Operations Management Just-in-Time and Lean Production Systems Chapter 16
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Operations Management Just-in-Time and Lean Production Systems Chapter 16

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S12-2. Just-In-Time and Lean Production.Role of inventory.Just-In-Time components.Suppliers.Layout.Scheduling.Quality.Lean Production.. Outline. S12-3. Just-In-TimeManagement philosophy of continuous problem solving.Internal focus on production scheduling, inventory, layout, quality, suppliers, etc.Produce just-in-time\", only to meet actual demand. Lean ProductionExtension of Just-In-Time to eliminate waste (fat\").External focus on satisfying the customer.Originated in Japan; Popularized by Toyota; now used globally..
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1. S12-1 Operations Management Just-in-Time and Lean Production Systems Chapter 16

2. S12-2 Just-In-Time and Lean Production. Role of inventory. Just-In-Time components. Suppliers. Layout. Scheduling. Quality. Lean Production. Outline It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort. It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort.

3. S12-3 Just-In-Time Management philosophy of continuous problem solving. Internal focus on production scheduling, inventory, layout, quality, suppliers, etc. Produce ?just-in-time?, only to meet actual demand. Lean Production Extension of Just-In-Time to eliminate waste (?fat?). External focus on satisfying the customer. Originated in Japan; Popularized by Toyota; now used globally. Just-in-Time and Lean Production It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort. It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort.

4. S12-4 Demand is uncertain and variable. Same equipment/people are used to make a variety of products, and switching products takes time. Things go wrong: Materials are defective. Deliveries are variable (late). Equipment fails, people make mistakes, etc. Production documents are incorrect. Why is Production Difficult? It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort. It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort.

5. S12-5 Use inventory to: Match supply with varying demand. Allow production of a variety of products on the same equipment. Overcome defective materials, late deliveries, equipment failures, mistakes, etc. One Solution: Inventory It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort. It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort.

6. S12-6 Forecast demand. Produce in large lots (to reduce expensive setups). PUSH product to customer. Large lot sizes mean: Large work-in-process inventories. Large final product inventories. Slow response to changes and defects. ?Traditional? Production It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort. It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort.

7. S12-7 Produce in small lots to replenish stock actually sold. Sales PULL product (and parts) through plant. Supplies and components are ?pulled? through system to arrive where they are needed when they are needed. Small lot sizes mean: Small work-in-process inventories. Small final product inventories. Quick response to changes and defects. ?Just-in-Time? Production It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort. It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort.

8. S12-8 Push versus Pull Push system: Material is pushed (according to forecasts) downstream (along assembly line, to warehouses, etc.). Pull system: Material is pulled (by sales to customers) downstream (along assembly line, to warehouses, etc.) just as it is needed.

9. S12-9 Just-in-time requires identifying and solving problems that create inventory. Reduce setup costs to switch products. Eliminate all waste: Defective materials, late deliveries, equipment failures, mistakes, etc. Just-In-Time is Not Easy It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort. It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort.

10. S12-10 Overproduction. Waiting. Transportation. Inefficient processing. Inventory. Unnecessary motion. Product defects. Types of Waste You should ask students to consider why such waste occurs.You should ask students to consider why such waste occurs.

11. S12-11 Reduces waste and improves quality. Waste = Anything not adding value to the product. Exposes problems caused by variability. Variability in demand, deliveries, materials, equipment, etc. Streamlines production by reducing inventory. Reduces delays and increases throughput. Benefits: Reduced cost and/or increased profit. Faster response to the customer. What Does Just-in-Time Do?

12. S12-12 Just-in-Time Success Factors This side outlines the essential features, more detail is provided in subsequent slides.This side outlines the essential features, more detail is provided in subsequent slides.

13. S12-13 JIT objective: Eliminate inventory. Hold minimum inventory to keep system running. JIT requires: Small lot sizes. Low setup times. Just-in-time deliveries. Deliveries direct to point of use (not stockroom). Inventory Students should be asked to draw their own connection between inventory and problems. Given that inventory exists in case of problems, if we wish to eliminate inventory, we also must eliminate problems. Again the notion that JIT is not simply an inventory methodology.Students should be asked to draw their own connection between inventory and problems. Given that inventory exists in case of problems, if we wish to eliminate inventory, we also must eliminate problems. Again the notion that JIT is not simply an inventory methodology.

14. S12-14 Lowering Inventory Reduces Waste The analogy presented in this and the next four slides may help to illustrate the action of inventory in hiding problems.The analogy presented in this and the next four slides may help to illustrate the action of inventory in hiding problems.

