Operations Management Chapter 16

8/19/2019 Operations Management Chapter 16

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© 2008 Prentice Hall, Inc. 16 – 1

OperationsManagement Chapter 16 –Chapter 16 –JIT and LeanJIT and Lean

OperationsOperationsPowerPoint presentation to accompanyPowerPoint presentation to accompany

Heizer/enderHeizer/ender

Princip!es o" Operations Management# $ePrincip!es o" Operations Management# $e

Operations Management# %eOperations Management# %e


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O&t!ine – Contin&ed O&t!ine – Contin&ed

J&st*in*TimeJ&st*in*Time

JIT PartnershipsJIT Partnerships

Concerns o" +&pp!iersConcerns o" +&pp!iers

JIT Layo&t JIT Layo&t

0istance ed&ction0istance ed&ction

Increased !e2i(i!ity Increased !e2i(i!ity

Impact on ,mp!oyeesImpact on ,mp!oyees

ed&ced +pace and In.entory ed&ced +pace and In.entory


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JIT In.entory JIT In.entory

ed&ce aria(i!ity ed&ce aria(i!ity

ed&ce In.entory ed&ce In.entory ed&ce Lot +izesed&ce Lot +izes

ed&ce +et&p Costsed&ce +et&p Costs

JIT +ched&!ing JIT +ched&!ing

Le.e! +ched&!esLe.e! +ched&!es

3an(an3an(an


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JIT 4&a!ity JIT 4&a!ity

Toyota Prod&ction +ystemToyota Prod&ction +ystem

Contin&o&s Impro.ement Contin&o&s Impro.ement espect "or Peop!eespect "or Peop!e

+tandard -or5 Practices+tandard -or5 Practices

Lean OperationsLean Operations

&i!ding a Lean Organization&i!ding a Lean Organization

Lean Operations in +er.icesLean Operations in +er.ices


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Learning O(7ecti.esLearning O(7ecti.es

-hen yo& comp!ete this chapter yo&-hen yo& comp!ete this chapter yo&sho&!d (e a(!e to)sho&!d (e a(!e to)

1818 0e"ine 7&st*in*time# TP+# and !ean0e"ine 7&st*in*time# TP+# and !eanoperationsoperations

9898 0e"ine the se.en wastes and the0e"ine the se.en wastes and the: +s: +s

;8;8 ,2p!ain JIT partnerships,2p!ain JIT partnerships


7/62© 2008 Prentice Hall, Inc. 16 – 7

Learning O(7ecti.esLearning O(7ecti.es

-hen yo& comp!ete this chapter yo&-hen yo& comp!ete this chapter yo&sho&!d (e a(!e to)sho&!d (e a(!e to)

:8:8 0e"ine 5an(an0e"ine 5an(an

6868 Comp&te the re=&ired n&m(er o"Comp&te the re=&ired n&m(er o"5an(ans5an(ans

$8$8 ,2p!ain the princip!es o" the Toyota,2p!ain the princip!es o" the ToyotaProd&ction +ystemProd&ction +ystem



Toyota Motor CorporationToyota Motor Corporation

Largest .ehic!e man&"act&rer in theLargest .ehic!e man&"act&rer in thewor!d with ann&a! sa!es o" o.er %wor!d with ann&a! sa!es o" o.er %mi!!ion .ehic!esmi!!ion .ehic!es

+&ccess d&e to two techni=&es# JIT+&ccess d&e to two techni=&es# JITand TP+ and TP+

Contin&a! pro(!em so!.ing is centra!Contin&a! pro(!em so!.ing is centra!

to JIT to JIT ,!iminating e2cess in.entory ma5es,!iminating e2cess in.entory ma5es

pro(!ems immediate!y e.ident pro(!ems immediate!y e.ident



Toyota Motor CorporationToyota Motor Corporation

Centra! to TP+ is a contin&ing e""ortCentra! to TP+ is a contin&ing e""ortto prod&ce prod&cts &nder idea!to prod&ce prod&cts &nder idea!conditionsconditions

espect "or peop!e is "&ndamenta! espect "or peop!e is "&ndamenta!

