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Pull Manufacturing and Just In Time

Pull Manufacturing and Just In Time

Pull Manufacturing and Just In Time
Pull Manufacturing and Just In Time
Pull Manufacturing and Just In Time
Pull Manufacturing and Just In Time
Pull Manufacturing and Just In Time
Pull Manufacturing and Just In Time
Pull Manufacturing and Just In Time
Pull Manufacturing and Just In Time

Lean Manufacturing Series

Pull Manufacturing and Just In Time Lean Manufacturing Series Gemba Academy provides over 750 online Lean

Gemba Academy provides over 750 online Lean and Six Sigma training videos to over 2,000 companies worldwide. For more information visit GembaAcademy.com

© 2013 Gemba Academy LLC. All rights reserved.

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Disclaimer and Approved Use

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This presentation is copyrighted by Gemba Academy LLC.

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Current contact information can be found at: GembaAcademy.com

Contents 1.   Introduction 2.   Background and History 3.   Components and Implementation 4.

Contents

1. Introduction 2. Background and History 3. Components and Implementation 4. Knowledge Check

Introduction •   Just In Time (JIT) is an inventory strategy implemented to improve the

Introduction

Just In Time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and cycle time. The process is driven by a series of signals, or Kanban, that tell production processes to make the next part. When implemented correctly, JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency.

Background and History •   First used by the Ford Motor Company as part of

Background and History

First used by the Ford Motor Company as part of "dock to factory floor" in which incoming materials are not even stored or warehoused before going into production. Subsequently adopted by Toyota as part of its Toyota Production System (TPS). Japanese corporations cannot afford large amounts of land to warehouse finished products and parts. Before the 1950s, this was thought to be a disadvantage because it reduced the economic lot size. Taiichi Ohno, examined accounting assumptions and realized that another method was possible. The factory could be made more flexible, reducing the overhead costs of retooling and reducing the economic lot size to the available warehouse space. Toyota engineers redesigned car models for commonality of tooling.

Background and History •   Toyota engineers then determined that the remaining critical bottleneck in

Background and History

Toyota engineers then determined that the remaining critical bottleneck in the retooling process was the time required to change the stamping dies used for body parts. Toyota implemented a strategy called Single Minute Exchange of Die (SMED), developed by Shigeo Shingo. Almost immediately, die change times fell to about half an hour. Procedural changes (such as moving the new die in place with the line in operation) and dedicated tool-racks reduced the die-change times to as little as 40 seconds. After SMED, economic lot sizes fell to as little as one vehicle in some Toyota plants. This made it possible to store as little as one part in each assembly station. When a part disappeared, that was used as a signal to produce or order a replacement.

Components and Implementation •   Pull vs. Push Scheduling •   The Problem of Inventory

Components and Implementation

Pull vs. Push Scheduling The Problem of Inventory Just In Time

Principles Benefits and Limitations

Implementing JIT

Kanban Pull Systems Quality One Piece Flow Continuous Flow Takt Time

JIT and Suppliers

Lean Manufacturing •   Lean manufacturing is really about minimizing the need for overhead •

Lean Manufacturing

Lean manufacturing is really about minimizing the need for overhead which is about concentrating precisely on only what is necessary which is about linking interdependent supply system decisions, and actions which needs to be visual, responsive and simple to manage

Push Vs. Pull Scheduling •   Push Scheduling ▫   traditional approach ▫   “move

Push Vs. Pull Scheduling

Push Scheduling

traditional approach “move the job on when finished” problems - creates excessive inventory

Pull scheduling

coordinated production

driven by demand (pulled through system) extensive use of visual triggers

(production/withdrawal kanbans)

Inventory: Root of All Evil •   If the meaning of production control is truly

Inventory: Root of All Evil

If the meaning of production control is truly understood, inventory control is unnecessary. -- Taiichi Ohno

Inventory Hides Problems Work in process inventory level (hides problems) Unreliable Capacity Scrap Vendors

