Operations Management JIT & Lean Systems Operations Management as a Competitive Weapon Module: JIT & Lean Systems
Operations Management OM Course Framework 1. Cost - Design & Selection 3. Dependability - Project Management - JIT 4. Flexibility - Inventory - Supply Chain - Location - Forecasting - Aggregate Planning 2. Quality - TQM - SQC
Operations Management Learning Objectives At the end of this module, each student will understand: Definition of Just-In-Time JIT manufacturing TQM Respect for people Benefits of JIT JIT in services Module: JIT & Lean Systems
1. APICS definition of JIT A philosophy of manufacturing based on waste elimination and continuous improvement of productivity. Module: JIT & Lean Systems
Module: JIT & Lean Systems Three Elements of JIT Module: JIT & Lean Systems
Module: JIT & Lean Systems 2. JIT Manufacturing Kanbans & pull production systems Quick setups & small lots Uniform plant loading Flexible resources Efficient facility layouts Module: JIT & Lean Systems
Pull Production & Kanbans Module: JIT & Lean Systems
Quick Setups & Small Lots Setup times = time required to get ready E.g.: clean & calibrate equipment, changing tools, etc. Internal versus external setups Stop production or setup will still running Internal setups = lost production time Inefficient setups = waste Module: JIT & Lean Systems
Module: JIT & Lean Systems Uniform Plant Loading Module: JIT & Lean Systems
Module: JIT & Lean Systems Flexible Resources General purpose equipment: E.g.: drills, lathes, printer-fax-copiers, etc. Capable of being setup to do many different things Multifunctional workers: Cross-trained to perform several different duties Module: JIT & Lean Systems
Efficient Facility Layouts Workstations in close physical proximity to reduce transport & movement Streamlined flow of material Often use: Cellular Manufacturing (instead of job shops) U-shaped lines: (allows material handler to quickly drop off materials & pick up finished work)
Module: JIT & Lean Systems Job Shop Layout Module: JIT & Lean Systems
Cellular Manufacturing Module: JIT & Lean Systems
3. Total Quality Management Quality system involving entire organization from supplier to customer Objective: Meet or exceed customer needs through company-wide continuous improvement Module: JIT & Lean Systems
Operations Management TQM & JIT Quality at the Source Jidoka Poka-yoke Preventive maintenance Quality at the Source Jidoka (authority to stop line) Poka-yoke (foolproof the process) Preventive maintenance Module: JIT & Lean Systems
4. Respect for People: Workers Cross-trained workers Actively engaged in problem-solving Workers are empowered Everyone responsible for quality Workers gather performance data Team approaches used for problem-solving Decision made bottom-up Workers responsible for preventive maintenance Module: JIT & Lean Systems
Module: JIT & Lean Systems Respect for People: Management Responsible for culture of mutual trust Serve as coaches & facilitators Support culture with appropriate incentive system Responsible for developing workers Provide multi-functional training Facilitate teamwork Module: JIT & Lean Systems
Module: JIT & Lean Systems 5. Benefits of JIT Smaller inventories Improved quality Reduced space requirements Shorter lead times Lower production costs Increased productivity Increased machine utilization Greater flexibility Module: JIT & Lean Systems
Module: JIT & Lean Systems 6. JIT in Services Multifunctional workers Reduce cycle times Minimize setups Parallel processing Good housekeeping Simple, highly-visible flow of work Module: JIT & Lean Systems