chapter_15
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McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
1515
JIT andLean Operations
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Learning ObjectivesLearning Objectives Explain what is meant by the term lean operations
system. List each of the goals of JIT and explain its
importance. List and briefly describe the building blocks of JIT. List the benefits of the JIT system. Outline the considerations important in converting
a traditional mode of operations to a JIT system. List some of the obstacles that might be
encountered when converting to a JIT system.
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JIT/Lean ProductionJIT/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”
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Goal of JITGoal of JIT
The ultimate goal of JIT is a balanced system.
Achieves a smooth, rapid flow of materials through the system
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Summary JIT Goals and Building Summary JIT Goals and Building BlocksBlocksFigure 15.1
Product Design
ProcessDesign
PersonnelElements
Manufactur-ing Planning
Eliminate disruptionsMake the system flexible Eliminate waste
Abalancedrapid flow
UltimateGoal
SupportingGoals
BuildingBlocks
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Supporting GoalsSupporting Goals
Eliminate disruptions
Make system flexible
Eliminate waste, especially excess inventory
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Sources of WasteSources of Waste
Overproduction Waiting time Unnecessary transportation Processing waste Inefficient work methods Product defects
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Kaizen PhilosophyKaizen Philosophy
Waste is the enemy Improvement should be done gradually and
continuously Everyone should be involved Built on a cheap strategy Can be applied anywhere
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Kaizen Philosophy (cont’d)Kaizen Philosophy (cont’d)
Supported by a visual system Focuses attention where value is created Process oriented Stresses main effort of improvement should
come from new thinking and work style The essence of organizational learning is to
learn while doing
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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 JITBig vs. Little JIT
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JIT Building BlocksJIT Building Blocks
Product design Process design Personnel/organizational
elements Manufacturing
planning and control
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Product DesignProduct Design
Standard parts
Modular design
Highly capable production systems
Concurrentengineering
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Process DesignProcess Design
Small lot sizes Setup time reduction Manufacturing cells Limited work in process Quality improvement Production flexibility Balanced system Little inventory storage
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Benefits of Small Lot SizesBenefits of Small Lot Sizes
Reduces inventory
Less storage spaceLess rework
Problems are more apparent
Increases product flexibilityEasier to balance operations
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Single-Minute ExchangeSingle-Minute Exchange
Single-minute exchange of die (SMED): A system for reducing changeover time
Categorize changeover activities Internal – activities that can only be done while
machine is stopped External – activities that do not require stopping
the machine
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Production FlexibilityProduction Flexibility
Reduce downtime by reducing changeover time
Use preventive maintenance to reduce breakdowns
Cross-train workers to help clear bottlenecks
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Production Flexibility (cont’d)Production Flexibility (cont’d)
Use many small units of capacity Use off-line buffers Reserve capacity for important customers
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Quality ImprovementQuality Improvement
Autonomation Automatic detection of defects during
production
Jidoka Japanese term for autonomation
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Production FlexibilityProduction Flexibility
Balance system: Distributing the workload evenly among work stations
Work assigned to each work station must be less than or equal to the cycle time
Cycle time is set equal to the takt time Takt time is the cycle time needed to match
customer demand for final product
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Personnel/Organizational Personnel/Organizational ElementsElements
Workers as assets Cross-trained
workers Continuous
improvement Cost accounting Leadership/project
management
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Manufacturing Planning and Manufacturing Planning and ControlControl
Level loading Pull systems Visual systems Close vendor relationships Reduced transaction
processing Preventive maintenance
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Pull/Push SystemsPull/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
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Kanban Production Control Kanban Production Control SystemSystem
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.
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Kanban FormulaKanban Formula
N = DT(1+X)C
N = Total number of containersD = Planned usage rate of using work centerT = Average waiting time for replenishment of parts plus average production time for a container of partsX = Policy variable set by management - possible inefficiency in the systemC = Capacity of a standard container
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Limited Work in ProcessLimited Work in Process
Benefits Lower carrying costs Increased flexibility Aids scheduling Saves cost of rework and scrap
Two general approaches Kanban – focuses on individual work stations Constant work in process (CONWIP) – focuses
on the system as a whole
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Traditional Supplier NetworkTraditional Supplier Network
Buyer
SupplierSupplier Supplier Supplier
Supplier
Supplier
Supplier
Figure 15.4a
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Tiered Supplier NetworkTiered Supplier NetworkFigure 15.4b
Supplier
Supplier
Supplier
SupplierSupplier Supplier
Buyer
SupplierFirst Tier SupplierFirst Tier Supplier
Second Tier SupplierSecond Tier Supplier
Third Tier SupplierThird Tier Supplier
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Preventive Maintenance andPreventive Maintenance andHousekeepingHousekeeping
Preventative maintenance: Maintaining equipment in good condition and replacing parts that have a tendency to fail before they actually fail.
Housekeeping: Maintaining a workplace that is clean and free of unnecessary materials.
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Housekeeping Five S’sHousekeeping Five S’s
1. Sort2. Straighten3. Sweep4. Standardize5. Self-discipline
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Comparison of JIT and Comparison of JIT and TraditionalTraditional
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 15.3
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Transitioning to a JIT SystemTransitioning 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
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Obstacles to ConversionObstacles to Conversion
Management may not be committed Workers/management may not be
cooperative Difficult to change company culture Suppliers may
resist Why?
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Suppliers May Resist JITSuppliers May Resist JIT
Unwilling to commit resources Uneasy about long-term commitments Frequent, small deliveries may be difficult Burden of quality control shifts to supplier Frequent engineering changes may cause
JIT changes
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JIT in ServicesJIT 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
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JIT II: a supplier representative works right in the company’s plant, making sure there is an appropriate supply on hand.
JIT IIJIT II
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Benefits of JIT SystemsBenefits of JIT Systems
Reduced inventory levels
High quality
Flexibility
Reduced lead times
Increased productivity
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Benefits of JIT Systems (cont’d)Benefits 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
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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 JITElements of JITTable 15.4
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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)Elements of JIT (cont’d)Table 15.4
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Video: Made for youVideo: Made for you
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Video: New systemVideo: New system
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Video: McDonald’s ProcessVideo: McDonald’s Process
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Video: Layout GortracVideo: Layout Gortrac