JIT, TPS and Lean

1. JIT, TPS and Lean Chapter 16

2. JIT, TPS, Lean • The purpose of all these approaches is to eliminate waste, reduce variability, and improve throughput! • JIT (Just In Time) • Focus is on “forced problem solving” rather than covering it up • TPS (Toyota Production System) • Focus is on employee learning and empowerment • Lean • Focus is on understanding the customer and eliminating activities that don’t contribute value to them

3. Eliminate Waste • Waste is any activity that does not add value to the customer • Seven Categories of Waste Five Ss • Overproduction - Sort/Segregate • Queues - Simplify/Straighten • Transportation - Shine/Sweep • Inventory - Standardize • Motion - Sustain/Self-Discipline • Overprocessing - *Safety • Defects - *Support

4. Remove Variability • Variation is any deviation (natural or artificial) from the optimum process that delivers the product on time every time. • It is often tolerated by management, but must not be! • Sources Include • Unknown Demand • Processes that allow employees to produce non-conforming units • Inaccurate drawings, incomplete product plans, specs • Variability may be “hidden”, by large inventories, etc

5. Improve Throughput • Throughput – rate at which goods move through a production process • “push” system – produces orders regardless of demand • “Pull” system – delivers material when and where it is needed • Both for suppliers and on factory floors • Uses signals to request when stations have capacity available • Pulls only the necessary amount

6. Just In Time (JIT) • Produce material when they are needed, where they are needed • If a unit doesn’t arrive, then it is a “problem” • Any problems become “visible” • No padding from inventory • No slack time

7. JIT Partnerships • Supplier and buyer collaborate to eliminate problems, unnecessary activities, inventory reduction, increase reliability • Scan in fig 16.2

8. JIT Layout Tactics • Aim is to eliminate wasteful movement (goods, parts, people, etc) • Reduce distance • Work cell arrangement, etc • Increase Flexibility • Adapt to changes in volume, configuration, etc • Tactics with Employees • Cross-trained, communication of problems and feedback • Reduce space and inventory • Keep units moving downstream • Less need for storage space • Deliver to where goods are needed

9. JIT Inventory Tactics • Reduce inventory and lot sizes. • They can cover up problems, therefore it should be eliminated • Scan in fig 16.3 and 16.4 • Reduce setup costs • “one-touch” systems, training, materials, checklists, monitoring

10. JIT Scheduling Tactics • Communicate schedule to suppliers • Make level schedules • Frequent small batches as opposed to infrequent large • “freezing” the schedule close to delivery date • Kanban • Japanese word for “card” (but in reality could be a container, empty floor, etc) • Signal for demand from downstream to upstream • Scan in figure 16.8

11. Quality Tactics • Measure!Use data collection and statistics to control processes • Empower employees • Build failsafe methods • Provide immediate feedback • Kaizen “change for the good” • Incremental changes • Standardize work processes

12. Quality Improvement with Six Sigma

13. How to build a “lean” organization • Use JIT tactics to eliminate inventory • Build systems to help employees produce perfect products • Reduce space requirements • Develop partnerships with suppliers • Educate suppliers about the end customer needs • Eliminate all but value added activities • Develop and challenge employees