week12 jit tps kanban lean
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Operat ionsManagement
Chapter 16J IT and Lean
Operat ions
PowerPoint p resentat ion to accompany
Heizer/Render
Pr inciples o f Operat ions Management, 7e
Operations Management, 9e
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Toyo ta Moto r Corporat ion
Largest vehic le manu facturer in the
world w ith annual sales o f over 9
m i l lion vehic les
Success due to two techn iques, JIT
and TPS
Cont inual problem solv ing is central
to JIT Elim inating excess inventory makes
problems immediately evident
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Toyo ta Moto r Corporat ion
Central to TPS is a cont inuing effort
to produce products under ideal
condi t ions
Respect for peop le is fundamental
Small bui ld ing bu t high levels o f
product ion
Subassembl ies are trans ferred to theassembly l ine on a JIT basis
High qual ity and low assemb ly t ime
per vehicle
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Jus t-In -Time, TPS, and
Lean Operat ions JIT is a ph i losophy of con t inuous and
forced prob lem solv ing v ia a focus on
throughput and reduced inventory
TPS emphasizes cont inuous
improvement, respect for peop le, and
standard wo rk p ract ices
Lean p roduct ion suppl ies the
cus tomer w i th thei r exact wants when
the customer wants i t wi thou t waste
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Jus t-In -Time, TPS, and
Lean Operat ions JIT emphasizes fo rced problem
solv ing
TPS emphasizes emp loyee
learning and empowerment in an
assembly-l ine env ironment
Lean operat ions emphasize
understand ing the customer
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Elim inate Waste
Waste is any thing that does not
add value from the customer point
of v iew Storage, inspect ion , delay, wait ing
in queues, and defect ive produc ts
do not add value and are 100%
waste
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Ohnos Seven Wastes
Overproduct ion
Queues
Transportat ion
Inventory
Mot ion
Overprocessing
Defect ive products
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Elim inate Waste
Other resources such as energy,
water, and air are of ten wasted
Eff icient, ethical, and social lyrespons ib le product ion m inim izes
inputs , reduces waste
Traditional housekeeping hasbeen expanded to the 5 Ss
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The 5 Ss
Sort/segregatewhen in doub t ,throw i t ou t
Simpl i fy/straightenmethods
analysis too ls Shine/sweepc lean dai ly
Standardizeremove var iat ions
f rom processes Sustain/self-discipl inereview work
and recogn ize progress
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The 5 Ss
Sort/segregatewhen in doub t ,throw i t ou t
Simpl i fy/straightenmethods
analysis too ls Shine/sweepc lean dai ly
Standardizeremove var iat ions
f rom processes Sustain/self-discipl inereview work
and recogn ize progress
Two add i t ional Ss
Safetybu i ld in good p ract ices
Support /maintenanceredu cevar iabi l i ty and unplanned
downt ime
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Remove Variab i l ity
JIT systems requ ire managers to
reduce var iabi l i ty caused by both
internal and external facto rs
Variab i l i ty is any deviat ion from the
opt imum process
Invento ry hides var iabi l i ty
Less var iabi l i ty resul ts in less
waste
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Sources o f Variab i li ty
1. Incomplete or inaccurate draw ings
or speci f ications
2. Poor product ion processesresu l t ing in inco rrect quant i t ies,
late, or non-conform ing uni ts
3. Unknown cus tomer demands
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Sources o f Variab i li ty
1. Incomplete or inaccurate draw ings
or speci f ications
2. Poor product ion processesresu l t ing in inco rrect quant i t ies,
late, or non-conform ing uni ts
3. Unknown cus tomer demands
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Jus t-In -Time (J IT)
Powerfu l st rategy for improv ing operat ions
Materials arr ive where theyare needed when they are
needed
Ident ify ing prob lems anddr iv ing out waste reducescosts and variabi l ity and
improves throughput Requ ires a meaning fulbuyer-supp l ier relat ionship
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J IT and Competi t iveAdvantage
Figure 16.1
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J IT and Competi t iveAdvantage
Figure 16.1
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J IT Partnersh ips
JIT partnerships exist when a
supp l ier and purchaser work
together to remove waste and dr ive
down cos ts
Four goals o f JIT partnersh ips are:
Removal of unnecessary act iv i t ies
Removal of in-plant inventory
Removal of in-transi t inventory
Improved qual ity and reliabi l i ty
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J IT Partnersh ips
Figure 16.2
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Concerns o f Supp l iers
Diversi f icat iont ies to on ly one custom erincreases r isk
Schedul ingdont believe customers can
create a smoo th schedu le Changessho rt lead t imes mean
eng ineer ing o r speci f icat ion changes can
