MBA.782.J.I.T. CAJ9.10.1
Operations Management
Just-In-Time
• J.I.T. Philosophy
• Characteristics of J.I.T.
• J.I.T. in Services
• J.I.T. Implementation Issues
• Benefits of J.I.T.
MBA.782.J.I.T. CAJ9.10.2
• Goal of full employment in post-WW II period
• Government (MITI) supported improvement of targeted industries
• Imported technologies
• Efforts concentrated on factory floor
• Leads to success in ________ markets
• U.S. industry _______ ___
Just-In-Time
Japanese Approach to Productivity
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• “Big JIT” (Lean Production System)
– is primarily a ________________ of management that stresses three fundamental concepts:
1. The Elimination of ________ 2. Continuous Improvement
3. Respect for ________• “Little JIT”
– Focuses more _____________ on scheduling goods inventories and providing service resources where and when needed ....
Just-In-Time
JIT: Part Philosophy-Part Technique
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Just-In-Time
Elimination of Waste
• Short Definition:
– Waste is anything that does not add
________ to the product
• Value means satisfying the customer’s needs,
both actual and perceived,
at a price the customer can afford and
feels is reasonable.
• Adding value does not mean _________ costs .
MBA.782.J.I.T. CAJ9.10.5
(1) Waste from overproduction
(2) Waste of waiting time
(3) Transportation waste
(4) _____________ waste
(5) Processing waste
(6) Waste of __________
(7) Waste from product defects ....
Just-In-Time
Toyota’s Seven Categories of Waste
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• Group Technology
• JIT Production
• Kanban Production Control Systems
• Reducing Setup Times
• Uniform Plant Loading
• JIT Inventory
Just-In-Time
Methods of Attacking Waste
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Just-In-Time
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• Movement is waste
• Group Technology and work cells to ________ distance to move people and materials
• Flexible or movable equipment to increase flexibility
• Design _________ space for inventory
Attacking Waste
Group Technology
MBA.782.J.I.T. CAJ9.10.9
• Departmental Specialization
Saw Saw
Lathe PressPress
Grinder
LatheLathe
Saw
Press
Heat Treat
Grinder
Attacking Waste
Group Technology
MBA.782.J.I.T. CAJ9.10.10 9
• Group technology cells
Press
Lathe
Grinder
Grinder
A
2
BSaw
Heat Treat
LatheSaw Lathe
PressLathe
1
Attacking Waste
Group Technology
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• Management philosophy• _____ system though the plant
WHAT IT IS
• Employee participation• Industrial engineering/basics• Continuing improvement• Total quality control• Small lot sizes
WHAT IT REQUIRES
• Attacks waste• ________ problems and bottlenecks• Achieves streamlined production
WHAT IT DOES
• Stable environment
WHAT IT ASSUMES
Attacking Waste
Just-In-Time Production
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Traditional Push System
• Material is “_________” onto downstream workstations regardless of whether the resources are available.
• Production begins in __________ of customer needs
• Emphasis on production; production first
• “_______” ahead of next unit
– good selection from which to build efficient schedules and improve utilization
Just-In-Time Production
Push vs. Pull
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J.I.T. Pull System
• Customer _________ activates production so it produces only when it is needed
• Material is “__________” to a workstation just as it is needed.
• Supplies and components are pulled through the
system to arrive ______ they are needed _______ they are needed.
Just-In-Time Production
Push vs. Pull
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• Kanban is Japanese for ______, or “instruction card”
• It is a simple _________ pull system for controlling inventory in the production system based on a standardized container or lot size.
• Toyota uses two types of kanbans;
– production kanban - authorizes ____________ of a given number of parts
– withdrawal kanban - authorizes the ___________ of a given number of parts.
Attacking Waste
Kanban Production Control Systems
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The final assemblyschedule drives thewhole process.
A
B
Storage
Machine Center Assembly Line
ProductionKanban
WithdrawalKanban
Attacking Waste
Kanban Production Control Systems
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To Lower Cycle Inventory, _________ Lot Size...
