The JIT Revolution. Chapter 4. Just In Time (JIT)

Similar documents
Push and Pull Production Systems

Toyota Production System. Lecturer: Stanley B. Gershwin

Lean Principles by Jerry Kilpatrick

Does enterprise resource planning software support lean? ERP goes 44 TARGET AME.ORG/TARGET

Appendix Lean Glossary Page 1

APPLICATION OF KANBAN SYSTEM FOR MANAGING INVENTORY

AN INDUSTRIAL APPLICATION OF THE SMED METHODOLOGY AND OTHER LEAN PRODUCTION TOOLS

How To Understand Jidoka

Lean Manufacturing and Six Sigma

Increased Productivity of Tyre Manufacturing Process using Lean Methodology

Chapter 10 Just-in-Time JIT

VALUE STREAM MAPPING ICONS

times, lower costs, improved quality, and increased customer satisfaction. ABSTRACT

For Improved Efficiency, look at the supply Chain and Outsourcing Management

Connecting Assembly with Batch Processes Via Basic Pull Systems

Lean enterprise Boeing 737 manufacturing Lean Production System

Achieving Basic Stability By Art Smalley

Five Tips to Achieve a Lean Manufacturing Business

Tovota Production System: Beyond Large-Scale Production. by Taiichi Ohno

Value Stream Mapping

THE BEGINNER S GUIDE TO LEAN

VISUAL management techniques for optimum INVENTORY form, fit and function

Chapter 16 Inventory Management and Control

IMPACT OF PROCESS VARIABILITY ON LEAN MANUFACTURING SYSTEMS

Datasheet Electronic Kanban Ultriva vs. ERP ekanban Modules By Narayan Laksham

Lean Kitting: A Case Study

Chapter 11. MRP and JIT

Getting Started with Lean Process Management

VALUE STREAM MAPPING FOR SOFTWARE DEVELOPMENT PROCESS. Ganesh S Thummala. A Research Paper. Submitted in Partial Fulfillment of the

Louisiana Tech University Lean Manufacturing Courses

BSCM Sample TEST. CPIM(Certified In Production & Inventory Management) - 1 -

Manufacturing Flow Management

Inventory Management, Just-in-Time, and Backflush Costing

JUST IN TIME (JIT) CONTEXT A PHILOSOPHY, A PROCESS P6/341-I ORIGINS:

Understanding Manufacturing Execution Systems (MES)

Waterloo Agile Lean P2P Group

Lean Manufacturing Case Study with Kanban System Implementation

Glossary of Inventory Management Terms

Ten Steps to Lean Electrical Controls. a White Paper by J.E. Boyer Company, Inc.

NETWORK BUSINESS SYSTEMS SOFTWARE SYSTEM DOCUMENTATION MANUFACTURING SYSTEM FEATURES

Lean Manufacturing Essential Principles

TOYOTA PRODUCTION SYSTEM BASIC HANDBOOK

Small Lot Production. Chapter 5

The Thinking Approach LEAN CONCEPTS , IL Holdings, LLC All rights reserved 1

Hessel Visser NCOI Les 6 A P 373. Operations Management, 7E: Chapter 14 en15

"Kanban Do It Now but Do It Right" Workshop Illustrates the Importance of Kanban as a Tool in Lean Production

APPLICATION OF KANBAN SYSTEM FOR IMPLEMENTING LEAN MANUFACTURING (A CASE STUDY)

Lean Software Development and Kanban

L E A N M A N U F A C T U R I N G

Work Cells and Cellular Manufacturing

Lean manufacturing in the age of the Industrial Internet

Analyze Mix for Opportunities. Create Full Current State Value Stream Map. Create Full Future State Value Stream Map

INVENTORY CONTROL BY TOYOTA PRODUCTION SYSTEM KANBAN METHODOLOGY A CASE STUDY

Chapter 6. Inventory Control Models

How To Learn How To Manage A Business

Article Creating Basic Stability by Art Smalley, The Lean Enterprise Institute

Operations Management Part 12 Purchasing and supplier management PROF. NAKO STEFANOV, DR. HABIL.

The Tools of Lean - Value Stream Mapping

Lean Six Sigma Lean 201 Introduction. TECH QUALITY and PRODUCTIVITY in INDUSTRY and TECHNOLOGY

Going Lean the ERP Way

ANALYSIS OF THE POTENTIALS OF ADAPTING ELEMENTS OF LEAN METHODOLOGY TO THE UNSTABLE CONDITIONS IN THE MINING INDUSTRY

6. Workers hours are more according to employer s discretion

Lean manufacturing and ERP: How to leverage ERP to get lean

Operational Business Intelligence in Manufacturing

After this unit you should be able to answer following questions A. Concept Questions B. Short notes 1. Inventory and Inventory management 2.