Inventory Hides Problems

Inventory Hides Problems Work in process inventory level (hides problems) Unreliable Capacity Scrap Vendors
Work in process inventory level (hides problems) Unreliable Capacity Scrap Vendors Imbalances
Work in process inventory level
(hides problems)
Unreliable
Capacity
Scrap
Vendors
Imbalances
Lowering Inventory Reveals Problems •   Accommodate lower inventory levels by: ▫   Reducing variability

Lowering Inventory Reveals Problems

Accommodate lower inventory levels by:

Reducing variability Eliminating waste Streamlining production and material flows Accurate information

and material flows ▫   Accurate information Unreliable WIP Capacity Scrap Vendors Imbalances ©
Unreliable WIP Capacity Scrap Vendors Imbalances
Unreliable
WIP
Capacity
Scrap
Vendors
Imbalances
What is Just-in-Time? •   Management philosophy of continuous and forced problem solving (forced by

What is Just-in-Time?

Management philosophy of continuous and forced problem solving (forced by driving inventory out of the production system) Supplies and components are ‘pulled’ through system to arrive where they are needed when they are needed Goal: Achieve the minimal level of resources required to add the necessary value in the production system.

The Philosophy of JIT •   JIT means getting the right quantity of goods at

The Philosophy of JIT

JIT means getting the right quantity of goods at the right place and the right time Often termed Lean SystemsAll waste must be eliminated- non value items Broad view that entire organization must focus on serving customers JIT is built on simplicity- the simpler the better Focuses on improving every operation- Kaizen Install simple visible control systems Flexibility to produce different models/features

Elements of JIT Manufacturing •   JIT Manufacturing is a philosophy of value-added manufacturing •

Elements of JIT Manufacturing

JIT Manufacturing is a philosophy of value-added manufacturing Achieved by

Inventory reduction - exposes problems Kanbans & pull production systems Small lots & quick setups Uniform plant loading Flexible resources Efficient facility layouts

The Objective of JIT •   To eliminate waste •   by •   Producing

The Objective of JIT

To eliminate waste by Producing the needed item at the right time and the exact quantity

JIT Principles •   Produce only the products the customer wants •   Produce products

JIT Principles

Produce only the products the customer wants Produce products only at the rate that the customer wants them Produce with perfect quality Produce with minimum lead time Produce products with only those features the customer wants Produce with no waste of labor, material or equipment -- every movement must have a purpose so that there is zero idle inventory Produce with methods that allow for the development of people

JIT Principles •   Create flow production ▫   one piece flow ▫   machines

JIT Principles

Create flow production

one piece flow machines in order of processes small and inexpensive equipment U cell layout, counter clockwise multi-process handling workers easy moving/standing operations standard operations defined

Establish “TAKT” time

rate at which the customer buys a product

Build Pull Product

use of kanban system

JIT Tactics •   Single Minute Exchange of Dies (SMED) •   Statistical Process Control

JIT Tactics

Single Minute Exchange of Dies (SMED) Statistical Process Control Use of standard containers Doable stable schedules with adequate visibility TAKT-Time 5-S Program Kaizen Event Visual control Flexible workers Tools at the point of need Product redesign Group Technology Total Productive Maintenance

Benefits of JIT •   Smaller inventories •   Shorter lead times •   Improved

Benefits of JIT

Smaller inventories Shorter lead times Improved quality Reduced space requirements Lower production costs Increased productivity Greater flexibility

Benefits of JIT •   Unpleasant surprises eliminated •   Less computerization ▫   visual

Benefits of JIT

Unpleasant surprises eliminated Less computerization

visual control

Improved quality WIP reduced Better communications Less pressure on receiving docks and incoming inspection areas Lower costs Change in attitude

Defects are treasures

Expected Results of JIT •   General ▫   50-90% reduction in throughput times ▫

Expected Results of JIT

General

50-90% reduction in throughput times 50-90% reduction in WIP 60-80% reduction in scrap and rework 50-90% reduction in setup times 30-60% reduction in space requirements 10-1000X improvement in quality specifics

In three to seven years

5-10X improvement in overall quality 4-10X improvement in inventory turns improvements in return on assets

Limitations of JIT •   Preconditions to JIT ▫   trust must be present –

Limitations of JIT

Preconditions to JIT

trust must be present

– labor/management – suppliers/consumers

recognition of processes familiarity with problem solving quality at the source agreement over value and waste

