Week 13

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Just in Time

JIT/Lean Production
A highly coordinated processing system
in which goods move through the
system, and services are performed,
just as they are needed

Operations IB&M-UET
Goal of Just In Time

Reduce Setup
Minimize Inventories
and Lead Times

Operations IB&M-UET
Basic Elements of
Lean Production
Flexible Resources
ncrease FlexibilityCellular Layouts

Pull System
Kanban Eliminate Waste
Smooth the Flow Small Lots
Quick Setups
Uniform Production

Quality at the Source

ntinuously Improve Total Productive


Maintenance
Supplier Network
Operations IB&M-UET
Sources of Waste

Operations IB&M-UET
JIT Building Blocks

 Product design

 Process design

 Personnel elements

 Manufacturing
planning

and control
Operations IB&M-UET
Pull/Push Systems
 Pull system
System for moving work where a
workstation pulls output from the
preceding station as needed. (e.g.
Kanban)
 Push system
System for moving work where
output is pushed to the next
station as it is completed
Operations IB&M-UET
Kanban Production
Control System
Kanban
Card or other device that
communicates demand for work or
materials from the preceding
station

Kanban is the Japanese word


meaning “signal” or “visible
record”
Operations IB&M-UET
Kanban Example

Signal is for
Production
Department to
produce

Signal Marker on Boxes

Part Number Mark Location


Operations IB&M-UET
Kanban Example

Operations IB&M-UET
Kanban Formula

Demand During Lead Time + Safety Stock


N =
Container Size

dL + S
N=
C

Operations IB&M-UET
Traditional Supplier
Network
Buyer
Buyer

Supplier
Supplier Supplier
Supplier

Supplier
Supplier

Supplier
Supplier Supplier
Supplier Supplier Supplier
Supplier Supplier

Operations IB&M-UET
Tiered Supplier
Network
Buyer
Buyer

First Tier Supplier Supplier


Supplier

Second Tier SupplierSupplier


Supplier Supplier
Supplier

Supplier
Supplier Supplier
Third Tier Supplier Supplier Supplier
Supplier Supplier
Supplier

Operations IB&M-UET
Comparison of JIT and
Traditional
Factor Traditional JIT
Invento Much to offset Minimal necessary to
forecast errors operate
ry
Deliveri Few, large Many, small
es
Lot Large Small
sizes
Setup; Few, long runs Many, short runs
runs
Vendors Long-term Partners
Operations relationships are IB&M-UET
JIT in Services

To provide optimum response to the


customer with the highest quality
service and lowest possible cost.

Operations IB&M-UET
Benefits of JIT
Systems
Reduced inventory levels

High quality

Reduced lead times

Increased productivity

Increased equipment utilization

Reduced scrap and rework

Reduced space requirements


Operations IB&M-UET
THANK YOU

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