3 What is Just-in-Time?Management philosophy of continuous and forced problem solvingSupplies and components are ‘pulled’ through system to arrive where they are needed when they are needed.It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort.
4 THE APPLICABILITY OF JIT System characteristics for a good fit:demand is reasonably stablehigh-volume repetitive systems making standardized product-service bundlesRequires cooperation and coordination of employees and suppliersContinuous improvement and employee involvement are core aspectsCellular manufacturing arrangement is ideal characteristic of JIT suppliers
5 Push versus PullPush system: material is pushed into downstream workstations regardless of whether resources are availablePull system: material is pulled to a workstation just as it is needed
6 Streamlined Production CustomersMaterial (water in stream)Traditional FlowSuppliersProduction Process (stream of water)Inventory (stagnant ponds)CustomersFlow with JITSuppliers
7 Just-in-Time Success Factors SuppliersPreventive MaintenanceLayoutInventorySchedulingQualityEmployee EmpowermentJITThis side outlines the essential features, more detail is provided in subsequent slides.
8 JIT Contribution to Competitive Advantage Suppliersreduced number of vendorssupportive supplier relationshipsquality deliveries on time
9 JIT Contribution to Competitive Advantage - continued Inventorysmall lot sizeslow setup timesspecialized bins for holding set number of partsSchedulingzero deviation from scheduleslevel schedulessuppliers informed of schedulesKanban techniques
10 To Lower Inventory, Reduce Lot Sizes Inventory LevelAverage inventory = 40Lot Size 200Average inventory = 100Lot Size 80The next several slides look at the process and consequences of reducing inventory.Average inventory = (Lot size)/2Time
11 Reducing Lot Sizes Increases the Number of Lots Customer orders 10Lot size = 5Lot 1Lot 2Lot size = 2Lot 1Lot 2Lot 3Lot 4Lot 5
12 …Which Increases Inventory Costs Total CostHolding CostSetup CostSmaller Lot SizeOptimal Lot SizeLot Size
13 …Need to reduce setup cost Total CostHolding CostSetup CostNew optimal Lot SizeOptimal Lot SizeLot Size
14 …Need to reduce setup cost New Total CostTotal CostHolding CostSetup CostNew optimal Lot SizeOptimal Lot SizeLot Size
15 Steps to Reduce Setup Time 90 minInitial Setup TimeSeparate setup into preparation, and actual setup, doing as much as possible while the machine/process is running (save 30 minutes)Step 160 minMove material closer and improve material handling (save 20 minutes)Step 245 minStandardize and improve tooling (save 15 minutes)Step 3Use one-touch system to eliminate adjustments (save 10 minutes)25 minTraining operators and standardizing work procedures (save 2 minutes)Step 415 min13 minStep 5
16 Small versus Large Lots JIT produces same amount in same time if setup times are loweredJIT Small LotsAABBBCAABBBCTimeSmall lots also increase flexibility to meet customer demandsLarge-Lot ApproachIn discussing this slide, it is helpful to stress the caveat that JIT works given that other problems are solved. JIT not only requires the solution of other problems, it also helps in diagnosis.AAAABBBBBBCCTime
17 JIT Contribution to Competitive Advantage - continued Preventive Maintenancescheduleddaily routineoperator involvementQuality Productionstatistical process controlquality by suppliersquality within firm
18 JIT Contribution to Competitive Advantage - continued Employee Empowermentempowered and cross-trained employeesfew job classifications to ensure flexibility of employeestraining supportCommitmentsupport of management, employees, and suppliers
19 Single-Card Kanban System Assembly always withdraws from fabrication (pull system)Containers cannot be moved without a kanbanContainers should contain the same number of partsOnly good parts are passed alongProduction should not exceed authorizationPart Number: ZLocation: Aisle 5Bin 47Lot Quantity: 6Supplier: WS 83Customer: WS 116KANBANThis slide presents the general operating rules for a single card system as presented in the text.
21 How many Kanban containers? Lead time – time between placement of an order and receipt of an order.Lead time demand – the demand that occurs during the lead timeSafety stock – extra stock to allow for uneven demand.
22 Westerville Auto Parts Company Westerville Auto Parts produces rocker-arm assemblies for use in the steering and suspension systems of 4-WD trucks. The daily expected demand is A Kanban container holds 22 assemblies. The lead time to produce a container of parts is 0.08 days. The safety stock is 16 assemblies. How many Kanbans are required?The next series of slides presents Example The series builds in steps to the conclusion of the Example showing the development of key equations along the way.This slide advances automatically.
23 Number of Containers Westerville Auto Parts Demand = 2000 units/day Safety stock = 16Lead time = 0.08 days Container Size = 22
24 Number of Containers Westerville Auto Parts Demand = 2000 units/day Safety stock = 16Lead time = 0.08 days Container Size = 22
25 Number of Containers Westerville Auto Parts Demand = 2000 units/day Safety stock = 16Lead time = 0.08 days Container Size = 22This slide advances automatically.
26 Number of Containers Westerville Auto Parts Demand = 2000 units/day Safety stock = 200Lead time = 0.8 days Container Size = 22This slide advances automatically.
27 Lean manufacturing Just-in-time manufacturing with Kanban approach Production smoothing in the scheduleReduce set-up timeLine balance by standardizing operationsMachine layout and multi-functional workers for flexible productionContinuous improvement/employee involvementQuality
29 Can Boeing Make Lean Manufacturing Fly? How has lean manufacturing affected the line-workers?Explain the statement: “Provided it [Boeing] can sell the philosophy to its workers.”What has Boeing implemented on the Long Beach assembly line besides the ‘moving’ plane?How has the supplier behavior changed?What is the role of the ‘water-spiders’?