Limitations of JIT •   Right Settings ▫   Applicable in growth to maturity phases

Limitations of JIT

Right Settings

Applicable in growth to maturity phases of Product Life Cycle Standard product

– Steinway and JIT

Standard/fixed pay-rate

– Problems with piece-rate scheme

Universal agreement that change needed

Just-in-Time Success Factors Flexible/ Empowered Employees Quality Suppliers JIT Flexible Layouts and Processes Small

Just-in-Time Success Factors

Flexible/ Empowered Employees
Flexible/
Empowered
Employees
Quality
Quality
Suppliers
Suppliers
JIT
JIT
Flexible Layouts and Processes
Flexible
Layouts and
Processes
Small Lot Production/ Short Setup
Small Lot
Production/
Short Setup
Total Productive Maintenance
Total Productive
Maintenance
Demand/Pull Scheduling
Demand/Pull
Scheduling
Quality Enables JIT •   Processes are easy to understand—visible •   Quality issues are

Quality Enables JIT

Processes are easy to understand—visible Quality issues are apparent immediately Scope of problems are limited because of lower inventory levels TQM management methods are very important Quality of execution typically determines how low inventories can be reduced!

JIT Production, AKA… •   ZIPS (Zero Inventory Production System) -- Omark industries •  

JIT Production, AKA…

ZIPS (Zero Inventory Production System) -- Omark industries MAN (Material As Needed) -- Harley Davidson (Also: “Quality Machine Through Jelly-Beans,” where jelly beans refers to running one-piece lots, or mixed models, in final motorcycle assembly) MIPS (Minimum Inventory Production System) -- Westinghouse Stockless Production -- Hewlett Packard, Greeley Div. Continuous Flow Manufacturing (CFM) -- IBM Kanban -- Many companies both in North America and Japan Toyota System -- Many companies in Japan Ohno System (after Taiichi Ohno, a Toyota vice president and master-mind of the system) -- Many companies in Japan Just-In-Time (JIT) Production -- Most popular term both in North America and Japan

JIT Logic - Formulas •   Formula 1: Little ’ s Law Average WIP =

JIT Logic - Formulas

Formula 1: Littles Law

Average

WIP

=

Throughput

Rate

X Average Production Lead Time

Formula 2: Average Production Lead Time

Average Production Lead Time

Average Measure of X (C 2 2 = Processing X System Utilization + C )
Average
Measure of
X (C
2
2
=
Processing
X
System
Utilization
+ C
)
S
A
Time
Measure of variance in the
processing times of jobs
Measure of variance of
interarrival times of
customer orders
Effects of JIT production (F) Heightened awareness of problems and problem causes Ideas for improving

Effects of JIT production

(F) Heightened awareness of problems and problem causes
(F)
Heightened
awareness of
problems and
problem causes

Ideas for

improving

JIT delivery

performance

problem causes Ideas for improving JIT delivery performance Ideas for cutting lot sizes Lot size reductions
problem causes Ideas for improving JIT delivery performance Ideas for cutting lot sizes Lot size reductions
problem causes Ideas for improving JIT delivery performance Ideas for cutting lot sizes Lot size reductions

Ideas for

cutting lot

sizes

Lot size reductions
Lot size
reductions
(H) Reduced buffer inventories and/or workers
(H)
Reduced buffer
inventories and/or
workers
reductions (H) Reduced buffer inventories and/or workers Ideas for controlling defects (E) Fast feedback on defects
reductions (H) Reduced buffer inventories and/or workers Ideas for controlling defects (E) Fast feedback on defects

Ideas for

controlling

defects

(E) Fast feedback on defects
(E)
Fast feedback
on defects
Ideas for controlling defects (E) Fast feedback on defects Deliberate withdrawal of buffer inventories / workers

