businessStudiesoverviewJIT

1、Business StudiesJust-in-Time (JIT) SystemsTotal Quality Management (TQM)1Three Elements of JIT2OutlineJust-in-Time PhilosophySuppliersGoals of JIT PartnershipsConcerns of SuppliersJIT LayoutDistance ReductionIncreased FlexibilityImpact on EmployeesReduced Space and Inventory3Outline - continuedInven

2、toryReduce VariabilityReduce InventoryReduce Batch/Lot SizesReduce Setup CostsSchedulingLevel SchedulesKanbanQualityEmployee EmpowermentJIT in Services4Learning ObjectivesWhen you complete this supplement, you should be able to :Identify or Define:Types of wasteVariabilityKanbanDescribe or Explain:J

3、ust-in-Time (JIT) philosophyPull systemsPush systemsThe goals of JIT partnershipsThe impact of JIT on layoutHow JIT affects quality and employees5Waste is anything other than the minimum amount of equipment, materials, parts, space, and workers time, which are absolutely essential to add value to th

4、e product. Shoichiro Toyoda President, ToyotaIntroductory Quotation6Management philosophy of continuous and forced problem solvingSupplies and components are pulled through system to arrive where they are needed when they are needed.What is Just-in-Time?7Attacks wasteAnything not adding value to the

5、 productFrom the customers perspectiveExposes problems and bottlenecks caused by variabilityDeviation from optimumAchieves streamlined productionBy reducing inventoryWhat Does Just-in-Time Do?8The 5Ss stand for: Seiri - Proper Arrangement Seiton - Orderliness Seiso - Cleanliness Seiketsu - Cleanup S

6、hitsuke - Discipline9OverproductionWaitingTransportationInefficient processingInventoryUnnecessary motionProduct defectsTypes of Waste10Waste Reduction (%)82%50%50%30%30%20%40%0%20%40%60%80%100%Work-in-Process InventoryRaw Material InventoryLead TimeSpaceFinished Goods InventoryScrapSetup TimeJIT Re

7、duced Wasteat Hewlett-Packard11Variability Occurs BecauseEmployees, machines, and suppliers produce units that do not conform to standards, are late, or are not the proper quantityEngineering drawings or specifications are inaccurateProduction personnel try to produce before drawings or specificatio

8、ns are completeCustomer demands are unknown12Push versus PullPush system: material is pushed into downstream workstations regardless of whether resources are availablePull system: material is pulled to a workstation just as it is needed13Suppliersreduced number of vendorssupportive supplier relation

9、shipsquality deliveries on time Layoutwork-cell layouts with testing at each step of the processgroup technologymovable, changeable, flexible machineryhigh level of workplace organization and neatnessreduced space for inventorydelivery direct to work areasJIT Contribution to Competitive Advantage14I

10、nventorysmall lot sizeslow setup timesspecialized bins for holding set number of partsSchedulingzero deviation from scheduleslevel schedulessuppliers informed of schedulesKanban techniquesJIT Contribution to Competitive Advantage - continued15JIT Contribution to Competitive Advantage - continuedPrev

11、entive Maintenancescheduleddaily routineoperator involvementQuality Productionstatistical process controlquality by suppliersquality within firm16JIT Contribution to Competitive Advantage - continuedEmployee Empowermentempowered and cross-trained employeesfew job classifications to ensure flexibilit

12、y of employeestraining supportCommitmentsupport of management, employees, and suppliers17ResultsQueue and delay reduction, speeds throughput, frees assets, and wins ordersQuality improvement, reduces waste and wins ordersCost reductions, increases margin or reduces selling priceVariability reduction

13、s in the workplace, reduces waste and wins ordersRework reduction, reduces waste and wins orders18YieldingFaster response to the customer and higher qualityA competitive advantage!19SuppliersPreventive MaintenanceLayoutInventorySchedulingQualityEmployee EmpowermentJITJust-in-TimeSuccess Factors20Inc

14、oming material and finished goods involve wasteBuyer and supplier form JIT partnerships JIT partnerships eliminateUnnecessary activitiesIn-plant inventoryIn-transit inventoryPoor suppliers Suppliers21FewNearbyRepeat businessAnalysis to enable desirable suppliers to become or stay price competitiveCo

15、mpetitive bidding mostly limited to new purchasesBuyer resists vertical integration and subsequent wipeout of supplier businessSuppliers encouraged to extend JIT to their suppliersCharacteristics of JIT Partnerships Suppliers22Characteristics of JIT Partnerships QuantitiesSteady output rateFrequent

16、deliveries in small-lot quantitiesLong term contract agreementsMinimal paperworkDelivery quantities fixed for whole contract termLittle or no permissible overage or underageSuppliers package in exact quantitiesSuppliers reduce their production lot sizes or store unreleased material23Minimal product

17、specifications imposed on suppliersHelp suppliers to meet quality requirementsClose relationship between buyers and suppliers quality assurance peopleSuppliers use process control charts instead of lot-sampling techniquesCharacteristics of JIT Partnerships Quality24Characteristics of JIT Partnership

