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Chapter 11
Just-in-Time and Lean Systems
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• JIT Defined
• The Toyota Production System
• JIT Implementation Requirements
• JIT in Services
OBJ!TI"S
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Just-In-Time #JIT$
Defined
• JIT can %e defined as an inte&rated set ofactivities desi&ned to achieve hi&h-volumeproduction usin& minimal inventories #ra'
materials( 'or) in process( and finished&oods$
• JIT also involves the elimination of 'aste in
production effort• JIT also involves the timin& of productionresources #i*e*( parts arrive at the ne+t'or)station ,ust in time.$
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JIT and Lean /ana&ement
• JIT can %e divided into t'o terms0 ,Bi& JIT. and
,Little JIT.
• Bi& JIT #also called Lean /ana&ement$ is aphilosophy of operations mana&ement that see)sto eliminate 'aste in all aspects of a firm1sproduction activities0 human relations( vendorrelations( technolo&y( and the mana&ement ofmaterials and inventory
• Little JIT focuses more narro'ly on schedulin&&oods inventory and providin& service resources'here and 'hen needed
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JIT Demand-Pull Lo&ic
Customers
Sub
Sub
Fab
Fab
Fab
Fab
Vendor
Vendor
Vendor
Vendor
Final
Assembly
2ere the customer starts
the process( pullin& an
inventory item from
3inal 4ssem%ly5
2ere the customer starts
the process( pullin& an
inventory item from
3inal 4ssem%ly5
Then su%-
assem%ly 'or) is
pulled for'ard %y
that demand5
Then su%-
assem%ly 'or) is
pulled for'ard %y
that demand5
The process continues
throu&hout the entire
production process and
supply chain
The process continues
throu&hout the entire
production process and
supply chain
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The Toyota Production System
• Based on t'o philosophies0
• 6* limination of 'aste
• 7* Respect for people
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8aste in Operations
6* 8aste from overproduction
7* 8aste of 'aitin& time
9* Transportation 'aste
:* Inventory 'aste
;* Processin& 'aste
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/inimi>in& 8aste0
3ocused 3actory
?et'or)s
Coordination
System Integration
These are small speciali>ed
plants that limit the ran&e
of products produced
#sometimes only one type of
product for an entire
facility$
These are small speciali>ed
plants that limit the ran&e
of products produced
#sometimes only one type of
product for an entire
facility$
Some plants in
Japan have as
fe' as 9@ and as
many as 6@@@
employees
Some plants in
Japan have as
fe' as 9@ and as
many as 6@@@
employees
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/inimi>in& 8aste0 Aroup Technolo&y #Part 6$
• sin& Departmental Specialization for plant layout can cause a lot of unnecessary
material movement
• sin& Departmental Specialization for plant layout can cause a lot of unnecessary
material movement
Sa" Sa"
#athe $ress$ress
%rinder
#athe#athe
Sa"
$ress
&eat 'reat
%rinder
?ote ho' the flo' lines are &oin& %ac) and forth?ote ho' the flo' lines are &oin& %ac) and forth
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/inimi>in& 8aste0
Aroup Technolo&y #Part 7$
• Revisin& %y usin& Group Technology Cells can reduce movement and improveproduct flo'
• Revisin& %y usin& Group Technology Cells can reduce movement and improveproduct flo'
$ress
#athe
%rinder
%rinder
A
2
(Sa"
&eat 'reat
#atheSa" #athe
$ress#athe
1
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/inimi>in& 8aste0
niform Plant Loadin& #heiun)a$
)ot uni*orm +an, -nits Feb, -nits .ar, -nits 'otal
1/2!! 3/5!! 4/3!! /!!!
-ni*orm +an, -nits Feb, -nits .ar, -nits 'otal
3/!!! 3/!!! 3/!!! /!!!
Suppose we operate a production plant that produces a singleproduct. The schedule of production for this product could be
accomplished using either of the two plant loading schedules
below.
Suppose we operate a production plant that produces a singleproduct. The schedule of production for this product could be
accomplished using either of the two plant loading schedules
below.
How does the uniform loading help save labor costs?How does the uniform loading help save labor costs?
