Sac State OPM 101 - Study Notes (37 pages)

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Study Notes



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Study Notes

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Pages:
37
School:
California State University, Sacramento
Course:
Opm 101 - Operations Management
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Chapter 7 Just in Time and Lean Systems Operations Management by R Dan Reid Nada R Sanders 4th Edition Wiley 2010 Wiley 2010 1 Learning Objectives Explain the core beliefs of the JIT philosophy Describe the meaning of waste in JIT Explain the differences between push and pull systems Explain the key elements of JIT manufacturing Wiley 2010 2 Learning Objectives con t Explain the elements of TQM and their role in JIT Describe the role of people in JIT and why respect for people is so important Understand impact of JIT on service and manufacturing Understand functional impact of JIT on all areas Wiley 2010 3 Just in Time JIT philosophy means getting the right quantity of goods at the right place and the right time JIT exceeds the concept of inventory reduction it is an all encompassing philosophy geared to eliminate waste anything that does not add value A broad JIT view or lean production lean systems is one that encompasses the entire organization Wiley 2010 4 Philosophy of Just in Time JIT originated in Japan at Toyota Motor Co fueled by a need to survive the devastation post WWII JIT gained worldwide prominence in the 1970s Often termed Lean Production or Lean Systems Broad view that entire organization has the same goal to serve customers Wiley 2010 5 The Philosophy of JIT con t JIT is built on simplicity simpler is better Continuous improvement often using kaizen blitz Visibility all waste must be visible to be identified and eliminated Flexibility to adapt to changes in environment Wiley 2010 6 Three Elements of JIT Wiley 2010 7 Three Elements of JIT con t JIT manufacturing focuses on production system to achieve value added manufacturing TQM is an integrated effort designed to improve quality performance at every level Respect for people rests on the philosophy that human resources are an essential part of JIT philosophy Wiley 2010 8 Elements of JIT Manufacturing JIT Manufacturing is a philosophy of value added manufacturing Achieved by focusing on these elements Inventory reduction exposes problems Kanbans pull production systems Small lots quick setups Uniform plant loading Flexible resources Efficient facility layouts Wiley 2010 9 Role of Inventory Reduction Inventory Lead Time less is better Inventory hides problems Wiley 2010 10 JIT Manufacturing The Pull System Wiley 2010 11 Computing the Number of Kanbans an aspirin manufacturer has converted to JIT manufacturing using kanban containers They must determine the number of containers at the bottle filling operation which fills at a rate of 200 per hour Each container holds 25 bottles it takes 30 minutes to receive more bottles safety stock is 10 of demand during LT Solution D 200 bottles per hour T 30 minutes 5 hour C 25 bottles per container S 0 10 deman d T 0 10 200 5 10 bottles DT S 200 5 10 N 4 4 kanban containers C 25 Question round up or down Wiley 2010 12 Number of Kanbans Required DT S N C N number of containers D demand rate at the withdraw station T lead time from supply station C container size S safety stock Wiley 2010 13 Variations on Kanban Production Kanban boxes space on factory floor for storing supplies Flags used to indicate when supplies need to be ordered Supplier kanbans brings filled containers to point of usage in factory picks up empty containers Wiley 2010 14 Small Lot Sizes Quick Setups Small lots mean less average inventory and shorten manufacturing lead time Small lots with shorter setup times increase flexibility to respond to demand changes Strive for single digit setups 10 minutes Setup reduction process is well documented External tasks do as much preparation while present job is still running Internal tasks simplify eliminate shorten steps involved with location clamping adjustments Ultimate goal is single unit lot sizes Wiley 2010 15 Uniform Plant Loading A level schedule is developed so that the same mix of products is made every day in small quantities Leveling the schedule can have big impact along whole supply chain Weekly Production Required A B C D E Traditional Production Plan Monday Tuesday AAAAA BBBBB AAAAA BBBBB JIT Plan with Level Scheduling Monday Tuesday AABBBB AABBBB CDEE CDEE 10 units 20 units 5 units 5 units 10 units Wednesday BBBBB BBBBB Thursday DDDDD CCCCC Friday EEEEE EEEEE Wednesday AABBBB CDEE Thursday AABBBB CDEE Friday AABBBB CDEE Wiley 2010 16 Flexible Resources Moveable general purpose equipment Portable equipment with plug in power air Drills lathes printer fax copiers etc Capable of being setup to do many different things with minimal setup time Multifunctional workers Workers assume considerable responsibility Cross trained to perform several different duties Trained to also be problem solvers Wiley 2010 17 Effective Facility Layouts Workstations in close physical proximity to reduce transport movement Streamlined flow of material Often use Cellular Manufacturing instead of process focus U shaped lines allows material handler to quickly drop off materials pick up finished work Wiley 2010 18 Respect for People The Role of Employees Associates gather performance data Team approaches used for problemsolving Decisions made from bottom up Everyone is responsible for preventive maintenance Wiley 2010 19 JIT and TQM Integrate quality into all processes Quality at the source sequential inspection Focus on continuous improvement Kaizen Jidoka authority to stop line Poka yoke fail safe all processes Preventive maintenance scheduled Work environment everything in its place a place for everything Wiley 2010 20 Respect for People The Role of Employees Genuine and meaningful respect for associates Willingness to develop cross functional skills Bottom round management consensus management by committees or teams Quality circles small volunteer teams that solve quality problems Wiley 2010 21 Respect for People Lifetime Employment Everyone feels secure is empowered Everyone is responsible for quality understand both internal and external customer needs Wiley 2010 22 Respect for People The Role of Management Responsible for culture of mutual trust Serve as coaches facilitators Responsible for developing workers Provide multi functional training Facilitate teamwork Support culture with appropriate incentive system including non monetary Wiley 2010 23 Respect for People Supplier Relationships Single source suppliers Can supply entire family of parts Build long term relationships with small number of suppliers Fewer contracts Cost and information sharing Work together to


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