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JIT & Lean Manufacturing - ADDVALUE - Nilesh Arora
JIT & Lean Manufacturing - ADDVALUE - Nilesh Arora
by
Session Topics
What is JIT?
Benefits of JIT
Value Added Management
Push vs. Pull
Buffered vs. Lean Manufacturing
Performance Measures
What is Just-in-Time?
Management philosophy of continuous and
forced problem solving
Supplies and components are pulled through
system to arrive where they are needed when
they are needed.
Caused by variability
Deviation from optimum
By reducing inventory
What is Waste
Waste is anything other than the
minimum amount of equipment,
materials, parts, space, and
workers time, which are
absolutely essential to add value to
the product.
Shoichiro Toyoda
President, Toyota
Just-In-Time Manufacturing
JIT seeks to reduce waste. Waste is viewed as a
symptom of some unsolved problem. Types of waste
include:
Overproduction
Waiting Time
Movement
Inventory
Product Defects
Process Waste
Just-In-Time Manufacturing
JIT is used for many activities including:
Inventory Reduction
Quality Improvement
Lead Time Reduction
Continuous Improvement (Kaizen)
Preventive Maintenance
Benefits of JIT
Total
Time
Value
Non Value
Added TimeAdded Time
5%
Non Value-Adding
Value
Adding
Traditional Response
2%
98%
Value
Adding
Non Value-Adding
50%
50%
Non
Value
Adding
Value
Adding
Abbott Laboratories
Lockheed
Texas Instruments
Inventory
Traditional: inventory exists in case problems arise
JIT objective: Reduce inventory
JIT requires
Small lot sizes
Low setup time
Containers for fixed number of parts
Paperwork
backlog
Vendor
delinquencies Change
orders
Engineering design
redundancies
Inspection
backlogs
Design
backlogs
Decision
backlogs
14
Scrap
Capacity
Imbalances
Unreliable
Vendors
WIP
Scrap
Capacity
Imbalances
Unreliable
Vendors
Scrap
WIP
Capacity
Imbalances
Lot size = 5
Lot 2
Lot 1
Lot size = 2
Lot 1 Lot 2 Lot 3 Lot 4 Lot 5
Cost
Which Increases
Inventory Costs
st
o
C
l
a
t
o
T
t
s
o
C
g
n
i
d
Hol
Setup Cost
Smaller Optimal
Lot Size Lot Size
Lot Size
Setup Cost
New
optimal lot
size
Original
optimal
lot size
Lot Size
Minimizing Waste:
Reducing Setup Times
What are the consequences of long setup
times?
What are the advantages of short setup
times?
20
Step 2
Step 3
Step 4
Step 5
Push Scheduling
Moves an order to the next operation or work
center in its route immediately on
completion of the current activity whether
or not that work center can begin processing
it.
Process
Process
Process
Inv.
Work-In-Process
Staging Area
Work-In-Process
Staging Area
F
I
N
I
S
H
E
D
G
O
O
D
S
Inv.
Pull Scheduling
Orders are processed and transferred in
response to signals from downstream work
centers
Signal
M
A
T
E
R
I
A
L
Process
Process
Process
Inv.
Signal
Signal
Signal
FGI
C
U
S
T
O
M
E
R
D
E
M
A
N
D
Layout
JIT objective: Reduce movement of people and
material
Movement is waste!
JIT requires
Press
Saw
Saw
2
Heat
Treat
3
Press
6
Work Cell
2
Saw
Press
Lathe
Lathe
Grinder
Grinder
Grinder
Heat
Treat
Layout Tactics
Distance reduction
Increased flexibility
Impact on employees
Just-In-Time Manufacturing
WHAT IT IS
Management philosophy
Pull system though the plant
WHAT IT REQUIRES
Employee participation
Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes
WHAT IT DOES
Attacks waste
Exposes problems and bottlenecks
Achieves streamlined production
WHAT IT ASSUMES
Stable environment
Just-in-Time
People Management
Housekeeping
Control Through Visibility
Total Quality
Problem Solving
Employee Involvement
Technology Management
Structured Flows
Set-Up Reduction
Small Lot Sizes
JIT
Systems Management
Balanced Lines
TPM
Supplier Partnerships
Pull System
Buffered Manufacturing
Buffered Manufacturing Has Limited
Goals:
Acceptable Number Of Defects
Acceptable Inventory Levels
Limited Product Variety
Acceptable Levels Of Waste
Lean Manufacturing
Lean Manufacturing Seeks Perfection
Lean Manufacturing
Key Features Of Lean Manufacturing
Transfers Tasks To Workers Adding Value
Quickly Uncovers & Solves Problems
Employee Empowerment
Getting employees involved in product &
process improvements
JIT requires
Empowerment
Cross-training
Training support
Few job classifications
Lean Manufacturing
Basic Tenets of Lean Manufacturing
Value-Added Ratio
Setup Times & Number
Throughput Times
Quality
Delivery Speed & Reliability
Customer Focused
Drivers
Drivers
of
of
Competitive
Competitive
Mfg.
Mfg.
Production Focused
Process Focused
On-Time Delivery
Defects
Customer Satisfaction
Throughput
WIP
FGI
Lead Time
Measures
Measures
are
are
Stable
Stable
Capable
Capable
Improving
Improving
Value-Added Management
Process Flow Analysis - Focus on Time
Total Quality
Leadership - Culture- Customers- Suppliers - Process Improvement
People- Business Planning - Communication - Recognition
Homework Assignment
Estimate the value added ratio for some process in
your organization.
Identify 3 sources of waste in your operation? Is
it possible to eliminate the waste?
What performance measures do you use? Do the
measures help or hinder your continuous
improvement efforts? Can you suggest better
performance measures?
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