JIT and Lean Operations

1. JIT andLean Operations

2. MRP (push) and JIT (pull) system A PUSH system where material is moved on to the next stage as soon as it has been processed PUSH SYSTEM PULL SYSTEM A PULL system where material is moved only when the next stage wants it

3. JUST IN TIME [JIT] Based on two philosophies: 1. Elimination of waste 2. Respect for people • Originated in Japan

4. 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” JIT/Lean Production

5. Product design [Standard parts, Modular design, Highly capable production, systems, Concurrent engineering] Process design Personnel/organizational elements Manufacturing planning and control JIT Building Blocks

6. Small lot sizes Setup time reduction Limited work in process Quality improvement Production flexibility Little inventory storage Reduces inventory Less rework Less storage space Problems are more apparent Increases product flexibility Easier to balance operations Process Design

7. Workers as assets Cross-trained workers Continuous improvement Cost accounting Leadership/project management Personnel/Organizational Elements

8. Level loading Pull systems Visual systems Close vendor relationships Reduced transaction processing Preventive maintenance Manufacturing Planning and Control

9. Coordination System Integration Minimizing Waste: Focused Factory Networks These are small specialized plants that limit the range of products produced (sometimes only one type of product for an entire facility) Some plants in Japan have as few as 30 and as many as 1000 employees

10. 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. Kanban Production Control System

11. The 7 zeros of JIT ZERO BREAKDOWNS ZERO LEAD TIMES ZERO HANDLING ZERO DEFECTS ZERO INVENTORY ZERO SURGING ZERO LOT SIZES

12. Autonomation Automatic detection of defects during production Jidoka Japanese term for autonomation Quality Improvement

13. Comparison of JIT and Traditional

14. 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 Transitioning to a JIT System

15. Good housekeeping Set-up time reduction Cross-trained employees A pull system Elements of JIT (cont’d)

16. Not everybody operates within JIT parameters Not all suppliers comply with another company’s JIT requirements Labor organizations have problems with JIT’s flexible, broadly defined jobs Does not work well with global trade JIT Disadvantages

17. The 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 JIT in Services

18. Attacks waste • Exposes problems and • bottlenecks • Achieves streamlined • production WHAT IT DOES • Management philosophy • “Pull” system though the plant WHAT IT IS • Employee participation • Industrial engineering/basics • Continuing improvement • Total quality control • Small lot sizes WHAT IT REQUIRES • Stable environment WHAT IT ASSUMES Minimizing Waste: Just-In-Time Production