Deliberate withdrawal of buffer inventories / workers

(G) Smoother output rates
(G)
Smoother
output rates

JIT

production

(B) Scrap/quality control
(B)
Scrap/quality
control
output rates JIT production (B) Scrap/quality control (I) Less indirect cost for: interest on idle inventory,
(I) Less indirect cost for: interest on idle inventory, space and equipment to handle inventory,
(I)
Less indirect cost for:
interest on idle inventory,
space and equipment to
handle inventory, inventory
accounting, physical
inventory control
(A) Less inventory in the system
(A)
Less
inventory
in the
system
inventory control (A) Less inventory in the system (C) Fewer rework labor hours (D) Less material
(C) Fewer rework labor hours
(C)
Fewer rework
labor hours
inventory in the system (C) Fewer rework labor hours (D) Less material waste Less material, labor,
(D) Less material waste
(D)
Less material
waste
(C) Fewer rework labor hours (D) Less material waste Less material, labor, and indirect inputs for

Less material, labor, and indirect inputs for the same of higher output = higher productivity Less inventory in the system = faster market response, better forecasting, and less administration.

Implementing JIT •   Implementation needs a designated “Champion” •   Make quality improvements- all

Implementing JIT

Implementation needs a designated “Champion” Make quality improvements- all processes O-P Reorganize workplace

Remove clutter & minimize storage

Reduce setup times Reduce lot sizes & lead times Implement layout changes

Cellular manufacturing & close proximity

Switch to pull production Extend methods to suppliers

JIT Implementation 1) Design Flow Process -Link operations -Balance workstation capacities -Re-layout for flow -Emphasize

JIT Implementation

1) Design Flow Process -Link operations -Balance workstation capacities -Re-layout for flow -Emphasize preventive maintenance -Reduce lot size -Reduce setup/changeover time

maintenance -Reduce lot size -Reduce setup/changeover time 7) Improve Product Design -Standard product configuration

7) Improve Product Design -Standard product configuration -Standardize and reduce number of parts -Process design with product design -Quality expectations

2) Total Quality Control -Worker responsibility -Measure: SQC -Enforce compliance -Fail-safe methods -Automatic inspection

Concurrently Solve Problems -Root Cause -Solve permanently -Team approach -Line and specialist responsibiity
Concurrently
Solve Problems
-Root Cause
-Solve permanently
-Team approach
-Line and specialist
responsibiity
-Continual education
Measure Performance
-Emphasize
improvement
-Track trends
Measure Performance -Emphasize improvement -Track trends 6) Reduce Inventory More -Look for other areas -Stores

6) Reduce Inventory More -Look for other areas -Stores -Transit -Carousels -Conveyors

3) Stabilize Schedule -Level schedule -Underutilize capacity -Establish freeze windows

schedule -Underutilize capacity -Establish freeze windows 5) Work with Vendors -Reduce lead times -Frequent

5) Work with Vendors -Reduce lead times -Frequent deliveries -Project usage requirements -Quality expectations

4) Kanban Pull -Demand pull -Backflush -Reduce lot sizes

4) Kanban Pull -Demand pull -Backflush -Reduce lot sizes © 2013 Gemba Academy LLC. All rights
JIT Scheduling Tactics •   Build products to stock or order •   Plan level

JIT Scheduling Tactics

Build products to stock or order Plan level schedules (Constant rate of production) Produce in small lots/mixed model production (dictated by set-up and thru put times) Demand initiates lower level production/supplier deliveries—Use of kanbans Suppliers plan to forecast/build to demand

Dealing with Variance •   Four major stances: ▫   Buffer against it ▫  

Dealing with Variance

Four major stances:

Buffer against it Ignore it Manage it Eliminate it

All forms of variance create cost

JIT & Variance •   Variance a fact of life •   Comes from many

JIT & Variance

Variance a fact of life Comes from many sources Internal

scheduling changes, scheduling practices, manufacturing planning & control systems, absenteeism, process variability

External

changes in forecasts, actual demand, customer requested changes, government, competition, vendors

Kanban •   Japanese word for card •   Authorizes production from downstream operations based

Kanban

Japanese word for card Authorizes production from downstream operations based on physical consumption May be a card, flag, verbal signal etc. Used often with fixed-size containers Kanban quantities are a function of lead-time and consumption rate of the item being replenished (min qty=(demand during lead-time + safety stock)/ container quantity)

