JIT AND LEAN OPERATIONS

GROUP-2

ABHISHEK UNNIKRISHNAN SHANTANU KUMAR SOURAV SARDAR SWATI SHUKLATERESA GEORGE MATTAM

JIT/LEAN OPERATIONS

Just-in-time (JIT):

A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed.

Lean Operations:

A highly co-ordinated system that uses minimal resources and produces high quality goods or services.

ELEMENTS OF JIT(INTRO)

Smooth flow of work (the ultimate goal).

Elimination of waste.

Continuous improvement.

Eliminating anything that does not add value.

Simple systems that are easy to manage.

Use of product layouts to minimize moving materials and parts.

Quality at the source.

Poka-yoke – fail safe tools and methods.

Preventative maintenance.

Good housekeeping

Set-up time reduction

Cross-trained employees

A pull system

CONTD.

OVERVIEW OF JIT GOALS AND BUILDING BLOCKS

Product Design

ProcessDesign

PersonnelElements

Manufactur-ing Planning

Eliminate disruptions

Make the system flexible Eliminate waste

Abalancedrapid flow

UltimateGoal

SupportingGoals

BuildingBlocks

SUPPORTING GOALS

Eliminate disruptions.

Make system flexible .

Eliminate waste, especially excess inventory.

SOURCES OF WASTE

Overproduction. Waiting time. Unnecessary transportation. Processing waste. Inefficient work methods. Product defects.

KAIZEN PHILOSOPHY

Waste is the enemy.

Improvement should be done gradually and continuously.

Everyone should be involved.

Built on a cheap strategy.

Can be applied anywhere.

Supported by a visual system.

Focuses attention where value is created.

Process oriented.

Stresses main effort of improvement should come from new thinking and work style.

The essence of organizational learning is to learn while doing.

CONTD.

BUILDING BLOCKS OF JIT

Product design. Process design. Personnel/organizationalelements. Manufacturing planning and control.

PRODUCT DESIGN

Standard parts- Fewer parts to deal with, training time and costs are reduced.

Modular design- Cluster of parts treated as single part. Simplifies assembly, purchasing, handling and training. Highly capable production systems-Quality must be embedded in goods and processes.

Concurrent engineering- Reduce disruptions to operations.

PROCESS DESIGN Small lot sizes. Setup time reduction. Manufacturing cells. Limited work in process. Quality improvement. Production flexibility. Balanced system. Little inventory storage. Fail-safe methods.

PERSONNEL/ORGANIZATIONAL ELEMENTS

Workers as assets. Cross-trained workers. Continuous improvement. Cost accounting. Leadership/project management.

MANUFACTURING PLANNING AND CONTROL

Level loading. Pull systems. Visual systems. Limited work-in-progress. Close vendor relationships. Reduced transaction processing. Preventive maintenance.

PUSH/PULL SYSTEMS

Pull system:

System for moving work where a workstation pulls output from the preceding station as needed. (e.g. Kanban)

Push system:

System for moving work where output is pushed to the next station as it is completed.

VISUAL SYSTEMS

Kanban is the Japanese word meaning “signal” or “visible record”Kanban Card or other device that communicates demand for work or materials from the preceding stationPaperless production control systemAuthority to pull, or produce comes from a downstream process.

LIMITED WORK-IN-PROGRESS

Benefits:

Lower carrying costsIncreased flexibilityHelps in schedulingSaves cost of rework and scrap

Two general approaches:Kanban – focuses on individual work stations

Constant work in process (CONWIP) – focuses on the system as a whole

CLOSE VENDOR RELATIONSHIPS

JIT systems typically have close relationships with vendors, who are expected to provide frequent small deliveries of high quality goods.

Under JIT purchasing, good vendor relationships are very important. Buyers take measures to reduce list of suppliers and maintain long term relationships.

TRADITIONAL SUPPLIER NETWORK

BuyerBuyer

SupplierSupplierSupplierSupplier SupplierSupplier SupplierSupplier

SupplierSupplier

SupplierSupplierSupplierSupplier

TIERED SUPPLIER NETWORK

SupplierSupplier

SupplierSupplier

SupplierSupplier

SupplierSupplierSupplierSupplier SupplierSupplier

BuyerBuyer

SupplierSupplierFirst Tier Supplier

Second Tier Supplier

Third Tier Supplier

PREVENTIVE MAINTENANCE AND HOUSEKEEPING

Preventative maintenance: Maintaining equipment in good condition and replacing parts that have a tendency to fail before they actually fail.

Housekeeping: Maintaining a workplace that is clean and free of unnecessary materials.

HOUSEKEEPING-5 S’s

1. Sort- Decide which items are needed for a work and keep only those items

2. Straighten- Organize the workplace so that necessary items can be accessed easily.

3. Sweep- Keep the workplace clean and ready for work.

4. Standardize- Use standard instructions and procedures.

5. Self-discipline- Make sure that employees understand the need for an uncluttered work place.

TRANSITIONING TO A JIT SYSTEM

Get top management commitmentDecide which parts need most effortObtain support of workersStart by trying to reduce setup timesGradually convert operationsConvert suppliers to JITPrepare for obstacles

OBSTACLES TO CONVERSION

Management may not be committedWorkers/management may not be cooperativeDifficult to change company cultureSuppliers may resist

JIT IN SERVICES

The basic goal of the demand flow technology in the service organization is to provide optimum response to the customer with the highest quality service and lowest possible cost.

Eliminate disruptionsMake system flexibleReduce setup and lead timesEliminate wasteMinimize WIPSimplify the process