copyright © 2000-2004 six sigma academy international llc all rights reserved introduction to just...
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Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved
Introduction To Just In Time (JIT)
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Introduction To Just In Time Pg 2
The Breakthrough Strategy Process Check
1. Select Output Characteristic
2. Define Performance Standards
3. Validate Measurement System
4. Establish Baseline Process Capability
5. Define Performance Objectives
6. Identify Variation Sources
7. Screen Potential Causes
8. Discover Variable Relationships
9. Establish Operating Tolerances – Implement Improvements
10. Validate Measurement System
11. Determine Final Process Capability
12. Implement Process Controls
• Just In Time (JIT) concepts help us implement our process improvements
• JIT applies in other steps as well, especially in Steps 6 and 8
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Module Objectives
By the end of this module, the participant will be able to:
• Define what is a Just In Time System (JIT)
• Discuss the benefits of JIT
• Explain the importance of pacing operations to “Takt”
• Describe the concept of “Flow”
• Define “Pull” production
1 2 3 4 5 6 7 8 9 10 11 12D M A CI
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What is a JIT System?
It’s a system which produces:
• What the customer wants
• In the quantity the customer wants
• When the customer wants it
While using the minimum:
• Raw materials
• Equipment
• Labor
• Space
Lean Enterprise Model
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1. Pace to “Takt” time
2. Create “Flow” processes
3. Incorporate “Pull” system
JIT Principles
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MATERIAL MANAGEMENT
TOTAL PRODUCTIVE
MAINTENANCE
PRODUCT AND PROCESS DESIGN
PULL PROCESS
PLANT LAYOUT
SUPPLIER MANAGEMENT
COMPLETION WITHIN TAKT
TIME
MULTI-FUNCTION ORGANIZATION
STANDARD PROCESSES
QUICK PROCESS CHANGEOVER
PROCESS CAPABILITY
JIT Relies On Many Factors
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JIT Benefits
• A system intolerant of production abnormalities
• Reduced documentation and processing steps
• Reduces Lead Time
• Improves On-Time-Delivery
• Operation Flexibility
• “Pull” vs. “Push” Processes
• Stop the Line Authority: Fix The Problems
• Reduces Inventory
• 5S+1 (Visual Management)
• Layout Efficiency
Supports the focus on quality, cost, and delivery.
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Inventory is like a river; when water level is
lowered, boulders have
to be dealt with.
Scrap
Long set ups
Machine downtime
Lack of teamwork
Machine downtime
Imbalanced lines
Quality problems
not capable
Processes
Maintenance issues
Productivity Problems
Suppliers’ issues
Inventory Level
Inventory Hides Problems
Reducing inventory levels brings problems to the surface and forces their resolution.
Adding Value And Eliminating Waste
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Introduction To Just In Time Pg 9
Takt Time
• “Takt” – German; refers to the tempo set by the conductor of an orchestra with his baton
• Used in JIT to set production rate equal to the customer demand rate
• Since Takt time is demand driven, in reality, the customer determines the Takt Time
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Takt Time
The rate of production required to meet customer demand.
Takt Time =Available Time in a day
Customer Demand per day
The time is usually expressed in seconds per piece, by using seconds in our time we can measure even the smallest improvement.
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Introduction To Just In Time Pg 11
Takt Time vs. Cycle Time
0
10
20
30
40
50
60
A B C D
Cycle Time
T/T
OPERATORS
TIME
Do not confuse Takt Time with Cycle Time!
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Introduction To Just In Time Pg 12
Producing To Takt Benefits
• Aligns true customer demand to the process
• Reduces excess inventory
• Eliminates missed deliveries
• Increased productivity by matching operator Cycle Times to Takt Time
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Introduction To Just In Time Pg 13
Concept Of Flow
Flow in a Transactional Environment
• In order to eliminate and reduce NVA (Non-Value-Added) activities, the flow of information should be smooth and un-interrupted. A stop-start flow implies waiting, reviews, excessive hand-offs, and over processing
• Once information has started on its process route, it should complete it in one single flow
• The analogy for information flow is that of water in a river – The best flow is through clear, wide, well-defined channels that go directly to the required destination
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The Journey…
Batch
Fake Flow
1pc. Flow
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Batch Processing Example
Product requires three processes that take one minute each.
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Batch Processing Example
Product requires three processes that take one minute each.
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Batch Processing Example
Product requires three processes that take one minute each.
• Complete processing of first batch of five takes 15 minutes• First good part out takes 11 minutes (plus transport time)• There are at least 11 parts in-process
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Continuous Flow Processing Example
• First part out in three minutes
• Five completed in seven minutes
• Only two sub-assemblies in process at a time
Product requires three processes that take one minute each.
