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Just in Time PDF
MANUFACTURING
Just-In-Time Manufacturing
JUST-IN-TIME MANUFACTURING
Table of Contents
I.
JUST-IN-TIME MANUFACTURING.......................................................................1
A.
INTRODUCTION.........................................................................................1
B.
JIT PHILOSOPHY........................................................................................1
1.
History of Just-In-Time......................................................................2
From Supermarket to Shop Floor.....................................................2
2.
What to Expect..................................................................................3
C.
VALUE-ADDED ANALYSIS.........................................................................4
Figure 1-1 Value-Added Analysis......................................................5
Figure 1-2 Value-Added Analysis......................................................6
1.
Don't Forget The Office.....................................................................7
D.
UNDERSTANDING WASTE........................................................................7
1.
Evils of Inventory...............................................................................8
Figure 1-3 High and Low Levels of WIP...........................................9
E.
JIT AND QUALITY.....................................................................................11
1.
The Chicken or the Egg..................................................................11
2.
What If ?..........................................................................................12
3.
What is Quality ?.............................................................................13
4.
Preventing Quality Problems..........................................................13
Defining the Requirements.............................................................13
The Root Cause of The Problem....................................................14
Figure 1-4 Getting to The Root Cause...........................................15
Keeping Control of The Process.....................................................16
Figure 1-5 Poka-Yoke - Speaker Box Assembly.............................17
Figure 1-6 Poka-Yoke - Drilling Holes in a Side Plate....................18
F.
UNIFORM PLANT LOAD...........................................................................19
1.
Cycle Time......................................................................................19
Workforce........................................................................................20
2.
Level Loading..................................................................................21
Figure 1-7 Level Loading...............................................................22
3.
Learning Curve Improvements........................................................23
G.
SETUP TIME REDUCTION.......................................................................24
1.
Getting Started................................................................................24
2.
Setup Reduction Teams..................................................................25
3.
Videotaping.....................................................................................26
4.
The SMED System..........................................................................27
The Four Conceptual Stages of SMED...........................................27
5.
Clamping.........................................................................................28
6.
Adjusting.........................................................................................28
AIDT - Just-In-Time Manufacturing - September 11, 2006
Just-In-Time Manufacturing
H.
I.
J.
K.
L.
M.
N.
O.
ii
CELLULAR MANUFACTURING................................................................29
Figure 1-8 Traditional Manufacturing System................................29
Figure 1-9 U-Shaped Work Cell.....................................................30
1.
U-Shaped Work Cells......................................................................31
Figure 1-10 U-Shaped Work Cells.................................................32
U-Shaped Cells versus Assembly Line Manufacturing...................33
Comparison of Assembly Line and U-Shaped Work Cell................33
Figure 1-11 Cellular Manufacturing System...................................34
PULL SYSTEMS........................................................................................35
1.
The Push System............................................................................35
Figure 1-12 Push System..............................................................36
2.
From Supermarket to Factory Floor - The Pull System...................37
Figure 1-13 Kanban Card..............................................................37
Figure 1-14 Production Control by Pull System.............................39
JIT PURCHASING.....................................................................................41
Figure 1-15 Typical Manufacturing Costs.......................................41
1.
Partnerships....................................................................................42
2.
Eliminating Procurement Wastes....................................................43
3.
A Day's Worth Every Day................................................................44
JIT IN CONJUNCTION WITH MANUFACTURING RESOURCE
PLANNING.................................................................................................45
1.
Which System ?..............................................................................45
MANAGEMENT'S RESPONSIBILITY.......................................................47
1.
Motivation........................................................................................48
2.
Training...........................................................................................48
3.
Leadership......................................................................................49
IMPLEMENTING JIT..................................................................................49
1.
Forming Teams...............................................................................50
2.
Developing a JIT Startegy...............................................................50
GLOSSARY...............................................................................................52
REFERENCES AND RECOMMENDED READINGS................................56
Just-In-Time Manufacturing
I.
JUST-IN-TIME MANUFACTURING
A.
INTRODUCTION
Why Just-In-Time manufacturing when there are dozens of other
manufacturing philosophies from which a company may choose? Just-InTime (JIT) manufacturing distances itself from the competition because no
large capital outlays are required. Other methods promote complexity, large
overheads, automation, and other "state-of-the-art" technologies, while JIT
advocates simplifying and streamlining the existing manufacturing process.
Since World War II, traditional American companies have developed a way
of doing business that entails top management planning, re-planning, and
more planning. Although some planning is good, it ultimately adds no value
to the end product. Customers want quality products at competitive prices
- they couldn't care less how much planning was required to get that product
to them. By implementing JIT, much of the planning disappears and a large
portion of the remaining planning is entrusted to the shop floor personnel.
The purpose of this text is to introduce basic JIT concepts and assure you
that JIT can work in your company. The transition to JIT often is not easy,
but it is almost always rewarding. All employees in the company - from top
management to direct labor - must have a clear understanding of the benefits
that JIT offers to them and to their company. JIT is not a cure-all for every
manufacturing problem. But, if implemented properly, JIT is a no-cost or
low-cost method for improving your manufacturing process.
B.
