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operationsmanagement chapter16 just in timeandleanproductionsystems 2006prenticehall inc powerpointpresentationtoaccompanyheizer renderprinciplesofoperationsmanagement 6eoperationsmanagement 8e outline globalcompanyprofile greengearcyclingjust in timeandleanproductionsuppliersgoalsofjitpartnershipsconcernsofsuppliers outline continued jitlayoutdistancereductionincreasedflexibilityimpactonemployeesreducedspaceandinventory outline continued inventoryreducevariabilityreduceinventoryreducelotsizesreducesetupcostsschedulinglevelscheduleskanban outline continued qualityemployeeempowermentleanproductionbuildingaleanorganization5s ssevenwastesjitinservices learningobjectives whenyoucompletethischapter youshouldbeableto identifyordefine variabilitykanban5ssystemsevenwastes learningobjectives whenyoucompletethischapter youshouldbeableto describeorexplain just in time jit philosophypullsystemspushsystemsthegoalsofjitpartnershipsleanproductionprinciplesoftoyotaproductionsystem greengearcycling designsandmanufactureshighperformancetravelbicycles bike in a suitcase strategyismasscustomizationwithlowinventory workcells andeliminationofmachinesetupsmajorfocusonjitandsupply chainmanagementonedaythroughputtimefocusonquality just in timeandleanproduction jitisaphilosophyofcontinuousandforcedproblemsolvingthatsupportsleanproductionleanproductionsuppliesthecustomerwiththeirexactwantswhenthecustomerwantsitwithoutwastekeyissuesarecontinualimprovementandapullsystem wastereduction wasteisanythingthatdoesnotaddvaluefromthecustomerpointofviewstorage inspection delay waitinginqueues anddefectiveproductsdonotaddvalueandare100 waste wastereduction fasterdelivery reducedwork in process andfasterthroughputallreducewastereducedwastereducesroomforerrorsemphasizingqualityreducedinventoryreleasesassetsforother productivepurposes variabilityreduction jitsystemsrequiremanagerstoreducevariabilitycausedbybothinternalandexternalfactorsvariabilityisanydeviationfromtheoptimumprocessinventoryhidesvariabilitylessvariabilityresultsinlesswaste causesofvariability employees machines andsuppliersproduceunitsthatdonotconformtostandards arelate orarenottheproperquantityengineeringdrawingsorspecificationsareinaccurateproductionpersonneltrytoproducebeforedrawingsorspecificationsarecompletecustomerdemandsareunknown pullversuspushsystems apullsystemusessignalstorequestproductionanddeliveryfromupstreamstationsupstreamstationsonlyproducewhensignaledsystemisusedwithintheimmediateproductionprocessandwithsuppliers pullversuspushsystems bypullingmaterialinsmalllots inventorycushionsareremoved exposingproblemsandemphasizingcontinualimprovementmanufacturingcycletimeisreducedpushsystemsdumpordersonthedownstreamstationsregardlessoftheneed jitandcompetitiveadvantage table16 1 jitrequires jitandcompetitiveadvantage table16 1 suppliers jitpartnershipsexistwhenasupplierandpurchaserworktogethertoremovewasteanddrivedowncostsfourgoalsofjitpartnershipsare eliminationofunnecessaryactivitieseliminationofin plantinventoryeliminationofin transitinventoryeliminationofpoorsuppliers jitpartnerships table16 2 jitpartnerships table16 2 jitpartnerships table16 2 jitpartnerships table16 2 jitlayout table16 3 reducewasteduetomovement distancereduction largelotsandlongproductionlineswithsingle purposemachineryarebeingreplacedbysmallerflexiblecellsoftenu shapedforshorterpathsandimprovedcommunicationoftenusinggrouptechnologyconcepts increasedflexibility cellsdesignedtoberearrangedasvolumeordesignschangeapplicableinofficeenvironmentsaswellasproductionsettingsfacilitatesbothproductandprocessimprovement impactonemployees