Layout
• JIT objective: Reduce movement of people and material – Movement is waste!
• JIT requires – Work cells for product families
– Moveable or changeable machines
– Short distances
– Little space for inventory
– Delivery directly to work areas
Layout Tactics
• Build work cells for families of products
• Minimize distance
• Design little space for inventory
• Improve employee communication
• Use poka-yoke devices
• Build flexible or movable equipment
• Cross train workers to add flexibility
• Involves timing of operations
• JIT requires – Communicating schedules to suppliers
– Level schedules
– Freezing part of schedule nearest due date
– Small lots
– Kanban techniques
Scheduling
Level Schedules
• Reduce ripple effect of small variations in schedules (e.g., final assembly)
• Production quantities evenly distributed over time (e.g., 7/day)
• Build same mix of products every day – Results in many small lots
– Item Monthly Quantity Daily Quantity A 40 2 B 60 3
A
A A B B B C
JIT Small Lots
Large-Lot Approach
Time
Time
A A B B B C
A A A B B B B B B C C
JIT produces same amount
in same time if setup times
are lowered
Small versus Large Lots
Small lots also increase flexibility to meet
customer demands
Kanban
• Japanese word for card – Pronounced ‘kahn-bahn’ (not ‘can-ban’)
• Authorizes production from downstream operations – ‘Pulls’ material through plant
• May be a card, flag, verbal signal etc.
• Used often with fixed-size containers – Add or remove containers to change
production rate
E-Commerce
The use of computer networks, primarily the internet, to buy and sell products, services,
and information.
E-Business
“… all about cycle time, speed, globalization, enhanced productivity, reaching new customers and sharing knowledge across institutions for competitive advantage.”
Types of E-Commerce
Business-to business (B2B) Both sides of the transaction are businesses, non-profit organizations, or governments.
Business-to-consumer (B2C) E-commerce transactions where customers are individual consumers
Consumer-to-consumer (C2C) Consumers sell directly to each other.
Consumer-to-business (C2B) Individuals sell services or goods to businesses
Types of E-Commerce Transactions
Business Consumer
Business B2B
GM/Ford/Daimler’s
Covisint exchange
B2C
Amazon, Dell, Net
Grocer.com
Consumer C2B
Priceline, Travelocity
C2C
Ebay
Traditional Medical Supply Chain
Manual processes
Hospital
Group purchasing
organization for small,
independent hospitals Distributor Supplier
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