JIT PHILOSOPHY
The basis of Just-In-Time (JIT) is the concept of ideal production. It centers on
the elimination of waste in the whole manufacturing environment, from raw
materials through shipping. Just-In-Time is defined as "the production of the
minimum number of different units, in the smallest possible quantities, at the
latest possible time, thereby eliminating the need for inventory. Remember,
JIT does not mean to produce on time, but to produce just in time.
Just-In-Time Manufacturing
1.
History Of Just-In-Time
JIT is sometimes said to have been invented by Henry Ford because
of his one-at-a-time assembly line, circa 1913. This is an incorrect
conclusion since Ford's system could handle no variety and was
designed for large volumes and large batch sizes of the same parts.
JIT was invented by Taiichi Ohno of Toyota shortly after World War
II. Ohno's system was designed to handle large or small volumes
of a variety of parts. Many people are intimidated by JIT because
of its association with Japan. If these people take a broader look at
JIT, they will see that it is nothing more than good, common sense
manufacturing.
Ohno and his associates came to America to study our manufacturing
processes. They determined that our system was much like the system
that Japanese companies were using, but Japanese companies could not
afford waste in their systems due to the devastation to their economy
caused by World War II. While in America, Ohno learned much about
America's culture. One of his discoveries has transformed the world's
perspective on manufacturing.
From Supermarket To Shop Floor
Legend has it that Ohno got the idea for his manufacturing system
from America's supermarket system. Ohno learned the kanban (pull)
system from our supermarket system in which customers pulled items
from the shelves to fill their shopping carts, thereby creating an empty
space on the shelf. The empty space is a signal for the stocker to
replace that item. If an item was not bought that day, there was no
need to replace it. When item quantities become low, that is the signal
for the stockers to order more goods from their suppliers. Customers
are content to take just what they need, because they know that the
goods will be there the next time they need them.
To apply this concept to manufacturing, Ohno devised a system whereby
the usage of parts is determined by production rates. Materials are
pulled through the plant by usage or consumption of the parts in final
Just-In-Time Manufacturing
2.
What To Expect
While the prevailing view of JIT is that of an inventory control system,
it is much more. JIT is an operational philosophy which incorporates
an improved inventory control system in conjunction with other
systems, such as:
Just-In-Time Manufacturing
C. Value-added Analysis
Maybe you believe that your company is efficient enough and that the benefits
of JIT are not worth the frustration and stress associated with change. At this
point you have a decision to makeyou can adopt a new company motto such
as Were no worse than anybody else, or you can take positive steps toward
improving the process. To strengthen the incentive for change, companies
should identify the inefficiencies (wastes) in their present manufacturing
processes.
To identify waste in your company, a value-added analysis should be
performed. We must always be aware that any activity that does not add value
to a product is waste. There are specific methods for performing a value-added
analysis but we will use a simplified approach for our purposes. Take a pad
and pencil and go out on the shop floor. Pick a product and follow it through
the entire manufacturing process from raw materials to shipping. Note every
activity performed on the product. Do not get a routing slip to see how the
process is supposed to go, but accurately record the process including delays,
transportation, inspection, storage, etc. Figure 1-1 on the following page is a
value-added analysis for a machined part.
Just-In-Time Manufacturing
FIGURE 1-1
Value-added Analysis
VALUE
ADDING
ACTIVITY
1
2
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NON-VALUE
ADDING
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Just-In-Time Manufacturing
Figure 1-1 showed us that 32 total activities take place before the customer
receives the part. Only eight of these activities add value, therefore all other
activities must be considered waste. Even though some of these wasteful
activities are absolutely necessary, they are still waste and should be viewed
as such.
We will now streamline the manufacturing process, using JIT techniques
that will be discussed in-depth later. Figure 1-2 shows that non-value-added
activities have been reduced to nine instances.
FIGURE 1-2
Value-added Analysis
VALUE
ADDING
ACTIVITY
1
2
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NON-VALUE
ADDING
Just-In-Time Manufacturing
1.
D. UNDERSTANDING WASTE
Ask almost any shop floor employee the definition of inventory and the likely
answer will be you know all this stuff stacked up around here and all that stuff
in the warehouse. Many employees (and some supervisors and managers) do
not understand that Work-In-Process (WIP) is also inventory. Pure and simple
inventory is waste. Another way to describe inventory is money loaned out
of a companys pocket that has yet to be repaid.
JIT is much more than a plan for decreasing inventory, it is a manufacturing
philosophy for eliminating waste. For our purposes, waste can be defined
as something other than the essential resources of people, machines, and
material needed to add value to the product. Anything else, such as inventory,
scheduling, meetings, warehousing goods, management, and moving stock
can be considered wasteful because these actions do not directly add value to
the product. All waste cannot be purged from the system, however, we must
strive toward that ideal goal. Above all it must be ever present in the attitudes
of our manufacturing system that cost without value is waste.
Just-In-Time Manufacturing
A typical company produces excess inventory with the idea that we can use
this stuff when the next order comes in." Routinely these parts are forgotten
when the next order is placed. Other than initial costs of the products, they are
also paying for moving the product, warehouse space, fork trucks, warehouse
personnel, tracking the products, and moving the products again, etc. One
company that we visited was constantly plagued with the problem of misplaced
inventory. They had numerous storage bins, plus inventory was sometimes
temporarily placed on the shop floor in different places. More often than
not, new parts would be made when the internal customer needed the parts,
because nobody knew the parts already existed. Another company we visited
wastes money on rust preventatives and the time-consuming task of removing
rust from parts in storage solely for the benefit of excess inventory.
