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Chapter 12 Just-in-Time and Lean Systems

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Presentation on theme: "Chapter 12 Just-in-Time and Lean Systems"— Presentation transcript:

1 Chapter 12 Just-in-Time and Lean Systems
JIT Defined The Japanese Approach to Productivity JIT Implementation Requirements Video Hewlett Packard 2

2 Just-In-Time (JIT) Defined
JIT can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods). 3

3 The Japanese Approach to Productivity
Imported technologies Efforts concentrated on shop floor Quality improvement focus Respect for people Elimination of waste Video Hewlett Packard 5

4 Waste in 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

5 Kanban Japanese word for card
Authorizes production from downstream operations May be a card, flag, verbal signal etc. Used often with fixed-size containers

6 JIT Requirements: Design Flow Process: Link operations, balance workstation capacities, relayout for flow, emphasize preventive maintenance, reduce lot sizes, reduce setup/changeover time Total Quality Control: Worker responsibility, measure SQC, enforce compliance, fail-safe methods, automatic inspection 23

7 Characteristics of JIT Vendor Partnerships
Few, nearby suppliers Long-term contract agreements Steady supply rate Frequent deliveries in small lots Buyer helps suppliers meet quality Suppliers use process control charts Buyer schedules inbound freight

8 Respect for People Level payrolls Cooperative employee unions
Subcontractor networks Bottom-round management style Quality circles 21

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