What is Just-in-Time?
Management
philosophy of continuous and forced problem solving Supplies and components are ‘pulled’ through system to arrive where they are needed when they are needed.
Slide 14.1
What Does Just-in-Time Do?
Attacks
waste
Anything
not adding value to the product Customer’s perspective
Exposes
Caused
problems and bottlenecks
by variability Deviation from optimum
Achieves
By
streamlined production
reducing inventory
Slide 14.2
Types of Waste
Waiting
Overproduction Transportation Inefficient
processing Inventory Unnecessary motion Product defects
Slide 14.3
JIT Reduced Waste at Conestoga College
Setup Time
Scrap Finished Goods Inventory Space Lead Time Raw Material Inventory Work-in-Process Inventory
20%
Waste Reduction (%)
30% 30% 40% 50% 50% 82%
0%
20%
40%
60%
80%
100%
Slide 14.4
Variability Occurs Because
Employees,
machines, and suppliers produce units that do not conform to standards, are late, or are not the proper quantity Engineering drawings or specifications are inaccurate Production personnel try to produce before drawings or specifications are complete Customer demands are unknown
Slide 14.5
Push versus Pull
Push
system: material is pushed into downstream workstations regardless of whether resources are available
system: material is pulled to a workstation just as it is needed
Pull
Slide 14.6
JIT Contribution to Competitive Advantage
Suppliers
reduced
number of vendors supportive supplier relationships quality deliveries on time
Slide 14.7
JIT Contribution to Competitive Advantage - continued
Layout
work-cell
layouts with testing at each step of the process group technology movable, changeable, flexible machinery high level of workplace organization and neatness reduced space for inventory delivery direct to work areas
Slide 14.8
JIT Contribution to Competitive Advantage - continued
Inventory
small
lot sizes low setup times specialized bins for holding set number of parts
Scheduling
zero
deviation from schedules level schedules suppliers informed of schedules Kanban techniques
Slide 14.9
JIT Contribution to Competitive Advantage - continued
Preventive
scheduled daily
Maintenance
routine operator involvement
Quality
Production
statistical
process control quality by suppliers quality within firm
Slide 14.10
JIT Contribution to Competitive Advantage - continued
Employee
Empowerment
empowered
and cross-trained employees few job classifications to ensure flexibility of employees training support
Commitment
support
of management, employees, and suppliers
Slide 14.11
Results
Queue
and delay reduction, speeds throughput, frees assets, and wins orders Quality improvement, reduces waste and wins orders Cost reductions, increases margin or reduces selling price Variability reductions in the workplace, reduces waste and wins orders Rework reduction, reduces waste and wins orders
Slide 14.12
Just-in-time systems attempt to increase flexibility and responsiveness between suppliers and customers in order to eliminate waste, improve customer satisfaction, and improve overall competitiveness
Slide 14.13
Motivation for implementing JIT:
reduction
in raw material, purchased parts, work-in-process, and finished goods inventory increased direct labor productivity improved equipment utilization defect-free production of well-designed products improved responsiveness to changing markets and customer requirements
Slide 14.14
Misunderstandings about JIT:
thinking
of JIT as a physical system to be implemented rather than a management philosophy to be adopted thinking of JIT as simply an inventory control system thinking of JIT as strictly a manufacturing oriented management approach
Slide 14.15
Suppliers
Incoming material and finished goods involve waste Buyer and supplier form JIT partnerships JIT partnerships eliminate
Unnecessary activities In-plant inventory In-transit inventory Poor suppliers
Slide 14.16
Supplier Worries
Diversification
Poor customer scheduling Frequent engineering changes Quality assurance Small lot sizes Physical proximity
Slide 14.17
Streamlined Production
Traditional Flow
Suppliers Production Process (stream of water)
Customers Inventory (stagnant ponds) Material (water in stream) Customers
Flow with JIT
Suppliers
Slide 14.18
Layout
JIT
objective: Reduce movement of people and material
Movement
is waste!
JIT requires
Work
cells for product families Moveable or changeable machines Short distances Little space for inventory Delivery directly to work areas
Slide 14.19
Work Cell versus Process Layout
Lathe Lathe 1 Saw Saw Saw Lathe 2 Press Lathe
5
4 Heat Treat 3 Press Press 6
2 Grinder Grinder
Grinder 1
Heat
Process Layout
Slide 14.20
Work Cell
Kanban
Japanese
word for card
‘kahn-bahn’ (not ‘can-ban’)
Pronounced
Authorizes production from downstream operations
‘Pulls’
material through plant
May be a card, flag, verbal signal etc. Used often with fixed-size containers
Add
or remove containers to change production
rate
Slide 14.21