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MBA 8452 Systems and Operations Management

MBA 8452 Systems and Operations Management. Just-In-Time & Lean Systems. Objective: Just-In-Time Operations. Be able to explain the JIT Production Concept Explain the importance of the Elimination of Waste Explain the elements of JIT Be able to apply JIT Operations to a situation.

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MBA 8452 Systems and Operations Management

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  1. MBA 8452 Systems and Operations Management Just-In-Time & Lean Systems

  2. Objective: Just-In-Time Operations • Be able to explain the JIT Production Concept • Explain the importance of the Elimination of Waste • Explain the elements of JIT • Be able to apply JIT Operations to a situation

  3. WHAT IT IS WHAT IT DOES • Attacks waste • Management philosophy • Exposes problems and bottlenecks • Pull system though the plant • Achieves streamlined production WHAT IT REQUIRES WHAT IT ASSUMES • Employee participation • Industrial engineering/basics • Stable environment • Continuing improvement • Total quality control • Small lot sizes What is JIT ?

  4. JIT Focus:Eliminate Waste • Waste from overproduction • Waste of waiting time • Unnecessary transportation waste • Storing inventory • Processing waste • Waste from machine breakdown • Waste from rework

  5. Inventory Hides Problems Bad Design Poor Quality Lengthy Setups Machine Breakdown Inefficient Layout Unreliable Supplier

  6. Lower Inventory To Expose Problems Bad Design Poor Quality Lengthy Setups Machine Breakdown Inefficient Layout Unreliable Supplier

  7. JIT ElementQuality at the Source • Do it right the first time • Self-inspection • Line-stopping empowerment • Defectsprevention -- Poka-yoke

  8. Vendor Fab Sub Vendor Fab Customers Final Assy Sub Fab Vendor Fab Vendor JIT ElementPull Production System

  9. JIT ElementKanbanProduction Control System Withdrawal kanban Storage Part A Storage Part A Production Center Assembly Line Production kanban Material Flow Card (signal) Flow

  10. JIT ElementUniform Plant Loading • Maintain a stable mixof products, and firm monthly schedules. Monthly Daily Modeldemand demand Small 1200 40 Midsize 2400 80 Luxury 2400 80 • The sequence of L-M-S-M-L repeated 40 times per day maintains the proper mix of models.

  11. JIT ElementSmall-Lot Production • Requires less space & capital investment • Reduces inventory (see next two slides) • Moves processes closer together • Makes quality problems easier to detect

  12. JIT ElementQuick Setup • A requirement for small-lot-size, mixed-model production. • What are the consequences of long setup times?

  13. JIT ElementPreventive Maintenance • Proactive approach that uses periodic inspection & maintenance to keep machines operating • The goal is to achieve zero breakdown

  14. Coordination System Integration Final Assembly JIT ElementFocused Factory Networks

  15. Saw Saw Grinder Grinder Saw Heat Treat Lathe Lathe Lathe Press Press Press JIT ElementGroup Technology • Departmental Specialization • Using Departmental Specialization for plant layout can cause a lot of unnecessary material movement.

  16. Grinder 1 2 Lathe Press Saw Lathe Heat Treat Grinder Press Lathe A B Saw Lathe JIT ElementGroup Technology (cont.) • Group technology cells • Using Group Technology Cells can reduce movement and improve product flow.

  17. JIT ElementSupplier Networks • Reliable suppliers are critical to JIT • Supplier selection • Small number of suppliers; single sourcing • Long-term agreements • Geographical proximity • Frequent information sharing • Benefits • Small but frequent deliveries • Reduced lead times • Quality expectations

  18. 1. Reduced inventory 2. Improved quality 3. Lower costs 4. Reduced space requirements 5. Shorter lead time 6. Increased productivity A Summary of the Benefits of JIT 7. Greater flexibility 8. Better relations with suppliers 9. Simplified scheduling and control activities 10. Increased capacity 11. Better use of human resources 12. More product variety

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