+ma!! (&i!ding (&t high !e.e!s o"+ma!! (&i!ding (&t high !e.e!s o" prod&ction prod&ction

+&(assem(!ies are trans"erred to the+&(assem(!ies are trans"erred to theassem(!y !ine on a JIT (asisassem(!y !ine on a JIT (asis

High =&a!ity and !ow assem(!y timeHigh =&a!ity and !ow assem(!y time

per .ehic!e per .ehic!e



J&st*In*Time# TP+# andJ&st*In*Time# TP+# and

Lean OperationsLean Operations JIT is a phi!osophy o" contin&o&s andJIT is a phi!osophy o" contin&o&s and

"orced pro(!em so!.ing .ia a "oc&s on"orced pro(!em so!.ing .ia a "oc&s on

thro&ghp&t and red&ced in.entory thro&ghp&t and red&ced in.entory TP+ emphasizes contin&o&sTP+ emphasizes contin&o&s

impro.ement# respect "or peop!e# andimpro.ement# respect "or peop!e# andstandard wor5 practicesstandard wor5 practices

Lean prod&ction s&pp!ies theLean prod&ction s&pp!ies thec&stomer with their e2act wants whenc&stomer with their e2act wants whenthe c&stomer wants it witho&t wastethe c&stomer wants it witho&t waste



J&st*In*Time# TP+# andJ&st*In*Time# TP+# and

Lean OperationsLean Operations JIT emphasizes "orced pro(!emJIT emphasizes "orced pro(!em

so!.ing so!.ing

TP+ emphasizes emp!oyeeTP+ emphasizes emp!oyee!earning and empowerment in an!earning and empowerment in anassem(!y*!ine en.ironment assem(!y*!ine en.ironment

Lean operations emphasizeLean operations emphasize&nderstanding the c&stomer &nderstanding the c&stomer



,!iminate -aste,!iminate -aste

-aste is anything that does not-aste is anything that does notadd .a!&e "rom the c&stomer pointadd .a!&e "rom the c&stomer point

o" .iew o" .iew +torage# inspection# de!ay# waiting+torage# inspection# de!ay# waiting

in =&e&es# and de"ecti.e prod&ctsin =&e&es# and de"ecti.e prod&cts

do not add .a!&e and are 1>>?do not add .a!&e and are 1>>?wastewaste



Ohno@s +e.en -astesOhno@s +e.en -astes

O.erprod&ctionO.erprod&ction

4&e&es4&e&es

TransportationTransportation

In.entory In.entory

MotionMotion

O.erprocessing O.erprocessing

0e"ecti.e prod&cts0e"ecti.e prod&cts



,!iminate -aste,!iminate -aste

Other reso&rces s&ch as energy#Other reso&rces s&ch as energy#water# and air are o"ten wasted water# and air are o"ten wasted

,""icient# ethica!# and socia!!y,""icient# ethica!# and socia!!yresponsi(!e prod&ction minimizesresponsi(!e prod&ction minimizesinp&ts# red&ces wasteinp&ts# red&ces waste

Traditiona! Aho&se5eepingB hasTraditiona! Aho&se5eepingB has(een e2panded to the : +s(een e2panded to the : +s



The : +sThe : +s

+ort/segregate+ort/segregate – when in do&(t# – when in do&(t#throw it o&t throw it o&t

+imp!i"y/straighten+imp!i"y/straighten – methods – methods

ana!ysis too!sana!ysis too!s +hine/sweep+hine/sweep – c!ean dai!y – c!ean dai!y

+tandardize+tandardize – remo.e .ariations "rom – remo.e .ariations "rom

processes processes +&stain/se!"*discip!ine+&stain/se!"*discip!ine – re.iew wor5 – re.iew wor5

and recognize progressand recognize progress



The : +sThe : +s

+ort/segregate+ort/segregate – when in do&(t# – when in do&(t#throw it o&t throw it o&t