1.
Evils Of Inventory
Although inventory has long been accepted as a necessary evil we must
remember that it is still an evil. Why is inventory evil? Traditional
manufacturing processes build in safety stock at every station throughout
the entire system, from extra raw materials to warehouses full of
completed products. This superfluous WIP provides manufacturers with
a means to endure the problems, rather than solving the problems at the
root cause. Figure 1-3 shows how some problems can be disguised by
excess inventory. The water shown in the graphic is inventory and the
rocks depict manufacturing problems. As the water level drops, more
and more rocks begin to surface.
Just-In-Time Manufacturing
FIGURE 1-3
High and Low Levels of WIP
Just-In-Time Manufacturing
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Just-In-Time Manufacturing
E.
1.
11
Just-In-Time Manufacturing
2.
What If?
The alternative to setting standards at the highest possible level becomes
clearer when you look at the consequences of almost, but not quite.
If 99.9 percent is good enough, then...
12
Just-In-Time Manufacturing
3.
What is Quality?
One of the great gurus of quality, Phil Crosby, says that companies
often have a misconception of quality. He says that the true definition
of quality is meeting requirementsnot an intuition for aesthetics,
roundness, or perfectionbut something that can be truly measured.
If a Yugo (economy car of the the early 1970s) meets its customer's
requirements as well as a Rolls Royce meets its customer's requirements,
then it can be argued that the Yugo is as much a quality car as a Rolls
Royce.
Now that we understand what quality is and what it can do for us, how do
we get quality? The key is to obtain quality at the source. The sources
for quality are the manufacturers and vendors processes, machines,
and operators. Contrary to traditional beliefs, the source of quality is
not the inspection bench.
4.
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Just-In-Time Manufacturing
To get the process under control, you must first find the root cause of
the problem. This can be accomplished by running the gamut from
simple methods such as pareto and matrix analysis to complicated
design experiments. A common problem is to attack the symptom
and not the problem. For example, if a breaker tripped at your house,
you could reset the breaker and hope for the best, replace the breaker
box, or you could check for an overloaded plug (too many appliances
plugged into one outlet). In your manufacturing process, dont make
the mistake of rewiring the whole house before the actual problem is
diagnosed.
Everyone has worked on a problem that magically went away, although
you were not exactly sure why. It could be any one of the solutions
you tried or a combination of any two. In this case, you do not know
if you have gotten to the root cause or not. You must be able to turn the
problem on and off to ultimately conclude that the problem has been
solved. If you can not turn the problem on and off it is likely that you
have solved a symptom rather than a problem. At this point you should
ask why and continue to ask why until you find the root cause.
Figure 1-4, shown on the following page, illustrates the problem of
bad service at a restaurant.
14
Just-In-Time Manufacturing
FIGURE 1-4
15
Just-In-Time Manufacturing
Obviously you cannot turn the problem of the owners offspring on and
off, but asking why did get you to the root cause. Disciplining the
waitress will not solve the real problem. The root cause of this problem
is a bad promotion policy. The long-term solution is a change in that
policy. If you ask why enough times you will get to the root cause.
Keeping Control of the Process
Once you have found the solution, keeping the process under control
is an easier task. Statistical Process Control (SPC) is a method of
managing a process by gathering information about it and using that
information to adjust the process to prevent problems from occurring.
Using SPC is one way to keep your process under control. Poka-yoke,
a Japanese word for fail-safing, should also be applied. In the Pokayoke theory, parts and processes are designed so that doing the job
right is easier than doing it wrong. An example of this is to design a
part that is asymmetrical so that it fits only one way, thus eliminating
misinstallation. Machines can be fitted with limit switches that will not
allow it to cycle if all processes are not completed in the correct order.
These methods should not only be used by your company but by your
vendors as well. The following are such examples (Hirano, 131):
16
Just-In-Time Manufacturing
FIGURE 1-5
Poka-Yoke - Speaker Box Assembly
Description of Process: Front plates were attached to speaker boxes.
Before Improvement:
After Improvement:
17
Just-In-Time Manufacturing
FIGURE 1-6
Poka-Yoke - Drilling Holes in a Side Plate
Description of the Process: A workpiece, a side plate, is set into position on a drill press
and dowel holes are drilled. The workpiece is essentially symmetrical, and back and front
are difficult to distinguish at a glance, although two edges are grooved along their length.
Before Improvement:
After Improvement:
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Just-In-Time Manufacturing
F.
1.
Cycle Time
Traditional definitions of cycle time include the time it takes a machine
to cycle through its process or the time from start to completion of
a product (throughput time). Under JIT, cycle time is the total time
required for a worker to complete one cycle of operations, including
walking, load/unload, inspect, etc. Cycle time should equal the customer
requirement rate, or better stated the sales rate. We should view the last
step in the manufacturing process as when the product gets sold, not
when the product is completed. This rate is also expressed in terms of
takt time. Takt time is the total daily operating time divided by the
total daily requirement. Takt time tells you how many hours, minutes,
or seconds are required for each part.
Takt is a German word for baton. In comparing a manufacturing process
to an orchestra, the rate at which the orchestra leader moves the baton
is the rate at which the orchestra plays, just as the rate of customer
requirement is the rate of company production.
