1. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS Chapter 15 Just-In-Time Systems

2. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-2 JIT/Lean Production 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”

3. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-3 JIT Goals Eliminate disruptions Make system flexible Reduce setup and lead times Minimize inventory Eliminate waste

4. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-4 Sources of Waste Waste from overproduction Waste of waiting time Transportation waste Inventory waste Processing waste Waste of motion Waste from product defects

5. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-5 JIT Building Blocks Product design Process design Personnel/organizational elements Manufacturing planning and control

6. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-6 Product Design Standard parts Modular design Quality

7. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-7 Process Design Small lot sizes Setup time reduction Manufacturing cells Limited work in process Quality improvement Production flexibility Little inventory storage

8. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-8 Reduces inventory Less storage space Less rework Problems are more apparent Increases product flexibility Easier to balance operations Benefits of Small Lot Sizes

9. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-9 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

10. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-10 Personnel/Organizational Elements Workers as assets Cross-trained workers Continuous improvement Cost accounting Leadership/project management

11. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-11 Manufacturing Planning and Control Level loading Pull systems Visual systems Close vendor relationships Reduced transaction processing

12. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-12 Pull/Push Systems Pull system: System for moving work (material) where a workstation pulls output from the preceding station only as it is needed (e.g. Kanban) Push system: System for moving work where output is pushed to the next station as it is completed (e.g. MRP)

13. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-13 Kanban Production Control System A visible signal is used to notify the supplier (or supplying department) of the need for more material This results in a “pull” system Supply batches are usually very small –requires tight schedules and frequent setups Any inventory shortage, quality problem or process failure has immediate impact

14. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-14 Ideal Number of Kanban Cards

15. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-15 Figure 15-4a Buyer Suppler Traditional Supplier Network

16. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-16 Figure 15-4b Suppler Buyer Suppler First Tier Supplier Second Tier Supplier Third Tier Supplier Tiered Supplier Network

17. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-17 Product Design Process Design Personnel Elements Manufacturing 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 Figure 15-3 Summary JIT Goals and Building Blocks

18. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-18 Benefits of JIT Systems (1 of 2) Reduced levels of inventories Reduced space requirements Increased product quality Reduced lead times Greater flexibility in product mix

19. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-19 Benefits of JIT Systems (2 of 2) Smoother production flow Increased productivity levels Worker participation in problem solving Pressure for good vendor relationships Reduced need for indirect labor

20. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-20 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

21. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-21 Obstacles to Conversion Management may not be committed Workers/management may not be cooperative Suppliers may resist

22. CHAPTER FIFTEEN JUST-IN-TIME SYSTEMS MTSU Management 36215-22 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 –Eliminate disruptions –Make system flexible –Reduce setup and lead times –Eliminate waste –Minimize WIP –Simplify the process