Final - JIT Systems Flashcards
JIT
Just-in-time manufacturing: to produce only what is needed, when it is needed
JIT inventory, JIT purchasing, lean manufacturing
JIT philosophy
Eliminate all waste i the organization
JIT system
a management system that aims to improve the manufacturing or service process by eliminating waste
Origins of JIT systems
In 1950s, Toyota realized there were all kinds of waste in the production process because of how little capital and space Japan had, forcing them to minimize inventory
Felt that inventory hides problems. For Toyota, improving performance meant reducing inventory.
waste
anything other than the minimum amount of resources that is essential to add value to the product
Examples of process waste
scrap, non-value-added cost, wrong tools/equipment
Examples of over-production waste
extra inventory, inappropriate use of resources
Examples of inventory waste
storage, capital costs
Examples of product defect waste
interrupted flow, lost capacity, wait for replacements
Examples of waiting time waste
unplanned, planned queue, waiting for other parts in batch
Examples of methods waste
searching for tools, poor layout, walking
Examples of movement waste
material handling, receiving, storing, retrieiving
How can managers improve the pull system?
reduce the variability associated with supply and demand
pull system
coordination between process -> improving means eliminating the need for large inventory (which is a major issue in automobile manufacturing)
work cells
Eliminating worker inefficiency = increasing worker productivity
highly utilized multifunctional workers operating a number of different machines
Cellular facility layout
work is moved within a cell (mostly U shaped) according to a prescribed path (as opposed to assembly lines typical in traditional automobile production)
Flexible machines
automated, general purpose machines with quick setup times
cell
grouping of products based on similar requirements
Should a company implement work cells if employees need to constantly tend to the product?
No, because work cells only work if the workers don’t need to be at the same step in the product all the time (they rotate between steps)
push system
each workstation produces according to a schedule and ‘pushes’ its completed work to the next workstation (aka the traditional approach to production by building inventory)
pull system
each workstation requests, or ‘pulls’ items from the previous workstation only when needed
What are the benefits of a pull system?
Overall: Improves coordination between processes by force
Prevents overproduction and underproduction
Kanban system
Visible production control system which authorizes the production or movement of the next batch of material only when needed
Works the same way as a fixed-quantity inventory system: Order quantity (Q) is equal to reorder point (R)
What are kanbans NOT?
Not schedules!
MRP vs. Kanban
schedule vs. cue
complex vs. repetitive
higher-level vs. shop-level control