Production and Operation Managements Just-in-time Professor JIANG Zhibin Department of Industrial Engineering Management Shanghai Jiao Tong University
Production and Operation Managements Professor JIANG Zhibin Department of Industrial Engineering & Management Shanghai Jiao Tong University Just-in-time
国) Just-in-time Contents 。Introduction ·Just-in-time(JT) 。Kanban Introduction
Just-in-time Contents • Introduction • Just-in-time (JIT) • Kanban Introduction
Preface:Toyota Automobile In 50's last century,Japanese Toyota Automobile was not known at all since its annual output was even lower that daily output od Ford Automobile. 20 years later,Japanese automobile industry rapidly raised such that it subverted American leading position in worldwide manufacturing industries. American learnt from their poor lessons,and a group of scholars of MIT conducted a insight investigation in Toyota and wrote a well-known book "The Machine that Changed the World"to have proposed a profound manufacturing mode,that is Lean Production (LP) The core philosophy of LP is Just in Time (JIT) 上泽衣鱼大粤
Preface： Toyota Automobile In 50’s last century, Japanese Toyota Automobile was not known at all since its annual output was even lower that daily output od Ford Automobile. 20 years later, Japanese automobile industry rapidly raised such that it subverted American leading position in worldwide manufacturing industries. American learnt from their poor lessons, and a group of scholars of MIT conducted a insight investigation in Toyota and wrote a well-known book “The Machine that Changed the World” to have proposed a profound manufacturing mode, that is Lean Production (LP). The core philosophy of LP is Just in Time (JIT)
© THE MACHINE THAT CHANGED THE WORLD 僵S吖峰 LfPP加gTI0N KOW JARAH'E.BECHO WEAPON IN THE e1944 AVIO有At1 WILL HENO6海ei 3P裤黑航ETB都统面储 Dr James P.Womack Visited IE&M Dept.of SJTU 上充道大粤
Dr James P. Womack Visited IE&M Dept. of SJTU
h Introduction The Definition of Just-in-Time (JIT JIT is a system for high-volume Lean Production production with minimal inventory Through Waste Elimination (raw materials,WIP,finished Quality goods); JIT at the Source JIT is a management philosophy; JIT exposes problems Operational Stability bottlenecks by taking away “security blanket', JIT is a tool for implementing pull systems
Introduction The Definition of Just-in-Time (JIT) • JIT is a system for high-volume production with minimal inventory (raw materials, WIP, finished goods); • JIT is a management philosophy; • JIT exposes problems & bottlenecks by taking away “security blanket”; • JIT is a tool for implementing pull systems. Lean Production Through Waste Elimination Operational Stability JIT Quality at the Source People
Introduction Traditional Mode (Push) Cost Profit Selling Seller Driven Price (SELLER) PROFIT LP Mode (Pull) Customer Pull (MARKET) Selling Price Cost
Introduction Traditional Mode (Push) Seller Driven Selling Price Cost + Profit = (SELLER) LP Mode (Pull) Customer Pull Selling Price - Cost = PROFIT (MARKET)
Introduction Waste in operations from ·Overproduction Waiting time ·Transportation ·Inventory waste Processing Motion/movement Product defects 上帝充通大粤
Waste in operations from • Overproduction • Waiting time • Transportation • Inventory waste • Processing • Motion/movement • Product defects Introduction
Introduction Minimizing Waste:Inventory Hides Problems When the water level subsides the rock emerge Identifying defects Machine from a supplier early downtime in the process saves Scrap Vendor the downstream work Work in delinquencies Change orders process queues Engineering designDesign (banks) redundancies backlogs Identify defective work Paperwork Inspection Decision from upstream stations, backlog backlogs backlogs saves the downstream work 上泽充鱼大粤
Minimizing Waste: Inventory Hides Problems Work in process queues (banks) Change orders Engineering design redundancies Vendor delinquencies Scrap Design backlogs Machine downtime Decision backlogs Inspection backlogs Paperwork backlog Identifying defects from a supplier early in the process saves the downstream work Identify defective work from upstream stations, saves the downstream work Introduction When the water level subsides the rock emerge
JIT Goals Zero defects Zero excess lot size Zero setups Zero breakdowns Zero handling Zero lead time Zero surging Level production plan and uniform product mix 上哀道大姿
JIT Goals • Zero defects • Zero excess lot size • Zero setups • Zero breakdowns • Zero handling • Zero lead time • Zero surging Level production plan and uniform product mix
JIT Fundamentals Features Advantages Disadvantages Small WIP 1.Decrease inventory cost; 1.May result in increased inventories 2.Improved production worker idle time efficiency; 2.May decrease production 3.Identify quality and take rate immediate action; Kanban 1.Provides for efficient lot 1.Slow to react to changes in information tracking, demand; system 2.Inexpensive implementation; 2.Ignores known information 3.Allow for predetermined level about future demand pattern of WIP Coordinated 1.Inventory reduction; 1.Decreased opportunity for inventory and 2.Improved coordination of multiple sourcing; purchasing different systems; 2.Suppliers must react more 3.Improved relationships with quickly; vendors Improved reliability required of suppliers
JIT Fundamentals Features Advantages Disadvantages Small WIP inventories Kanban information system Coordinated inventory and purchasing 1. Decrease inventory cost; 2. Improved production efficiency; 3. Identify quality and take immediate action; 1. Provides for efficient lot tracking; 2. Inexpensive implementation; 3. Allow for predetermined level of WIP 1. Inventory reduction; 2. Improved coordination of different systems; 3. Improved relationships with vendors 1. May result in increased worker idle time 2. May decrease production rate 1. Slow to react to changes in demand; 2. Ignores known information about future demand pattern 1. Decreased opportunity for multiple sourcing; 2. Suppliers must react more quickly; Improved reliability required of suppliers