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Introduction To Just In Time Pg 19
A. Quality:
Work is passed directly to next Process with
no defects.
B. Productivity:
Minimize wasted movement, warehouses,
and double handling.
C. Productivity:
Problems are identified and solved real time.
F. Cost:
Reduced Inventory Levels
Benefits Of Creating Flow
D. Lead Time:Shortest supply chain, highest
flexibility to satisfy customer
demand.
E. Team Member Morale:
Value of work is more visible, recognized.
Source: Toyota
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Flow Production Benefits
• Eliminates excess WIP (Work In Process)
• Eliminates defective batches
• Reduces lead times
• Quality control by minimizing transportation, handling damage, and excess motion
• Increases production flexibility
• Processes located in process order
• Small and inexpensive equipment (no monuments)
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Introduction To Just In Time Pg 21
Pull Systems
Traditional System
When process A completes it’s work, it hands the information off to process B, where it is stored until needed.
Definition:
In a pull system, replenishment is based on what is consumed by the customer. The customer pulls what they need from the producer. The producer must then pull from their supplier to replace what was consumed.
Pull System
Process B is responsible for getting information and supplies from process A as they are needed. There is no intermediate storage.
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Introduction To Just In Time Pg 22
Customers AssemblySupermarket Production
Internal Suppliers
External Suppliers
Kanban Loop
Kanban Loop
Kanban Loop
Kanban Loop
Kanban LoopSupermarket
Finished goods
Worker and EquipmentCapacity Planning
12 Week Rolling Forecast
Estimate of Future Requirements
Forecast
The Basic Laws Of JIT ProductionPull Scheduling
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Introduction To Just In Time Pg 23
Pull Transactional Example
•In this value stream C is the slowest process, followed by B, then A•Should A keep pushing work to B, and B keep pushing to C? Does A pushing work to B increase the amount of work B can produce?•What will C have to do to meet demand? •What’s the root cause of work piling up?
Push Push
Process AInOut
Process CInOut
Process BInOut
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•To create the pull discipline-Define Takt Time, what’s the demand, what’s the pace
• Even once balanced we may have a capacity constraint-Create flow, line of sight, visual controls-Standard work for pull discipline
•How does it work?-Customer pulls from C Outbox-C pulls from B Outbox-B refills Outbox-B pulls from A Outbox-A refills A Outbox-A pulls from A Inbox
•What do we gain?-Predictable Flow-Predictable WIP-Predictable Lead Time-Visual controls-Process intolerant of variation
Process BProcess C
Pull Transactional Solution
Out
Out
In
Out Pull
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Pull Manufacturing Example
•In this value stream operation 3 is the slowest•Should 1 keep pushing work to 2, and 2 keep pushing to 3? Does 2 pushing work to 3 increase the amount of work 3 can produce?•What will 3 have to do to meet demand? •What’s the root cause of work piling up?•What about Takt, are we meeting it? Are we beating it?
1 2 3 4
Push Push Push
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•To create the pull discipline – Same as Transactional example-Define Takt Time-Create flow, line of sight, balanced work, visual controls
• Layout is even more critical in manufacturing world-Standard work for pull discipline
•How does it work?-Customer pulls operation 4 Finish Goods (FG) -4 processes and refills 4 (FG)-4 pulls from 3 completed-3 processes and refills 3 completed-3 pulls from 2 completed-2 processes and refills 2 completed-And so on through operation 1
•What do we gain-Predictable Flow-Predictable WIP-Predictable Lead Time-Visual controls-Process intolerant of variation
Pull Manufacturing Solution
1
2 3
4
FG
Pull
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Pull Production Benefits
• Better work balance
• Constant flow
• Have control to make what we need
• Provides a method to keep score
• Can change quickly to meet the customers’ demands
• Visual WIP control
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Introduction To Just In Time Pg 28
Additional JIT Benefits
• Create environment for Standard Operations
• Allows for multi-process-handling workers
• Makes material management more visual
• Creates capacity and the opportunity to redeploy workers for business growth
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Introduction To Just In Time Pg 29
Critical Success Factors For JIT
1. Management leadership
2. Management-Labor cooperation
3. Multi-functional/multi-skilled employees
4. Focus on flow of production/process
5. Quick Changeovers
6. Quality at the source
7. Team Approach
8. Operator Maintenance
9. Visual Controls
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Key Learning Points
•
•
•
•
•
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Objectives Review
The participant should now be able to:
• Define what is a Just In Time System (JIT)
• Discuss the benefits of JIT
• Explain the importance of pacing operations to “Takt”
• Describe the concept of “Flow”
• Define “Pull” production
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Introduction To Just In Time Pg 32
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