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8/10/2019 Chapter 15 All
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Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Chapter 15
Lean
operations
and JIT
Source: Tibbet and Britten
8/10/2019 Chapter 15 All
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Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Lean operations and JIT
Operations
strategy
Design Improvement
Planning and
control
Operations
management
Lean operations and JIT
The operation supplies the delivery of products andservices only when needed
The market requires specified time, quantity and
quality of products and
services
8/10/2019 Chapter 15 All
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Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The key principle of lean operationsis relatively
straightforward to understand: it means moving
towards the elimination of all waste in order to
develop an operation that is faster and more
dependable, produces higher quality products
and services and, above all, operates at low cost.
8/10/2019 Chapter 15 All
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Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Synonyms
continuous flow manufacture
high value-added manufacture
stockless production
low-inventory production
fast-throughput manufacturing
lean manufacturing
Toyota production system
short cycle time manufacturingSource: Corbis/Denis Balihouse
8/10/2019 Chapter 15 All
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Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Traditional approach
JIT approach
stage A
orders
deliveries
orders
deliveries
JIT material flow
buffer
inventorystage B
buffer
inventorystage
C
stage A stage Cstage B
8/10/2019 Chapter 15 All
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Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
JIT
approach
focus on producing
only when needed
fewer stoppages
low inventory so
problems are
exposed and
solved
no surplus
production goes
into inventory
lower capacity
utilization, but
Traditional
approach
focus on high
capacity utilization
more stoppages
because of
problems
high inventory
means less chance
of problems being
exposed and solved
extra production
goes into inventory
because of continuing
stoppages at stages
more production
at each stage
JIT and capacity utilization
8/10/2019 Chapter 15 All
7/19Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
JIT aims to meet demand instantly, with perfect quality and no waste
JIT definitions
More fully:
Improved overall productivity and elimination of waste
Cost-effective production and delivery of only the
necessary quantityof parts at the right quality, at
the right timeand place, while using a minimum
amount of facilities, equipment, materials and
human resources
JIT is dependent on the balance between the
suppliers flexibility and the users flexibility
JIT is accomplished through the application of
elements that require total employee involvementand teamwork
A key philosophy of JIT is simplification
Source: Empics
8/10/2019 Chapter 15 All
8/19Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The lean philosophy of operations is the basis for JIT
techniques that include JIT methods of planning and control
The lean philosophy of operations
Eliminate waste Involve everyone Continuous
improvement
JIT as a set of techniques for managing
operationsBasic working practices
Design for manufacture
Operations focus
Small, simple machines
Flow layout
TPM
Set-up reduction
Total people involvement
Visibility
JIT supply
JIT as a method of
planning and control
Pull scheduling
Kanban control
Levelled scheduling
Mixed modelling
Synchronization
8/10/2019 Chapter 15 All
9/19Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The 5 Ss
Sort (Seiri) Eliminate what is not needed and keep what is needed.
Straighten (Seiton) Position things in such a way that they can beeasily reached whenever they are needed.
Shine (Seiso) Keep things clean and tidy; no refuse or dirt in the workarea.
Standardize (Seiketsu) Maintain cleanliness and orderperpetualneatness.
Sustain (Shitsuke) Develop a commitment and pride in keeping tostandards.
8/10/2019 Chapter 15 All
10/19Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Inventorylevel
Delivering smaller quantities more often can reduce
inventory levels
Inventory
level
8/10/2019 Chapter 15 All
11/19Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
operation
movement
inspection
storage
Activities:
Waste (muda) Which of these symbols signify non-value-adding activities?
influencing the throughput efficiency
Types of waste:
delay
over-production
waiting time
transport
process
inventory
motion
defective goods
8/10/2019 Chapter 15 All
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WIP
Defective
materials
ReworkScrap
Downtime
productivity
problems
WIP
Defective
materials
ReworkScrap
Downtime
productivity
problems
Reduce the level
of inventory (water)
to reveal the
operations problems
The problem with inventory
8/10/2019 Chapter 15 All
13/19Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Small machines
The conventional Western approach is to purchase large
machines to get economies of scale.
These often have long, complex set-ups, and make big
batches, quickly creating waste.
8/10/2019 Chapter 15 All
14/19Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
JIT small machines approach:
emphasis:flexibility
economies of scope
Using several small machines rather than one large one
allows simultaneous processing, is more robust
and is more flexible
easy to move (layout)
quick set-up
flexible scheduling options
cheaper tooling
fewer set-ups needed
planned maintenance easier
8/10/2019 Chapter 15 All
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8/10/2019 Chapter 15 All
16/19Slack, Chambers and Johnston, Operations Management 5thEdition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
complex
structures
simple
structures
JIT
MRP
JIT and/or
MRP
PERT
simple routings complex
routings
JIT, MRP, or both?
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8/10/2019 Chapter 15 All
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Key Terms Test
Single minute exchange of dies (SMED)
Alternative term for set-up reduction.
AndonA light above a workstation that indicates its state: whetherworking, waiting for work, broken down, etc. Andon lightsmay be used to stop the whole line when one stationstops.
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th
Key Terms Test
Kanban
Japanese term for card or signal; it is a simple controllingdevice that is used to authorize the release of materialsin pull control systems such as those used in JIT.
Levelled scheduling (Heijunka)
The idea that the mix and volume of activity should evenout over time so as to make output routine and regular,sometimes known by the Japanese term heijunka.