Kanban Production Control Systems Production Kanban Withdrawal Kanban Machine Center A B Assembly Line Storage

Kanban Production Control Systems

Production

Kanban

Withdrawal

Kanban

Control Systems Production Kanban Withdrawal Kanban Machine Center A B Assembly Line Storage © 2013 Gemba

Machine Center

A
A

B

Assembly Line

Storage

Kanban Squares X X X X X X Flow of work Flow of information ©

Kanban Squares

X X X X X X Flow of work Flow of information
X
X
X
X
X
X
Flow of work
Flow of information
Kanban Squares X X X X X X Flow of work Flow of information © 2013
Kanban Squares X X X X X X Flow of work Flow of information © 2013
Kanban Card 46-281247p1 27 ” Al Rim Qty 23 Stock Loc: RIP 1 Line Loc:

Kanban Card

46-281247p1

27Al Rim

Qty

23

Stock Loc:

RIP 1

46-281247p1 27 ” Al Rim Qty 23 Stock Loc: RIP 1 Line Loc: Asm. 1

Line Loc:

Asm. 1

Unique Part #

23 Stock Loc: RIP 1 Line Loc: Asm. 1 Unique Part # Description Where to find

Description

Loc: RIP 1 Line Loc: Asm. 1 Unique Part # Description Where to find part when

Where to find part when bin is empty

Part # Description Where to find part when bin is empty Kanban Qty Where to return

Kanban Qty

Where to return filled Kanban

part when bin is empty Kanban Qty Where to return filled Kanban © 2013 Gemba Academy
Number of Kanbans Required N = DT + S C N = number of containers

Number of Kanbans Required

N =

DT + S

C

N

= number of containers

D

= demand rate at the withdraw station

T

= lead time from supply station

C

= container size

S = safety stock

Kanban Calculation Example •   An aspirin manufacturer has converted to JIT manufacturing using kanban

Kanban Calculation Example

An aspirin manufacturer has converted to JIT manufacturing using kanban containers. They wish to determine the number of containers at the bottle filling operation which fills at a rate of 200 per hour. Each container holds 25 bottles, it takes 30 minutes to receive more bottles, safety stock is 10% of demand during LT.

Solution :

D

T

C

S =

= 200 bottles per hour

=

30 minutes

.5 hour

=

= 25 bottles per container

0.10(deman d)(T)

=

0.10(200)(.5)

=

10 bottles

N =

DT

+

S

C

=

(200)(.5)

+

10

25

= 4.4 kanban containers

N

= 5 kanban containers (round up)

Quality at the Source •   For JIT & Kanban to work, quality must be

Quality at the Source

For JIT & Kanban to work, quality must be high

There can be no extra inventory to buffer against the production or use of defective units

Producing poor-quality items, and reworking or rejecting them is wasteful The workers must be responsible for inspection & production quality The philosophy is, “NEVER pass along defective item”

One Piece Flow •   A philosophy that rejects batch, lot or mass processing as

One Piece Flow

A philosophy that rejects batch, lot or mass processing as wasteful States that product should move (flow) from operation to operation, only when it is needed, in the smallest increment One piece is the ultimate (one-piece-flow)

Continuous Flow •   Line up all of the steps that truly create value so

Continuous Flow

Line up all of the steps that truly create value so they occur in a rapid sequence Require that every step in the process be:

Capable – right every time (6 Sigma) Available – always able to run (TPM) Adequate – with capacity to avoid bottlenecks (right-sized tools)

Continuous Flow •   Linking manual and machine operations into the most efficient combinations to

Continuous Flow

Linking manual and machine operations into the most efficient combinations to maximize value-added content while minimizing waste Elimination of work stagnation in and between processes Ideal creation of one piece flow: making one part and moving one part (in contrast to batch and queue material handling) In order to really get and hold the benefits of flow production the organization must transition from a functional structure to a product-focused, cross- functional structure

Pull Production •   Actual customer demand drives the manufacturing process •   It creates

Pull Production

Actual customer demand drives the manufacturing process It creates a system of cascading production and delivery instructions from downstream demand to upstream production in which nothing is produced by the upstream supplier until the downstream customer signals a need The rate of production for each product is equal to the rate of customer consumption