or
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/inimi>in& 8aste0 Just-In-Time
Production
• Management philosophy• “Pull” system though the plant
WHAT IT IS
• Employee participation• Industrial engineering/asics• !ontinuing impro"ement• Total #uality control• Small lot si$es
WHAT IT %E&'I%ES
• Attac(s )aste• E*poses prolems and ottlenec(s
• Achie"es streamlined production
WHAT IT +,ES
• Stale en"ironment
WHAT IT ASS'MES
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/inimi>in& 8aste0 Inventory
2ides Pro%lems
0or in
proess
ueues
bans
Chaneorders
nineerin desin
redundanies
Vendor
delinuenies
Srap
esin
balos
.ahine
do"ntime
eision
balos
9nspetion
balos
$aper"or
balo
Example !yidentifying defective
items from a vendor
early in the
production process
the downstream wor"
is saved
Example !yidentifying defective
wor" by employees
upstream# the
downstream wor" is
saved
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/inimi>in& 8aste0 Can%an Production
!ontrol Systems
Storage
Part A
Storage
Part AMachine
!enter Assemly
-ine
Material .lo)
!ard signal0 .lo)
$ithdrawal
"anban
Once the Production )an%an isreceived( the /achine !enter
produces a unit to replace the
one ta)en %y the 4ssem%ly Line
people in the first place
This puts the
system %ac)'ere it 'as
%efore the item
'as pulled
The process %e&ins %y the 4ssem%ly Line
people pullin& Part 4 from Stora&e
Production (anan
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Determinin& the ?um%er of Can%ans
?eeded
• Settin& up a )an%an system requires
determinin& the num%er of )an%ans cards #or
containers$ needed
• ach container represents the minimum
production lot si>e
• 4n accurate estimate of the lead time required
to produce a container is )ey to determinin&
ho' many )an%ans are required
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The ?um%er of Can%an !ard Sets
C
S DL
k
541
2ontainer theo* Si:e
sto2 Sa*etytimeleaddurin6demand7;pe2ted
+=
+
=
C
S DL
k
541
2ontainer theo* Si:e
sto2 Sa*etytimeleaddurin6demand7;pe2ted
+=
+=
k = %umber of "anban card sets &a set is a card'
D ( )verage number of units demanded over some time
period
L ( lead time to replenish an order &same units of time asdemand'
S ( Safety stoc" expressed as a percentage of demand
during leadtime
C ( Container si*e
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+ample of Can%an !ard Determination0
Pro%lem Data• 4 s'itch assem%ly is assem%led in %atches of : units
from an ,upstream. assem%ly area and delivered in
a special container to a ,do'nstream. control-panel
assem%ly operation
• The control-panel assem%ly area requires ; s'itch
assem%lies per hour
• The s'itch assem%ly area can produce a container ofs'itch assem%lies in 7 hours
• Safety stoc) has %een set at 6@ of needed inventory
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+ample of Can%an !ard
Determination0 !alculations
3or/75,2
4
521,11
ontainer theo* Si:e
sto Sa*etytimeleaddurindemand;peted
==+
=
+
=
C
S DL
k
3or/75,2
4
521,11
ontainer theo* Si:e
sto Sa*etytimeleaddurindemand;peted
==+
=
+
=
C
S DL
k
Always round up!
2!
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Respect for People
• Level payrolls
• !ooperative employee unions
• Su%contractor net'or)s
• Bottom-round mana&ement style
• Euality circles #Small Aroup Involvement4ctivities or SAI41s$
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Toyota Production System1s 3our Rules1, All "or shall be hihly spei*ied as to ontent/
seuene/ timin/ and outome
2,
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JIT Implementation Requirements0
Desi&n 3lo' Process
• Lin) operations
• Balance 'or)station capacities
• Redesi&n layout for flo'
• mphasi>e preventive maintenance
• Reduce lot si>es
• Reduce setupFchan&eover time
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JIT Implementation Requirements0 Total
Euality !ontrol• 8or)er responsi%ility
• /easure SE!
• nforce compliance
• 3ail-safe methods
• 4utomatic inspection
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JIT Implementation Requirements0
Sta%ili>e Schedule• Level schedule
• nderutili>e capacity
• sta%lish free>e 'indo's
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JIT Implementation Requirements0
Can%an-Pull• Demand pull
• Bac)flush
• Reduce lot si>es
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JIT Implementation Requirements0 8or)
'ith "endors• Reduce lead times
• 3requent deliveries
•Proect usa&e requirements
• Euality e+pectations
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JIT Implementation Requirements0
Reduce Inventory /ore
• Loo) for other areas
• Stores
• Transit
• !arousels
• !onveyors
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JIT Implementation Requirements0
Improve Product Desi&n• Standard product confi&uration
• Standardi>e and reduce num%er of parts
• Process desi&n 'ith product desi&n
• Euality e+pectations
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JIT Implementation Requirements0
!oncurrently Solve Pro%lems• Root cause
• Solve permanently
• Team approach
• Line and specialist responsi%ility
• !ontinual education
3!
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JIT Implementation Requirements0
/easure Performance
• mphasi>e improvement
• Trac) trends
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JIT in Services #+amples$
• Or&ani>e Pro%lem-Solvin& Aroups
• p&rade 2ouse)eepin&
• p&rade Euality
• !larify Process 3lo's
• Revise quipment and Process Technolo&ies
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JIT in Services #+amples$
• Level the 3acility Load
• liminate nnecessary 4ctivities
• Reor&ani>e Physical !onfi&uration
• Introduce Demand-Pull Schedulin&
• Develop Supplier ?et'or)s
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nd o* Chapter 11