businessStudiesoverviewJIT.ppt

1,BusinessStudies,Just-in-Time(JIT)SystemsTotalQualityManagement(TQM),2,ThreeElementsofJIT,3,Outline,Just-in-TimePhilosophySuppliersGoalsofJITPartnershipsConcernsofSuppliersJITLayoutDistanceReductionIncreasedFlexibilityImpactonEmployeesReducedSpaceandInventory,4,Outline-continued,InventoryReduceVariabilityReduceInventoryReduceBatch/LotSizesReduceSetupCostsSchedulingLevelSchedulesKanbanQualityEmployeeEmpowermentJITinServices,5,LearningObjectives,Whenyoucompletethissupplement,youshouldbeableto:IdentifyorDefine:TypesofwasteVariabilityKanbanDescribeorExplain:Just-in-Time(JIT)philosophyPullsystemsPushsystemsThegoalsofJITpartnershipsTheimpactofJITonlayoutHowJITaffectsqualityandemployees,6,Wasteisanythingotherthantheminimumamountofequipment,materials,parts,space,andworkerstime,whichareabsolutelyessentialtoaddvaluetotheproduct.ShoichiroToyodaPresident,Toyota,IntroductoryQuotation,7,ManagementphilosophyofcontinuousandforcedproblemsolvingSuppliesandcomponentsarepulledthroughsystemtoarrivewheretheyareneededwhentheyareneeded.,WhatisJust-in-Time?,8,AttackswasteAnythingnotaddingvaluetotheproductFromthecustomersperspectiveExposesproblemsandbottleneckscausedbyvariabilityDeviationfromoptimumAchievesstreamlinedproductionByreducinginventory,WhatDoesJust-in-TimeDo?,9,The5Ssstandfor:Seiri-ProperArrangementSeiton-OrderlinessSeiso-CleanlinessSeiketsu-CleanupShitsuke-Discipline,10,OverproductionWaitingTransportationInefficientprocessingInventoryUnnecessarymotionProductdefects,TypesofWaste,11,WasteReduction(%),82%,50%,50%,30%,30%,20%,40%,0%,20%,40%,60%,80%,100%,Work-in-ProcessInventory,RawMaterialInventory,LeadTime,Space,FinishedGoodsInventory,Scrap,SetupTime,JITReducedWasteatHewlett-Packard,12,VariabilityOccursBecause,Employees,machines,andsuppliersproduceunitsthatdonotconformtostandards,arelate,orarenottheproperquantityEngineeringdrawingsorspecificationsareinaccurateProductionpersonneltrytoproducebeforedrawingsorspecificationsarecompleteCustomerdemandsareunknown,13,PushversusPull,Pushsystem:materialispushedintodownstreamworkstationsregardlessofwhetherresourcesareavailablePullsystem:materialispulledtoaworkstationjustasitisneeded,14,SuppliersreducednumberofvendorssupportivesupplierrelationshipsqualitydeliveriesontimeLayoutwork-celllayoutswithtestingateachstepoftheprocessgrouptechnologymovable,changeable,flexiblemachineryhighlevelofworkplaceorganizationandneatnessreducedspaceforinventorydeliverydirecttoworkareas,JITContributiontoCompetitiveAdvantage,15,InventorysmalllotsizeslowsetuptimesspecializedbinsforholdingsetnumberofpartsSchedulingzerodeviationfromscheduleslevelschedulessuppliersinformedofschedulesKanbantechniques,JITContributiontoCompetitiveAdvantage-continued,16,JITContributiontoCompetitiveAdvantage-continued,PreventiveMaintenancescheduleddailyroutineoperatorinvolvementQualityProductionstatisticalprocesscontrolqualitybysuppliersqualitywithinfirm,17,JITContributiontoCompetitiveAdvantage-continued,EmployeeEmpowermentempoweredandcross-trainedemployeesfewjobclassificationstoensureflexibilityofemployeestrainingsupportCommitmentsupportofmanagement,employees,andsuppliers,18,Results,Queueanddelayreduction,speedsthroughput,freesassets,andwinsordersQualityimprovement,reduceswasteandwinsordersCostreductions,increasesmarginorreducessellingpriceVariabilityreductionsintheworkplace,reduceswasteandwinsordersReworkreduction,reduceswasteandwinsorders,19,Yielding,Fasterresponsetothecustomerandhigherquality,Acompetitiveadvantage!,20,Just-in-TimeSuccessFactors,21,IncomingmaterialandfinishedgoodsinvolvewasteBuyerandsupplierformJITpartnershipsJITpartnershipseliminateUnnecessaryactivitiesIn-plantinventoryIn-transitinventoryPoorsuppliers,Suppliers,22,FewNearbyRepeatbusinessAnalysistoenabledesirablesupplierstobecomeorstaypricecompetitiveCompetitivebiddingmostlylimitedtonewpurchasesBuyerresistsverticalintegrationandsubsequentwipeoutofsupplierbusinessSuppliersencouragedtoextendJITtotheirsuppliers,CharacteristicsofJITPartnershipsSuppliers,23,CharacteristicsofJITPartnershipsQuantities,SteadyoutputrateFrequentdeliveriesinsmall-lotquantitiesLongtermcontractagreementsMinimalpaperworkDeliveryquantitiesfixedforwholecontracttermLittleornopermissibleoverageorunderageSupplierspackageinexactquantitiesSuppliersreducetheirproductionlotsizesorstoreunreleasedmaterial,24,MinimalproductspecificationsimposedonsuppliersHelpsupplierstomeetqualityrequirementsCloserelationshipbetweenbuyersandsuppliersqualityassurancepeopleSuppliersuseprocesscontrolchartsinsteadoflot-samplingtechniques,CharacteristicsofJITPartnershipsQuality,25,CharacteristicsofJITPartnershipsShipping,SchedulingofinboundfreightGaincontrolbyuseofcompany-ownedorcontractshippingandwarehousing,26,GoalsofJITpartnerships,EliminationofunnecessaryactivitiesEliminationofin-plantinventoryEliminationofin-transitinventoryEliminationofpoorsuppliers,27,DiversificationPoorcustomerschedulingFrequentengineeringchangesQualityassuranceSmalllotsizesPhysicalproximity,SupplierWorries,28,StreamlinedProduction,29,JITobjective:ReducemovementofpeopleandmaterialMovementiswaste!JITrequiresWorkcellsforproductfamiliesMoveableorchangeablemachinesShortdistancesLittlespaceforinventoryDeliverydirectlytoworkareas,Layout,30,WorkCellversusProcessLayout,31,LayoutTactics,BuildworkcellsforfamiliesofproductsMinimizedistanceDesignlittlespaceforinventoryImproveemployeecommunicationUsepoka-yokedevicesBuildflexibleormovableequipmentCrosstrainworkerstoaddflexibility,32,Traditional:inventoryexistsincaseproblemsariseJITobjective:EliminateinventoryJITrequiresSmalllotsizesLowsetuptimeContainersforfixednumberofpartsJITinventory:Minimuminventorytokeepsystemrunning,Inventory,33,JITInventoryTactics,UseapullsystemtomoveinventoryReducelotsizeReducesetuptimeDevelopJust-in-TimedeliverysystemswithsuppliersDeliverdirectlytopointofusePerform-to-scheduleReducesetuptimeUsegrouptechnology,34,LoweringInventoryReducesWaste,35,LoweringInventoryReducesWaste,36,LoweringInventoryReducesWaste,37,ReducingLotSizesIncreasestheNumberofLots,38,WhichIncreasesInventoryCosts,39,UnlessSetupCostsareReduced,40,StepstoReduceSetupTime,41,InvolvestimingofoperationsJITrequiresCommunicatingschedulestosuppliersLevelschedulesFreezingpartofschedulenearestduedateSmalllotsKanbantechniques,Scheduling,42,JITSchedulingTactics,CommunicatethescheduletosuppliersMakelevelschedulesFreezepartoftheschedulePerformtoscheduleSeekone-piece-makeandone-piece-moveEliminatewasteProduceinsmalllotsUsekanbansMakeeachoperationproduceaperfectpart,43,Reducerippleeffectofsmallvariationsinschedules(e.g.,finalassembly)Productionquantitiesevenlydistributedovertime(e.g.,7/day)BuildsamemixofproductseverydayResultsinmanysmalllotsItemMonthlyQuantityDailyQuantityA402B603,LevelSchedules,44,SmallversusLargeLots,45,JapanesewordforcardPronouncedkahn-bahn(notcan-ban)AuthorizesproductionfromdownstreamoperationsPullsmaterialthroughplantMaybeacard,flag,verbalsignaletc.Usedoftenwithfixed-sizecontainersAddorremovecontainerstochangeproductionrate,Kanban,46,AllactivitiesinvolvedinkeepingequipmentinworkingorderDonetopreventfailureJITrequiresScheduledthesameproductshouldbeproduceswiththesamelevelofqualityeverytime.Teamsareprocess-oriented,andinteractwiththeirinternalcustomerstodelivertherequiredresults.Managementsfocusisoncontrollingtheoverallprocess,andrewardingteamwork.,54,3-HumansideofQuality:TQMenvironmentrequiresacommittedandwell-trainedworkforcethatparticipatesfullyinqualityimprovementactivities.On-goingeducationandtrainingofallemployeessupportsthedriveforquality.4-ContinuousImprovement:TQMrecognizesthatproductqualityistheresultofprocessquality.Asaresult,thereisafocusoncontinuousimprovementofthecompanysprocesses.Thiswillleadtoanimprovementinprocessquality.Inturnthiswillleadtoanimprovementinproductquality.Measurementandanalysisidthetoolthathasbeenusedforthat.,PillarsofTQM,55,Reducereworkactivities(Costreduction)Shorterdevelopmentcycle(Costreduction)Increasedcustomersatisfaction(Qualityimprovement),PillarsofTQM,56,OtherelementsofTQM,LeadershipVisionandPlanStatementEmployeeParticipationRecognitionandRewardEducationandTrainingSupplierQualityManagementPerformanceEvaluationProductDesign,57,Leadership,Theabilityoftopmanagementtoestablish,practice,andleadalong-termvisionforthefirm,drivenbychangingcustomerrequirements,asopposedtoaninternalmanagementcontrolrole.LackoftopmanagementcommitmentisoneofthereasonsforthefailureofTQMefforts(Brownetal.1994).Apredominantrequirementforqualitymanagementisthatstrongcommitmentfromtopmanagementisvital.Tobeaneffectiveleaderinmostmodernfirms,thetopmanagermustcontinuetodevelopandlearn.Knowledgeofthebusinessandcontinuallearningareessentialprerequisitestoeffectiveleadership(DuBrin,1995).,58,Leadership,Inordertoeffectivelyleadthefirm,topmanagementmustbecommittedtoprovideeducationandtrainingtoemployeesandregardingthemasvaluableresourcesofthefirm.Topmanagementmustbecommittedtoallocatingsufficientresourcestoprevent,aswellasrepair,qualityproblems.Topmanagementshoulddiscussqualityfrequently;byhavingsessiononthetopicandaskingquestionsaboutqualityateverystaffmeeting.Topmanagementmusttrainandcoachemployeestoassess,analyze,andimproveworkprocesses(Deming,1986).,59,EmployeeParticipation,Employeeparticipationcanbedefinedasthedegreetowhichemployeesinafirmengageinvariousqualitymanagementactivities.Byparticipatinginqualitymanagementactivities,employeesacquirenewknowledge,seethebenefitsofthequalitydisciplines,andobtainasenseofaccomplishmentbysolvingqualityproblems.Aremarkablecharacteristicofemployeeparticipationisteamwork.Breakdownbarriersbetweendepartments.Peopleinresearch,design,sales,andproductionmustworkasateam(Demings9thpoint).Ifseveralknowledgeablepeoplearebroughtintothedecision-makingprocess,anumberofworthwhilepossibilitiesmaybeuncovered.,60,EmployeeParticipation,TQMimplementationpracticeisformationofshort-termproblem-solvingteams(SEPG).Problem-solvingteamsworkonawidevarietyoftasks,rangingfr