Average cycle inventory
Lot size = 100
Lot size = 50
On-
hand
inve
ntor
y
5 10 15 20 25 30Time (hours)
100 –
75 –
50 –
25 –
0 –
Attacking Waste
Reducing Setup Times
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Lot size = 5Lot 1 Lot 2
Lot size = 2
Lot 1 Lot 2 Lot 3 Lot 4 Lot 5
However, reducing lot sizes __________ the number of lots...
Minimizing Setup Times
Small Lot Sizes
Lot size = 10
Lot 1
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Just-In-Time
Small Lot Sizes
...which ___________ Inventory Costs...
-
100
200
300
400
500
600
700
800
900
1,000
0 50 100 150 200 250
Quantity
Tota
l Ann
ual C
ost
Total Cost
Holding Cost
Setup Cost
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Just-In-Time
Small Lot Sizes...unless Setup Costs are _________ ...
-
100
200
300
400
500
600
700
800
900
1,000
0 50 100 150 200 250
Quantity
Tota
l Ann
ual C
ost
Total Cost
Holding Cost
Setup Cost
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• Does not mean building a single product
• Make _______ materials use schedules
• Distribute production quantities ________ over time (firm monthly schedules)
• Build the ______ mix of products every day
– using smaller lot sizes
Attacking Waste
Uniform Plant Loading
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A A B B B C
JIT Small Lots
Time
A A B B B C
A
Large-Lot Approach
Time
A A A B B B B B B C C
• J.I.T. produces the same amount in the same time ____ setup times (costs) are lowered.• Small lots also increase flexibility to meet customer demands.
Attacking Waste
Uniform Plant Loading
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• __________ the number of suppliers
• Buyer and supplier form _______________ to reduce waste
• _______________ supplier relationships to
– improve the on-time delivery
– minimize paperwork
– make frequent deliveries in small lot sizes
– reduce in-plant and in-transit inventories
Just-In-Time
Suppliers
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• Employee _______________ in product and process improvements
• Requires
– Employee empowerment
– Cross-trained employees
– fewer job classifications to ensure flexibility of employees.
– training support
– quality at the source
Just-In-Time
Flexible Workforce
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Just-In-Time
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Continuous Improvement
J.I.T. Inventory
• Traditional View:
– inventory exists “just-in-______” problems arise.
• J.I.T. Tactics
– substantially reduce, if not eliminate, inventory
– inventory is the “root of all ______”
– only the minimum inventory necessary to keep the system running.
– inventory reduction ___________ the problems and provides opportunities for improvement
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ScrapUnreliable
VendorsCapacity
Imbalances
J.I.T. Inventory
Lowering Inventory Reduces Waste
W.I.P. inventory level(hides problems)
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ScrapUnreliable
VendorsCapacity
Imbalances
J.I.T. Inventory
Lowering Inventory Reduces Waste
Reducing inventory _________problems so they can be solved.
W.I.P.
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Scrap
Reducing inventory further reveals_______ problems to be solved.
Unreliable Vendors
Capacity Imbalances
W.I.P.
J.I.T. Inventory
Lowering Inventory Reduces Waste
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All the J.I.T. techniques used in manufacturing
are used in services:
Suppliers - food delivery to restaurants Layouts - baggage claim area at airport Inventory - pharmeceuticals networks Scheduling - personnel schedules rather
than production / inventory
Just-In-Time
J.I.T. in Services
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Just-In-Time
Implementation Issues
• Requires time, trust, and changing _____________
• Putting a new philosophy into action
– allowing utilization to ______– reduction in buffer inventory
– allowing workers to ______ the line
– trusting vendors and customers
– committing resources to train workers
– gaining worker ______
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Reduced _____________ investment Reduced _________ requirements Reduced manufacturing lead times
Increased labor ______________ Simplier planning systems Work force participation Increased product quality
Just-In-Time
Benefits of J.I.T.
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Read Chapter 10
Concepts / Terminology
Review Lecture Notes
Just-In-Time
Chapter Wrap-Up