Toyota Production System and what it means for business

Dependent vs Independent Demand. The Evolution of MRP II. MRP II:Manufacturing Resource Planning Systems. The Modules In MRP II System

Top reasons why ekanban should be a key element of your lean manufacturing plan

ERP Meets Lean Management

Business Challenges. Customer retention and new customer acquisition (customer relationship management)

Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology Madras

OPERATIONAL EXCELLENCE A KEY TO WORLD- CLASS BUSINESS PERFORMANCE

Introduction to Software Kanban

Lean Silver Certification Blueprint

LIGHTING UP the LEAN SUPPLY CHAIN: Pick-to-Light in Manufacturing Applications PREPARED IN CONJUNCTION WITH

QAD Enterprise Applications Standard and Enterprise Edition. Training Guide Lean Manufacturing

The Training Material on Logistics Planning and Analysis has been produced under Project Sustainable Human Resource Development in Logistic Services

ERP emphasizes organization, discipline, and control.

A REVIEW OF THE ADOPTION OF JUST-IN-TIME METHOD AND ITS EFFECT ON EFFICIENCY. C. ED HSU University of Texas Health Science Center at Houston

NEXT GENERATION MOBILITY IN MANUFACTURING

MRP, ERP och JIT. Styrningsnivåer. Johann Packendorff. The development of ERP. Increasing impact on the whole supply

Seradex White Paper A newsletter for manufacturing organizations April, 2004

Original source of publication:

Scrum vs. Kanban vs. Scrumban

MSc in Lean Operations. Module Descriptions

Warehouse Management in

Learning to see True Cost

Journal of Applied Science and Agriculture

This can be done by simply counting pieces in the line or subtracting total number of pieces loaded to total number of pieces unloaded from the line.

Lean and agile supply chain

Strategic Business Analysis

SC21 Manufacturing Excellence. Process Overview

Universidad del Turabo MANA 705 DL Workshop Eight W8_8_3 Aggregate Planning, Material Requirement Planning, and Capacity Planning

A Book Review: Lean Thinking by Womack and Jones

Lean Training Ideas for TECOM. The Marine Corps needs more training time. Industry best practices can improve our training pipeline.

Developing a Formidable Business / Continuous Improvement Methodology in Africa. By: Frederick O Popoola

Systems in Logistics

Accelerated Route to Lean Manufacturing

Chapter 12. Just-in-Time/Lean/The Theory of Constraints/Six Sigma

Transcription:

The JIT Revolution Chapter 4 1 Just In Time (JIT) I tip my hat to the new constitution Take a bow for the new revolution Smile and grin at the change all around Pick up my guitar and play Just like yesterday Then I get on my knees and pray WE DON'T GET FOOLED AGAIN! The Who 2 1

Origins of JIT Japanese firms, particularly Toyota, in 1970's and 1980's Taiichi Ohno and Shigeo Shingo Geographical and cultural roots Japanese objectives catch up with America (within 3 years of 1945) small lots of many models Japanese motivation Japanese domestic production in 1949 25,622 trucks, 1,008 cars American to Japanese productivity ratio 9:1 Era of slow growth in 1970's 3 Toyota Production System Pillars: 1. just-in-time, and 2. autonomation, or automation with a human touch Practices: setup reduction (SMED) worker training supplier relations quality control Mistake-proofing (baka-yoke) many others 4 2

Supermarket Stimulus Customers get only what they need Stock replenished quickly But, who holds inventory? 5 Auto-Activated Loom Stimulus Automatically detect problems and shut down Mistake-proofing Automation with a human touch 6 3

Zero Inventories Metaphorical Writing: The Toyota production wrings water out of towels that are already dry. There is nothing more important than planting trees of will. Shingo 1990 5W = 1H Ohno 1988 Platonic Ideal: Zero Inventories connotes a level of perfection not ever attainable in a production process. However, the concept of a high level of excellence is important because it stimulates a quest for constant improvement through imaginative attention to both the overall task and to the minute details. Hall 1983 7 The Seven Zeros Zero Defects: To avoid delays due to defects. (Quality at the source) Zero (Excess) Lot Size: To avoid waiting inventory delays. (Usually stated as a lot size of one.) Zero Setups: To minimize setup delay and facilitate small lot sizes. Zero Breakdowns: To avoid stopping tightly coupled line. Zero (Excess) Handling: To promote flow of parts. Zero Lead Time: To ensure rapid replenishment of parts (very close to the core of the zero inventories objective). Zero Surging: Necessary in system without WIP buffers. 8 4