employeesarecrosstrainedforflexibilityandefficiencyimprovedcommunicationsfacilitatethepassingonofimportantinformationabouttheprocesswithlittleornoinventorybuffer gettingitrightthefirsttimeiscritical reducedspaceandinventory withreducedspace inventorymustbeinverysmalllotsunitsarealwaysmovingbecausethereisnostorage inventory inventoryisattheminimumlevelnecessarytokeepoperationsrunning table16 4 reducevariability inventorylevel figure16 1 inventorylevel reducevariability scrap setuptime latedeliveries qualityproblems processdowntime figure16 1 reducelotsizes figure16 2 reducelotsizes idealsituationistohavelotsizesofonepulledfromoneprocesstothenextoftennotfeasiblecanuseeoqanalysistocalculatedesiredsetuptimetwokeychangesimprovematerialhandlingreducesetuptime lotsizeexample d annualdemand 400 000unitsd dailydemand 400 000 250 1 600perdayp dailyproductionrate 4 000unitsq eoqdesired 400h holdingcost 20perunits setupcost tobedetermined lowersetupcosts figure16 3 reducesetupcosts highsetupcostsencouragelargelotsizesreducingsetupcostsreduceslotsizeandreducesaverageinventorysetuptimecanbereducedthroughpreparationpriortoshutdownandchangeover reducesetuptimes figure16 4 scheduling schedulesmustbecommunicatedinsideandoutsidetheorganizationlevelschedulesprocessfrequentsmallbatchesfreezingtheschedulehelpsstabilitykanbansignalsusedinapullsystem kanban userremovesastandardsizedcontainersignalisseenbytheproducingdepartmentasauthorizationtoreplenish figure16 6 schedulingsmalllots figure16 5 morekanban whentheproduceranduserarenotinvisualcontact acardcanbeusedwhentheproduceranduserareinvisualcontact alightorflagoremptyspotonthefloormaybeadequatesinceseveralcomponentsmayberequired severaldifferentkanbantechniquesmaybeemployed morekanban usuallyeachcardcontrolsaspecificquantityorpartsmultiplecardsystemsmaybeusedifthereareseveralcomponentsordifferentlotsizeskanbancardsprovideadirectcontrolandlimitontheamountofwork in processbetweencells morekanban inanmrpsystem theschedulecanbethoughtofasabuildauthorizationandthekanbanatypeofpullsystemthatinitiatesactualproductionifthereisanimmediatestoragearea atwo cardsystemcanbeusedwithonecardcirculatingbetweentheuserandstorageareaandtheotherbetweenthestorageareaandtheproducer kanbansignals purchasedpartssupplier sub assembly finalassembly figure16 7 thenumberofcardsorcontainers needtoknowtheleadtimeneededtoproduceacontainerofpartsneedtoknowtheamountofsafetystockneeded numberofkanbansexample dailydemand 500cakesproductionleadtime 2days waittime materialhandlingtime processingtime safetystock 1 2daycontainersize 250cakes demandduringleadtime 2daysx500cakes 1 000 advantagesofkanban allowonlylimitedamountoffaultyordelayedmaterialproblemsareimmediatelyevidentputsdownwardpressureonbadaspectsofinventorystandardizedcontainersreduceweight disposalcosts wastedspace andlabor quality strongrelationshipjitcutsthecostofobtaininggoodqualitybecausejitexposespoorqualitybecauseleadtimesareshorter qualityproblemsareexposedsoonerbetterqualitymeansfewerbuffersandallowssimplerjitsystemstobeused jitqualitytactics table16 6 employeeempowerment empoweredemployeesbringtheirknowledgeandinvolvementtodailyoperationssometraditionalstafftaskscanmovetoempoweredemployeestraining cross training andfewerjobclassificationscanmeanenrichedjobscompaniesgainfromincreasedcommitmentfromemployees leanproduction differentfromjitinthatitisexternallyfocusedonthecustomeroftencalledthetoyotaproductionsystem tps inpractice jit leansystems andtpsareoftenessentiallythesame toyotaproductionsystem workshallbecompletelyspecifiedastocontent sequence timing andoutcomeeverycustomer supplier
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