just-in-Case? Full and Incremental Cost Copyright © 2007 John Wiley & Sons, Inc/


JIT/Lean Operations Good production systems require that managers address three issues that are pervasive and fundamental to operations management: eliminate.

Education Improve Throughput Throughput time is the time it takes to move an order from receipt to delivery. Manufacturing cycle time is the time between the arrival of raw materials and the shipping of the finished order A/Educate suppliers Eliminate all but value-added activities Develop employees Make jobs challenging Build worker flexibility © 2011 Pearson Education Lean Operations in Services The JIT techniques used in manufacturing are used in services Suppliers Layouts Inventory Scheduling © 2011 /


© Wallace J. Hopp, Mark L. Spearman, 1996, 2000 1 Manufacturing Matters! Watch the costs and the profits will take care of themselves.

way we shifted from an agrarian economy to a manufacturing economy. Interpretation: Shift was good because it substituted high productivity/high paying (manufacturing) jobs for low productivity/low paid (agriculture) jobs. Statistic: 1929 — agriculture employed 29% of workforce/American size spurred large scale railroad development and ultimately mass marketing and mass production. Japanese concentration facilitated JIT. © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 47 Lessons/


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