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Global Management Studies
GMS 401
Robert Meiklejohn

GMS401 Final Ch 15, 17 12/12/2012 1:14:00 AM Chapter 15: Just-in-Time and Lean Production  JIT: production system in which processing and movement of parts/modules/work-in-process occur as they are needed, usually in small batches  Lean production: JIT in broad sense, philosophy of waste redution and continuous improvement  JIT often contrasted with MRP o MRP relies on a computer based component scheduling system to trigger and “push” production and deliveries through the process o JIT relies on visual signals to trigger and “pull” production and deliveries  Shingo Prize: for world-class lean systems Goals  A balanced rapid flow – goal includes elimination of unevenness and overburden, can be achieved by supporting goals o Elimination of disruptions: disruptions are caused by poor quality, equipment breakdowns, changes to schedule/customer demand, late deliveries o System flexibility: reduction of machine set up and lead time will increase flexibility, flexibility enables system to meet changing demand o Elimination of waste:  Overproduction  Unecessary inventory  Waiting  Uncessary transportation  Over processing  Inefficient work methods/excess motions  Producing defective products  Underutilization of knowledge/skill o Continuous improvement – Kaizen is based on:  Improvement should be done gradually and continuously  Everyone should be involved  It does not require great sums of money on tech or consultants  It can be applied everywhere  Involves learning by doing, using scientific thinking  Kaizen relies on direct observation and data collection  Tools used to achieve goals are: o Product design o Process design o Personnel and organizational element o Planning and control Product Design  Quality function deployment (QFD) must be used to capture voice of customers and deploy it on final product  Products should be designed for easy manufacturing and assembly (DFM, DFA) Process Design  Balanced System o Workload is distributed evenly amongst workstations o Takt-time: the max time allowed at each workstation to complete its set of tasks on a unit, OR cycle time  Determine net time available per shift by subtracting any non-productivet ime from total shift time  Flexible system o Process design can increase production flexibility  Setup time reduction o Multipurpose equipment or attachments help reduce set up time o Workers are often trained to do their own setups  Cellular layout o A cell is highly specialized/efficient production centre o Advantanges  Faster throughput, less material handling, reduced space requirements o Disadvantages:  Machines may not be fully utilized, bringing machines close together may raise safety issues  Process Quality o Because of low inventories in JIT, important to prevent defects from occurring o Poka-yoke: any mechanism that helps an equipment operator avoid mistakes o Automation: intelligent automation o Jidoka: Japanese term for quality at the source o Poka-yoke and automation assist in Jidoka o Andon: set of lights used at each workstation to signal problems or slowdowns  Standardized processes o Provides consistency and repeat-reliability, system can be learned and constantly improved  Little Inventory o Inventories are buffers that tend to cover up recurring problems that are never resolved b/c they aren’t obvious and the precense of inventory makes them less serious  Machine break down: doesn’t disrupt system if there is excess inventory  Quality problems, unreliable vendors, scheduling problems Personnel/Organization  Workers as assets o Well trained/motivated workers with high morals are heart of JIT/Lean system o Cross-trained to perform several steps of a process  Leadership o Managers are expected to be facilitators, not just give orders o Encourages two-way communication  Non-manufacturing support o Support is needed from sales/marketing for product design, from accounting for product costing, from HR for hiring and training good employees Planning and Control  Level Loading o Method for determining a level mixed-model sequence is:  Determine due time for each unit of each product/model, so that units of product/model are evenly distributed throughout the day  Sequence the units of all products or models based on their “due times” (smallest to largest)  Pull system and Kanban o Push system: bas
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