JIT Goals Ideals Rather Than Just Enough Place a cap on in-process inventory by using some type of pull scheduling system. Level the production plan and provide a uniform product mix (run every model every day) The concept is that gauging progress against absolute ideals provides an incentive and a true measure of success 9 The Environment as a Control Constraints or Controls? machine setup times vendor deliveries quality levels (scrap, rework) production schedule (e.g. customer due dates) product designs Impact: the manufacturing system can be made much easier to manage by improving the environment. 10 5

Environment As a Control Rather than accept the environment as a given, JIT ideal requires that you proactively shape it. Make manufacturing systems easier to manage Run smaller lots via setup reduction Due dates are negotiated rather than taken as a given (use reserve capacity as a strategy--finite loading of facilities) 11 Environment As a Control Reduce the number of suppliers so you can work more closely with them. Establish a means of achieving frequent deliveries of small quantities from suppliers with no increased transportation costs Build process knowledge and capability rather than try to inspect in quality 12 6

Environment As A Control (Cont.) Have engineers with a breadth of knowledge so that integrated product/process development occurs naturally. -Japanese graduate engineer experience Serious setup reduction as a strategy and tactic was initiated in Japan. US is still not great at it! Major, major point A systems approach to transforming the manufacturing environment is a necessity and constant attention to detail over an extended period of time are fundamental. 13 Implementing JIT Production Smoothing: relatively constant volumes relatively constant product mix Final Assembly Schedule: 10,000 per month (20 working days) 500 per day (2 shifts) 250 per shift (480 minutes) 1 unit every 1.92 minutes 14 7

Implementing JIT (cont.) Production Sequence: Mix of 50% A, 25% B, 25% C in daily production of 500 units 0.5 500 = 250 units of A 0.25 500 = 125 units of B 0.25 500 = 125 units of C A B A C A B A C A B A C A B A C 15 Inherent Inflexibility of JIT Sources of Inflexibility: Stable volume Stable mix Precise sequence Rapid (instant?) replenishment Measures to Promote Flexibility: Capacity buffers Setup reduction Cross training Plant layout 16 8

Capacity Buffers Problems: JIT is intrinsically rigid (volume, mix, sequence) No explicit link between production and customers How to deal with quota shortfalls Buffer Capacity: Protection against quota shortfalls Regular flow allows matching against customer demands Two shifting: 4 8 4 8 Contrast with WIP buffers found in MRP systems 17 Setup Reduction Motivation: Small lot sequences not feasible with large setups. Internal vs. External Setups: External performed while machine is still running Internal performed while machine is down Approach: 1. Separate the internal setup from the external setup 2. Convert as much as possible of the internal setup to the external setup 3. Eliminate the adjustment process 4. Abolish the setup itself (e.g., uniform product design, combined production, parallel machines) 18 9

Cross Training Adds flexibility to inherently inflexible system Allows capacity to float to smooth flow Reduces boredom Fosters appreciation for overall picture Increase potential for idea generation 19 Workforce Agility Cross-Trained Workers: float where needed appreciate line-wide perspective provide more heads per problem area Shared Tasks: can be done by adjacent stations reduces variability in tasks, and hence line stoppages/quality problems 20 10

Plant Layout Promote flow with little WIP Facilitate workers staffing multiple machines U-shaped cells Maximum visibility Minimum walking Flexible in number of workers Facilitates monitoring of work entering and leaving cell Workers can conveniently cooperate to smooth flow and address problems 21 Layout for JIT Cellular Layout: Proximity for flow control, material handling, floating labor, etc. May require duplication of machinery (decreased utilization?) logical cells? Advanced Material Handling: Avoid large transfer batches Close coordination of physically separate operations Inbound Stock Outbound Stock 22 11

Focused Factories Pareto Analysis: Small percentage of sku s represent large percentage of volume Large percentage of sku s represent little volume but much complexity Dedicated Lines: for families of high runners Saw Lathe Mill Drill few setups Saw Mill Drill Paint little complexity Grind Mill Drill Paint Job Shop Environment: Weld Grind Lathe Drill for low runners Saw Grind Paint many setups poorer performance, but only Lathe on smaller portion of business Stores Stores Mill Drill Assembly Assembly Warehouse Warehouse 23 Total Quality Management Origins: Americans (Shewhart, Deming, Juran, Feigenbaum) Fertility of Japan: Japanese abhorrence for wasting scarce resources The Japanese innate resistance to specialists (including QA) Integrality to JIT: JIT requires high quality to work JIT promotes high quality identification of problems facilitates rapid detection of problems pressure to improve quality 24 12

