JustinTime and Lean Production Systems

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Just-in-Time andLean Production Systems

• Professor Dave Blain
• Management Department
• UNLV

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Green Gear Cycling

• Designs and manufacturers high performance travel
  bicycles (bike-in-a-suitcase!)
• Strategy is mass customization with low
  inventory, work cells, and elimination of machine
  setups
• Major focus on JIT SCM
• Two lines with seven work cells
• One day throughput time
• Focus on quality

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What is Just-in-Time?

• Management philosophy of continuous and forced
  problem solving
• Supplies and components are pulled through
  system to arrive where they are needed when they
  are needed.
• JIT
• Attacks waste no-value added activities
• Exposes problems and bottlenecks caused by
  variability
• Achieves streamlined production

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Waste

• Waste is anything other than the minimum amount
  of equipment, materials, parts, space, and
  workers time, which are absolutely essential to
  add value to the product.
• Shoichiro Toyoda President, Toyota

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Types of Waste

• Overproduction
• Waiting
• Transportation
• Inefficient processing
• Inventory
• Unnecessary motion
• Product defects

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Push versus Pull

• Push system material is pushed into downstream
  workstations regardless of whether resources are
  available
• Pull system material is pulled to a workstation
  just as it is needed

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JIT Supplier Management

• Few suppliers
• Nearby frequent deliveries
• Repeat business long term relationship
• No incoming inspection
• Educate suppliers
• Improved quality

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Inventory Hides Problems Just as Water in a Lake
Hides Rocks
Inventory level
Inventory level
Scrap
Process downtime
Scrap
Process downtime
Setup time
Setup time
Quality problems
Quality problems
Late deliveries
Late deliveries
(Principles of Operations Management, Heizer
Render, 5th Edition)
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JIT Scheduling Tactics

• Communicate the schedule to suppliers
• Make level schedules
• Freeze part of the schedule
• Perform to schedule
• Eliminate waste
• Produce in small lots
• Use kanbans
• Make each operation produce a perfect part

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Kanban

• Japanese word for card
• Pronounced kahn-bahn (not can-ban)
• Authorizes production from downstream operations
• Pulls material through plant
• May be a card, flag, verbal signal etc.
• Used often with fixed-size containers
• Add or remove containers to change production rate

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Quality

• JIT exposes quality problems by reducing
  inventory
• JIT limits number defects with small lots
• JIT requires TQM
• Statistical process control
• Worker involvement
• Inspect own work
• Quality circles
• Immediate feedback

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Employee Empowerment

• Getting employees involved in product process
  improvements
• Employees know job best!
• JIT requires
• Empowerment
• Cross-training
• Training support
• Few job classifications

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Attaining Lean Operations

• Focus on eliminating waste (muda)
• Build systems that help employees produce a
  perfect part every time
• Reduce space requirements and improve layout
• Develop close relationships with suppliers
• Educate suppliers
• Selective use of technology
• Develop workforce empowerment, teamwork, reduce
  number of job classification, build worker
  flexibility
• Continuous improvement
• Pursue perfection - Nirvana!

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Summary
Ch 16JIT and Lean Production

• Key Points
• Just-in-Time (JIT) philosophy
• Pull Push Systems
• JIT supplier management
• How JIT affects quality and employees
• Types of waste
• Kanban
• Lean operations

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Summary
Ch 16JIT and Lean Production

• JIT and lean production are philosophies of
  continious improvement. Lean production begins
  with a focus on customer desires, but both
  concepts focus on driving all waste out of the
  production process. Because watste is found in
  anything that does not add value. JIT and lean
  organizations are adding value more efficiently
  than other firms. Waste occurs when defects are
  produced within the production process or by
  outside suppliers.

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Summary
Ch 16JIT and Lean Production

• JIT and lean production
• attack wasted space because of a less than
  optimal layout
• they attack time because of poor scheduling
• They attack waste in idle inventory
• They attack waste from poorly maintained
  machinery and equipment

The expectation is that committed, empowered
employees work with committed management and
suppliers to build systems that respond to
customers with even lower cost and higher quality
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Summary
Ch 16JIT and Lean Production
Just In Time
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Homework
Ch 16JIT and Lean Production

• Question 16.2 A lean producer is a company
  that adopts a philosophy of minimizing waste,
  striving for perfection through continuous
  learning, creativity, and teamwork.
• Question 16.6 Three ways JIT and quality are
  related.
• JIT cuts the cost fo obtaining good quality
• JIT improves quality
• Better quality means fewer buffers and therefore
  a better, easier-to-use JIT system

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Homework
Ch 16JIT and Lean Production

• Question 16.7 How does JIT contribute to
  competitive advantage?
• JIT contributes to competitive advantage
  through
• Suppliers
• Layout
• Inventory
• Scheduling
• Preventative maintenance
• Quality production
• Employee Empowerment
• Commitment of management and employees

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Summary
Ch 16JIT and Lean Production
Hmmm, is this story starting to have a theme?