18、s ShippingScheduling of inbound freightGain control by use of company-owned or contract shipping and warehousing25Goals of JIT partnershipsElimination of unnecessary activitiesElimination of in-plant inventoryElimination of in-transit inventoryElimination of poor suppliers26DiversificationPoor custo

19、mer schedulingFrequent engineering changesQuality assuranceSmall lot sizesPhysical proximitySupplier Worries27Streamlined ProductionFlow with JITTraditional FlowCustomersSuppliersCustomersSuppliersProduction Process (stream of water)Inventory (stagnant ponds)Material(water in stream)28JIT objective:

20、 Reduce movement of people and materialMovement is waste!JIT requiresWork cells for product familiesMoveable or changeable machinesShort distancesLittle space for inventoryDelivery directly to work areasLayout29Process LayoutWork CellSawLatheGrinderHeatTreatLatheLatheLatheSawHeatTreatGrinderGrinderP

21、ressPress11234526SawPressWork Cell versus Process Layout30Layout TacticsBuild work cells for families of productsMinimize distanceDesign little space for inventoryImprove employee communicationUse poka-yoke devicesBuild flexible or movable equipmentCross train workers to add flexibility31Traditional

22、: inventory exists in case problems ariseJIT objective: Eliminate inventoryJIT requiresSmall lot sizesLow setup timeContainers for fixed number of partsJIT inventory: Minimum inventory to keep system runningInventory32JIT Inventory TacticsUse a pull system to move inventoryReduce lot sizeReduce setu

23、p timeDevelop Just-in-Time delivery systems with suppliersDeliver directly to point of usePerform-to-scheduleReduce setup timeUse group technology33ScrapWork in process inventory level(hides problems)Unreliable VendorsCapacity ImbalancesLowering Inventory Reduces Waste34ScrapReducing inventory revea

24、lsproblems so they can be solved.Unreliable VendorsCapacity ImbalancesWIPLowering Inventory Reduces Waste35ScrapReducing inventory revealsproblems so they can be solved.Unreliable VendorsCapacity ImbalancesWIPLowering Inventory Reduces Waste36Customer orders 10Lot size = 5Lot 1Lot 2Lot size = 2Lot 1

25、Lot 2Lot 3Lot 4Lot 5Reducing Lot Sizes Increases the Number of Lots37Which Increases Inventory CostsLot SizeCostHolding CostTotal CostSetup CostOptimal Lot SizeSmallerLot Size38Unless Setup Costs are ReducedLot SizeCostHolding CostTotal CostSetup CostOriginal optimal lot sizeNew optimal lot size39St

26、eps to Reduce Setup TimeInitial Setup TimeSeparate setup into preparation, and actual setup, doing as much as possible while the machine/process is running (save 30 minutes)Move material closer and improve material handling (save 20 minutes)Standardize and improve tooling (save 15 minutes)90 min60 m

27、in45 min25 min15 minUse one-touch system to eliminate adjustments (save 10 minutes)Training operators and standardizing work procedures (save 2 minutes)Step 1Step 2Step 3Step 4Step 513 minStep 440Involves timing of operationsJIT requiresCommunicating schedules to suppliersLevel schedulesFreezing par

28、t of schedule nearest due dateSmall lotsKanban techniquesScheduling41JIT Scheduling TacticsCommunicate the schedule to suppliersMake level schedulesFreeze part of the schedulePerform to scheduleSeek one-piece-make and one-piece-moveEliminate wasteProduce in small lotsUse kanbansMake each operation p

29、roduce a perfect part42Reduce ripple effect of small variations in schedules (e.g., final assembly) Production quantities evenly distributed over time (e.g., 7/day)Build same mix of products every dayResults in many small lotsItemMonthly QuantityDaily QuantityA402B603Level Schedules43Small versus La

30、rge LotsAAABBBCJIT Small LotsLarge-Lot ApproachTimeTimeAABBBCAAABBBBBBCCJIT produces same amount in same time if setup times are loweredSmall lots also increase flexibility to meet customer demands44Japanese word for cardPronounced kahn-bahn (not can-ban)Authorizes production from downstream operati

31、onsPulls material through plantMay be a card, flag, verbal signal etc.Used often with fixed-size containersAdd or remove containers to change production rateKanban45All activities involved in keeping equipment in working orderDone to prevent failureJIT requiresScheduled & daily PMOperator performs P

32、MKnows machinesResponsible for product qualityPreventive Maintenance (PM)46JIT Quality TacticsUse statistical process controlEmpower employeesBuild failsafe methods (poka-yoke, checklists, etc.)Provide immediate feedback47Getting employees involved in product & process improvementsEmployees know job

33、 best!JIT requiresEmpowermentCross-trainingTraining supportFew job classifications 1995 Corel Corp.Employee Empowerment48JIT in ServicesAll the techniques used in manufacturing are used in servicesSuppliersLayoutsInventoryScheduling49Total Quality ManagementTQM PhilosophyPhilosophy of TQM revolves a

34、round customer driven management. Its major emphasis is on determining customer need or expectation from the product. Total Quality is the culture of the organisation.It is attitude of people how they perform their assigned work with aims to provide, customers with products and services that satisfy

