meljun cortes - operations management 14th lecture (jit & lean production)
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8/9/2019 MELJUN CORTES - Operations Management 14th Lecture (JIT & LEAN PRODUCTION)
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
Operations Management
MELJUNELJUN
MELJUN CORTES,BSCS,ACS
Department of ICT
Faculty of Information
Technology
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
H
APTER
14
JIT andLean Operations
MELJUNELJUN
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
JIT/Lean ProductionJIT/Lean Production
Just-in-time (JIT):A highly coordinatedprocessing 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
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
Goal of JITGoal of JIT
The ultimate goal of JIT is a balancedsystem.
Achieves a smooth, rapid flow of materialsthrough the system
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACSBlocksBlocks
Figure 14.1
Product
Design
Process
Design
Personnel
Elements
Manufactur-
ing Planning
Eliminate disruptions
Make the system flexible Eliminate waste
A
balanced
rapid flow
Ultimate
Goal
SupportingGoals
BuildingBlocks
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
Supporting GoalsSupporting Goals
Eliminate disruptions
Make system flexible
Eliminate waste, especially excessinventory
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Sources of WasteSources of Waste
Overproduction Waiting time
Unnecessary transportation
Processing waste
Inefficient work methods
Product defects
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Big JIT broad focus Vendor relations
Human relations
Technology management
Materials and inventory management
Little JIT narrow focus Scheduling materials
Scheduling services of production
Big vs. Little JITBig vs. Little JIT
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
JIT Building BlocksJIT Building Blocks
Product design Process design
Personnel/organizational
elements Manufacturingplanning and control
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Product DesignProduct Design
Standard parts Modular design
Highly capable production systems Concurrent
engineering
CO S
SCS CS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Process DesignProcess Design
Small lot sizes Setup time reduction
Manufacturing cells
Limited work in process
Quality improvement
Production flexibility Little inventory storage
MELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Benefits of Small Lot SizesBenefits of Small Lot Sizes
Reduces inventory
Less storage space
Less rework
Problems are more apparent
Increases product flexibility
Easier to balance operations
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Production FlexibilityProduction Flexibility
Reduce downtime by reducingchangeover time
Use preventive maintenance to reduce
breakdowns Cross-train workers to help clear
bottlenecks
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Production Flexibility (contd)Production Flexibility (contd)
Use many small units of capacity Use off-line buffers
Reserve capacity for important customers
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Quality ImprovementQuality Improvement
Autonomation Automatic detection of defects during
production
Jidoka
Japanese term for autonomation
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Personnel/Organizational ElementsPersonnel/Organizational Elements
Workers as assets Cross-trained workers
Continuous
improvement
Cost accounting
Leadership/projectmanagement
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Manufacturing Planning and ControlManufacturing Planning and Control
Level loading Pull systems
Visual systems
Close vendor relationships
Reduced transaction
processing Preventive maintenance
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Pull/Push SystemsPull/Push Systems
Pull system: System for moving work wherea workstation pulls output from the preceding
station as needed. (e.g. Kanban)
Push system: System for moving work whereoutput is pushed to the next station as it is
completed
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Kanban Production Control SystemKanban Production Control System
Kanban: Card or other device thatcommunicates demand for work or materialsfrom the preceding station
Kanban is the Japanese word meaningsignal or visible record
Paperless production control system
Authority to pull, or produce comesfrom a downstream process.
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Kanban FormulaKanban Formula
N =DT(1+X)
C
N = Total number of containers
D = Planned usage rate of using work center
T = Average waiting time for replenishment of partplus average production time for a
container of partsX = Policy variable set by management
- possible inefficiency in the system
C = Capacity of a standard container
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Traditional Supplier NetworkTraditional Supplier Network
BuyerBuyer
SupplierSupplierSupplierSupplier SupplierSupplier SupplierSupplier
SupplierSupplier
SupplierSupplierSupplierSupplier
Figure 14.4a
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Tiered Supplier NetworkTiered Supplier NetworkFigure 14.4b
SupplierSupplier
SupplierSupplier
SupplierSupplier
SupplierSupplierSupplierSupplier SupplierSupplier
BuyerBuyer
SupplierSupplierFirst Tier SupplierFirst Tier Supplier
Second Tier SupplierSecond Tier Supplier
Third Tier SupplierThird Tier Supplier
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Comparison of JIT and TraditionalComparison of JIT and Traditional
Factor Traditional JIT
Inventory Much to offset forecasterrors, late deliveries
Minimal necessary to operate
DeliveriesFew, large Many, small
Lot sizes Large Small
Setup; runs Few, long runs Many, short runs
Vendors Long-term relationshipsare unusual Partners
Workers Necessary to do the work Assets
Table 14.3
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Transitioning to a JIT SystemTransitioning to a JIT System
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
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Obstacles to ConversionObstacles to Conversion
Management may not be committed Workers/management may not be
cooperative
Suppliers mayresist
Why?
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES
MBA MPA BSCS ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
JIT in ServicesJIT in Services
The basic goal of the demand flow technology in theservice organization is to provide optimum responseto the customer with the highest quality service andlowest possible cost.
Eliminate disruptions Make system flexible
Reduce setup and lead times
Eliminate waste
Minimize WIP Simplify the process
MELJUN CORTES MBA MPA BSCS ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
JIT II: a supplier representative works rightin the companys plant, making sure there is
an appropriate supply on hand.
JIT IIJIT II
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Benefits of JIT SystemsBenefits of JIT Systems
Reduced inventory levels High quality
Flexibility
Reduced lead times
Increased productivity
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS
Benefits of JIT Systems (contd)Benefits of JIT Systems (contd)
Increased equipment utilization Reduced scrap and rework
Reduced space requirements
Pressure for good vendor relationships
Reduced need for indirect labor
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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Smooth flow of work (the ultimate goal) Elimination of waste Continuous improvement
Eliminating anything that does not addvalue
Simple systems that are easy to manage
Use of product layouts to minimize movingmaterials and parts Quality at the source
Elements of JITElements of JITTable 14.4
MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,
MBA,MPA,BSCS,ACS
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MELJUN CORTES,MBA,MPA,BSCS,ACS, , , ,
Poka-yoke fail safe tools and methods Preventative maintenance
Good housekeeping
Set-up time reduction
Cross-trained employees
A pull system
Elements of JIT (contd)Elements of JIT (contd)Table 14.4
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