19
Just-In-Time Manufacturing
If ten people are producing 20 parts per month in August, but only
ten parts are needed in September, five people should then be capable
of producing the needed ten parts so that labor costs remain constant.
This reduction can only be accomplished with a good physical plant
layout (to be discussed later) and a well-trained, flexible workforce.
The logical questions at this point are: Where do the five people go?,
and Where do they come from when production goes back to 20?
It must be made abundantly clear that the purpose of implementing
JIT is not to reduce the workforce. You can now use this idle time
to cross-train employees for even more flexibility. When not on
the production line employees can perform other tasks, attend team
meetings, do preventative maintenance, make plans to further improve
the process and so forth. Rather than producing extra parts and dealing
with inventory, you are now optimizing employee time. That leads us
to the golden rule of JIT: Machines can be idle but people cannot.
We should not make the mistake of trying to find the perfect balance
between parts produced and manpower required. There is no perfect
balance. We must decide how many parts the line should produce that
month, week, or day and balance to that number. Remember, the answer
is not to run the line as fast as possible, but to produce to the customer
20
Just-In-Time Manufacturing
requirement rate by deciding how fast the line must run to meet the
particular deadline and how many people are needed for this rate.
2. Level Loading
The second facet of Uniform Plant Load is level loading. Level loading
suggests that if you sell a product every month, then make the product
every month. Ideally, if you sell a product every day, then make the
product every day. You must make your products as frequently as your
customers require them.
Let us assume that your company produces three productsalphas,
betas, and deltasfrom the same line. Cycle time has been implemented,
therefore, your equipment is running at the right speed. For example,
we will say that in the month of March we will need 25 percent alphas,
50 percent betas, and 25 percent deltas. In a traditional manufacturing
environment alphas would be produced for 25 percent of the month.
We would then change over (setup) and run betas for 50 percent of the
month; change over again and run deltas for the remaining 25 percent
of the month. Do your customers buy alphas the first week, betas the
next two weeks, and deltas the last week?
The next logical step may be to produce a weeks worth every week.
You have instantly gone from setting up 3 times a month to 12 times a
month. Traditional manufacturing will be quick to note that valuable
time will be spent setting up with no time to produce. Increased number
of changeovers can be accomplished only after setup time has been
reduced to allow this. We will address the subject of setup time in the
next chapter. In a nutshell, if we are to change over four times more
often, then we must reduce setup time to 25 percent of its original time.
To meet these goals you must take a structured step-by-step approach.
A lofty goal may be to produce a days worth every day. It is true this
is a very high standard but Toyota is currently producing two hours
worth every two hours.
21
Just-In-Time Manufacturing
FIGURE 1-7
Level Loading
Just-In-Time Manufacturing
Let us look at our original process of producing alphas for one week,
betas for two weeks and deltas for the remaining week. If a customer
calls in a change order for more alphas the third week of the month; a
three-week delay occurs before alphas are being produced again. If you
are on a daily or even weekly production schedule, reaction to changes
in mix can be almost immediate. Production of alphas can begin the
next day or you could change over the same day if requirement rate of
betas and deltas would allow.
As the system begins to produce at the customer requirement rate and
reduced setup times are translated into smaller batch sizes, lead times
are also reduced. When a product is being manufactured monthly, lead
times are expressed in months. Weekly manufactured parts require
lead time in terms of weeks and daily parts in terms of days. There is
now no need for extravagant scheduling and tracking systems. If the
requirement rate changes, parts can be put into the queue at the next
changeover period.
As stated earlier there is a direct correlation between setup reduction
and batch sizes. The same can be said for batch sizes and potential cost
of failure. If a batch size is cut in half, the potential cost of rework or
scrap is cut in half. A streamlined manufacturing process dictates that
quality problems will be less likely and if they occur will be much easier
to detect and correct. Smoother production runs need fewer adjustments,
therefore quality becomes more predictable.
23
Just-In-Time Manufacturing
Uniform Plant Load allows us to produce at the exact rate and frequency
that the customer requires. Other aspects of JITsetup reduction,
machine cells, pull systems, JIT purchasing, and schedulingare
methods used in achieving plant balance.
1.
Getting Started
Our mission is to reduce setup time by 75 percent on a low-cost or
no-cost basis. Some machines will require a little more setup time and
some a little less, but 75 percent reduction is our initial goal. This may
not be accomplished in a week or a month, but can be achieved through
continuous improvement.
You must first decide which setup to work on. A good rule of thumb
is to select your most complex setup. Typically this is the setup that
causes the largest bottleneck (takes the most time), and therefore offers
the opportunity for the largest time savings. After a particular setup
has been chosen, a Setup Reduction Team must be formed. The next
problem that arises is who should be on the Setup Reduction Team.
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Just-In-Time Manufacturing
2.
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Just-In-Time Manufacturing
3.
Videotaping
If a picture is worth a thousand words, a videotape is worth at least a
million. The single best way to document and analyze a setup is with
videotape. A verbal description or written account of a setup will not
give you the detail of a video. Many nonvalue-added steps can be
uncovered that would otherwise remain camouflaged by other means
of documentation.
