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A.SUBASH BABU PhD PROFESSOR INDUSTRIAL ENGINEERING & OR DEPARTMENT OF MECHANICAL ENGINEERING IIT BOMBAY, POWAI, MUMBAI, 400076 subash@me.iitb.ac.in
A philosophy of manufacturing based on planned elimination of waste and continuous improvement of productivity
JIT MEANS MANY THINGS TO MANY BUT WHAT ARE THE IMPLICATIONS ?
IMPLICATIONS OF JIT
Customer responsiveness Lead time reduction Quality in all Reduction of the negative impacts of inventory Flexibility Cost effectiveness What is the motivation ?
JIT SYNONYMS
IBM - Continuous Flow Manufacturing HP - Stockless Production - Repetitive Manufacturing System GE - Management by Sight Motorola - Short Cycle Manufacturing Japanese - The Toyota System Boeing - Lean Manufacturing Ref: Operations management by N Gaither and G Frazier, Thomson Learning, 2002
Places Order
Scheduling
Distribution
Order-to-Delivery Cycle
TIME-BASED COMPETITION
It is not enough for firms to be high-quality and low-cost producers Today, they must also be first in getting products and services to the customer fast To compete in this new environment, the order-to-delivery cycle must be drastically reduced JIT is the weapon of choice today to reduce the elapsed time of this cycle
JIT LOGIC
Fab Sub Fab Customers Final Assy Sub Fab Vendor Vendor Vendor
Fab
Vendor
JIT PRODUCTION
WHAT IT IS Management philosophy Pull system though the plant WHAT IT DOES Attacks waste Exposes problems and bottlenecks Achieves streamlined production
WHAT IT REQUIRES
WHAT IT ASSUMES
Employee participation Industrial engineering/basics Continuing improvement Total quality control Small lot sizes
Stable environment
WASTE--OPERATIONS
(1) Waste from overproduction (2) Waste of waiting time (3) Transportation waste (4) Inventory waste (5) Processing waste (6) Waste of motion (7) Waste from product defects
CAPACITY UTILIZATION
Production Lead Times (days)
60 50 40 30 20 10
Traditional Manufacturing
10 20 30 40 50 60 70 80 90 100
Material Shortages
MAY ALSO BE
An empty crate An empty designated location on the floor A signal light
>She takes the full container of parts with its C-Kanban back to Work Center #2
KANBAN CARDS
Conveyance Kanban Card
Part number to produce: M471-36 Lot size needed: 40 Card number: 2 of 5 From work center: 22 Part description: Valve Housing Container type: RED Crate Retrieval storage location: NW53D To work center: 35
KANBAN CARDS
Production Kanban Card
Part number to produce: M471-36 Lot size needed: 40 Card number: 4 of 5 From work center: 22 Materials required: Material no. 744B Part no. B238-5 Part description: Valve Housing Container type: RED crate Completed storage location: NW53D To work center: 35
NW48C NW47B
EOQ =
more
Simplify design/processes
Poka-yoke Process capable of meeting tolerances Operators responsible for quality of own work
BENEFITS OF JIT
Inventory levels are drastically reduced:
frees up working capital for other projects less space is needed customer responsiveness increases
Total product cycle time drops Product quality is improved Scrap and rework costs go down Forces managers to fix problems and eliminate waste .... or it wont work!
LIMITATIONS OF JIT
Difficulty to change old ways More pressure on workers Success is varied Employee commitment Production levels Employee skills
Ref: Some Slides are related to Chapter 12 Operations management by N Gaither and G Frazier, Thomson Learning, 2002