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SUPPLY CHAIN
MANAGEMENT
Manufacturing systems
Toyota Production System (TPS),
Just-in-Time (JIT), and Lean
Manufacturing
House of Toyota
Jidoka =
Autonomation
Lean Manufacturing
Doing more with less
Less of:
What is JIT?
Just-in-Time Systems
Reducing Variance, Waste and Lead Time in
the Supply Chain
Introductory Quotation
Waste (muda in Japanese) 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
Founder, Toyota
1995 Corel Corp.
Transportation waste
Process Waste
Inventory Waste
Waste of motion
Waste from product defects
Waiting time
Overproduction
Objective of JIT
JIT Principles
Layout (distance)
Long setup time
Incapable processes
Poor maintenance
Poor work methods
Lack of training
1.
2.
3.
Inconsistent
performance
measures
Ineffective production
planning
Lack of workplace
organization
Poor supply
quality/reliability
JIT Tactics
Reducing Variance
Eliminating Waste
Pull strategy
U- Shaped Lauout
Perfect Quality
Visual Control
Fixed kanban size
Doable stable
schedules with
adequate visibility
Takt Time
Multi task workers
Kaizen
Workers empowerment
Tools at the point of need
Product redesign
Group Technology
Total Productive
Maintenance
Low set-up time, SMED
3Gs
5S
Continuous Flow
Production Process
(stream of water)
Suppliers
Customers
Inventory (stagnant
ponds)
Suppliers
Material
(water in
stream)
Work
Station 1
WS 3
Material
Information (via Kanban/Card)
Customers
Visual Control
WS 2
Visual Management
Andon Lamp
Kanban
Pronounced
Pulls
Triangular Kanban
Part #
Kanban
Part Description
Date Triggered
Location
Lot Size
Tool #
Machine #
Kanban
The function of Kanban
The function of Inventory Reorder Point
(ROP)
Kanban System
Single card
Move only containers
with C
(Conveyance)kanban)
e.g.: Kawasaki
Dual card
Move only container
with C- kanban
Produce only when
authorized by P
(Production)- kanban
e.g.: Toyota
Transparency 17.5
Quiz
A production facility wants to determine the
number of kanbans it needs for one of its parts.
This parts daily demand is 200; it has a
production lead time of day; its safety stock is
day and the container size is 10. How many
kanbans are needed?
N = number of containers
D = demand rate at the withdraw station
T = lead time from supply station
C = container size
S = safety stock
Inventory
Traditional: inventory exists in case
problems arise
JIT objective: Eliminate inventory
JIT requires
A. 15
B. 10
C. 5
D. 50
Small
lot sizes
setup time
Containers for fixed number of parts
Low
Time
Results
Large-Lot Approach
A
Time
To Lower Inventory,
Reduce Lot Sizes
Which Increases
Inventory Costs
Cost
Inventory Level
Lot Size 200
Average inventory = 40
Average inventory = 100
Lot Size 80
Setup Cost
Smaller Optimal
Lot Size Lot Size
Time
Balanced Production
Cost
Setup Cost
New optimal Original optimal
lot size
lot size
Lot Size
TAKT Time
TAKT
the beat
(Net Available Operating Time) /
Customer Requirements
time periods must be consistent
Lot Size
Three elements
TAKT time
Work sequence
Standard WIP
Objective
Build at rate that the customer wants work
Balance the system to maximize
efficiency at this rate
Kaizen
Change for better = continuous
improvement
Kaizen event: A group of Kaizen activity,
commonly lasting five days, in which a
team identifies and implements a
significant improvement in a process, e.g.,
creating a manufacturing cell.
Manufacturing Cell
Supplier Partnerships
Reliance on suppliers for
problem solving expertise
quality at the source
timely communication
participants in cost reduction programs
Increased reliance on supplier certification
JIT Tactics
Reducing Variance
Eliminating Waste
Pull strategy
U- Shaped Lauout
Perfect Quality
Visual Control
Fixed kanban size
Doable stable
schedules with
adequate visibility
Takt Time
Multi task workers
Kaizen
Workers empowerment
Tools at the point of need
Product redesign
Group Technology
Total Productive
Maintenance
Low set-up time, SMED
3Gs
5S
Barriers to Successful
Implementation of JIT
Cultural resistance to change
Lack of resources
Frequently top management lack
understanding or commitment
Lack of or difficulty establishing
performance measures
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JIT Highlights
JIT is a philosophy that was developed by the
Toyota Motor Company in the mid-1970s. It
has since become the standard of operation
for many industries. It focuses on simplicity,
eliminating waste, taking a broad view of
operations, visibility, and flexibility. Three
key elements of this philosophy are JIT
manufacturing, total quality management,
and respect for people.
JIT views waste as anything that does not
add value.
SUMMARY
JIT Highlights
JIT Highlights
JIT Highlights
JIT manufacturing is a coordinated
production system that enables the right
quantities or parts to arrive when they are
needed precisely where they are needed.
Key elements of JIT manufacturing are the
pull system and kanban production, small lot
sizes and quick setups, uniform plant
loading, flexible resources, and streamlined
layout.
JIT Highlights
JIT considers people to be the
organizations most important resource.
JIT is equally applicable in service
organizations, particularly with the push
toward time-based competition and the need
to cut costs.
JIT success is dependent on interfunctional
coordination and effort.
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The end
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