Total Quality Management (cont.) Techniques: Process Control (SPC) Easy-to-See Quality Insistence on Compliance (quality first, output second) Line Stop Correcting One's Own Errors (no rework loops) 100 Percent Check (not statistical sampling) Continual Improvement Housekeeping (5 S s, Visual Control Systems) Small Lots Supplier Certification Total Preventive Maintenance (TPM. RCM) 25 Kanban Definition: A kanban is a sign-board or card in Japanese and is the name of the flow control system developed by Toyota. Role: Kanban is a tool for realizing just-in-time. For this tool to work fairly well, the production process must be managed to flow as much as possible. This is really the basic condition. Other important conditions are leveling production as much as possible and always working in accordance with standard work methods. Ohno 1988 Push vs. Pull: Kanban is a pull system Push systems schedule releases Pull systems authorize releases 26 13

KANBAN is a Visual Signal One of the Primary Tools of Lean Production 27 Kanban as a Vehicle for Process Improvement Kanban is a simple and visual system. Kanban transfers ownership back to the shop floor. With kanban, there is not one material plan but literally hundreds of individual material plans. Each kanban (part) has its own replenishment process. Improvements come one part or one supplier at a time. 28 14

KANBAN ~means Visual Signal There are two basic types of Kanban Signals: 1. In-Process Kanban ~ a visual signal to pace the movement of products in a flow manufacturing process 2. Material Kanban ~ a visual signal to replenish materials consumed in a lean production process KANBAN CARD ID: 0 *0* LOTSIZE NUMBER: 1 of 4 PART NAME: MODULE 69NT Supply Point: Supply B *Supply B* USAGE POINT: USAGE C *USAGE C* Production Unit of Lot PART NO: 12-00327-09 12-00327-09 KANBAN QUANTITY: 3 *3* CONTAINER TYPE: BOX Notes: NOTE 1 PRINT DATE: 3/16/95 REF. DRAWING NO.: dw1234 REVISION NO.: dr987 RED 29 Material Kanban Types Withdrawal Kanbans Production Kanbans Supplier Kanbans blue red green 30 15

How Three Types of Kanban Work Together Blue = Withdrawal Kanban (WK) Red = Production Kanban (PK) Green = Supplier Kanban (SK) IB = Initial Buffer FB = Final Buffer supplier planner (fax) IB SK Process #1 FB PK attach WK IB WK Process #2 FB PK FIFO Kanban Order Post Kanban Receiving Post 31 How Three Types of Kanban Work Together (Cont.) When container in the initial buffer is opened or is empty, the withdrawal kanban is removed from the container (or container and card positioned in signaling location) and used to requisition material from final buffer of previous operation. The withdrawal kanban is placed on the container pulled from the final buffer (production kanban taken off container to trigger production, placed on receiving post) of previous process and taken to initial buffer of next process. The production kanban is placed in the receiving post (FIFO) and acts to schedule production. The supplier kanban acts just like a withdrawal kanban, except that the upstream process is an external supplier. 32 16

Kanban Calculations Number of Kanbans = D x (1 + SF) x KCT Kanban Size D x (1 + SF) x KCT = +1 Kanban Size Signal = Full Container Opened Signal = Container Empty D = Average Demand SF = Safety Factor KCT = Kanban Cycle Time (time for material to be replenished once a signal has been received) Signal could be: empty container container opened full container taken away Number of kanbans = number of cards (not necessarily full containers) required for system to work If the number of kanbans = 2, then: Kanban Size = D x (1 + SF) x KCT 2 33 Interaction Between Production Kanban and Withdrawal Kanban Operation #1 Operation #2 Withdrawal Kanban Production Kanban Withdrawal Kanban Production Kanban Production Rate = 1 unit / 5 seconds = 0.2 units / second Kanban Size = 6 units Production Rate = 1 unit / 10 seconds = 0.1 units / second Kanban Size = 6 units Let Safety Factor = 10% Kanban Cycle Time = 30 seconds 34 17

Interaction Between Production Kanban and Withdrawal Kanban Withdrawal kanban - signal when container is opened Number of Kanbans = = D (1+SF) KCT Kanban Size Withdrawal kanban - signal when container is empty Number of Kanbans = = Withdrawal kanban - signal when container is empty & KCT = 120 seconds Number of Kanbans = = 35 Interaction Between Production Kanban and Withdrawal Kanban Production Kanban Production Rate = 0.20 units / second Demand Rate = 0.10 units / second (a) Waiting time to work into schedule Average Time =? Time (sec.) % Total 60 40 70 30 80 30 (b) Run Time =? Number of Kanbans = = D (1+SF) KCT Kanban Size 36 18

How else can I make the pull system work? Interchange the production kanban and withdrawal kanban. Production KCT Withdrawal KCT Do not interchange the production kanban and withdrawal kanban. Withdrawal kanbans for materials pull from warehouse Production Kanban Flow Likely greater variability in KCT! 37 The Lessons of JIT The production environment itself is a control Operational details matter strategically Controlling WIP is important Speed and flexibility are important assets Quality can come first Continual improvement is a condition for survival 38 19