+imp!i"y/straighten+imp!i"y/straighten – methods – methods

ana!ysis too!sana!ysis too!s +hine/sweep+hine/sweep – c!ean dai!y – c!ean dai!y

+tandardize+tandardize – remo.e .ariations "rom – remo.e .ariations "rom

processes processes +&stain/se!"*discip!ine+&stain/se!"*discip!ine – re.iew wor5 – re.iew wor5

and recognize progressand recognize progress

Two additiona! +s

+a"ety – (&i!d in good practices

+&pport/maintenance – red&ce.aria(i!ity and &np!anneddowntime


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+o&rces o" aria(i!ity +o&rces o" aria(i!ity

1818 Incomp!ete or inacc&rate drawingsIncomp!ete or inacc&rate drawingsor speci"icationsor speci"ications

9898 Poor prod&ction processesPoor prod&ction processesres&!ting in incorrect =&antities#res&!ting in incorrect =&antities#!ate# or non*con"orming &nits!ate# or non*con"orming &nits

;8;8 n5nown c&stomer demandsn5nown c&stomer demands


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+o&rces o" aria(i!ity +o&rces o" aria(i!ity

1818 Incomp!ete or inacc&rate drawingsIncomp!ete or inacc&rate drawingsor speci"icationsor speci"ications

9898 Poor prod&ction processesPoor prod&ction processesres&!ting in incorrect =&antities#res&!ting in incorrect =&antities#!ate# or non*con"orming &nits!ate# or non*con"orming &nits

;8;8 n5nown c&stomer demandsn5nown c&stomer demands6oth JIT

and in.entor y

r ed&ction ar e e" " ecti.e too!s

in identi" ying ca&

ses o"

.ar ia(i!ity


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Impro.e Thro&ghp&t Impro.e Thro&ghp&t

The time it ta5es to mo.e anThe time it ta5es to mo.e anorder "rom receipt to de!i.ery order "rom receipt to de!i.ery

The time (etween the arri.a! o"The time (etween the arri.a! o"raw materia!s and the shippingraw materia!s and the shippingo" the "inished order is ca!!edo" the "inished order is ca!!ed

man&"act&ring cyc!e timeman&"act&ring cyc!e time D p&!! system increases D p&!! system increases

thro&ghp&t thro&ghp&t


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J&st*In*Time EJITFJ&st*In*Time EJITF

• Power"&! strategy "or impro.ing operationsPower"&! strategy "or impro.ing operations

• Materia!s arri.e where theyMateria!s arri.e where theyare needed when they areare needed when they areneeded needed

• Identi"ying pro(!ems andIdenti"ying pro(!ems anddri.ing o&t waste red&cesdri.ing o&t waste red&cescosts and .aria(i!ity andcosts and .aria(i!ity and

impro.es thro&ghp&t impro.es thro&ghp&t • e=&ires a meaning"&!e=&ires a meaning"&!

(&yer*s&pp!ier re!ationship(&yer*s&pp!ier re!ationship


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JIT and Competiti.eJIT and Competiti.e

Dd.antage Dd.antage

Figure 16.1Figure 16.1


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JIT and Competiti.eJIT and Competiti.e

Dd.antage Dd.antage



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JIT partnerships e2ist when aJIT partnerships e2ist when as&pp!ier and p&rchaser wor5s&pp!ier and p&rchaser wor5together to remo.e waste and dri.etogether to remo.e waste and dri.e

down costsdown costs

o&r goa!s o" JIT partnerships are)o&r goa!s o" JIT partnerships are)

emo.a! o" &nnecessary acti.itiesemo.a! o" &nnecessary acti.ities

emo.a! o" in*p!ant in.entory emo.a! o" in*p!ant in.entory

emo.a! o" in*transit in.entory emo.a! o" in*transit in.entory

Impro.ed =&a!ity and re!ia(i!ity Impro.ed =&a!ity and re!ia(i!ity


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Concerns o" +&pp!iersConcerns o" +&pp!iers

0i.ersi"ication0i.ersi"ication – ties to on!y one c&stomer – ties to on!y one c&stomerincreases ris5 increases ris5

+ched&!ing +ched&!ing – don@t (e!ie.e c&stomers can – don@t (e!ie.e c&stomers can

create a smooth sched&!ecreate a smooth sched&!e ChangesChanges – short !ead times mean – short !ead times mean

engineering or speci"ication changes canengineering or speci"ication changes cancreate pro(!emscreate pro(!ems

4&a!ity 4&a!ity – !imited (y capita! (&dgets# – !imited (y capita! (&dgets# processes# or techno!ogy processes# or techno!ogy

Lot sizesLot sizes – sma!! !ot sizes may trans"er – sma!! !ot sizes may trans"er

costs to s&pp!ierscosts to s&pp!iers


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JIT Layo&t JIT Layo&t

Table 16.1Table 16.1

ed&ce waste d&e to mo.ement ed&ce waste d&e to mo.ement

JIT Layo&t TacticsJIT Layo&t Tactics

&i!d wor5 ce!!s "or "ami!ies o" prod&cts&i!d wor5 ce!!s "or "ami!ies o" prod&ctsInc!&de a !arge n&m(er operations in a sma!! areaInc!&de a !arge n&m(er operations in a sma!! area

Minimize distanceMinimize distance

0esign !itt!e space "or in.entory 0esign !itt!e space "or in.entory

Impro.e emp!oyee comm&nicationImpro.e emp!oyee comm&nicationse po5a*yo5e de.icesse po5a*yo5e de.ices

&i!d "!e2i(!e or mo.a(!e e=&ipment &i!d "!e2i(!e or mo.a(!e e=&ipment

Cross*train wor5ers to add "!e2i(i!ity Cross*train wor5ers to add "!e2i(i!ity


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0istance ed&ction0istance ed&ction

Large !ots and !ong prod&ctionLarge !ots and !ong prod&ction!ines with sing!e*p&rpose!ines with sing!e*p&rpose

machinery are (eing rep!aced (ymachinery are (eing rep!aced (ysma!!er "!e2i(!e ce!!ssma!!er "!e2i(!e ce!!s

O"ten *shaped "or shorter pathsO"ten *shaped "or shorter pathsand impro.ed comm&nicationand impro.ed comm&nication

O"ten &sing gro&p techno!ogyO"ten &sing gro&p techno!ogyconceptsconcepts


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Increased !e2i(i!ity Increased !e2i(i!ity

Ce!!s designed to (e rearrangedCe!!s designed to (e rearrangedas .o!&me or designs changeas .o!&me or designs change

Dpp!ica(!e in o""ice en.ironments Dpp!ica(!e in o""ice en.ironmentsas we!! as prod&ction settingsas we!! as prod&ction settings

aci!itates (oth prod&ct andaci!itates (oth prod&ct and

process impro.ement process impro.ement


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Impact on ,mp!oyeesImpact on ,mp!oyees

,mp!oyees are cross trained,mp!oyees are cross trained"or "!e2i(i!ity and e""iciency "or "!e2i(i!ity and e""iciency

Impro.ed comm&nicationsImpro.ed comm&nications"aci!itate the passing on o""aci!itate the passing on o"important in"ormation a(o&timportant in"ormation a(o&tthe processthe process

-ith !itt!e or no in.entory-ith !itt!e or no in.entory(&""er# getting it right the "irst(&""er# getting it right the "irsttime is critica! time is critica!


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ed&ced +pace anded&ced +pace and

In.entory In.entory

-ith red&ced space# in.entory-ith red&ced space# in.entory

m&st (e in .ery sma!! !otsm&st (e in .ery sma!! !ots nits are a!ways mo.ing (eca&senits are a!ways mo.ing (eca&se

there is no storagethere is no storage


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In.entory In.entory

In.entory is at the minim&m !e.e!In.entory is at the minim&m !e.e!necessary to 5eep operations r&nning necessary to 5eep operations r&nning

JIT In.entory TacticsJIT In.entory Tacticsse a p&!! system to mo.e in.entory se a p&!! system to mo.e in.entory

ed&ce !ot sizesed&ce !ot sizes

0e.e!op 7&st*in*time de!i.ery systems with s&pp!iers0e.e!op 7&st*in*time de!i.ery systems with s&pp!iers

0e!i.er direct!y to point o" &se0e!i.er direct!y to point o" &sePer"orm to sched&!ePer"orm to sched&!e

ed&ce set&p timeed&ce set&p time

se gro&p techno!ogy se gro&p techno!ogy Table 16.2Table 16.2


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In.entory !e.e! In.entory !e.e!

Processdowntime

+crap

+et&ptime

Late de!i.eries

4&a!ity pro(!ems



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In.entoryIn.entory!e.e! !e.e!


+crap

+et&ptime

Late de!i.eries

4&a!ity pro(!ems

Processdowntime



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ed&ce Lot +izesed&ce Lot +izes


9>>9>> –

1>>1>> – I n . e n

t o r y

I n . e n

t o r y

TimeTime

4 4 22 -hen a.erage order size-hen a.erage order size = 100= 100a.erage in.entory isa.erage in.entory is 5050

4 4 11 -hen a.erage order size-hen a.erage order size = 200= 200a.erage in.entory isa.erage in.entory is 100100


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ed&ce Lot +izesed&ce Lot +izes

Idea! sit&ation is to ha.e !ot sizesIdea! sit&ation is to ha.e !ot sizeso" one p&!!ed "rom one process too" one p&!!ed "rom one process tothe ne2t the ne2t

O"ten not "easi(!eO"ten not "easi(!e

Can &se ,O4 ana!ysis to ca!c&!ateCan &se ,O4 ana!ysis to ca!c&!atedesired set&p timedesired set&p time

Two 5ey changes necessary Two 5ey changes necessary

Impro.e materia! hand!ing Impro.e materia! hand!ing

ed&ce set&p timeed&ce set&p time


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ed&ce +et&p Costsed&ce +et&p Costs

High set&p costs enco&rage !argeHigh set&p costs enco&rage !arge!ot sizes!ot sizes

ed&cing set&p costs red&ces !oted&cing set&p costs red&ces !otsize and red&ces a.eragesize and red&ces a.eragein.entory in.entory

+et&p time can (e red&ced thro&gh+et&p time can (e red&ced thro&gh preparation prior to sh&tdown and preparation prior to sh&tdown andchangeo.er changeo.er


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Lower +et&p CostsLower +et&p Costs


+&m o" ordering+&m o" orderingand ho!ding costsand ho!ding costs

Ho!ding cost Ho!ding cost

+et&p cost c&r.es+et&p cost c&r.es ((+ + 11# + # + 22))T T 11

+ + 11

T T 22

+ + 22

C o s t

C o s t

Lot sizeLot size


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ed&ce +et&p Timesed&ce +et&p Times


se one*to&ch system to e!iminatese one*to&ch system to e!iminatead7&stments Esa.e 1> min&tesFad7&stments Esa.e 1> min&tesF

+tep min&tesF

+tep 1+tep 1

+eparate set&p into preparation and act&a!set&p# doing as m&ch as possi(!e whi!e the

machine/process is operatingEsa.e ;> min&tesF

+tep ;+tep ;

+tandardize andimpro.e too!ing

Esa.e 1: min&tesF

%> min %> min

6> min 6> min


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+ched&!es m&st (e comm&nicated+ched&!es m&st (e comm&nicatedinside and o&tside the organizationinside and o&tside the organization

Le.e! sched&!esLe.e! sched&!es Process "re=&ent sma!! (atchesProcess "re=&ent sma!! (atches

reezing the sched&!e he!psreezing the sched&!e he!ps

sta(i!ity sta(i!ity 3an(an3an(an

+igna!s &sed in a p&!! system+igna!s &sed in a p&!! system


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etter sched&!ing impro.es per"ormanceetter sched&!ing impro.es per"ormance

JIT +ched&!ing TacticsJIT +ched&!ing Tactics

Comm&nicate sched&!es to s&pp!iersComm&nicate sched&!es to s&pp!iers

Ma5e !e.e! sched&!esMa5e !e.e! sched&!es

reeze part o" the sched&!ereeze part o" the sched&!e

Per"orm to sched&!ePer"orm to sched&!e

+ee5 one*piece*ma5e and one*piece mo.e+ee5 one*piece*ma5e and one*piece mo.e

,!iminate waste,!iminate waste

Prod&ce in sma!! !otsProd&ce in sma!! !ots

se 5an(ansse 5an(ans

Ma5e each operation prod&ce a per"ect part Ma5e each operation prod&ce a per"ect part



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Le.e! +ched&!esLe.e! +ched&!es

Process "re=&ent sma!! (atchesProcess "re=&ent sma!! (atchesrather than a "ew !arge (atchesrather than a "ew !arge (atches

Ma5e and mo.e sma!! !ots so theMa5e and mo.e sma!! !ots so the!e.e! sched&!e is economica! !e.e! sched&!e is economica!

A A Je!!y (eanB sched&!ing Je!!y (eanB sched&!ing

reezing the sched&!e c!osest to thereezing the sched&!e c!osest to thed&e dates can impro.e per"ormanced&e dates can impro.e per"ormance


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+ched&!ing +ma!! Lots+ched&!ing +ma!! Lots

D D C C D D D D D D C C

JIT Le.e! Materia!*se DpproachJIT Le.e! Materia!*se Dpproach

D D C C D D D D D D C C C C D D D D

Large*Lot DpproachLarge*Lot Dpproach

TimeTimeFigure 16.7Figure 16.7


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3an(an3an(an

3an(an is the Japanese word "or card 3an(an is the Japanese word "or card

The card is an a&thorization "or the ne2tThe card is an a&thorization "or the ne2tcontainer o" materia! to (e prod&ced container o" materia! to (e prod&ced

D se=&ence o" 5an(ans D se=&ence o" 5an(ans p&!!s materia! thro&gh p&!!s materia! thro&ghthe processthe process

Many di""erent sorts o"Many di""erent sorts o"signa!s are &sed# (&tsigna!s are &sed# (&tthe system is sti!! ca!!edthe system is sti!! ca!!eda 5an(ana 5an(an


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3an(an3an(an

1818 ser remo.es aser remo.es astandard sizedstandard sizedcontainer container

9898 +igna! is seen (y+igna! is seen (ythe prod&cingthe prod&cingdepartment asdepartment asa&thorization toa&thorization to

rep!enishrep!enish

Part n&m(ersPart n&m(ers

mar5 !ocationmar5 !ocation

+igna! mar5er+igna! mar5eron (o2eson (o2es



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3an(an3an(an


-or5-or5

ce!! ce!!

awawMateria!Materia!+&pp!ier +&pp!ier

3an(an3an(an

P&rchasedP&rchasedPartsParts

+&pp!ier +&pp!ier

+&(* +&(* assem(!y assem(!y

+hip+hip

3an(an3an(an

3an(an3an(an

3an(an3an(an

3an(an3an(an

inishedinishedgoodsgoods

C&stomerC&stomerorder order

ina!ina!assem(!y assem(!y

3an(an3an(an


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More 3an(anMore 3an(an

-hen the prod&cer and &ser are not in-hen the prod&cer and &ser are not in.is&a! contact# a card can (e &sed .is&a! contact# a card can (e &sed

