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Copyright © 2000-2004 Six Sigma Academy International LLC All Rights Reserved Introduction To Just In Time (JIT)

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Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time (JIT)

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 3

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 4

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

LJoslin
Should the title be changed to reflect something in the breakthrough strategy rather than "lean" specifically?Can manufacturing be de-emphasized here? Reword?

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 5

1. Pace to “Takt” time

2. Create “Flow” processes

3. Incorporate “Pull” system

JIT Principles

LJoslin
Eliminate the tombstone - covered in a ealier slide.I can see that takt is defined in slides ahead. Has Kanban been defined/explained in a previous module? If not, introduce here?

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 6

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

LJoslin
Need to explain the acronyms - even if done in a previous module, they are to be done the first time they appear in a module. SMED, DFMAAre all these applicable in a non-manufacturing environment? If not, modify?

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 7

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.

LJoslin
Make 5S 5S+1 to line up with rest of the curriculum. Try to transactionalize language.

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 8

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

LJoslin
Font inside rocks...

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 10

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.

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

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!

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 14

The Journey…

Batch

Fake Flow

1pc. Flow

LJoslin
Is this our slide? Westinghouse's? Attribution? Possible copyright issues?

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 15

Batch Processing Example

Product requires three processes that take one minute each.

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 16

Batch Processing Example

Product requires three processes that take one minute each.

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 17

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

LJoslin
Tie a link here to the credit card simulation done in week one.

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 18

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.

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 20

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)

LJoslin
Is this series of slides an expansion of slide 7? Consider re-ordering...

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

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.

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

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

LJoslin
Again - has Kanban been defined in this module or one close in time to it?

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 24

•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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 25

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 26

•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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Introduction To Just In Time Pg 27

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 30

Key Learning Points

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 31

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

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 32

Trademarks And Service Marks

Trademarks of Six Sigma Academy:Breakthrough DesignBreakthrough Software DesignBreakthrough DiagnosisBreakthrough ExecutionBreakthrough Lean® Breakthrough Sigma LeanBreakthrough Six SigmaBreakthrough Strategy® Breakthrough Value Services®

FASTARTINTELLEQMETREQ

WE WEAVE EXCELLENCE INTO THE FABRIC OF BUSINESS

Six Sigma is a federally registered trademark of Motorola, Inc.SigmaFlow is a trademark of Compass Partners, Inc.MINITAB is a trademark of Minitab, Inc.VarTran is a trademark of Taylor Enterprises

Copyright © 2000-2004Six Sigma Academy International LLCAll Rights Reserved

Introduction To Just In Time Pg 33

Six Sigma Academy

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