Operations Management Just In Time and Lean Systems M-10 ‘Acknowledgement 1 The concepts and eas presented in the flowing sides are basee Understanding and sud purposes only. The concepts or ideas do rot belong to the undersoned Therefore, ‘+ Read trom Books and Practice Prtleas ‘= Thank You = Prot Prtoo Stome Learning Outcomes ‘Aer going through the module students would be abe to answer 7c te talon + Wig tn coca? Why and howd this oes + What ae the base featres of The Toyota sjstem thats ften Usa sa Denman oft and Lean Sythe 1 Wy is'Waste Elna’ and Resped for People equaly Important in JT system? + ta Yara nteation sytem used in ta how do you ciate te no. ef Korba What are the structural and planning elements that ae tuoi essantal forimplomentason of 013 What are the lntatons of the JIT and Lean system? How can wwe overcome tse? Oyoratlens Uazagonent JUST IN TIME gut) “AN INTEGRATED SET OF ACTIVITES DESIGNED TO ACHIEVE HIGH VOLUME PRODUCTION USING MINIMAL INVENTORIES OF RAW MATERIAL, WIP, FG” 7/25/20“BIG JIT” & “LITTLE JIT” + Big JIT is often termed as Lean Production is the philosophy of operations management that seeks to| climinate waste in all aspects of a firm’s production activities: HR, Vendor Relations, Technology, Materials Management/ Inventorics. + Little JIT focuses more nartowly on scheduling goods inventories and providing service resources where and when needed. Toyota Production System- A Bench Mark for Lean Manufacturing Two Philosophies es [Focused tacory Networks | Group Technology J 2, Waiting Time [Quality at Source ] rr Production | Uniform plant toa [BTaosportaton 14. Inventory Benoni = Kanban production control eye ‘Minimised set up times. [Elotion (7. Product Defect 7/25/20FOCUSED FACTORY NETWORK ‘Toyota had 12 plants in and around Toyota City Ke ae Ge GROUP TECHNOLOGY(GT) Similac parts grouped together into families. arranged in specialised work cells. + Eliminates waiting time between operations. “ Reduces Inventory. * Reduces Number of employees required. + Requires flexible workers with advanced skill sets for running more than one machine/ process. Whatis needed Anything more of what is needed just now is viewed as a WASTE + When its needed * And no more ‘As against the conventional approach of keeping assafety / buffer stock just in case something goes wrong. WHAT IT ASSUMES | Stable Enviconment 7/25/20°Inventory is Evil- It Hides Problems High level of inventory hides problems, low level lexposes. [JIT cannot coexist with the above problems as Ievels of inventory ate very low. Uniform Plant Loading Any change gets magnified along the supply chain. + The only way to eliminate problem is to make: * A fixed monthly production. + Output rate frozen to create a stable demand environment. KANBAN Production Control System A Kanban system was a signaling device to regulate JI flows. Kanban means in Japanese “sign” or “instruction card” that tigers the preceding process/ machine. FLOW OF TWO KANBANS Meiko! Kanban — Signaling Systems used 1. Kanban Cards 2. Kanban Squares 3. Kanban Container Systems 4, Kanban Coloured Balls 5. Any other convenient item that can send a signal to the preceding process / machine center. 7/25/20Setting up A Kanban System How many Kanban cards are required ? K= (Expected demand during lead time + safety stock) / Size of the container = DL(Its)/C Where K = No. of Kanban Card sets. D = Avg. No. of units demanded over a period of time. L= Lead Time to replenish an order. S = Safety Stock expressed as percentage of demand during the lead time. C= Container Size. Respect for People in the Toyota JIT System Key Elements: + Life time employment. + Majority of permanent workers. + Cooperative & constructive union activity. + Employce welfare (workers as assets). 4 Use of automation (robots) for di Spe ist reliable vendors as long term partners. TACIT KNOWLEDGE Rule 1: All work highly specialised as to content, sequence, timing and outcome. Rule 2: Direct Customer- Supplier connection, Unambiguous (Yes/No) requests and responses. Rule 3: Simple and Direct pathways for every product and service. Rule 4: Any improvement must follow a scientific method, guided by a teacher and preferably How To Implement JIT 7/25/20JIT LAYOUT & DESIGN FLOWS JIT in a Line Flow Layout cn may Process Process «Process Warehouse seit For Storage Bia E ar ar COpertos athe Prooeoes ‘The Pall process starts the moment the market picks up, ‘one component / a batch of components. CAN JIT BE APPLIED TO A JOB SHOP ? YES, Provided, 4 Demand can be stabilized to permit repetitive manufacture. + This is done more easily within the internal customers rather than being market (distributor /individual purchaser) driven. JIT IN SERVICES ? [Many JIT techniques have been successfully applied by service firms. [Some of the successful applications are: +> Organise Problem Solving Group -: linvoduce Domand = Pull Schedsing } Develop Supplier Networks End of Module scinowedgement 1 “The concepts and ides presented inthe above sides are based ‘on concepts and ideas inthe Books mentioned in your sessions plan and materl freely avalable onthe internet, Jourais ond ‘other sources, These have baen put together for teaching, easy Understanding and study purposes only, The concepts o eas o not belong to the undersigned. Therefore, Read from Books and Practice Problems = Thank You = Pr0t Pintoo Shome 7/25/20: