Lecture Fundamentals of operations management (4/e): Chapter 19 - Davis, Aquilano, Chase

Chapter 14 Just-in-time systems, after studying this chapter you will be able to: Introduce the underlying concepts of JIT and there Japanese approach to improving productivity; identify the differences between Japanese and U.S. companies with respect to implementing JIT, and explore why these differences exist; identify the various elements that need to be included to successfully implement JIT within an organization;...

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explore why these differences exist

• Identify the various elements that need to be included

to successfully implement JIT within an organization

• Illustrate how many JIT concepts have been

implemented in services

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14–3

Managerial Issues

Managerial Issues

• Using JIT as a tool for controlling the flow of

materials, identifying sources of error, and

minimizing inventories.

• Developing the strong supplier relationships

on which successful implementation of JIT

depends.

• Achieving production linearity in manufacturing and service operations.

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14–4

JIT Logic

JIT Logic

• JIT (just-in-time)

–A coordinated approach that continuously

reduces inventory while also improving quality.

–Seeks to achieve high volume production using

minimal inventories of raw material, work in

process, and finished goods.

–“Big” JIT (lean production)

• Seeks to eliminate all forms of waste in production

activities.

–“Little” JIT

• Focuses on scheduling goods inventories and

providing service resources.

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14–5

Pull System Pull System

Exhibit 14.1

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The Japanese Approach To Productivity

The Japanese Approach To Productivity

• Fundamental National Goal

–Full employment through industrialization

• Target Industries for Market Dominance

–Electronics, vehicles, shipbuilding

–Competitive tactics:

• Imported technology rather than take R&D risks.

• Focused engineering on the shop floor to achieve high

productivity and low cost.

• Improved quality beyond that of competitors.

• Eliminated waste in all forms.

• Have great respect for people.

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Quasar Plant Productivity Quasar Plant Productivity

Exhibit 14.2

*2 years later.

† Same people

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Just­In­Time Just­In­Time

Exhibit 14.4

Source: Adapted from Chris Gopal (of Price Waterhouse), “Notes on JIT.”

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Inventory Hides Problems Inventory Hides Problems

Exhibit 14.5

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Flow of Two Kanbans

Flow of Two Kanbans

• Kanban Pull System

–A manual, self-regulating system for controlling

the flow of material Workers produce only when the Kanban ahead of them is empty, thereby

creating a “pull” system through the factory.

Exhibit 14.7

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Minimizing Setup Time—Hood and Fender Press Comparison (800 ton press)

Minimizing Setup Time—Hood and Fender Press Comparison (800 ton press)

Exhibit 14.8

*For low-demand items (less that 1,000 per month), as large

as seven days.

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Setup Reduction Results at JKC Setup Reduction Results at JKC

Exhibit 14.9

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Implementing JIT Production

Implementing JIT Production

• JIT Layouts/Design Flow Process

–Design must ensure balanced continuous

workflow with minimum of work in process and delays.

–Internal and external logistics must be

considered.

–Preventive maintenance is emphasized.

–Process orientation encourages the use of

simple machines.

–Goal is a economic production lot size of one.

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Source: This diagram is modeled after the

one used by Hewlett-Packard’s Boise plant

to accomplish its JIT program.

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The Impact of JIT on Lot Size The Impact of JIT on Lot Size

Exhibit 14.11

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Implementing JIT Production

Implementing JIT Production

• JIT in a Line Flow or Product Layout

–No work done until product has been pulled

from the end of the line.

–Completed work stays at the workstation until

remove by a downstream station.

Exhibit 14.12

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Relationship between JIT and Quality Relationship between JIT and Quality

Exhibit 14.13

Source: Richard J Schonberger, “Some Observations on the Advantages and Implementation Issues of

Just-in-Time Productions Systems,” Journal of Operations Management 3, no 1 (November 1982), p 5.

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• Work with Vendors

• Continuous Inventory Reduction

• Improve Product Design

• Concurrently Solve Problems and Measure Performance

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Diagram of Outbound Stockpoint with Warning Signal Marker

Diagram of Outbound Stockpoint with Warning Signal Marker

Exhibit 14.14

Source: Robert Hall, Zero Inventories (Homewood, IL: Dow Jones-Irwin, 1983), p 51.

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percent without major investment in plant or

equipment

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JIT in Services

JIT in Services

• Application of JIT to Services

–Synchronization and balance of information and

workflow

–Total visibility of all components and processes –Continuous improvement of the process

–Holistic approach to the elimination of waste

–Flexibility in the use of resources

–Respect for people

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