MELJUN CORTES - Operations Management 14th Lecture (JIT & LEAN PRODUCTION)

8/9/2019 MELJUN CORTES - Operations Management 14th Lecture (JIT & LEAN PRODUCTION)

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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,

MBA,MPA,BSCS,ACS

Operations Management

MELJUNELJUN

MELJUN CORTES,BSCS,ACS

Department of ICT

Faculty of Information

Technology


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MBA,MPA,BSCS,ACS

H

APTER

14

JIT andLean Operations

MELJUNELJUN


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MBA,MPA,BSCS,ACS

JIT/Lean ProductionJIT/Lean Production

Just-in-time (JIT):A highly coordinatedprocessing 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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MBA,MPA,BSCS,ACS

Goal of JITGoal of JIT

The ultimate goal of JIT is a balancedsystem.

Achieves a smooth, rapid flow of materialsthrough the system


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MBA,MPA,BSCS,ACSBlocksBlocks

Figure 14.1

Product

Design

Process

Design

Personnel

Elements

Manufactur-

ing Planning

Eliminate disruptions

Make the system flexible Eliminate waste

A

balanced

rapid flow

Ultimate

Goal

SupportingGoals

BuildingBlocks


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Supporting GoalsSupporting Goals

Eliminate disruptions

Make system flexible

Eliminate waste, especially excessinventory


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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS

Sources of WasteSources of Waste

Overproduction Waiting time

Unnecessary transportation

Processing waste

Inefficient work methods

Product defects


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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 Manufacturingplanning and control


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Product DesignProduct Design

Standard parts Modular design

Highly capable production systems Concurrent

engineering

CO S

SCS CS


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Process DesignProcess Design

Small lot sizes Setup time reduction

Manufacturing cells

Limited work in process

Quality improvement

Production flexibility Little inventory storage

MELJUN CORTES

MBA MPA BSCS ACS


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Benefits of Small Lot SizesBenefits of Small Lot Sizes

Reduces inventory

Less storage space

Less rework

Problems are more apparent

Increases product flexibility

Easier to balance operations

MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES

MBA MPA BSCS ACS


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Production FlexibilityProduction Flexibility

Reduce downtime by reducingchangeover time

Use preventive maintenance to reduce

breakdowns Cross-train workers to help clear

bottlenecks


MBA MPA BSCS ACS


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Production Flexibility (contd)Production Flexibility (contd)

Use many small units of capacity Use off-line buffers

Reserve capacity for important customers


MBA MPA BSCS ACS


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Quality ImprovementQuality Improvement

Autonomation Automatic detection of defects during

production

Jidoka

Japanese term for autonomation


MBA MPA BSCS ACS


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Personnel/Organizational ElementsPersonnel/Organizational Elements

Workers as assets Cross-trained workers

Continuous

improvement

Cost accounting

Leadership/projectmanagement


MBA MPA BSCS ACS


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Manufacturing Planning and ControlManufacturing Planning and Control

Level loading Pull systems

Visual systems

Close vendor relationships

Reduced transaction

processing Preventive maintenance


MBA MPA BSCS ACS


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Pull/Push SystemsPull/Push Systems

Pull system: System for moving work wherea workstation pulls output from the preceding

station as needed. (e.g. Kanban)

Push system: System for moving work whereoutput is pushed to the next station as it is

completed


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Kanban Production Control SystemKanban Production Control System

Kanban: Card or other device thatcommunicates demand for work or materialsfrom the preceding station

Kanban is the Japanese word meaningsignal or visible record

Paperless production control system

Authority to pull, or produce comesfrom a downstream process.


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Kanban FormulaKanban 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 partplus average production time for a

container of partsX = Policy variable set by management

- possible inefficiency in the system

C = Capacity of a standard container


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Traditional Supplier NetworkTraditional Supplier Network

BuyerBuyer

SupplierSupplierSupplierSupplier SupplierSupplier SupplierSupplier

SupplierSupplier

SupplierSupplierSupplierSupplier

Figure 14.4a


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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


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Comparison of JIT and TraditionalComparison of JIT and Traditional

Factor Traditional JIT

Inventory Much to offset forecasterrors, late deliveries

Minimal necessary to operate

DeliveriesFew, large Many, small

Lot sizes Large Small

Setup; runs Few, long runs Many, short runs

Vendors Long-term relationshipsare unusual Partners

Workers Necessary to do the work Assets

Table 14.3


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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

Suppliers mayresist

Why?


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JIT in ServicesJIT in Services

The basic goal of the demand flow technology in theservice organization is to provide optimum responseto the customer with the highest quality service andlowest possible cost.

Eliminate disruptions Make system flexible

Reduce setup and lead times

Eliminate waste

Minimize WIP Simplify the process

MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES,

MBA,MPA,BSCS,ACS


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JIT II: a supplier representative works rightin the companys 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 (contd)Benefits of JIT Systems (contd)

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 addvalue

Simple systems that are easy to manage

Use of product layouts to minimize movingmaterials and parts Quality at the source

Elements of JITElements of JITTable 14.4


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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 (contd)Elements of JIT (contd)Table 14.4

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MELJUN CORTES - Operations Management 14th Lecture (JIT & LEAN PRODUCTION)

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