COMMERCE 2OC3 Lecture Notes - Lecture 16: Scientific Method, Kaizen, Organizational Culture

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CHAPTER 16: JIT AND LEAN OPERATIONS
TOYOTA MOTOR CORPORATION
Largest vehicle manufacturer in the world with annual sales of over 9 million vehicles
Success due to two techniques, JIT and TPS
Continual problem solving is central to JIT
Eliminating excess inventory makes problems immediately evident
Central to TPS is employee learning and a continuing effort to produce products under
ideal conditions
Respect for people is fundamental
Small building but high levels of production
Subassemblies are transferred to the assembly line on a JIT basis
High quality and low assembly time per vehicle
JIT/LEAN OPERATIONS
Good production systems require that managers address three issues that are pervasive and
fundamental to operations management: eliminate waste, remove variability, and improve
throughput
JUST-IN-TIME, TPS, AND LEAN OPERATIONS
JIT is a philosophy of continuous and forced problem solving via a focus on throughput
and reduced inventory
TPS emphasizes continuous improvement, respect for people, and standard work
practices
Lean production supplies the customer with their exact wants when the customer wants it
without waste
JIT emphasizes forced problem solving
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TPS emphasizes employee learning and empowerment in an assembly-line environment
Lean operations emphasize understanding the customer
ELIMINATE WASTE
Waste is anything that does not add value from the customer point of view
Storage, inspection, delay, waiting in queues, and defective products do not add value
and are 100% waste
OHNO’S SEVEN WASTES
Overproduction
Queues
Transportation
Inventory
Motion
Overprocessing
Defective products
ELIMINATE WASTE
Other resources such as energy, water, and air are often wasted
Efficient, sustainable production minimizes inputs, reduces waste
Traditional “housekeeping” has been expanded to the 5Ss
THE 5S’S
Sort/segregate – when in doubt, throw it out
Simplify/straighten – methods analysis tools
Shine/sweep – clean daily
Standardize – remove variations from processes
Sustain/self-discipline – review work and recognize progress
Two additional Ss
Safety – build in good practices
Support/maintenance – reduce variability and unplanned downtime
JUST-IN-TIME (JIT)
Powerful strategy for improving operations
Materials arrive where they are needed when they are needed
Identifying problems and driving out waste reduces costs and variability and
improves throughput
Requires a meaningful buyer-supplier relationship
JIT & COMPETITIVE ADVANTAGE
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Document Summary

Largest vehicle manufacturer in the world with annual sales of over 9 million vehicles. Success due to two techniques, jit and tps. Continual problem solving is central to jit. Eliminating excess inventory makes problems immediately evident. Central to tps is employee learning and a continuing effort to produce products under ideal conditions. Small building but high levels of production. Subassemblies are transferred to the assembly line on a jit basis. High quality and low assembly time per vehicle. Good production systems require that managers address three issues that are pervasive and fundamental to operations management: eliminate waste, remove variability, and improve throughput. Jit is a philosophy of continuous and forced problem solving via a focus on throughput and reduced inventory. Tps emphasizes continuous improvement, respect for people, and standard work practices. Lean production supplies the customer with their exact wants when the customer wants it without waste. Tps emphasizes employee learning and empowerment in an assembly-line environment.

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