-hen the prod&cer and &ser are in .is&a!-hen the prod&cer and &ser are in .is&a!

contact# a !ight or "!ag or empty spot oncontact# a !ight or "!ag or empty spot onthe "!oor may (e ade=&atethe "!oor may (e ade=&ate

+ince se.era!+ince se.era!components maycomponents may

(e re=&ired#(e re=&ired#se.era! di""erentse.era! di""erent5an(an techni=&es5an(an techni=&esmay (e emp!oyed may (e emp!oyed


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More 3an(anMore 3an(an

s&a!!y each card contro!s a speci"ics&a!!y each card contro!s a speci"ic=&antity or parts=&antity or parts

M&!tip!e card systems may (e &sed i"M&!tip!e card systems may (e &sed i"there are se.era! components orthere are se.era! components ordi""erent !ot sizesdi""erent !ot sizes

In an MP system# the sched&!e canIn an MP system# the sched&!e can

(e tho&ght o" as a (&i!d a&thorization(e tho&ght o" as a (&i!d a&thorizationand the 5an(an a type o" p&!! systemand the 5an(an a type o" p&!! systemthat initiates act&a! prod&ctionthat initiates act&a! prod&ction


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The &m(er o" 3an(an CardsThe &m(er o" 3an(an Cards

or Containersor Containers eed to 5now the !ead time needed to

prod&ce a container o" parts

eed to 5now the amo&nt o" sa"etystoc5 needed

&m(er o" 5an(ans&m(er o" 5an(ansEcontainersFEcontainersF

0emand d&ring0emand d&ring +a"ety +a"ety

!ead time!ead time stoc5 stoc5 +ize o" container +ize o" container

GG


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&m(er o" 3an(ans ,2amp!e&m(er o" 3an(ans ,2amp!e

0ai!y demand 0ai!y demand == 500500 ca5esca5es

Prod&ction !ead timeProd&ction !ead time == 22 daysdaysE-ait time E-ait time Materia! hand!ing time Materia! hand!ing time

Processing timeFProcessing timeF

+a"ety stoc5 +a"ety stoc5 == 1/21/2 day day

Container sizeContainer size == 250250 ca5esca5es

0emand d&ring !ead time0emand d&ring !ead time = 2= 2 daysdays x 500x 500 ca5esca5es = 1,000= 1,000

&m(er o" 5an(ans&m(er o" 5an(ans = = 5= = 51,000 2501,000 250

250250


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Dd.antages o" 3an(an Dd.antages o" 3an(an

D!!ow on!y !imited amo&nt o" "a&!ty or D!!ow on!y !imited amo&nt o" "a&!ty orde!ayed materia! de!ayed materia!

Pro(!ems are immediate!y e.ident Pro(!ems are immediate!y e.ident

P&ts downward press&re on (adP&ts downward press&re on (adaspects o" in.entory aspects o" in.entory

+tandardized containers red&ce+tandardized containers red&ceweight# disposa! costs# wasted space#weight# disposa! costs# wasted space#and !a(or and !a(or


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4&a!ity 4&a!ity

+trong re!ationship+trong re!ationship

JIT c&ts the cost o" o(taining goodJIT c&ts the cost o" o(taining good

=&a!ity (eca&se JIT e2poses poor=&a!ity (eca&se JIT e2poses poor=&a!ity =&a!ity

eca&se !ead times are shorter#eca&se !ead times are shorter#=&a!ity pro(!ems are e2posed sooner =&a!ity pro(!ems are e2posed sooner

etter =&a!ity means "ewer (&""ersetter =&a!ity means "ewer (&""ersand a!!ows simp!er JIT systems to (eand a!!ows simp!er JIT systems to (e&sed &sed


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JIT 4&a!ity TacticsJIT 4&a!ity Tactics

se statistica! process contro! se statistica! process contro!

