Just-In-Time Systems

24
1 Introduction to Operations management Just-In-Time Systems CHAPTER 14

description

CHAPTER. 14. Just-In-Time Systems. Toyota Production System. The objective Continuous improvement of the production system (Kaizen). Toyota Production System. Elements of the Toyota System Just-in-time needed units arrived at the right time in the right amount Kanban system - PowerPoint PPT Presentation

Transcript of Just-In-Time Systems

Page 1: Just-In-Time Systems

1

Introduction to Operations management

Just-In-Time Systems

CHAPTER

14

Page 2: Just-In-Time Systems

2

Introduction to Operations management

Toyota Production System

The objective– Continuous improvement of the production

system (Kaizen)

Page 3: Just-In-Time Systems

3

Introduction to Operations management

Toyota Production System

Elements of the Toyota System– Just-in-time

» needed units arrived at the right time in the right amount

– Kanban system» a pull system with tight limit on work-in-process

inventory

Page 4: Just-In-Time Systems

4

Introduction to Operations management

JIT/Lean Production

Just-in-time: 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”

Page 5: Just-In-Time Systems

5

Introduction to Operations management

JIT Goals

Eliminate disruptions Make system flexible Reduce setup and lead times Minimize inventory Eliminate waste

Page 6: Just-In-Time Systems

6

Introduction to Operations management

Sources of Waste

Waste form overproduction Waste of waiting time Transportation waste Inventory waste Processing waste Waste of motion Waste from product defects

Page 7: Just-In-Time Systems

7

Introduction to Operations management

JIT Building Blocks

Product design Process design Personnel/organizational

elements Manufacturing

planning and control

Page 8: Just-In-Time Systems

8

Introduction to Operations management

Building block - Product Design

Standard parts Modular design Quality

Page 9: Just-In-Time Systems

9

Introduction to Operations management

Building block - Process Design

Small lot sizes Setup time reduction Manufacturing cells Limited work in process Quality improvement Production flexibility Little inventory storage

Page 10: Just-In-Time Systems

10

Introduction to Operations management

Benefits of Small Lot Sizes

Reduces inventory

Less storage space

Less rework

Problems are more apparent

Increases product flexibility

Easier to balance operations

Page 11: Just-In-Time Systems

11

Introduction to Operations management

JIT - variability reduction

H

2DS EOQ

Reduction in S (setup cost)

Q

Page 12: Just-In-Time Systems

12

Introduction to Operations management

JIT - Variability reduction

Reduction in safety stock

Safety Stock = ROP - = z

Page 13: Just-In-Time Systems

13

Introduction to Operations management

Building block - 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

Page 14: Just-In-Time Systems

14

Introduction to Operations management

JIT - flexibility

CCBBBA ABBACCC

Flow direction

Low setup cost

Page 15: Just-In-Time Systems

15

Introduction to Operations management

Building block - Personnel/Organizational Elements

Workers as assets Cross-trained workers Continuous improvement Cost accounting Leadership/project management

Page 16: Just-In-Time Systems

16

Introduction to Operations management

Building Block - Manufacturing Planning and Control

Level loading Pull systems Visual systems Close vendor relationships Reduced transaction processing

Page 17: Just-In-Time Systems

17

Introduction to Operations management

Pull/Push Systems

Pull system: System for moving work where a workstation pulls output from the preceding station as needed. (e.g. Kanban)

Push system: System for moving work where output is pushed to the next station as it is completed

Page 18: Just-In-Time Systems

18

Introduction to Operations management

Kanban Production Control System

Kanban is the Japanese word for card. Paperless production control system Authority to pull, or produce comes

from a downstream process.

Page 19: Just-In-Time Systems

19

Introduction to Operations management

Summary JIT Goals and Building Blocks

Product Design

ProcessDesign

PersonnelElements

Manufactur-ing Planning

Eliminate disruptionsMake the system flexible

Reduce setupand lead times

Eliminate wasteMinimize inventories

Abalancedrapid flow

UltimateGoal

SupportingGoals

BuildingBlocks

Page 20: Just-In-Time Systems

20

Introduction to Operations management

Benefits of JIT Systems

Reduced levels of inventories Reduced space requirements Increased product quality Reduced lead times Greater flexibility in product mix

Page 21: Just-In-Time Systems

21

Introduction to Operations management

Benefits of JIT Systems (cont’d)

Smoother production flow Increased productivity levels Worker participation in problem solving Pressure for good vendor relationships Reduced need for indirect labor

Page 22: Just-In-Time Systems

22

Introduction to Operations management

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

Page 23: Just-In-Time Systems

23

Introduction to Operations management

Obstacles to Conversion

Management may not be committed Workers/management may not be

cooperative Suppliers may

resist

Page 24: Just-In-Time Systems

24

Introduction to Operations management

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.