Pull Production •   Through lead time compression & correct value specification, let customers get

Pull Production

Through lead time compression & correct value specification, let customers get exactly what’s wanted exactly when it’s wanted:

For the short term: Smooth pull loops to reduce inventory For the near term: Make-to-order with rapid response time For the long term: Diagnostics and prognostics in a stable relationship to take out the surprises for consumers and producers

Pull System Production Schedule Customers Leveled assembly instructions A C A B A Final Assy

Pull System

Production

Schedule

Customers

Leveled assembly instructions

A

C

A

B

A

Pull System Production Schedule Customers Leveled assembly instructions A C A B A Final Assy Vendor

Final Assy

Vendor

instructions A C A B A Final Assy Vendor Fab Fab Fab Fab Vendor Sub Sub
Fab Fab
Fab
Fab
Fab
Fab
Fab

Fab

instructions A C A B A Final Assy Vendor Fab Fab Fab Fab Vendor Sub Sub
instructions A C A B A Final Assy Vendor Fab Fab Fab Fab Vendor Sub Sub
instructions A C A B A Final Assy Vendor Fab Fab Fab Fab Vendor Sub Sub

Vendor

Sub Sub
Sub
Sub

Vendor

Vendor

Vendor

instructions A C A B A Final Assy Vendor Fab Fab Fab Fab Vendor Sub Sub
Work Balancing / TAKT Time •   Work balancing maximizes operator efficiency by matching work

Work Balancing / TAKT Time

Work balancing maximizes operator efficiency by matching work content to TAKT time TAKT time is the rate at which customers require your product TAKT time is calculated as follows:

Available work time per day Daily required customer demand in parts per day
Available work time per day
Daily required customer demand in parts per day
TAKT Time Example •   Net Available Operating Time ▫   Time per shift ▫

TAKT Time Example

Net Available Operating Time

Time per shift Breaks (2 @ 10´) Clean-up Lunch NAOT/shift

480´ (minutes) - 20´ - 20’ - 30’

410´

Customer Requirements

Monthly

No. Working Days CR/Day

26,000

units/month

20

days/month

units/day

1,300

TAKT Time

410’ x 60” x 3 shifts (73,800) divided by 1,300 57.769 seconds per part or 57"

JIT and Suppliers •   Few •   Nearby (if possible) •   Repeat business/Longer

JIT and Suppliers

Few Nearby (if possible) Repeat business/Longer Term Agreements Analysis to enable desirable suppliers to become or stay price competitive JIT Logistics:

Frequent Deliveries/Smaller Quantities Exact Quantities Consumption initiates deliveries Deliveries directly to the point of use

Perfect Parts Concurrent engineering design practices

JIT and Suppliers •   Use single-source suppliers when possible •   Build long-term relationships

JIT and Suppliers

Use single-source suppliers when possible Build long-term relationships Work together to certify processes Co-locate facilities to reduce transport if possible Stabilize delivery schedules Share cost & other information Early involvement during new product designs

Small Lot Sizes & Quick Setups •   Small lots mean less average inventory and

Small Lot Sizes & Quick Setups

Small lots mean less average inventory and shorter manufacturing lead time Small lots with shorter setup times increase flexibility to respond to demand changes Strive for single digit setups- < 10 minutes Setup reduction process is well-documented

External tasks- do as much preparation while present job is still running Internal tasks- simplify, eliminate, shorten steps involved with location, clamping, & adjustments

Ultimate goal is single unit lot sizes

JIT in Services •   Most of the JIT concepts apply equally to Service companies

JIT in Services

Most of the JIT concepts apply equally to Service companies Cellular layouts, product focused, & flexible employees shorten response times Service inventory, “paperwork”, should be eliminated, simplified, examined for “waste” “Fail-safe” all processes from Orders-Payment Team based organizations

Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.
Knowledge Check © 2013 Gemba Academy LLC. All rights reserved.

Knowledge Check

© 2013 Gemba Academy LLC. All rights reserved.

