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Just In TimeAlissa BrinkGabriela IasevoliJason OesterleJoey Tamburo
+What is Just-in-Time Inventory?
A philosophy that seeks to eliminate all types of waste, including carrying excessive levels of inventory and long lead times
A method of continuous improvement by driving out all added costs by decreasing inventory, as well as focusing on perfection
Comes from the indication of replacing material buffers just when they are needed and not before or after
Developed by Toyota Motor Company, called TPS
Works best with a production system
Three theories Minimize waste in all forms Continuously improve processes and systems Maintain respect for all workers
+Just-in Time In a Nutshell
Keeping work flows moving
Eliminating inventories
Reducing travel distances
Eliminating defects and scrap
Maximizing usage of space
+Features
Small lot sizes
Uniform workstation loads
Flexible workforce
Line flows
Consistent high quality
Close supplier ties
Standardized components and work methods
Pull method of materials flow
Preventative Maintenance
Automated Production
+The Basics of Just-in Time
What it is
What it does
What is requires
What it assumes
+What It Is
Management Philosophy
“Pull” system through the facility A work station pulls output from preceding station as
needed
+What It Does
Eliminates waste
Exposes problems
Achieves continuous production
+What It Requires
Total Quality Control
Small Lot Sizes
Industrial Engineering
Continuing Improvement
Employee Participation
+What It Assumes
Stable Environment
+Traditional vs. Just-In-Time Manufacturing
Capacity
Conversion System
Kanban
Layout
Workforce
Inventories
Suppliers
Planning and Control
Quality
Maintenance
Traditional Just In Time
+Manufacturing
Traditional Custom outputs System designs
Just In Time Designs and produce standard outputs
Standard hours Costs
Incremental Improvements Better design for manufacturability
Higher accuracy
+Capacity
Traditional Excess capacity Highly used Inflexible
Just In Time Waste is minimized Flexible Moderately used
+Conversion
Traditional Lots of space for inventory Long lead times Handling equipment Ex: Job shops
Just In Time Short lead times Cellular manufacturing Repetitive production Pull System: A work station pulls output from preceding
station as needed
PushLead
T ime Pull
+Kanban Means “signal”
Device that communicates demand for work or materials from the preceding station
This process allows for production to be “pulled” through the system
Rather than “pushed” out before it is needed
Focuses on scheduling and controlling the logistical chain
Example: Toyota Kanban Card
+Layout
Traditional Spread-out Equipment throughout facility Between the equipment is space for work in-progress
inventories Handling equipment required
Just In Time Machines and workers are very close, next to one another Minimal work in-progress through flow lines Manual transfer between stations after each unit
+Workforce
Traditional Employees have a competitive, stern attitude Employees expertise is only in one area Most of employee time is nonworking time
Just In Time Supportive attitudes Generally skilled flexible workers Work teams who can resolve multiple problems
+Inventories
Traditional Use space for large quantities
Push System
Just In Time Inventory is never seen
Pull System
+“Inventory Hides Problems”
Lowering inventory allows problems to be exposed
+Suppliers
Traditional Multiple suppliers Very Competitive
Just In Time Single-sourcing agreements Supplier is considered part of the team
+Planning and Control
Traditional Complex and computerized focus on “planning” Forecasting for an uncertain future
Just In Time Focus on “control” Simple procedures Responds to real time activity Flexible, quick operations
+Quality
Traditional Inspection at few points
Just In Time Inspection is done continuously through every step by
workers Zero defects is the goal
+Maintenance
Traditional Corrective maintenance: repairing machine only when it is
broken Experts are hired for just repairs
Just In Time Preventative maintenance: Service on machines before it is
expected to fail Maintenance is done by equipment operators
+McDonalds and JIT
McDonalds uses just in time Orders are only made as they are placed The total time to prepare a hamburger is a minute and a
half from the freezer to the customer’s hands Cook frozen patty in 40 seconds Condiments added to burger after cooked Burger is wrapped Cashier hands to the customer who ordered it
+Benefits of Just In Time
Make problems visible
Workforce improvements
Easy to halt production and switch to different products to meet customer demand
Lower costs by no inventory
Invest cash, rather than hold inventory
Less damage costs
+Potential Issues Implementing JIT
Need better information technology to coordinate the delivery of parts and materials
Response time of a massive and unexpected order
Need Regulation
Natural disasters could interfere with the flow of suppliers, stopping production
Philosophy of organization requires change
+Wrap Up
A method of continuous improvement by driving out added costs by decreasing inventory
Eliminate all types of waste
Leads to better customer satisfaction, better supply chain, and lower warehouse costs
Improve a business’s return on investment by reducing in-progress inventory and associated costs
Faster Cheaper
Better
Just In Time
Toyota Production System Video Example