MGOC20H3 Chapter Notes - Chapter 16: Jelly Bean, Toyota Production System, Taiichi Ohno
Document Summary
Incomplete or inaccurate drawings, specifications, and bills of material step of production process, drive down costs, and win orders. Just-in-time (jit: materials arrive where they are needed only when they are needed, jit reduces costs associated with excess inventory, cuts variability and waste, and improves throughput. Jit layout: reduce another kind of waste movement, movement of material on factory floor not add value. Increased flexibility: office furniture, equipment, official walls, computer connections, and communications moveable, layout flexibility aids changes that result from product and process improvements that are inevitable. Reduced space and inventory: jit layouts reduce travel distance, reduce inventory by removing space for inventory. Jit inventory: just-in-time inventory minimum inventory necessary to keep a perfect system running, exact amount of goods arrives at moment it is needed. Reduce inventory and variability: uncovers rocks that represent variability and problems currently being tolerated.
