Transcript Just-in-Time Systems

Just-in-Time Systems
Reducing Variance, Waste and
Lead Time in the Supply Chain
Topics to be Covered
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Review of JIT & Waste
Objectives of JIT
JIT Principles
JIT and Variance
JIT Tools and Procedures
JIT: Definitions?
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JIT Head
Chicken JIT
Oh JIT (O´JIT)
Tough JIT
Strate JITs
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JIT Planes
Bull JIT
Le JIT
JIT Lag
When the JIT hits
the fan.
What is JIT?
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a corporate system designed to produce
output within the minimum lead time and at
the lowest total cost by continuously
identifying and eliminating all forms of
corporate waste and variance.
a corporate strategy
a philosophy
Focus of JIT:
• variance & waste
Waste Types
Chrysler Video on Waste
Seven Basic Types of Waste
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Transportation waste
Process Waste
Inventory Waste
Waste of motion
Waste from product defects
Waiting time
Overproduction
Common Causes of Waste
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Layout (distance)
Long setup time
Incapable processes
Poor maintenance
Poor work methods
Lack of training
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Inconsistent
performance
measures
Ineffective
production planning
Lack of workplace
organization
Poor supply
quality/reliability
Objective of JIT
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Produce only the products the customer
wants.
Produce products only at the rate that
the customer wants them.
Produce with perfect quality
Produce with minimum lead time.
Produce products with only those
features the customer wants.
Objectives
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Produce with no waste of labor, material
or equipment -- every movement must
have a purpose so that there is zero idle
inventory.
Produce with methods that allow for the
development of people
JIT Principles
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Create flow production
• one piece flow
• machines in order of processes
• small and inexpensive equipment
• U cell layout, counter clockwise
• multi-process handling workers
• easy moving/standing operations
• standard operations defined
JIT Principles - Slide 2
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Establish “TAKT” time
• rate at which the customer buys a
product
Build Pull Product
• use of kanban system
JIT Tactics
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Single Minute
Exchange of Dies
(SMED)
Statistical Process
Control
Use of standard
containers
Doable stable schedules
with adequate visibility
TAKT-Time
5-S Program
Kaizen Event
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Visual control
Flexible workers
Tools at the point of
need
Product redesign
Group Technology
Total Productive
Maintenance
Balanced Production
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Three elements
• TAKT time
• Work sequence
• Standard WIP
Objective
• Build at rate that the customer wants work
• Balance the system to maximize
efficiency at this rate
TAKT Time Example
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Net Available Operating Time
• Time per shift
480´ (minutes)
• Breaks (2 @ 10´) - 20´
• Clean-up
- 20’
• Lunch
- 30’
• NAOT/shift
410´
Customer Requirements
• Monthly
26,000 units/month
• No. Working Days
20 days/month
• CR/Day
1,300 units/day
TAKT Time
• 410’ x 60” x 3 shifts (73,800) divided by 1,300
• 57.769 seconds per part or 57"
TAKT Time
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TAKT
• the beat
• (Net Available Operating Time) /
Customer Requirements
• time periods must be consistent
Example of calculation
SMED
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Setup reduction
Elements
• Internal Setup
• setup while machine idle
• External Setup
• setup while machine busy
• Adjustment
• run-ins, calibration
SMED Process
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Study current process
• “as is”
• video tape
• Who owns the video tape?
Convert internal to external setup
Eliminate the need for Adjustment
Eliminate need for fastening
Goal
• setup time < 10 minutes
Push Vs. Pull Scheduling
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Push Scheduling
• traditional approach
• “move the job on when finished”
• problems - creates excessive inventory
Pull scheduling
• coordinated production
• driven by demand (pulled through system)
• extensive use of visual triggers
(production/withdrawal kanbans)
Visual Control
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A system for making problems obvious
without the need for sophisticated monitoring
computer systems
• Andon light system
• Kanbans
Create a sense of urgency
Clearly identify where the problems are
located
Supplier Partnerships
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Reliance on suppliers for
• problem solving expertise
• quality at the source
• timely communication
• participants in cost reduction
programs
Increased reliance on supplier
certification
Standardization/Simplification
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Eliminate inherent sources of variance
eliminate opportunity for human discretion
error
Examples
• Container sizes
• MacDonalds with interaction with
customers
Consistent with Deming Wheel
• Standarize  expose problems  solve
problems  implement new methods
Other Techniques
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Milk runs
Poka-Yoke Systems
Continuous Improvement Programs
(CIP)
Video
JIT at McDonalds
JIT - Day 2
New Developments in JIT
JIT & Lean Manufacturing
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Lean Manufacturing
• Doing more with less
• Less of:
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materials, time, resources
overhead, people
waste
money
JIT is a subset of Lean Manufacturing
Now seen as most applicable to mass
production settings
Kaizen Event
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A relatively new concept
• Kaizen Blitz, Gemba Kaizen
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Process focused
Operates at two levels
• on-going process of identifying opportunities for
improvement
• strategic, top management
•short-term project lasting 1-4 days
• training, documentation of process “as is”, identification of
potential improvements, implementation, presentation, action
list
Kaizen Events - Key Traits
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Very short-term, finite in life
Highly focused
Creativity before capital
Team-oriented
Action-Oriented
Verifiable Metrics
Repetitive
Kaizen Event Process
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Top management buy-in
• Public Kaizen Events
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Assessment of current processes
• top management
• Target Processes
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training
documentation - “as is”
opportunities
change
presentation/action list
Typical Metrics
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Floor space occupied by process being
assessed
Operators required per day
Distance traveled by an order within the
process
WIP Inventory
Setup (measured in minutes)
Quality recommendations generated
Safety Improvements implemented
Application of Kaizen Events
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Shop floor
Finance
• 401 K plan
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Purchasing
Health Care
Services
Example of Impact of Kaizen
Event
Impact of Kaizen Events - Overall Benefits
(January 1, 1996 through December 31, 1996
Improvement M________
Before Kaizen
Achievement
Improvement
Floor Space ( )
56,000
39,000
30%
Operators/Day
165
125
24%
Distance Traveled
91,000 ft.