35、 their needs. The culture change means all members of the organisation participate in the improvement of process, products, and services. 50TQM Philosophy“Do the right things, right the first time, every timeYou must put a quality product into QC before you can expect to get out one, otherwise wasta

36、ge (or rework) will be very high.51Total Quality ManagementCommitment to quality throughout organisationPrinciples of TQMCustomer-orientedLeadershipStrategic planningEmployee responsibilityContinuous improvementCooperationStatistical methodsTraining and education52Pillars of TQM1- Customer Focus: St

37、udying customer needs, gathering customer requirements, and measuring and managing customer satisfaction. Customer satisfaction is seen as the companys highest priority. The company believes that it will only be successful if its customers are satisfied. 2- Process Management: Develop a production p

38、rocess that reduce the product variations. Applying the same process; the same product should be produces with the same level of quality every time. Teams are process-oriented, and interact with their internal customers to deliver the required results. Managements focus is on controlling the overall

39、 process, and rewarding teamwork. 533- Human side of Quality: TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. On-going education and training of all employees supports the drive for quality. 4- Continuous Improvement: TQM re

40、cognizes that product quality is the result of process quality. As a result, there is a focus on continuous improvement of the companys processes. This will lead to an improvement in process quality. In turn this will lead to an improvement in product quality. Measurement and analysis id the tool th

41、at has been used for that. Pillars of TQM54Continuous Improvement (through measurement and analysis)Customer FocusProcessManagementEmployee Training & EmpowermentT. Q. M.Reduce rework activities (Cost reduction) Shorter development cycle (Cost reduction) Increased customer satisfaction (Quality impr

42、ovement) Pillars of TQM55Other elements of TQMLeadershipVision and Plan StatementEmployee ParticipationRecognition and RewardEducation and Training Supplier Quality ManagementPerformance EvaluationProduct Design 56LeadershipThe ability of top management to establish, practice, and lead a long-term v

43、ision for the firm, driven by changing customer requirements, as opposed to an internal management control role.Lack of top management commitment is one of the reasons for the failure of TQM efforts (Brown et al. 1994). A predominant requirement for quality management is that strong commitment from

44、top management is vital. To be an effective leader in most modern firms, the top manager must continue to develop and learn. Knowledge of the business and continual learning are essential prerequisites to effective leadership (DuBrin, 1995). 57LeadershipIn order to effectively lead the firm, top man

45、agement must be committed to provide education and training to employees and regarding them as valuable resources of the firm. Top management must be committed to allocating sufficient resources to prevent, as well as repair, quality problems. Top management should discuss quality frequently; by hav

46、ing session on the topic and asking questions about quality at every staff meeting. Top management must train and coach employees to assess, analyze, and improve work processes (Deming, 1986). 58Employee ParticipationEmployee participation can be defined as the degree to which employees in a firm en

47、gage in various quality management activities. By participating in quality management activities, employees acquire new knowledge, see the benefits of the quality disciplines, and obtain a sense of accomplishment by solving quality problems. A remarkable characteristic of employee participation is t

48、eamwork. Breakdown barriers between departments. People in research, design, sales, and production must work as a team (Demings 9th point). If several knowledgeable people are brought into the decision-making process, a number of worthwhile possibilities may be uncovered.59Employee ParticipationTQM

49、implementation practice is formation of short-term problem-solving teams (SEPG). Problem-solving teams work on a wide variety of tasks, ranging from cross-functional involvement in tackling quality problems to solving within-functional quality problems. TQM firms create employee suggestion systems.

50、Production workers should regularly participate in operational decisions such as planning, goal setting, and monitoring of performance. They are encouraged to make suggestions and take a relatively high degree of responsibility for overall performance.Employees should be encouraged to inform manager

51、s or supervisors concerning conditions that need correction (e.g., process defects, incompetent staff and poor tools). 60Recognition & RewardRecognition is defined as the public acknowledgment of superior performance of specific activities. Reward is defined as benefits, such as increased salary, bo

52、nuses and promotion, which are conferred for generally superior performance with respect to goals (Juran and Gryna, 1993). Public recognition is an important source of human motivation. Important feature of any quality improvement program is the showing of due recognition for improved performance by

53、 any individual, section, department or division within the firm. A large majority of firms implementing TQM modify their performance measurement and reward systems so that achievement of specific quality goals can be assessed and rewarded.61Education & Training Training programs attempt to teach em

54、ployees how to perform particular activities or a specific job.Institute a vigorous program of education and self-improvement (Demings 13th point). According to Deming, Japanese firms obviously regard their employees as their most significant competitive assets and provide good general orientation a

55、s well as training in specific skills. According to Feigenbaum, a brief and general course for first-line supervision is modern methods of planning and controlling quality, concentrating essentially upon the physical elements affecting product quality. 62Performance Evaluation Evaluation can identif

56、y the difference between actual and the expected performance. Evaluation information should be communicated to employees in order to encourage employees to make things better. Uncontrolled variance in processes or outcomes is the primary cause of quality problems and must be evaluated and controlled by those who perform the firms front-line work. It is important to note that the major aim of evaluation is improvement, NOT criticism. 63Good Managers (Leaders) Give priority attention to customer