Obtaining a credible videotape is often not easy. One major dilemma
that occurs is a phenomenon known as the Heisenberg principle. Simply
stated this idea is the belief that something that is being observed is
changed merely by the fact that it is being observed (Hay, 63). If
workers know that they are being taped they will perform the setup with
a much greater sense of urgency. Outside preparations may occur that
are not normally done. These actions lead to a misrepresentation of
the true time and steps involved in a setup, thus defeating the purpose
for videotaping.
Another problem that may occur is apprehension about being videotaped.
Operators may fear that management will use the tape to place blame
for productivity problems, or to teach others how to do their job, or
that other team members will ridicule their performance. The number
of rumors that can surface when a video camera appears is infinite.
The best deterrent to these problems is prevention. Operators should
be briefed on the reasons for documentation prior to any videotaping
with all questions being answered then. It should be abundantly clear
that no additional actions should be taken in the documented setup
and that safety will never be neglected to gain speed. At no time will
any guards be removed, parts fastened less securely, work be done on
moving equipment, etc.
One method to obtain more true documentation is to do videotaping
without announcement. Place the video camera in position just prior
to the setup, thus allowing no time for special preparations. The
documentation should include the last part from the previous job
coming off the machine. The timer should then be set and everything
should be taped from that point on. Tape continuously even if no work
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Just-In-Time Manufacturing
is being done on the machine. When the first good part from the new
job is finished, the documentation is complete.
Once the videotape is complete, the Setup Reduction Team begins
a detailed analysis of the setup procedure. The primary focus of the
analysis is to reduce machine downtime. Team members generate a list
of problems to solve and possible solutions for the problems.
4.
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Just-In-Time Manufacturing
5.
Clamping
Video documentation will often reveal that substantial time is spent
loosening and tightening nuts and bolts. Threads are a very inefficient
method for speed in a setup, because only the last half turn of a bolt
or nut gets the job done. The first fifteen, twenty or twenty-five turns
are a useless waste. Another problem with threads is the use of tools.
Picking up a wrench if you can find itis also a waste; therefore
we must look for alternative methods for clamping. Do not make the
mistake of trying to buy the solution. While it is true that hydraulic
or pneumatic clamps save much time and wasted motion, they violate
our no-cost or low-cost policy. Look for methods that require only
one or two motions such as cams, levers, or pins. You can explore
purchasing high-tech clamping systems after all other avenues have
been exhausted or continuous improvement has stagnated.
6.
Adjusting
The videotape may also show large amounts of time is being spent to
get the job to run right. Traditional thoughts have been that adjustments
are necessary, therefore no energy has been expended to eradicate the
problem. Our aim is to have quality parts produced the first time, every
time. Bad parts should never be produced due to setup. The problem
with adjustments arises because most machines are infinitely adjustable.
For example, something on a machine is measured, or tightened down,
then a part is run. Then the machine is adjusted, tightened down, then
another part is run. This continues until a good part is produced. After
analyzing the videotape you may conclude that the machine needs to
be adjusted to a few set positions. At this point the machine should
be converted to positive stops for those positions rather than endlessly
measured positions or better yet the machine can be designed to be
self-positioning.
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Just-In-Time Manufacturing
H. CELLULAR MANUFACTURING
The traditional method of arranging a manufacturing facility is by departmental
specialitythat is, each department houses specialized equipment or
technology. All the lathes, milling, drilling, grinding and assembly would be
done in completely separate departments. Production in large batch sizes is
inevitable when factories are laid out in this manner. Figure 1-8 illustrates a
traditional manufacturing system. (Black, 34)
FIGURE 1-8
Traditional Manufacturing System
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Just-In-Time Manufacturing
The JIT philosophy maintains that a manufacturing floor be laid out by product
rather than by function. All equipment should be dedicated to a product or
family of products and organized logically in the order in which the various
processes are performed on that family of products. Two characteristics must
be fulfilled before a group of machines can be deemed the optimal JIT work
cell. The first is whether the product is flowing one at a time from machine
to machine, and, secondly, whether the cell has the flexibility to produce at
different rates with varying crew sizes (cycle time). See Figure 1-9.
FIGURE 1-9
U-shaped Work Cell
Many JIT purists argue that one-at-a-time flow is a necessity in a JIT work
cell. It is true that batches of one are the optimum size for waste reduction,
but we are attempting to implement practical JIT. The end goal is to have
operation two start as soon as the part clears operation one (batch size of
one). But practical JIT champions the idea of continuous improvement. JIT
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Just-In-Time Manufacturing
advocates batch size reduction as dictated by the setup time. Your process may
not allow for batch sizes of one. If some parts are forced to the next operation
then so be it. Continue to practice the doctrine of JIT and the batch sizes will
continue to decrease.
To dedicate the machines and physically place them together but continue
to produce in large batch sizes at the machine rate (maximum output) would
make no sense. JIT work cells must be adjustable to be able to produce at
the customer requirement rate. After the customer requirement rate has been
determined, you must ascertain the number of operators needed in the work
cell to produce the exact amount of products required.
One common concern about placing machines in cells is whether they lose
their flexibility by being dedicated to that cell. Can machines work on parts
not dedicated to that particular cell? The answer is yes. Some companies have
found that they can produce parts through the work cell part of the time while
at other times the machines can be scheduled independently as if they were
not in a work cell. Machines can also be placed on casters to form temporary
work cells to get the ultimate in flexibility. Work cells can be formed, taken
apart, or modified to satisfy customer requirements. If machines are too heavy
to be mobile a pull system can be used so each machine can function as if it
were in two or three cells.
