GROUP-2

ABHISHEK UNNIKRISHNAN SHANTANU KUMAR SOURAV SARDAR SWATI SHUKLA TERESA GEORGE MATTAM

JIT AND LEAN OPERATIONS

JIT/LEAN OPERATIONS
Just-in-time (JIT):
A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed.

Lean Operations:
A highly co-ordinated system that uses minimal resources and produces high quality goods or services.

ELEMENTS OF JIT(INTRO)
 Smooth flow of work (the ultimate goal).  Elimination of waste.

 Continuous improvement.
 Eliminating anything that does not add value.  Simple systems that are easy to manage.  Use of product layouts to minimize moving materials and parts.  Quality at the source.

CONTD.
 Poka-yoke – fail safe tools and methods.  Preventative maintenance.  Good housekeeping

 Set-up time reduction
 Cross-trained employees  A pull system

OVERVIEW OF JIT GOALS AND BUILDING BLOCKS
Ultimate A Goal balanced rapid flow
Supporting Goals

Eliminate disruptions Make the system flexible Eliminate waste

Product Design

Process Design

Personnel Elements

Manufacturing Planning

Building Blocks

SUPPORTING GOALS
 Eliminate disruptions.

 Make system flexible .
 Eliminate waste, especially excess inventory.

SOURCES OF WASTE
 Overproduction.  Waiting time.

 Unnecessary transportation.
 Processing waste.  Inefficient work methods.  Product defects.

KAIZEN PHILOSOPHY
 Waste is the enemy.

 Improvement should be done gradually and continuously.  Everyone should be involved.
 Built on a cheap strategy.  Can be applied anywhere.

CONTD.
 Supported by a visual system.  Focuses attention where value is created.  Process oriented.

 Stresses main effort of improvement should come from new thinking and work style.
 The essence of organizational learning is to learn while doing.

BUILDING BLOCKS OF JIT
 Product design.  Process design.  Personnel/organizational elements.  Manufacturing planning and control.

PRODUCT DESIGN
 Standard parts- Fewer parts to deal with, training
time and costs are reduced.  Modular design- Cluster of parts treated as single part. Simplifies assembly, purchasing, handling and training.  Highly capable production systems-Quality must be embedded in goods and processes.  Concurrent engineering- Reduce disruptions to operations.

PROCESS DESIGN
 Small lot sizes.

 Setup time reduction.
 Manufacturing cells.  Limited work in process.

 Quality improvement.
 Production flexibility.  Balanced system.  Little inventory storage.  Fail-safe methods.

PERSONNEL/ORGANIZATIONAL ELEMENTS
 Workers as assets.  Cross-trained workers.  Continuous improvement.  Cost accounting.  Leadership/project management.

MANUFACTURING PLANNING AND CONTROL
 Level loading.

 Pull systems.
 Visual systems.  Limited work-in-progress.  Close vendor relationships.  Reduced transaction processing.

 Preventive maintenance.

PUSH/PULL SYSTEMS
Pull system: System for moving work where a workstation pulls output from the preceding station as needed. (e.g. Kanban) Push system:

System for moving work where output is pushed to the next station as it is completed.

VISUAL SYSTEMS
Kanban is the Japanese word meaning “signal” or “visible record” Kanban Card or other device that communicates demand for work or materials from the preceding station Paperless production control system

Authority to pull, or produce comes from a downstream process.

LIMITED WORK-IN-PROGRESS
Benefits:
Lower carrying costs Increased flexibility Helps in scheduling Saves cost of rework and scrap Two general approaches: Kanban – focuses on individual work stations Constant work in process (CONWIP) – focuses on the system as a whole

CLOSE VENDOR RELATIONSHIPS
 JIT systems typically have close relationships with vendors, who are expected to provide frequent small deliveries of high quality goods.  Under JIT purchasing, good vendor relationships are very important. Buyers take measures to reduce list of suppliers and maintain long term relationships.

TRADITIONAL SUPPLIER NETWORK

Buyer
Supplier
Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

TIERED SUPPLIER NETWORK
Buyer
First Tier Supplier Second Tier Supplier Supplier Supplier Supplier

Third Tier Supplier

Supplier

Supplier

Supplier

Supplier

PREVENTIVE MAINTENANCE AND HOUSEKEEPING
Preventative maintenance: Maintaining equipment in good condition and replacing parts that have a tendency to fail before they actually fail.

Housekeeping: Maintaining a workplace that is clean and free of unnecessary materials.

HOUSEKEEPING-5 S’s
1. Sort- Decide which items are needed for a work and keep only those items 2. Straighten- Organize the workplace so that necessary items can be accessed easily. 3. Sweep- Keep the workplace clean and ready for work. 4. Standardize- Use standard instructions and procedures. 5. Self-discipline- Make sure that employees understand the need for an uncluttered work place.

TRANSITIONING TO A JIT SYSTEM
Get top management commitment
Decide which parts need most effort Obtain support of workers Start by trying to reduce setup times Gradually convert operations

Convert suppliers to JIT
Prepare for obstacles

OBSTACLES TO CONVERSION

Management may not be committed Workers/management may not be cooperative Difficult to change company culture Suppliers may resist

JIT IN SERVICES
The basic goal of the demand flow technology in the service organization is to provide optimum response to the customer with the highest quality service and lowest possible cost.
Eliminate disruptions Make system flexible Reduce setup and lead times Eliminate waste Minimize WIP Simplify the process