mcgraw-hill/irwin copyright © 2007 by the mcgraw-hill companies, inc. all rights reserved. 15 lean...
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McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
1515
Lean Operations
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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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15-3
GoalsGoals
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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JIT Building BlocksJIT Building Blocks
Product design
Process design
Personnel/organizationalelements
Manufacturing planning and control
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Product DesignProduct Design
Standard parts
Modular design
Concurrentengineering
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Process DesignProcess Design
Small lot sizes
Setup time reduction
Limited work in process
Quality improvement
Balanced system
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Personnel/Organizational Personnel/Organizational ElementsElements
Workers as assets
Cross-trained workers
Continuous improvement
Leadership/project management
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Manufacturing Planning and Manufacturing Planning and ControlControl
Pull systems
Visual systems
Close vendor relationships
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)Q
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
Q = Capacity of a standard container (C in Book)
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KANBAN policy KANBAN policy
A KANBAN policy uses N containers, each containing Q units of the item and with a card on the bottom. When a container becomes empty, the card (a KANBAN) is used as an order for Q units.
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KANBAN policy (Q=4, N=8)KANBAN policy (Q=4, N=8)
Supply / production
productcard
Stock
Cards and empty containers
Full containers with cards
Demands
Card send first to avoid delays
Machine
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KANBAN versus (R,Q) KANBAN versus (R,Q)
A KANBAN policy is very similar to an (R, Q) policy with R = (N - 1)Q. But if there are already N outstanding orders, i.e., no stock on hand, no more orders can be triggered since no KANBANs are available. We can therefore interpret a KANBAN policy as an (R, Q) policy where backorders are not subtracted from the inventory position.
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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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JIT II: a supplier representative works right in the company’s plant, making sure there is an appropriate supply on hand.
JIT IIJIT II