create problems
Qualityl im i ted by capi tal budgets,processes, or techno logy
Lo t sizessmall lot s izes may trans fer
costs to supp l iers
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Inventory
Invento ry is at the m inimum level
necessary to keep operat ions running
JIT Inventory TacticsUse a pu l l sys tem to move inventory
Reduce lot s izes
Develop jus t-in-t ime delivery sys tems with suppl iers
Del iver direct ly to point o f usePerform to schedule
Reduce setup t ime
Use group techno logyTable 16.2
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Reduce Variab i l i ty
Inventory level
Processdownt ime
Scrap
Setupt ime
Late deliveries
Qual i typroblems
Figure 16.3
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J IT Schedu l ing
Schedules must be commun icated
inside and ou tside the organizat ion
Level schedu les Process frequent smal l batches
Freezing th e schedu le helps
stabi l i ty
Kanban
Signals used in a pul l system
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Table 16.3
Better schedul ing improves performance
JIT Schedu l ing Tactics
Commun icate schedules to supp l iers
Make level schedules
Freeze part o f the schedule
Perform to schedule
Seek one-piece-make and one-piece move
El iminate waste
Produce in smal l lots
Use kanbans
Make each operat ion p roduce a perfect part
J IT Schedu l ing
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Kanban
Kanban is the Japanese word for card
The card is an autho r izat ion for the next
container of mater ial to be produced
A sequence of kanbans
pul ls m ater ial through
the process
Many di f ferent sorts ofs ignals are used, bu t
the sys tem is st i l l called
a kanban
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Kanban
1. User removes a
standard sized
container
2. Signal is seen by
the produc ing
department as
author izat ion to
replenish
Part numbers
mark locat ion
Signal markeron boxes
Figure 16.8
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Kanban
Figure 16.9
Work
cel l
RawMaterialSuppl ier
Kanban
PurchasedParts
Suppl ier
Sub-assembly
Ship
Kanban
Kanban
Kanban
Kanban
Finishedgoods
Customerorder
Finalassembly
Kanban
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More Kanban
When the producer and user are no t in
visual contact , a card can be used
When the producer and user are in visual
con tact , a light o r f lag o r emp ty spot onthe f loor may be adequate
Since several
components may
be required,several d if feren t
kanban techn iques
may be employed
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More Kanban
Usual ly each card contro ls a speci f ic
quant i ty or parts
Mult ip le card sys tems may be used i f
there are several components or
di f ferent lot s izes
In an MRP system , the schedu le can
be though t of as a bu i ld author izationand the kanban a type of pu l l system
that ini t iates actual produc t ion
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More Kanban
Kanban cards p rov ide a di rect contro l
and l im i t on the amount of work- in-
pro cess between cel ls
If there is an immediate sto rage area, a
two-card system can be used wi th one
card circu lat ing between the user and
sto rage area and the other between the
storage area and the producer
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Advantages of Kanban
Al low on ly l im i ted amount o f faul ty or
delayed material
Problems are immediately evident Puts downward pressure on bad
aspects of inventory
Standardized containers reduce
weigh t , disposal costs, wasted space,
and labo r
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Toyota Produc t ion Sys tem
Cont inuous improvement
Bu i ld an o rganizat ional cu lture and value
sys tem that stresses improvement of all
processes
Part of everyones job
Respect for people
People are treated as
know ledge wo rkers Engage mental and
phys ical capabi l i t ies
Empower employees
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Toyota Produc t ion Sys tem
Standard work p ract ice
Work shal l be completely speci f ied as to
con tent, sequence, t iming , and outc ome
Internal and external cus tom er-supp l iercon nect ion are direct
Product and serv ice flows must be simple
and direct
Any improv ement must be made inacco rdance with the scient i f ic method at the
lowest poss ib le level of the organizat ion
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Lean Operat ions
Differen t from JIT in that i t is
externally focu sed on the customer
Star ts w i th understand ing what thecus tomer wants
Optim ize the ent i re pro cess from
the customers perspective
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Bu i ld ing a Lean Organizat ion
Trans i t ioning to a lean system can
be d i ff icul t
Lean sys tems tend to have thefo l low ing at t r ibu tes
Use JIT techn iques
Bu i ld s ystems that help emp loyeesproduce perfect parts
Reduce space requ irements
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Bu i ld ing a Lean Organizat ion
Develop partnerships w ith
suppl iers
Educate supp l iers
Elim inate al l bu t value-added
act iv i t ies
Develop employees
Make jobs chal lenging
Bu i ld wo rker f lex ibi l i ty