Lean Thinking and Just-in-Time Operations. Lean Production.
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By 1992, Porsche, the maker of high-end German sports cars, found sales falling to 25% of their 1986 peak. When Wendelin Wiedeking took over as head of the company, he pushed workers to adopt Japanese-style lean production methods. He hired two Japanese efficiency experts and personally sawed off the top half of a row of shelves with a circular saw to reduce inventories. Along with more flexible, negotiated work rules, Porsche revamped its assembly process so that production of 1997’s 911 model took only 60 hours, compared to 120 hours for its predecessor. The time to develop a new model was cut from 7 years to 3. Porsche now uses 300 parts suppliers, down from nearly 1,000 and a quality control program has helped reduce the number of defective parts by a factor of 10.
The Core Elements of JIT are Classified Into Seven Categories (cont’d)