As discussed in the Uniform Plant Load section of this text, the only way to
keep labor costs constant is to flex the crew size. Operators must be crosstrained to perform many tasks properly in a work cell thus allowing one
operator to run many machines.
1.
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FIGURE 1-10
U-shaped Work Cells
All the work to be done in this cell can be accomplished from a central
area inside the U-shaped cell. Every production period can have varying
numbers of operators. Six operators may be needed to produce 100
parts in March, but if 50 parts are required in April a staff of three can
theoretically produce those parts. When the operator does not have a
full work load, the traditionalists have the operator go up or down the
assembly line to the adjacent operation. In a U-shaped work cell, the
operator has a full 360 degrees of mobility, therefore, he or she can
perform all or part of tasks within the cell.
In our example with three workers we show steps 1 and 6 to have a
single operator, steps 2 and 5 have a single operator as do steps 3 and
4. Another advantage of a U-shaped work cell is instantaneous quality
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control. Since parts are exiting one operation and migrating directly to
the next operation (if batch sizes are one), any deficiencies in quality
show up immediately. If a quality problem does occur it can be resolved
promptly. There are no large quantities of bad parts to sort through and
the need for separate inspection is eliminated.
U-shaped Cells Versus Assembly Line Manufacturing
Assembly Line
Work Cell
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FIGURE 1-11
Cellular Manufacturing System
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I.
PULL SYSTEMS
We are now ready to address pull systems, sometimes known as kanban
systems or supermarket systems. The United States is in the process of phasing
out the use of the word kanban due to its association with Japan. Kanban is
not even a universally accepted Japanese term since some plants in Japan that
compete with Toyota view it as a Toyota-coined word. For our purposes, we
will use the term pull system.
As mentioned earlier, Toyota sent representatives to the United States shortly
after World War II to analyze our production techniques. They concluded
that Americans ran their factories much the same way the Japanese ran their
factories. Every operation in the factory works independently, then forces
its parts onto the next operation. The Japanese termed this process a push
system.
1.
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FIGURE 1-12
Push System
OPERATOR 1
(50 PARTS PER HOUR)
OPERATOR 2
(30 PARTS PER HOUR)
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2.
FIGURE 1-13
Kanban Card
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The card tells what type of part to build, what to put the parts in, how
many parts to build, where to send the parts and how many cards of
these parts are required to maintain a smooth flow. Paper work is limited
in a pull system.
Imagine a company that makes a product line of alphas, betas, and
gammas. Every day this company ships 20 percent alphas, 60 percent
betas, and 20 percent gammas. Suppose the market (customer) demands
more alphas and fewer betas on any given day. The only paperwork that
needs to be changed is the shipping schedule. Shipping sends a signal
to assembly to produce more alphas, while assembly sends a signal to
subassembly for more alpha components, and on through the system to
more alpha raw materials. No paperwork needs to be revisedit did
not exist in the first place. Each previous operation is waiting to find
out what parts to produce depending on customer needs.
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In an ideal JIT system, a pull signal is a compromise. If a true, one-ata-time flow has been implemented, no signal is needed. Figure 1-14
is what a model JIT pull system could look like.
FIGURE 1-14
Production Control by Pull System
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In the illustration, parts are flowing one at a time from the outside
supplier (vendor) to the work cells. In these work cells there is no need
for pull signals since the parts move one at a time from machine to
machine. In an ideal JIT system the machines would be producing at
the exact customer requirement rate (cycle time) and could change over
as often as needed (level loading) for this rate. Parts would be pulled
from cell to cell and then pulled to the subassembly cell. Subassembly
would then have its parts pulled to assembly then to shipping and on
to the final customer. This is a completely integrated manufacturing
system where all parts are moving one at a time. Theoretically, this
should be your end goal. But, while implementing JIT you will have a
definite need for pull signals.
When pull signals are needed, the key to making them work is making
sure that the inventory is replenished frequently and quickly. This can
only be accomplished after smaller batch sizes have been implemented
through the use of Uniform Plant Loading. We must also remember
that the smaller the batch sizes, the faster the setup must be. Just as in
a supermarket, customers will be satisfied with taking small amounts
if they know that there will be ample quantities available on the next
shopping trip.
Up to this point we have been talking about pull systems for repetitive
manufacturing systems. Invariably the question comes up, What about
job shops? To run a pull system in a job shop, where a completely
different product is produced daily, monthly or yearly, the system must
be managed differently. If a pull system is broken down to its purest
form, the signal is an authorization to produce whatever is next in the
queue. In a job shop the signal may stand for an hours worth of work.
In effect, cell workers are saying, An hours worth of work has been
used upso I am authorizing you to give me another hours worth of
work. Regardless of how you express it, the customer is telling the
supplier what to do next.
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J.
JIT PURCHASING
Probably no single group will conflict with the principles of JIT as much as
the purchasing department. JIT purchasing is as different from traditional
purchasing as JIT manufacturing is from traditional manufacturing. The goal
of a purchasing department is the same as that for the manufacturing floorthe
elimination of waste. Typical expenditures for a United States manufacturer
are 70 percent purchased material and components, 10 percent labor, and 20
percent overhead (Hay, 117).
