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Production Operations Management

Production Operations Management

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Production Operations Management

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  1. Production Operations Management Just-In-Time Manufacturing U. Akinc Bus 241

  2. Just-in-Time (JIT) • Just in time is a philosophy of management that transcends inventory management, indeed manufacturing management • Predicated on eliminating all waste from manufacturing • Waste to be eliminated includes anything that does not add value to the product or service Bus 241

  3. Examples of Waste • Inventory • Inspection • Set-up Time • Data Processing • Most Indirect Labor • Rework • Scrap • Customer Returns Bus 241

  4. JIT & Competitive Priorities • Reduces costs via waste elimination • Increases conformance quality • Improves flexibility due to small inventory • Improves delivery performance due to shorter lead times Bus 241

  5. JIT makes problems Visible Bus 241

  6. Functions of InventoriesRevisited • Safety Stocks • Lot Size Inventories • Anticipation Stocks • De-coupling • Transit • Speculation Bus 241

  7. Pillars of JIT • Set-up Time reduction • Total Quality Management • Vendor Relations • Flexible Resources • Employee Involvement • Meticulous Maintenance • Pull vs. Push System of Scheduling • KANBAN Bus 241

  8. JIT works best with... • Uniform production rate • Flexible workforce • Limited product variety Bus 241

  9. A KANBAN Bus 241

  10. Two-card Kanban Bus 241

  11. Typical Benefits of JIT • 5 Companies Surveyed: • Lead time down by 90% • Inventory down by 35-73% • Set up time down by 75-95% • Material costs down by 6-11% • Quality costs down by 26-63% • Harley Davidson • Inventory turns 7 to 20 • Direct labor prod. up 50% • Rework reduction 80% • Warranty costs down by 90%’ Bus 241