15. S12-15 Lowering Inventory Reduces Waste

16. S12-16 Large Lot Sizes = Large Inventory The next several slides look at the process and consequences of reducing inventory.The next several slides look at the process and consequences of reducing inventory.

17. S12-17 To Lower Inventory, Reduce Lot Size The next several slides look at the process and consequences of reducing inventory.The next several slides look at the process and consequences of reducing inventory.

18. S12-18 EPQ Minimizes Total Costs

19. S12-19 Reducing Setup Costs Reduces Lot Size and Total Cost!

20. S12-20 Separate setup into preparation (while machine is running) and actual setup (while machine is stopped). Do as much as possible while the machine is running. Move material closer and improve material handling. Standardize and improve tooling. Steps to Reduce Setup Time Students should be asked to draw their own connection between inventory and problems. Given that inventory exists in case of problems, if we wish to eliminate inventory, we also must eliminate problems. Again the notion that JIT is not simply an inventory methodology.Students should be asked to draw their own connection between inventory and problems. Given that inventory exists in case of problems, if we wish to eliminate inventory, we also must eliminate problems. Again the notion that JIT is not simply an inventory methodology.

21. S12-21 JIT objective: Frequent on-time deliveries of small lots of high quality. Buyer and supplier form JIT partnerships to eliminate: Unnecessary activities. In-plant inventory. In-transit inventory. Suppliers You might point out here that both buyer and supplier gain from this relationship.You might point out here that both buyer and supplier gain from this relationship.

22. S12-22 JIT objective: Reduce movement of people and material. JIT requires: Delivery directly to work areas ? not to stockroom. Short distances to ensure on-time deliveries. Little space for inventory. Flexibility: Moveable or changeable machines. Layout If students have not yet gained the impression that JIT is not about inventory - but rather about the philosophy and design of the entire productive system - the issue should be raised at this point.If students have not yet gained the impression that JIT is not about inventory - but rather about the philosophy and design of the entire productive system - the issue should be raised at this point.

23. S12-23 JIT objective: Simple system to pull product through plant in small lots. JIT requires: Communicating schedules to suppliers. ?Level? schedules: production each day equals demand. Freezing part of schedule nearest due date. Small lots. Kanban techniques. Scheduling Students should be asked what problems they would expect to encounter when trying to introduce schedules appropriate to JIT.Students should be asked what problems they would expect to encounter when trying to introduce schedules appropriate to JIT.

24. S12-24 Japanese word for card. Authorizes production from downstream operations. ?Pulls? material through plant. May be a card, flag, verbal signal etc. Used often with fixed-size containers. Add/remove containers to change production rate. Kanban

25. S12-25 Kanban Signals ?Pull? Material Through the Process

26. S12-26 JIT objective: Prevent failure. Cleanliness and simplicity are keys. Maintain equipment so it does not break. JIT requires: Scheduled & daily preventive maintenance. Operator performs preventive maintenance. Operator knows machine and is responsible for product quality. Preventive Maintenance (PM) That the operator is the one to perform the PM is another example of the need to empower employees if JIT is to be a success. Only when systems are reliable will JIT work. Preventive maintenance is a prerequisite to reliability. Variability must be removed for JIT to work.That the operator is the one to perform the PM is another example of the need to empower employees if JIT is to be a success. Only when systems are reliable will JIT work. Preventive maintenance is a prerequisite to reliability. Variability must be removed for JIT to work.

27. S12-27 JIT exposes quality problems by reducing inventory. JIT limits number of defects produced with small lots. JIT requires TQM. Statistical process control. Worker involvement & empowerment. Immediate feedback. Quality

28. S12-28 Lean Production Use JIT to eliminate virtually all inventory. Eliminate all but value-added activities. Build systems to help employees produce a perfect part every time. Reduce space requirements. Develop partnerships with suppliers. Educate suppliers and workers. Enrich jobs.

29. S12-29 JIT/Lean Production Partnerships To achieve frequent deliveries of high quality small-lot quantities: Use few suppliers, each with a larger share of business and longer-term contracts. Helps ensure quality and reliability. Prefer nearby suppliers for reliable scheduling. Example: 4 deliveries each day, 2 hours apart. Suppliers encouraged to extend JIT to their suppliers. Ask students to consider what these benefits mean to the production departments of buyers.Ask students to consider what these benefits mean to the production departments of buyers.

30. S12-30 Just-In-Time and Japan Area of Japan = 144,000 square miles. California = 158,000 square miles Missouri = 70,000 square miles Population of Japan is about 1/2 of USA. Japan is islands (80% mountainous).


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