FIGURE 1-15
Typical Manufacturing Costs
The fact that 70 percent of cost is purchased material reinforces the importance
of total commitment to JIT by the purchasing department. This commitment
will not be obtained unless the purchasing employees fully understand JIT
principles because only then will they apply these principles to their purchasing
processes.
AIDT - Just-In-Time Manufacturing - September 11, 2006
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Purchasing cost is a critical factor for a JIT manufacturing system, but it lags
behind quality and delivery lead time in importance. Vendors must deliver
quality products on time (just in time) before a JIT system can work, regardless
of cost. JIT purchasing offers a framework for a true partnership between
vendors and companies that helps to solve the problems of cost, quality and
lead time.
1.
Partnerships
Traditional relationships between companies and vendors do not allow
for partnerships to be formed. Companies send out bids for purchased
materials with the contract going to the lowest bidder. Six months down
the road another bid is let with the lowest bidder getting that contract.
If the current vendor is not the lowest bidder that vendor may lose six
months of business. Companies want vendors to cut their profits, but
vendors need to be assured of a good profit now because they may not
be here six months from now.
The new JIT partnership that we are striving for is a long-term, mutually
beneficial relationship with fewer but better vendors. Mutual trust
must be developed between companies and vendors. This cannot be
accomplished if vendors change every time new bids are sent out. For
this reason a company should have few suppliers (preferably one) for
each purchased material or component. This idea of single sourcing is
as troublesome to traditional purchasing people as slower run speeds
and smaller batch sizes are to traditional manufacturing people.
Traditional purchasing people question whether the company is getting
the best price possible by using only one supplier. As a company is
reducing its vendors, it is obtaining the best price due to traditional
competition. Vendors embrace the idea of a long-term relationship
because it allows their sales to remain more constant. Strict criteria
concerning dependability (quality and lead time) should be placed
upon vendors by companies. When this criteria is satisfactorily met,
the vendor will become certified. Ideally certified vendors deliver
products just in time, every time, with 100 percent quality. A partnership
is then formed between the company and the vendor so that they can
actively work together to continually lower the cost of purchased
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2.
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3.
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1.
Which System?
Many companies question whether to use JIT or MRP or both and if they
use both, which strategy should they implement first. If your company
has deteriorated greatly, it may be easier to implement a MRP system.
The MRP system will allow you to get your process under control
without radically changing your manufacturing process. If the company
is fundamentally sound, a JIT system should be implemented first. If
after JIT is in place it is decided to have a more formal scheduling
system, less time and money are required to implement a simplified
MRP system. This hybrid system can then be used to form an enhanced
manufacturing system.
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The hybrid system where JIT and MRP are working together eliminates
the need for Shop Floor Control since parts flow from start to finish
without being warehoused. MRP I becomes more basic since parts go
directly to the next user without traveling in and out of stock. Also,
remember that batch sizes are smaller or nonexistent, safety stock has
been eliminated, throughput has been speeded up and production rate
equals the customer requirement rate via the JIT segment of this hybrid
system.
No matter how complex the manufacturing process, as lead time
diminishes, the need for MRP reduces. MRP becomes increasingly
simplified and acts as the transition tool until its scheduling function
disappears as linking operations become feasible. In some job shop
situations implementing JIT fully may be impossible, thus opening the
door for this hybrid system. Even in an ideal JIT system, the benefits
of MRP cannot be ignored.
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L.
MANAGEMENT'S RESPONSIBILITY
The predominant reason for JIT failure is lack of commitment by top
management. JIT must be launched where there is absolutely no skepticism
about managements long-term commitment to JIT success. Employees recall
managements past track record on flavor of the month plans that died quietly
with little or no fanfare. The first time management compromises quality in
favor of quantity it will devastate the morale of the shop floor personnel. They
sense that managements main emphasis is money for products shipped, not
customer satisfaction, thus relegating JIT to a quiet death.
JIT must have a champion for its cause within every organization. Ideally, this
advocate would be the highest ranking person who applies to your situation,
i.e., the CEO at the corporate level, the division manager at the division level
or the plant manager at the plant level. Typically, the consciousness of JIT
penetrates the organization somewhere below this top level of management.
For the greatest chance of success, JIT should be presented to the top manager
as soon as possible. By initially teaming up with the top manager, he or she
will perceive ownership of the JIT concept, thus he or she will have a stronger
commitment to JIT. If the top management does not embrace the concept of
JIT, but rather it develops at the middle management level, the chance for
failure increases.
There are two key elements that are management's responsibility: motivation
and education. Management must use these elements to overcome the
reluctance to change by the employees and the natural fear that accompanies
change. Each level of the organization has different fears about JIT so each
level requires a different motivational approach. Management must understand
the apprehensions of people at every level and what actions can be taken to
gain their trust and commitment to join the JIT venture.
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1.
Motivation
Top managers should already be motivated by what they see as JITs
ability to produce more efficiently.
Upper and middle managers often feel they are caught between a
rock and a hard place. Top management is angry because JIT is not
progressing fast enough and the shop floor employees are mad because
they cannot perform the JIT miracles that middle management expects
of them. Middle managers have worked hard to gain the status that
they now have and feel threatened by the new JIT style. The means
to conquer these fears is trust. Middle management can be motivated
by knowing that top management is 100 percent dedicated to JIT, and
that top management is aware of the problems and will help solve
these problems. Finding these solutions often is not easy, but can be
accomplished by a motivated management staff working closely with
top management.