,mpower emp!oyees,mpower emp!oyees

&i!d "ai!*sa"e methods Epo5a* &i!d "ai!*sa"e methods Epo5a* yo5e# chec5!ists# etc8Fyo5e# chec5!ists# etc8F

,2pose poor =&a!ity with sma!!,2pose poor =&a!ity with sma!!!ot JIT !ot JIT

Pro.ide immediate "eed(ac5 Pro.ide immediate "eed(ac5



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Contin&o&s impro.ement Contin&o&s impro.ement

&i!d an organizationa! c&!t&re and .a!&e&i!d an organizationa! c&!t&re and .a!&esystem that stresses impro.ement o" a!!system that stresses impro.ement o" a!! processes processes

Part o" e.eryone@s 7o(Part o" e.eryone@s 7o(

espect "or peop!eespect "or peop!e

Peop!e are treated asPeop!e are treated as

5now!edge wor5ers5now!edge wor5ers ,ngage menta! and,ngage menta! and

physica! capa(i!ities physica! capa(i!ities

,mpower emp!oyees,mpower emp!oyees


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+tandard wor5 practice+tandard wor5 practice

-or5 sha!! (e comp!ete!y speci"ied as to-or5 sha!! (e comp!ete!y speci"ied as tocontent# se=&ence# timing# and o&tcomecontent# se=&ence# timing# and o&tcome

Interna! and e2terna! c&stomer*s&pp!ierInterna! and e2terna! c&stomer*s&pp!ierconnection are direct connection are direct

Prod&ct and ser.ice "!ows m&st (e simp!eProd&ct and ser.ice "!ows m&st (e simp!eand direct and direct

Dny impro.ement m&st (e made in Dny impro.ement m&st (e made inaccordance with the scienti"ic method at theaccordance with the scienti"ic method at the!owest possi(!e !e.e! o" the organization!owest possi(!e !e.e! o" the organization


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Lean OperationsLean Operations

0i""erent "rom JIT in that it is0i""erent "rom JIT in that it ise2terna!!y "oc&sed on the c&stomer e2terna!!y "oc&sed on the c&stomer

+tarts with &nderstanding what the+tarts with &nderstanding what thec&stomer wantsc&stomer wants

Optimize the entire process "romOptimize the entire process "rom

the c&stomer@s perspecti.ethe c&stomer@s perspecti.e


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Transitioning to a !ean system canTransitioning to a !ean system can(e di""ic&!t (e di""ic&!t

Lean systems tend to ha.e theLean systems tend to ha.e the"o!!owing attri(&tes"o!!owing attri(&tes

se JIT techni=&esse JIT techni=&es

&i!d systems that he!p emp!oyees&i!d systems that he!p emp!oyees prod&ce per"ect parts prod&ce per"ect parts

ed&ce space re=&irementsed&ce space re=&irements


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0e.e!op partnerships with0e.e!op partnerships withs&pp!ierss&pp!iers

,d&cate s&pp!iers,d&cate s&pp!iers

,!iminate a!! (&t .a!&e*added,!iminate a!! (&t .a!&e*addedacti.itiesacti.ities

0e.e!op emp!oyees0e.e!op emp!oyees

Ma5e 7o(s cha!!enging Ma5e 7o(s cha!!enging

&i!d wor5er "!e2i(i!ity &i!d wor5er "!e2i(i!ity


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JIT in +er.icesJIT in +er.ices

The JIT techni=&es &sed inThe JIT techni=&es &sed inman&"act&ring are &sed in ser.icesman&"act&ring are &sed in ser.ices

+&pp!iers+&pp!iers

Layo&tsLayo&ts

In.entory In.entory

+ched&!ing +ched&!ing

Documents

Operations Management Chapter 16