LEAN PRODUCTION JIT (1)

Just-in-Time and Lean Production Systems

Global Company Profile: Green Gear Cycling

  • Designs and manufactures high-performance travel bicycles (bike-in-a-suitcase).

  • Focuses on mass customization with low inventory, work cells, and elimination of machine setups.

  • Aims for one-day throughput time with a major focus on quality.

Just-in-Time (JIT) and Lean Production

  • JIT is a philosophy for continuous problem-solving that supports lean production.

  • Lean production aims to supply customers with their exact wants, when they want it, without waste.

  • Key issues involve continual improvement and a pull system.

Suppliers and Partnerships

  • JIT partnerships focus on collaboration between suppliers and purchasers to eliminate waste and reduce costs.

  • Four main goals of JIT partnerships:

    • Elimination of unnecessary activities.

    • Elimination of in-plant and in-transit inventory.

    • Supportive relationships with suppliers to drive down costs.

JIT Layout and Operations

JIT Layout

  • Design layouts to reduce waste due to movement.

  • Work cells should integrate related tasks in small areas to minimize distance.

  • Communication and flexibility are essential elements of JIT layouts.

Distance Reduction

  • Replace large lots and long production lines with smaller, flexible cells.

  • U-shaped cells can enhance communication and efficiency.

Increased Flexibility

  • Cells are designed for rearrangement as volume or product designs change.

  • This concept applies to both production and office environments.

Impact on Employees

  • Cross-training employees leads to increased flexibility and efficiency.

  • Improved communications ensure important information about processes is shared promptly.

  • The emphasis on quality means minimal inventory as a buffer.

Reduced Space and Inventory

  • JIT requires maintaining minimal inventory levels, stressing continuous motion of units.

  • No inventory buffers means that operations must run smoothly at all times.

Inventory and Variability Reduction

Inventory Reduction Tactics

  • Use a pull system to manage inventory flow.

  • Lower lot sizes and develop just-in-time delivery systems with suppliers.

  • Increase scheduling accuracy and reduce setup times.

Variability Reduction

  • Managers need to minimize variability from internal and external sources.

  • Variability leads to inefficient processes and increased waste.

Causes of Variability

  1. Poor conformity to standards from employees, machines, or suppliers.

  2. Inaccurate engineering drawings or specifications.

  3. Premature production before specifications are complete.

  4. Uncertain customer demand.

Pull Versus Push Systems

Pull Systems

  • Use signals for production requests from upstream stations, producing only when needed.

  • Reduces inventory and highlights problems within the manufacturing cycle.

  • Focus on smaller lots helps expose issues.

Push Systems

  • In contrast, push systems produce based on projected demand, often leading to excessive inventory.

JIT Competitive Advantage

Key Requirements for JIT

  • Suppliers: Need fewer vendors and strong supportive relationships to ensure quality delivery.

  • Layout: Create work-cell layouts and maintain high organization levels to minimize space.

  • Inventory: Maintain small lot sizes and low setup times to stay agile.

  • Scheduling: Adhere strictly to schedules and implement Kanban techniques for smooth operations.

Outcomes of Effective JIT Implementation

  • Reduced queues and delays enhance throughput and asset utilization.

  • Improved quality leads to customer satisfaction and reduced waste.

  • Cost reductions improve pricing strategies and margins.

JIT Partnerships

Supplier Relationships

  • Build partnerships with fewer, nearby suppliers for consistency and quality.

  • Focus on long-term contracts and shared forecasts of demand.

Quality and Shipping

  • Minimal product specifications help suppliers meet quality requirements.

  • Utilize controlled inbound shipping for efficiency.

Quality Management in JIT

Quality Tactics

  • Implement statistical process control and empowerment of employees to maintain high quality.

  • Use fail-safe methods (poka-yoke) to ensure smooth operations and expose poor quality.

Empowerment of Employees

  • Empowered employees contribute significantly to operations, leading to higher commitment and improved performance.

Lean Production Techniques

Lean Differentiation from JIT

  • Lean production is more focused on customer needs whereas JIT is internally focused.

  • Both approaches use similar techniques for waste reduction and efficiency.

The 5 S's

  • Sort/Segregate - Organize workspace effectively.

  • Simplify/Straighten - Ensure productivity by arranging tools and resources strategically.

  • Shine/Sweep - Maintain cleanliness to aid efficiency.

  • Standardize - Establish standards for operations.

  • Sustain/Self-Discipline - Commit to continual improvement practices.

Seven Wastes

  • Includes overproduction, queues, transportation, inventory, motion, over-processing, and defective products.

  • Addressing these waste types provides a comprehensive perspective on efficiency and resource allocation.

JIT in Services

  • The application of JIT techniques to service industries focuses on similar principles as manufacturing - efficient scheduling, inventory management, and partnerships with suppliers.