Why is motivating the shop floor personnel so difficult? Isnt JIT
involving them more in the decision making process and making
their jobs much easier? Until now shop floor personnel have made no
decisions, therefore have taken no risk of making the wrong decision.
Management must motivate these people by assuring them that
making a wrong decision is permissible as long as they learn from it.
Shop floor personnel also have major concerns about job security. If
operators are doing their own setups, where do the setup people go?
If top management says that everyone is responsible for quality, do the
quality control people lose their jobs? Top management should calm
these fears through a no-layoff guarantee. Management should also
form a partnership with all employees to earn their trust and motivate
them by communicating to them that the whole organization must
change, not just the shop floor personnel.
2.
Training
Management must convey to all employees why the organization is
being restructured. If the company is in trouble, management should
be honest with the employees. All employees should be trained in
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the reasons for and methods of JIT. Employees are more receptive
to JIT if they understand how pull systems, setup reduction, reduced
inventory, plant loading, shorter lead times, better quality, etc., can
lead to a larger market share, higher sales, and increased customer
satisfaction. Management should devise a structured approach for
training all employees in the principles of JIT. An employee in
purchasing may not need to know how to reduce setup time on a
particular machine but must know why this time must be reduced.
Management must also participate in training. Other than a complete
understanding of JIT principles, managers will need training in
modern management techniques, such as Total Quality Management
(TQM). Managers must develop the total quality mindset that will
allow them to lead the organization into JIT.
3. Leadership
Management must realize that actions speak louder than words. Any
conflict between managements words and managements actions
will be noticed by employees. If management feels that training is
important but misses a training session in favor of a higher priority,
it has sent a negative message to the employees. Top management
must demonstrate its commitment to JIT through long hours and hard
work. Managements actions should build employee trust, and trust is
the most important element of any plan.
M. IMPLEMENTING JIT
JIT implementation must start by creating a suitable environment for JIT to
flourish. A structure must be established whereby responsibility for problem
solving is appropriated to all levels of the organization. Shop floor personnel
will be asked to find solutions for shop floor problems and so on throughout
the organization. This reversal from traditional management style to a Total
Quality Management (TQM) style can only be accomplished through Total
Employee Involvement (TEI) and employee teams. TQM is a prerequisite to
JIT.
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1.
Forming Teams
The first team that should be established is the quality team sometimes
called the Executive Council or Quality Steering Committee. No matter
what you call it, the objectives of the top team will be the same. The
Steering Committee will address the issues with TQM implementation
(you are not ready for JIT yet) while attending to everyday organizational
issues as well. If possible, Steering Committee members should be
removed from the interruptions of everyday organizational decisions.
It is a proven fact that companies that allow their Steering Committees
to dedicate all their time to solving TQM/JIT implementation problems
have higher success rates and shorter implementation times.
The Steering Committee will be made up of high ranking officials
within the organization. They will assign teams from the workforce to
solve various implementation problems. The employees that constitute
these teams now have the power to make decisions that directly affect
productivity at their level. Team logistics will not be discussed in this
manual.
2.
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N. GLOSSARY
Batch Size The number of duplicate parts, components or finished goods
produced before a process is changed to produce different parts. Also known
as Lot Size.
Changeover Time The time it takes to go from production of one product to
production of a different product with acceptable quality, i.e., Setup Time.
Cross-training Educating employees to perform more than one job,
therefore, increasing flexibility in the workforce.
CRP Capacity Requirement Planning
Cycle Time The total time for a worker to complete one cycle of operations,
including walking, loading/unloading, inspecting, etc.
EOQ Economical Order Quantity
External Customer A person who has purchased a product from a company;
usually the end user of a product.
External Setup Setup steps done while the machine or system is
producing.
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Setup Time The interval between the production of one good part and the
production of another good but dissimilar part.
SFC (Shop Floor Control) Scheduling the operations performed on
a component between MRP II and finish dates; often called priority
sequencing.
SMED Single-Minute Exchange of Die A procedure for performing setup
operations in less than 10 minutes, i.e., in a single-digit number of minutes.
Not all setups can be completed in single-digit minutes, but this is the goal.
SPC (Statistical Process Control) A method of managing a process by
gathering information about it and using that information to correct the process
to prevent the same problem from happening again.
System Any organizational method, procedure or function for accomplishing
work.
Takt Time The total daily operating time divided by the total daily
requirement, usually expressed in hours, minutes or seconds per part.
TEI (Total Employee Involvement) 100% of workforce is placed on teams
formed to continuously improve quality in all aspects of an organization.
TQM Organized, continuous process improvement activities involving
an entire organization, managers and workers, in a totally integrated effort
to improve performance at every level focusing on customer satisfaction
(quality).
Value-adding Operation A function that adds value to a product, such as
milling and assembling.
Value Analysis A process for evaluating the interrelationships among the
functions performed by the product features and the associated costs.
Vendor Certification The procedure by which a partnership is formed
between the buyer and seller of a product. Strict criteria are established for
the seller and when these criteria are met the seller becomes certified.
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