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The Revolution of Just-In-Time (JIT) and Lean Manufacturing. The essence of the JIT revolution and Lean Manufacturing.

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the essence of the jit revolution and lean manufacturing
The essence of the JIT revolution and Lean Manufacturing
  • Try to reduce the system operational inefficiencies and the resulting waste by identifying the sources of these inefficiencies and working proactively to eliminate them as much as possible.
  • In the emerging philosophy, inventories should be carefully controlled and they should not function as the mechanism for accommodating the system inefficiencies => Just-In-Time (JIT)
  • The aforementioned effort should be an ongoing process towards continuous improvement rather than one-time/shot effort.
targeting the sources of inefficiency
Targeting the sources of inefficiency
  • input
    • unreliable quality of raw material
    • unreliable delivery times
  • operation
    • unreliable processes in terms of
      • required processing times
      • process outcome
    • complex interacting process flows
    • long set-up times
    • unreliable (irresponsive and irresponsible) personnel
  • output
    • Highly variable production requirements in terms of
      • production volume, and
      • production scope
jit enabling factors and practices
JIT enabling factors and practices
  • Emphasis on quality at both the process and the supply side by promoting
    • Statistical Process Control (SPC) theory and practice
    • Quality certification programs
    • Deployment of stable automated processes and foolproof practices (like checklists and machines gauges) to guarantee the desired performance
    • Employee empowerment and knowledge management (quality circles)
  • “Tightening” of the supply chain by promoting
    • Long-lasting and trustful relationships between the different parties in the supply chain
    • Timely and reliable information flow across these parties that takes advantage of modern IT technologies, like
      • Electronic Data Interchange (EDI), and e-commerce practices
      • Real-time communications and global positioning systems
    • Promotion of vendor owned and managed inventory practices that
      • Establish economies of scale and protection to variability through pooling
      • Enhance the demand visibility across the entire supply chain.
jit enabling factors and practices cont
JIT enabling factors and practices (cont.)
  • Simplification of the process flows by promoting cellular manufacturing practices
    • Dedication of separate production cells to product families with similar processing requirements
    • U-shaped layouts for facilitating employee sharing
    • Employee cross-training for more flexible and higher utilization
  • Set-up time reduction through
    • The adoption of cellular manufacturing
    • Externalization of set-up times
    • Employment of flexible processes and pertinent auxiliary equipment like pertinent fixtures
    • Part standardization
  • Focus on repetitive manufacturing and promote the establishment of stable production rates through
    • Smoothing of the aggregate production requirements by appropriate quota setting
    • Pertinent sequencing of the final assembly to support a desired product mix
    • Use of buffer capacity (planned overtime) to protect against slippages from the target production rates
    • Component standardization
institutionalizing the jit practice through the kanban based production authorization mechanism

Station 1

Station 2

Station 3

Institutionalizing the JIT practice through the KANBAN-based Production Authorization Mechanism
  • Remarks:
  • The KANBANS at each station cap the WIP at that station and they offer a natural
  • mechanism for reacting to various disruptions taking place in the system operation.
  • In particular, production at each station is “pulled” as a result of the downstream
  • activity rather than “pushed” by an MPS-generated schedule.
  • The KANBANS at each station should be set at a level that enables production
  • at the target rate
  • A safe approach to set the KANBAN level at each station is by setting it initially to
  • the “historical” WIP level, and subsequently decrease it incrementally while
  • observing its impact on the production rate
  • Frequent KANBAN changes are ineffective, since the production rate of the line is
  • rather insensitive to these changes, and they should be avoided
from kanban to conwip

FGI

Station 1

Station 2

Station 3

From KANBAN to CONWIP
  • Why?
  • It maintains the WIP cap but at the same time it offers more operational flexibility than
  • KANBAN.
  • The unrestricted flow of WIP within the line enables better utilization of the (shifting)
  • bottleneck, and therefore, higher throughput.
  • Less stress for the line operators since it enables them to work at the “natural pace” of the line.
  • It enables more flexible scheduling of the line, since in the CONWIP operational context,
  • WIP is interpreted more generally as some aggregate amount of workload loaded into
  • the line (even measured in time-units, rather than number of parts) – new parts are pulled from
  • an available “work backlog” according to a pertinent set of dispatching rules.
  • Easier to analyze and parameterize through the theory of closed-queueing networks.
  • Remark: While the above features of CONWIP mitigate the rigidity of the KANBAN-based
  • shop-floor control, its “pull” nature still implies that it requires stable target production rates
  • in order to function well, and therefore, it is appropriate for repetitive manufacturing contexts.