13

Just-In-Time Production

• Management philosophy• Pull system though the plant

WHAT IT IS

• Employee participation• Industrial engineering/basics• Continuing improvement• Total quality control• Small lot sizes

WHAT IT REQUIRES

• Attacks waste• Exposes problems and bottlenecks• Achieves streamlined production

WHAT IT DOES

• Stable environment

WHAT IT ASSUMES

11

Minimizing Waste: JIT Production

Produce...

...what is needed...

...when it’s needed...

...NOTHING MORE!

6

Waste--Operations

(1) Waste from overproduction

(2) Waste of waiting time

(3) Transportation waste

(4) Inventory waste

(5) Processing waste

(6) Waste of motion

(7) Waste from product defects

15

Minimizing Waste: Kanban Production Control Systems

A

B

Machine Center Assembly Line

Storage

ProductionKanban

WithdrawalKanban

27

JIT Requirements: Work with Vendors

Reduce lead times

Frequent deliveries

Project usage requirements

Quality expectations

28

JIT Requirements: Reduce Inventory More

Stores

Transit

Carousels

Conveyors

29

JIT Requirements: Improve Product Design

Standard product configuration

Standardize and reduce number of parts

Process design with product design

Quality expectations

9

Partnership Relationship

Continuing relationship involving

– a commitment over an extended time period,

– an exchange of information, and

– an acknowledgement of the risks & rewards of the relationship.

11

JIT Purchasing--Requirements

Reduced lot sizes

Frequent and reliable delivery schedules

Reduced and highly reliable lead times

Consistently high quality levels for purchased materials

12

JIT Purchasing--Suppliers

Fewer, nearby suppliers

Repeat business

Support suppliers’ competitiveness

Clusters of remote suppliers

Limit competitive bidding to new parts

Resist vertical integration

Encourage suppliers to implement JIT purchasing

13

JIT Purchasing--Quantities

Steady output rate (a desirable prerequisite)

Frequent deliveries in small lot quantities

Long-term contract agreements with minimal release paperwork

Deliver quantities variable from release to release but fixed for whole contract term

14

JIT Purchasing--Quantities (Ctd)

Little or no permissible overage or underage of receipts

Suppliers encouraged to package in exact quantities

Suppliers encouraged to reduce their production lot sizes (or store unreleased material)

15

JIT Purchasing--Quality

Minimal product specifications imposed on supplier

Help suppliers to meet quality requirements

Close relationships between buyers' and suppliers' quality assurance people

Suppliers encouraged to use process control charts instead of lot sampling inspection

16

JIT Purchasing--Shipping

Scheduling of inbound freight

Gain control by use of – company-owned or contract shipping– contract warehousing– trailers for freight consolidation/storage

17

JIT Purchasing--Benefits

Consistent quality

Savings on resources

Lower costs

Special attention

Saving on tooling

Loyalty associated with long-term relationships with suppliers