1. JUST IN TIME Operational Systems for Manufacturing… JIT and Lean Production

2. Informal review… Work on this during class today. Thanks for your inputs…

3. As a Manufacturing Leader... You will play a critical role in the management and control of the companies critical information.

4. The Problem of Manufacturing… Getting the right material and physical resources together at the right place and at the right time to meet the customer’s requirements. Desired features, On time delivery, High Quality, at the best price…

5. Breaking down the problem… Getting the material needed… Having enough inventory of material to support production Not having too much inventory and extra costs…

6. ROP EOQEOQ time InventoryInventory lead time demand (constant rate) Economic Order Quantity and Reorder Point Planning Model “saw tooth pattern” A very limited model…

7. Manufacturing and CIM Systems… Where the action is!

8. Background reading…

9. JUST IN TIME: Only what is needed, nothing more... To have only the right materials, parts and products in the right place at the right time. Only what is needed, nothing more... To have only the right materials, parts and products in the right place at the right time.

10. THE SEVEN WASTES from Shigeo Shingo in Robert W. Halls book Attaining Manufacturing Excellence, 1987 Waste of over production Waste of waiting Waste of transportation Waste of transportation Waste of processing itself Waste of stocks Waste of motion Waste of making defective products

11. Claims for JIT: reduced inventory reduced WIP shorter lead times not too early, not to late... not too early, not to late... JIT is the result businesses want, not a starting point JIT is the result businesses want, not a starting point

12. What happens with JIT… Eliminate non-value added activities  less time spent and less money spent... Involve your suppliers and customers  eliminate duplications, non value addded activ. Shorter Set-up time and less WIP  Faster through-put, less time, higher quality Faster through-put, less time, higher quality

13. JIT Action Areas… Develop people - increase skills,productivity, morale Eliminate waste in all areas Optimize materials handling and production flow Control Tooling Increase quality Improve continuously!

14. Develop the pipeline flow... then work to shorten it! Eliminate multiple locations Contract the plant layout Eliminate the "pipeline failures" Reliability Reliability Quality Quality People People Reduce "changeover times” and “lot sizes" significantly Use "mind technology" before applying high technology! Use "mind technology" before applying high technology!

15. Arvin Cell… with 6 operators Bend Pipe and trim inlet end Heat and form inlet end Size and inspect/test flange and product assembly Weld flange brackets and assembly Dimension check and leak test

16. Traditional Production Line… 6 people

17. First pass work cell design… 3 people

18. Second try – work cell design – 1 person

19. Floor Space Reduction nearly 50%

20. Documented savings… l Customer rejects reduced 95% l Scrap reduced 62% l Work in process reduced 91% l Changeover time reduced by 78% l Labor cost as % of sales reduced 41%

21. The Name Game… JIT Short Cycle Mfg. Toyota Production System Synchronous Mfg. Lean Manufacturing Lean Production Common Sense Mfg.

22. The Vision of “Lean” in the USA Perhaps best stated by James Womack, and Daniel Jones in two popular books… First… The Machine That Changed the World (1990)

23. Unlocking the power of “Lean” requires more than just “tools”: James Womack, and Daniel Jones second book… Lean Thinking (1996)

24. “Lean Thinking” presents… An “Americanized” view of lean production Precisely specifying value by product Identifying the value stream for each product Making the value-creating steps flow without interruptions Letting the customer “pull’ value from the producer Pursuing perfection (continuously improving)

25. Lean Production Challenges… Developing beyond the “tools”… Inculcating the concepts and values of lean production into the fabric of an organization… Working to truly improve continuously Expanding lean efforts out to your customers and to all your suppliers

26. Lean Production can lead to lots of open questions…

27. Thanks for your attention…