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• Variability Reduction
• Pull vs Push
(Manufacturing cycle time)
(e.g.Northern Telecom
Green Gear cycling
• St ra te gy is ma ss
cu sto miza tion with low
inv ent or y , w or k c ells , a nd
elimin ati on of mac hin e s etu ps
“The Major
Misconceptions of JIT”
• It is a Method to “Push”
Inventory Back to the Supplier
• Employee Empowerment
• Commitment
• Layout
• Inventory
Suppliers(Jit)
• JIT Partnership
“Partnership of suppliers and purchasers that
removes wastes and drive down costs for mutual
benefits”
• Engineering Changes
• Quality Assurance
• Proximity
Goals of JIT Partnership
• Elimination of unnecessary
Activities
Reduce Variability
Reduce Inventory
Reduce Lot sizes
Reduce Setup Costs
Reduce Variability
Inventory level
Process
Scrap downtime
Setup Quality
time problems
Late deliveries
Reduce Variability
Inventory
level
Process
Scrap downtime
Setup Quality
time problems
Late deliveries
Lot Size Example
D= Annual demand = 400,000 units
d= Daily demand = 400,000/250 = 1,600 per day
p= Daily production rate = 4,000 units
Q= EOQ desired = 400
H= Holding cost = $20 per unit
S= Setup cost (to be determined)
2DS 2DS
Q= Q2 =
H(1 - d/p) H(1 - d/p)
60 min —
Move material closer and
Step 2 improve material handling
(save 20 minutes)
45 min —
Standardize and
Step 3 improve tooling
(save 15 minutes)
25 min —
Use one-touch system to eliminate
Step 4
adjustments (save 10 minutes)
15 min —
Training operators and standardizing 13 min —
Step 5 work procedures (save 2 minutes)
Repeat cycle until subminute —
setup is achieved
Scheduling (JIT)
Level Schedules
Kanban
Scheduling Small Lots
Large-Lot Approach
A A A A A A B B B B B B B B B C C C
Time
Kanban
User removes a
standard sized
container
Signal is seen by
the producing
department as
authorization to
replenish
Signal marker
on boxes
Part numbers
mark location
Number of Kanbans
Example
Daily demand = 500 cakes
Production lead time = 2 days
(wait time +
material handling time +
processing time)
Safety stock = 1/2 day
Container size = 250 cakes
Demand during lead time = 2 days x 500 cakes = 1,000
1,000 + 250
Number of kanbans = 250 =5
Advantages of Kanban
• Minimizing waste
• Distance Reduction
• Increased Flexibility
• Impact on Employees
• Tr ain ing
Overproduction
Queues
A broader
Transportation perspective
Inventory suggests other
resources like
Motion energy and water
are wasted but
Over-processing should not be
Defective product
JIT in Services
• Suppliers
(e.g. Restaurants)
• Layouts
(e.g. McDonald)
• Inventory
(e.g McDonald)
• Scheduling
(e.g Hospitals)
Conclusion