1. Chapter 12 Just-in-Time and Lean Manufacturing

2. What is JIT? (Just-in-Time) An operations philosophy involving many techniques for improving the effectiveness and efficiency of a business. operations – those activities associated with turning inputs into outputs philosophy – a set of ideas effectiveness – doing it right efficiency – doing it quick and cheap

3. Just-in-Time WHAT IT IS Management philosophy “Pull” system through the plant WHAT IT REQUIRES Employee participation Industrial engineering/basics Continuing improvement Total quality control Small lot sizes WHAT IT DOES Attacks waste (time, inventory, scrap) Exposes problems and bottlenecks Achieves streamlined production WHAT IT ASSUMES Stable environment

4. Eliminate Waste One principle of JIT philosophy is to eliminate waste. But what is considered waste? Waste: –defects and rework –overproduction –excessive inventories –surplus workers –excessive capacity –machine breakdowns

5. Inventory Hides Problems IN-PROCESS INVENTORY PRODUCTIVITY PROBLEMS Machine downtime Scrap Vendor delinquencies Change orders Engineering design redundancies Work in process queues Inspection backlog Paperwork backlog Order entry backlog Decision backlogs

6. JIT Methods and Techniques Set-up time reductions Re-layout and merger of processes Buffer stock removal Space denial Material handling discipline Group technology Dedicated production lines Overlapped production Mixed models Synchronized scheduling Regularity in end-product scheduling Under-capacity scheduling

7. Small machines/plants, multiple copies Process data collection Zero deviation from schedule Standardization Multi-functional workers Worker-centered quality control Poka-yoke Autonomous inspection and counting Rigorous preventive maintenance Kanban Plant-wide involvement in work improvement projects Robots Computer-integrated manufacturing

8. Produce to exact demand Eliminate waste Produce one-at-a-time Continuous improvement Respect people No contingencies Long-Term emphasis JIT STRATEGY QUALITY @ SOURCE

9. Perfect Parts Every Time Operator Responsibility New Customer Definition New “Tool Kit” Stop and Fix the Problem Visibility Management Machines Always Ready JIT STRATEGY QUALITY @ SOURCE

10. Visibility Management 5 housekeeping concepts for workstations: simplification organization discipline cleanliness participation 6 S’s at Lockheed Martin: Sort—keep only what you need Set in order—organize Sustain—make it a habit Shine—clean Standardize—always the same Safety

11. Push vs. Pull Production Systems Push System –production & customer not closely coordinated –machine operator produces as much as possible –larger inventories likely Pull System –rate of production controlled by customer –machine operator cannot produce until given a signal from next operator (customer) downstream

12. Kanban Signal for production from user of a part to its producer Types of Signals –verbal –golf balls –automatic limit switches –empty containers –kanban squares –kanban cards

13. Push System of Inventory Control = 1 job = 1 day of processing Output = Production rate = on each machine 1 job is being processed WIP = on each machine, and 5 jobs are in each queue Production lead time = Each job is worth $4,000 Suppose a mistake is made at the 2 nd machine and not discovered Machine operators produce until the 4 th machine. How many as much as they can all day bad parts? m1m2m3m4 m5 RM FG

14. Pull System of Inventory Control = 1 job = 1 day of processing Output = Production rate = on each machine 1 job is being processed WIP = on each machine, and 1 job is in each queue Production lead time = Each job is worth $4,000 Suppose a mistake is made at the 2 nd machine and not discovered Machine operators only until the 4 th machine. How many produce when the next bad parts? queue is empty m1m2m3m4 m5 RM FG

15. MAJOR BENEFITS OF JIT IMPROVEDREDUCED Quality Inventory Productivity Lot Sizes Service Lead Times Capacity Unit Costs Standardization Design Time Transport Systems Space Flexibility Energy