chap014 - jit and lean operations

31
14-1 JIT and Lean Operations William J. Stevenson Operations Management 8 th edition

Upload: spchheda4996

Post on 18-Nov-2014

557 views

Category:

Documents


12 download

TRANSCRIPT

Page 1: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-1 JIT and Lean Operations

William J. Stevenson

Operations Management

8th edition

Page 2: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-2 JIT and Lean Operations

Page 3: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-3 JIT and Lean Operations

JIT/Lean Production

Just-in-time (JIT): A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed,

JIT lean production

JIT pull (demand) system

JIT operates with very little “fat”

Page 4: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-4 JIT and Lean Operations

Goal of JIT

The ultimate goal of JIT is a balanced system.

Achieves a smooth, rapid flow of materials through the system

Page 5: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-5 JIT and Lean OperationsSummary JIT Goals and Building BlocksFigure 14.1

Product Design

ProcessDesign

PersonnelElements

Manufactur-ing Planning

Eliminate disruptions

Make the system flexible Eliminate waste

Abalancedrapid flow

UltimateGoal

SupportingGoals

BuildingBlocks

Page 6: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-6 JIT and Lean Operations

Supporting Goals

Eliminate disruptions

Make system flexible

Eliminate waste, especially excess inventory

Page 7: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-7 JIT and Lean Operations

Sources of Waste

Overproduction Waiting time Unnecessary transportation Processing waste Inefficient work methods Product defects

Page 8: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-8 JIT and Lean Operations

Big JIT – broad focus Vendor relations Human relations Technology management Materials and inventory management

Little JIT – narrow focus Scheduling materials Scheduling services of production

Big vs. Little JIT

Page 9: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-9 JIT and Lean Operations

JIT Building Blocks

Product design Process design Personnel/organizational

elements Manufacturing

planning and control

Page 10: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-10 JIT and Lean Operations

Product Design

Standard parts

Modular design

Highly capable production systems

Concurrentengineering

Page 11: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-11 JIT and Lean Operations

Process Design

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

Page 12: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-12 JIT and Lean Operations

Benefits of Small Lot Sizes

Reduces inventory

Less storage space

Less rework

Problems are more apparent

Increases product flexibility

Easier to balance operations

Page 13: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-13 JIT and Lean Operations

Production Flexibility

Reduce downtime by reducing changeover time

Use preventive maintenance to reduce breakdowns

Cross-train workers to help clear bottlenecks

Page 14: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-14 JIT and Lean Operations

Production Flexibility (cont’d)

Use many small units of capacity Use off-line buffers Reserve capacity for important customers

Page 15: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-15 JIT and Lean Operations

Quality Improvement

Autonomation Automatic detection of defects during production

Jidoka Japanese term for autonomation

Page 16: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-16 JIT and Lean OperationsPersonnel/Organizational Elements

Workers as assets

Cross-trained workers

Continuous improvement

Cost accounting

Leadership/project management

Page 17: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-17 JIT and Lean OperationsManufacturing Planning and Control

Level loading Pull systems Visual systems Close vendor relationships Reduced transaction

processing Preventive maintenance

Page 18: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-18 JIT and Lean Operations

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 19: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-19 JIT and Lean OperationsKanban Production Control System

Kanban: Card or other device that communicates demand for work or materials from the preceding station

Kanban is the Japanese word meaning “signal” or “visible record”

Paperless production control system

Authority to pull, or produce comes from a downstream process.

Page 20: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-20 JIT and Lean Operations

Kanban Formula

N = DT(1+X)C

N = Total number of containers

D = Planned usage rate of using work center

T = Average waiting time for replenishment of parts plus average production time for a container of parts

X = Policy variable set by management - possible inefficiency in the system

C = Capacity of a standard container

Page 21: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-21 JIT and Lean Operations

Traditional Supplier NetworkTraditional Supplier Network

BuyerBuyer

SupplierSupplierSupplierSupplier SupplierSupplier SupplierSupplier

SupplierSupplier

SupplierSupplierSupplierSupplier

Figure 14.4a

Page 22: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-22 JIT and Lean Operations

Tiered Supplier NetworkTiered Supplier NetworkFigure 14.4b

SupplierSupplier

SupplierSupplier

SupplierSupplier

SupplierSupplierSupplierSupplier SupplierSupplier

BuyerBuyer

SupplierSupplierFirst Tier SupplierFirst Tier Supplier

Second Tier SupplierSecond Tier Supplier

Third Tier SupplierThird Tier Supplier

Page 23: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-23 JIT and Lean Operations

Comparison of JIT and Traditional

Factor Traditional JIT

Inventory Much to offset forecast errors, late deliveries

Minimal necessary to operate

Deliveries Few, large Many, small

Lot sizes Large Small

Setup; runs

Few, long runs Many, short runs

Vendors Long-term relationships are unusual

Partners

Workers Necessary to do the work

Assets

Table 14.3

Page 24: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-24 JIT and Lean Operations

Transitioning 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 25: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-25 JIT and Lean Operations

Obstacles to Conversion

Management may not be committed

Workers/management may not be cooperative

Suppliers may resist Why?

Page 26: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-26 JIT and Lean Operations

JIT in ServicesThe 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. Eliminate disruptions Make system flexible Reduce setup and lead times Eliminate waste Minimize WIP Simplify the process

Page 27: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-27 JIT and Lean Operations

JIT II: a supplier representative works right in the company’s plant, making sure there is an appropriate supply on hand.

JIT II

Page 28: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-28 JIT and Lean Operations

Benefits of JIT Systems

Reduced inventory levels

High quality

Flexibility

Reduced lead times

Increased productivity

Page 29: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-29 JIT and Lean OperationsBenefits of JIT Systems (cont’d)

Increased equipment utilization

Reduced scrap and rework

Reduced space requirements

Pressure for good vendor relationships

Reduced need for indirect labor

Page 30: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-30 JIT and Lean Operations

Smooth flow of work (the ultimate goal) Elimination of waste Continuous improvement Eliminating anything that does not add

value Simple systems that are easy to manage Use of product layouts to minimize

moving materials and parts Quality at the source

Elements of JITTable 14.4

Page 31: Chap014 - JIT and Lean Operations

S P CHHEDA & CO

14-31 JIT and Lean Operations

Poka-yoke – fail safe tools and methods Preventative maintenance Good housekeeping Set-up time reduction

Cross-trained employees

A pull system

Elements of JIT (cont’d)Table 14.4