15,000 ft.
34%
Inventory (WIP pieces)
4,760,000
2,570,000
46%
Setup Time Reduction
1,660 _______
1,660 _________
72%
Safety Improvements
200 improvements implement
JIT 11
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Based on system developed by Bose of
Framingham, MA
Integration of JIT principles and
practices into the supply chain
JIT II
• long term collaborative relationships with
suppliers present
• suppliers to place personnel in plants of
the buying organization
Limitations of JIT
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Preconditions to JIT
• trust must be present
• labor/management
• suppliers/consumers
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recognition of processes
familiarity with problem solving
quality at the source
agreement over value and waste
Limitations of JIT
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Right Settings
• applicable in growth to maturity phases of
Product Life Cycle
• standard product
• Steinway and JIT
• standard/fixed pay-rate
• problems with piece-rate scheme
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Universal agreement that change
needed
Theoretical Benefits of JIT
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Unpleasant surprises
eliminated
Less computerization
• visual control
Improved quality
WIP reduced
Better
communications
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Less pressure on receiving
docks and incoming
inspection areas
Lower costs
Change in attitude
• Defects are treasures
Dealing with Variance
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Four major stances:
• Buffer against it
• Ignore it
• Manage it
• Eliminate it
All forms of variance create cost
JIT & Variance
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Variance a fact of life
Comes from many sources
• internal
scheduling changes, scheduling practices,
manufacturing planning & control systems,
absenteeism, process variability
• external
changes in forecasts, actual demand, customer
requested changes, government, competition,
vendors
Cycle Times
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Operator Cycle Time
• total time required for a worker to
complete one cycle of an operation
Machine Cycle Time
• total time for a machine to finish
one
complete cycle
• includes loading and unloading
Some Interesting Calculations
• No. of Operators
• Sum OCT/(TAKT TIME)
• Example
• OCT for Operator
• OCT for Operator
• OCT for Operator
• OCT for Operator
• Total
1=
2=
3=
4=
43"
13"
9"
11"
10"
• TAKT Time
• Number of Operators
• 43/16.5 = 2.606 or 3 operators
16.5"
The 5-S Program
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Seiri
• segregate and discard
• get rid of what is not needed
Seiton
• arrange and identify for ease of use
• a place for everything and everything in its
place
Seiso
• Clean Daily
• clean work place enhances quality
The 5-S Program
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Seiketsu
• Revisit frequently
• revisit the first 3 steps to maintain
workplace safety and effectiveness
Shitsuki
• Motivate to sustain
• promote adherence through visual
performance measurement tools
Next Day
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JIT in Service Sectors
New developments in JIT
• Lean Manufacturing
• Agile Enterprise
• JIT II
• Gemba Kaizen
• Quick Response Systems
Topics to be Covered
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JIT and Lean Manufacturing
JIT in Services
Kaizen Events
JIT II
Gemba Kaizen
Agile Enterprise
Limitations of JIT
JIT in Services
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Service Traits
• strong emphasis on process
• avoidance of inventory
• emphasis on people and their importance
to process
• recognition of need for continuous
improvement
• “defects are treasures”
JIT in Services
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Elements of JIT most applicable
• Synchronization and balance of
information and work flows
• Total visibility of all components of the
process
• Continuous improvement of the process
• Holistic approach to the elimination of
waste
• Flexibility in use of resources
• Respect for people
JIT in Services
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Key Issues
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Equipment/people focus
Customer contact per transaction
Degree of discretion
Degree of customization
Location of value-added processes
Product/process focus
Gemba Kaizen
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Waste reduction through the execution
system
Gemba
• heart of the system
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Essence of Gemba Kaizen
• to eliminate waste, you must have
contact with the system that you are
managing
• the contact must be real and not through
computers
Agile Enterprise
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New development
Associated with Iaccoca Institute of
LeHigh University
Merging flexibility with JIT
Much broader than Lean Enterprise
Recognition that the environment
• always changing
• unpredictably undergoing change
Agile Enterprise - Traits
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Rapidly bring to market products that are
variable combinations of hardware,
information and services.
Design products that are easily configurable
and ungradable.
Produce to individual customer orders in
arbitrary order quantities.
Bring out a continuously changing array of
models within longer-lived product families
Agile Enterprise - Traits
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Fragment mass markets into niche markets.
Maintain and foster continuous, rather than
single-instance, sales relationships by
continually adding value to current
customers.
Cooperate intensively with other companies,
including competitors, to create global
product resources.
Agile Enterprise
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Attempt to bring together a number of
different trends
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greater focus on product development
greater reliance on suppliers
greater concern with speed
more emphasis on effective and intelligent
integration
• greater use of technology
• information
Other Tactics
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Kaizen/Continuous Improvement
Manufacturing Cells
Business Process Reengineering
Milk run logistics
Supplier certification
Direct delivery to point of use