2. © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Chapter 15 Just-In-Time Systems

3. 2000 by Prentice-Hall, Inc2 Ch 15 - 2 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e What is JIT ?  Producing only what is needed, when it is needed  A philosophy  An integrated management system.  JIT’s mandate: Eliminate all waste.

4. 2000 by Prentice-Hall, Inc3 Ch 15 - 22 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Inventory Hides Problems Poor Quality Unreliable Supplier Machine Breakdown Inefficient Layout Bad Design Lengthy Setups

5. 2000 by Prentice-Hall, Inc4 Ch 15 - 4 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Examples of Waste  Watching a machine run  Waiting for parts  Counting parts  Overproduction  Moving parts over long distances  Storing inventory  Looking for tools  Machine breakdown  Rework

6. 2000 by Prentice-Hall, Inc5 Ch 15 - 3 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Basic Elements of JIT 1.Flexible resources 2.Cellular layouts 3.Pull production system 4.Kanban production control 5.Small-lot production 6.Quick setups 7.Uniform production 8.Quality at the source 9.Total productive maintenance 10.Supplier networks

7. 2000 by Prentice-Hall, Inc6 Ch 15 - 5 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Flexible Resources  Multifunctional workers  General purpose machines  Study operators & improve operations

8. 2000 by Prentice-Hall, Inc7 Ch 15 - 8 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Manufacturing Cell With Worker Routes Enter Worker 1 Worker 2 Worker 3 Exit Key: Product route Worker route Machines

9. 2000 by Prentice-Hall, Inc8 Ch 15 - 7 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Cellular Layouts  Group dissimilar machines in manufacturing cell to produce family of parts  Work flows in one direction through cell  Cycle time adjusted by changing worker paths

10. 2000 by Prentice-Hall, Inc9 Ch 15 - 10 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Kanban Production Control System  Kanban card indicates standard quantity of production  Derived from two-bin inventory system  Kanban maintains discipline of pull production  Production kanban authorizes production  Withdrawal kanban authorizes movement of goods

11. 2000 by Prentice-Hall, Inc10 Ch 15 - 11 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e A Sample Kanban Machining M-2 Assembly A-4 Part no.: 7412 Description: Slip rings From :To: Box capacity 25 Box Type A Issue No. 3/5

12. 2000 by Prentice-Hall, Inc11 Ch 15 - 21 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Small-Lot Production  Requires less space & capital investment  Moves processes closer together  Makes quality problems easier to detect  Makes processes more dependent on each other

13. 2000 by Prentice-Hall, Inc12 Ch 15 - 25 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Reducing Setup Time  Preset desired settings  Use quick fasteners  Use locator pins  Prevent misalignments  Eliminate tools  Make movements easier

14. 2000 by Prentice-Hall, Inc13 Ch 15 - 26 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Uniform Production  Results from smoothing production requirements  Kanban systems can handle +/- 10% demand changes  Smooths demand across planning horizon  Mixed-model assembly steadies component production

15. 2000 by Prentice-Hall, Inc14 Ch 15 - 28 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Quality At The Source  Jidoka is authority to stop production line  Andon lights signal quality problems  Undercapacity scheduling allows for planning, problem solving & maintenance  Visual control makes problems visible  Poka-yoke prevents defects

16. 2000 by Prentice-Hall, Inc15 Ch 15 - 29 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Kaizen  Continuous improvement  Requires total employment involvement  Essence of JIT is willingness of workers to  spot quality problems  halt production when necessary  generate ideas for improvement  analyze problems  perform different functions

17. 2000 by Prentice-Hall, Inc16 Ch 15 - 30 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Total Productive Maintenance (TPM)  Breakdown maintenance  repairs to make failed machine operational  Preventive maintenance  system of periodic inspection & maintenance to keep machines operating  TPM combines preventive maintenance & total quality concepts

18. 2000 by Prentice-Hall, Inc17 Ch 15 - 31 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e TPM Requires Management To  Design products that can be easily produced on existing machines  Design machines for easier operations, changeover, maintenance  Train & retrain workers to operate machines  Purchase machines that maximize productive potential  Design preventive maintenance plan spanning life of machine

19. 2000 by Prentice-Hall, Inc18 Ch 15 - 33 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Trends In Supplier Policies 1. Locate near to customer 2. Use small, side loaded trucks and ship mixed loads 3. Consider establishing small warehouses near to the customer or consolidating warehouses with other suppliers 4. Use standardized containers and make deliveries according to a precise delivery schedule 5. Become a certified supplier and accept payment at regular intervals rather than upon delivery

20. 2000 by Prentice-Hall, Inc19 Ch 15 - 34 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Benefits Of JIT 1. Reduced inventory 2. Improved quality 3. Lower costs 4. Reduced space requirements 5. Shorter lead time 6. Increased productivity 7. Greater flexibility 8. Better relations with suppliers 9. Simplified scheduling and control activities 10.Increased capacity 11.Better use of human resources 12.More product variety

21. 2000 by Prentice-Hall, Inc20 Ch 15 - 35 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e JIT Implementation  Use JIT to finely tune an operating system  Somewhat different in USA than Japan – why?  JIT is still evolving  JIT isn’t for everyone

22. 2000 by Prentice-Hall, Inc21 Ch 15 - 36 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e JIT In Services  Competition on speed & quality  Multifunctional department store workers  Work cells at fast-food restaurants  Just-in-time publishing for textbooks  Construction firms receiving material just as needed