What company first used Just-in-Time? o   A) Toyota o   B) Ford o  

What company first used Just-in-Time?

o A) Toyota o B) Ford o C) General Motors o D) Honda

Inventory hides problems. o   A) True o   B) False © 2013 Gemba Academy

Inventory hides problems.

o A) True o B) False

What assists in accomodating low inventory levels? (Mark all that apply) 1.   Increasing variability

What assists in accomodating

low inventory

levels? (Mark all that apply)

1. Increasing variability

(Mark all that apply) 1.   Increasing variability 2.   Eliminating waste 3.   Streamlining production

2. Eliminating waste

3.   Streamlining production and material flows Streamlining production and material flows

4.   Accurate information Accurate information

What are the key elements of Just-in-Time manufacturing? (Mark all that apply) 1.   Increase

What are the key elements of Just-in-Time

manufacturing?

(Mark all that apply)

1. Increase Inventory

(Mark all that apply) 1.   Increase Inventory 2.   Kanbans & pull production systems 3.

2. Kanbans & pull production systems

Inventory 2.   Kanbans & pull production systems 3.   large lots 4.   Uniform plant

3. large lots

4. Uniform plant loading

5. Flexible resources

What are some of the principles of Just-in-Time manufacturing? (Mark all that apply) 1.  

What are some of the principles of Just-in-Time

manufacturing? (Mark all that apply)

of Just-in-Time manufacturing? (Mark all that apply) 1.   Produce only the products the customer wants
of Just-in-Time manufacturing? (Mark all that apply) 1.   Produce only the products the customer wants

1. Produce only the products the customer wants 2. Produce products only at the rate that the customer wants them 3. Produce with perfect quality 4. Produce with minimum lead time 5. Produce products with only those features the customer wants

What are some of the benefits of Just-in-Time manufacturing? (Mark all that apply) 1.  

What are some of the benefits of Just-in-Time

manufacturing? (Mark all that apply)

of Just-in-Time manufacturing? (Mark all that apply) 1.   Smaller inventories 2.   Longer lead times

1. Smaller inventories

2. Longer lead times

1.   Smaller inventories 2.   Longer lead times 3.   Improved quality 4.   Reduced

3. Improved quality

4. Reduced space requirements

What are the general results of implementing Just-in-Time manufacturing? (Mark all that apply) 1.  

What are the general results of implementing Just-in-Time manufacturing? (Mark all that apply)

Just-in-Time manufacturing? (Mark all that apply) 1.   50-90% reduction in throughput times 2.  
Just-in-Time manufacturing? (Mark all that apply) 1.   50-90% reduction in throughput times 2.  
Just-in-Time manufacturing? (Mark all that apply) 1.   50-90% reduction in throughput times 2.  

1. 50-90% reduction in throughput times 2. 50-90% reduction in WIP 3. 60-80% reduction in scrap and rework50-90% reduction in setup times 4. 30-60% reduction in space requirements

What are some of the keys to using Just-in-Time with suppliers? (Mark all that apply)

What are some of the keys to

using Just-in-Time

with suppliers? (Mark all that apply)

to using Just-in-Time with suppliers? (Mark all that apply) 1.   Use single-source suppliers when possible
to using Just-in-Time with suppliers? (Mark all that apply) 1.   Use single-source suppliers when possible
to using Just-in-Time with suppliers? (Mark all that apply) 1.   Use single-source suppliers when possible

1. Use single-source suppliers when possible 2. Build long-term relationships 3. Work together to certify processes 4. Co-locate facilities to reduce transport if possible

What are the advantages of small lots? (Mark all that apply) 1.   Less average

What are the advantages of small lots? (Mark all that

apply)

1.   Less average inventory Less average inventory

2.   Shorter manufacturing lead time Shorter manufacturing lead time

3.   Increase flexibility to respond to demand changes Increase flexibility to respond to demand changes

Explain the differences between “ push ” and “ pull ” systems. © 2013 Gemba

Explain the differences between pushand pullsystems.

How can JIT and Pull be implemented in your organization? © 2013 Gemba Academy LLC.

How can JIT and Pull be implemented in your organization?

Congratulations!!! •   You have completed the course. •   Visit Superfactory ( www.superfactory.com )

Congratulations!!!

You have completed the course.

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